Tuesday, October 15, 2024

1 of the Most Important Tickers Is About to Kick Off Earnings Season for Tech

Join me at 9:15 a.m. ET for “Morning Monster”!
 
   
     

1 of the Most Important Tickers Is About to Kick Off Earnings Season for Tech
 
 
Netflix (NFLX) is set to report earnings after the close this Thursday, and while it’s no longer part of the "Magnificent 7" — Microsoft, Amazon, Meta, Apple, Nvidia, Alphabet (Google), and Tesla — it still plays a major role in shaping market sentiment. 

Even though Netflix was once part of the original group of FAANG stocks, its influence hasn’t disappeared, and traders should keep an eye on how this report unfolds.

What makes this earnings report particularly interesting is the context in which it’s happening…

We’ve already seen the usual money flow into financials with the start of the Q4 earnings season. Big banks like JPMorgan, Citibank, Bank of America and Goldman Sachs have already reported, and we’ll likely see more movement as Morgan Stanley and U.S. Bank come up. But here’s the thing: The money always flows from financials into big tech. 

And Netflix is one of the first BIG tech stocks to report.

Netflix’s results will set the tone for other tech giants reporting later in the season. And if it surprises with strong earnings and forward guidance, we could see a broader rally in tech. 

However, if its numbers disappoint — especially given how volatile the streaming landscape has been — it could lead to more caution in the sector. 

Netflix is often viewed as a bellwether for consumer spending in the digital entertainment space. If people are cutting back on subscriptions, that could signal broader economic concerns. 

But if they’re sticking with their streaming services, it could be a sign that discretionary spending remains strong despite inflationary pressures.

It’s also worth noting that Netflix isn’t just a content company anymore…

It’s been dabbling in gaming, launching ad-supported tiers, and expanding internationally to tap into new markets. All of these factors will be dissected in the earnings report, and the market will be looking closely at any signs of growth — or lack thereof.

So, while Netflix might not be in the same league as Tesla or Nvidia when it comes to sheer market-moving power these days, it still has the ability to sway sentiment. 

A strong report could lift the entire tech sector, while a miss might bring caution — and with earnings season just heating up, it’ll be interesting to see where the chips fall.

Now be sure and join me for “30 Minutes of Awesome,” my weekly show at 5 p.m. ET on my YouTube channel. We’ll cover the markets and then I’ll spend time analyzing your ticker in real time. 

This is the only show I take requests on — see you there!
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*Stated results are from hypothetical options applied to real published trade alerts. From 7/10/24 - 9/18/24 the result was a 75% win rate on 514 trade signals with an average hold time of less than 24 hours on the underlying stock. Performance is not indicative of future results. Trade at your own risk and never risk more than you can afford to lose. 
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Jeffry Turnmire
Jeffry Turnmire Trading

I host my “Morning Monster” livestream at 9:15 a.m. ET each weekday on YouTube, and then “30 Minutes of Awesome” at 5 p.m. ET each Tuesday!

Please check out my channel and hit that Subscribe button!

I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.

I've been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it's the Eagle Scout in me. 


*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 
   
 

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