Today’s episode of Full Court Finance at Zacks dives into the market’s continued strength to start the third quarter. The episode then explores Netflix (NASDAQ:NFLX) NFLX and Snap SNAP ahead of their upcoming second quarter earnings releases to see if investors might want to buy either of the stocks for long-term growth within technology.
Investors pushed the market to records to start Q3, with the Nasdaq and the S&P 500 both touching new highs again Tuesday morning, before slipping. Wall Street bulls began to dive back into technology in mid-May when many of the strongest tech stocks and big covid-winners reached more attractive buying points.
The Nasdaq has rebounded somewhat quickly every time there is a pullback or correction since the initial post-covid surge. Investors have bought up tech names including the giants such as Apple AAPL and Microsoft MSFT, sending them to records as the reopening trade slows. The tech and growth stock resurgence coincides with falling bond yields.
Even before Treasury yields slipped—with some of the pullback due to technical factors—many likely understood the market would be left chasing returns in equities even when the Fed raises rates. The simple fact is that yields are poised to remain low by historical standards for the foreseeable future, prolonging there is no alternative investing.
Investors need to remain focus on rising prices. But the market has decided to remain bullish during the low volume summer months by focusing on the improving and largely-reopened U.S. economy, along with the impressive and constantly improving S&P 500 earnings picture (also read: Previewing Q2 FY21 Bank Earnings).
The big banks unofficially kicked off second quarter earnings season this week. We used this opportunity to look ahead to two standout names in tech set to report during the week of July 19.
Netflix has significantly underperformed the market and its tech peers over the last year, but it remains the largest streaming TV firm and is prepared to thrive despite the growth of Disney DIS and others.
Meanwhile, Snap has carved out a great space within social media and it reaches highly sought-after demographics. This is key as more people move away from ad-supported legacy media.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon (NASDAQ:AMZN) did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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Apple Inc. (NASDAQ:AAPL): Free Stock Analysis Report
Microsoft Corporation (NASDAQ:MSFT): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (NYSE:DIS): Free Stock Analysis Report
Snap Inc. (NYSE:SNAP): Free Stock Analysis Report
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