Tech Stocks Get Hit On NFLX and TSLA Earnings

Benzinga

Both companies reported earnings after the close on Wednesday.

Transcript

00:00 what happened yesterday, and of course,

00:02 what happened in the overnight action,

00:05 as it seems like we're in another rotation station.

00:08 - I mean, let's just talk about

00:10 what's happened last night here.

00:12 And you have, we'll just summarize it all,

00:15 and then we'll get into the details on all these reports.

00:18 But you have Netflix, which actually had an okay report,

00:21 but the stock gets hammered.

00:23 You have Tesla, which was holding up,

00:25 and then the conference call happens,

00:26 and the stock gets hammered.

00:27 You have the Qs getting bashed,

00:29 every tech stock getting hit hard last night.

00:33 And what, and then you start seeing it go across the board,

00:35 and they start hitting all stocks.

00:37 But what has happened here this morning?

00:39 They're like, "Oh, wait a second, wait a second.

00:41 "We don't just sell stocks, though.

00:42 "If we're gonna sell tech stocks,

00:44 "we've gotta buy something else."

00:46 So you've got the banks showing continued strength,

00:49 which they've been building on.

00:50 The IWM is up substantially here.

00:53 And there's another, like obviously, rotation.

00:57 The value trade.

00:57 So they're like, "Well, we're not gonna buy tech.

00:59 "We're gonna buy value."

01:00 And that's the way it's gonna be.

01:02 And this market just has unbelievable rotation

01:06 that holds it up.

01:07 If you're a bear, and you see Netflix last night

01:11 down 40 points, and Tesla down 15,

01:13 and those have already bounced from the lows.

01:15 But if you saw that last night,

01:17 and you said that S&Ps are gonna be down four points,

01:20 you'd be like, "Well, that doesn't even make any sense.

01:21 "Of course it's gonna be down more than that."

01:23 Nope.

01:24 So rotation, absolutely incredible.

01:26 Bulls continue to remain in charge.

01:29 And if you are a bear,

01:31 you have got to be massively disappointed

01:34 to come in and see the S&P down four points here.

01:37 This is problems for the bears.

01:38 - Well, I can tell you at least,

01:40 I'm in that bear camp a little bit, Dennis.

01:42 I didn't go and short Tesla or Netflix,

01:45 but I played a little SQQQ overnight.

01:48 And that's just 'cause I was thinking that,

01:50 yeah, maybe we get a little bit of a hit, little leak.

01:52 It was just an overnight swing.

01:54 It's not that I think that,

01:55 we're gonna destroy the Q's today,

01:57 but I thought we could get at least some pullback

02:00 because I looked at that Q's daily chart,

02:03 and I could see it pretty extended away from the 90 a May.

02:06 And a lot of times we're getting these little moves up,

02:08 couple of days green, and then a couple of days pullback.

02:11 And it doesn't mean that we're gonna crack here.

02:15 Sorry for my camera.

02:17 But yeah, just gonna be watching the Q's,

02:18 especially today to see if we do see a continued leak.

02:21 But I see it the same way you see it, Dennis.

02:24 The rotation is wicked.

02:27 The financials getting strong again.

02:30 Industrials are strong.

02:32 If energy can come and lift again,

02:34 it just seems like even though

02:36 when we get a hit on technology,

02:38 the other sectors just continue to rise.

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