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Tech Stocks are Selling Off, Have They Reached Their Peak?

Tech Stocks are Selling Off, Have They Reached Their Peak?

Posted On July 24, 2020 2:02 pm
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Investors who have major tech stocks in their portfolio should brace for potential volatility this earnings season, CNBC’s Jim Cramer said Thursday.

“If you want to own these stocks right now, you’ve got to be willing to take some pain. You’re going to have to watch the rest of the market catch up a bit to them while they decline in value,” the “Mad Money” host predicted. “But at some point, they’ll make a comeback, because these are indeed the best companies on Earth.”

Cramer’s comments come ahead of a jam-packed earnings schedule next week, with tech giants AppleFacebook and Google-parent Alphabet all scheduled to report. E-commerce giant Amazon also is set to report.

All of this will take place against the backdrop of this week’s reports from Microsoft and Tesla, which both saw selling pressure after releasing their quarterly numbers, Cramer said. A similar situation ensued for Netflix, he added.

“All these Big Tech stocks trade together, and when you kick off earnings season with such disappointing action, well, it doesn’t bode well for the rest of the group,” Cramer said.

But Cramer said long-term investors in these stocks should not be too concerned about any potential selling in these stocks. It just might be that they’re coming into the quarter “too hot,” he said. Plus, he said, the CEOs of Apple, Google, Amazon and Facebook are set to testify before Congress early next week.

Wall Street reacted poorly to Netflix’s quarter, primarily as a result of the weak guidance for new subscribers, Cramer said. Some analysts raised concerns about Microsoft’s Windows forecast, he said, while other people broached concerns about Tesla’s revenue from the sale of regulatory carbon-emissions credits to other automakers.

No matter the qualms that may have contributed to…

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