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Morning Brief: Tech Rallies Off Key Earnings

After a brutal tech sell off in January, the first trading of February is showing signs that the market might be coming off life support. GOOG pathed the path in after-hours, posting huge numbers. Earnings rose by a third to $30.69 a share (compared to $22.30 per share a year ago), while revenue of $75B (32% Y/Y) came in more than $3.5B ahead of analyst expectations. GOOG wasn't done there, also stating that there will be a 20 to 1 stock split. This is going to make it a much more viable option for retail investors, as the ~3,000 price point was way too expensive to add it into most small retail portfolios (i.e) terrible Reddit Traders on Robin Hood). The downside to this is that if you are selling theta, you will have a lot less room for error, as swings will usually come down , as you won't have 400 point swings. This happened to NVDA when it split, and I didn't enjoy the change too much.


#NVDA is seeing quite the surge as well, up 5.53% in pre market this morning, breaking into 260 territory . It is much needed after being down 17% in January. NVDA crossed below 1W Equity Risk Premium on trading EPS. This is probably a catalyst for the option call sweeps we have been seeing.


#VIX is continue to drop , as the market continues to rise, as traders are no longer putting on hedging against a market drop. The VIX is down to 21.46 , sliding to the lowest number we have seen in a while. If the market starts to slide against resistance today, look to get in some calls here for Friday, as the VIX has room to move up to 30+.



#NFLX is still seeing the boost from the Ackerman entry via Pershing Square. In the past, anything Ackerman had touched turned south, when his fund went from $20 Billion to just below $7 Billion in the wake of his anti bet against Herbalife and others. NFLX has been on a tear since, and CEO Hastings added to the boost, buying $20 million of shares himself. I think there might be a correction down in the near future so will keep an eye on this.


EARNINGS:


#Metaverse(FB) is set to have earnings in the coming sessions, which could see bounces as the world continues to eye the meta verse hype. An absurd amount of money has been coming in, with Snoop Dog even buying land in Decentraland.


#AMZN will also post earnings, which I expect to be great as well, and we can continue to see the tech gravy train coming back in.


 

In Asia, Japan +1.7%. Hong Kong closed. China closed. India +1.3%.

In Europe, at midday, London +0.8%. Paris +0.6%. Frankfurt +0.5%.

Futures at 6:20, Dow +0.2%. S&P +0.9%. Nasdaq +1.7%. Crude +0.2% $88.39. Gold +0.1% at $1802.70. Bitcoin +0.6% to $38,520.

Ten-year Treasury Yield -2 bps to 1.78%


 



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