After barely dragging higher over the last month, big tech stocks turned red hot this week.
And next week, when we get earnings from Microsoft (MSFT), APPLE (AAPL) and Facebook (FB) could be even hotter.
The rally in big tech was fueled this week by blockbuster subscription gains from Netflix (NFLX) for the fourth quarter of 2020. The stock gained 15.77% for the week ended with the January 21 close. That week’s gin orly beat out the 9.63% gain for the stock over the last month.
And that’s what we saw for other big tech stocks even though they are yet to report.
Alphabet (GOOG) was up 8.68% for the week versus 8.73% for the month. Microsoft gained 5.61% for the week versus 1.07% for the month. Amazon (AMZN) gained 5.74% for the week versus 3.14% for the month.
Microsoft is scheduled to start off the earnings parade on Tuesday, January 26. Apple and Facebook report the next day on January 27.
I expect Apple to be the big market driver next week. Wall Street expects the company to deliver all time record revenue and earnings for the holiday fourth quarter. That result would ripple out through the rest of the Apple “eco-system” of suppliers such as Skyworks Solutions (SWKS), Cirrus Logic (CRUS), Qualcomm (QCOM), and Broadcom (AVGO).
