Big tech will face incremental challenges: Strategist
The "Magnificent Seven" — Amazon (AMZN), Apple (AAPL), Alphabet (GOOG, GOOGL), Nvidia (NVDA), Meta (META), Microsoft (MSFT), and Tesla (TSLA) — have been significant drivers of the market this year, with Nvidia leading the charge. As Nvidia gears up to report its latest earnings, many on Wall Street look to see how it may test the strength of the market. Barclays Head of US Equity Strategy Venu Krishna joins Catalysts to discuss where the broader market is headed after Nvidia's earnings and how investors should frame the current economic landscape to manage their portfolios. "If I look at Big Tech as a group and you look at the extent to which the earnings surprises have been happening in the last few quarters, they've been coming down. So if you go two quarters ago, it was almost 14 plus percent, and then last quarter is about 8, 8.5. So now it's inching lower. That's not because they're not doing well. It's because a lot of the upside and optimism is getting baked into analysts' earnings estimates ... So to your point what it does mean that going forward, the ability of these drivers of the market to continue to surprise and raise gets more challenging, right? So we do think that going forward it does get incrementally challenging," Krishna tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino
