Big Tech earnings are on the horizon, with Tesla (TSLA) and Alphabet (GOOG, GOOGL) kicking things off on July 23.So how should investors prepare?

Matt Stucky, Chief Portfolio Manager at Northwestern Mutual Wealth Management, advises keeping track of the trends that have been driving Big Tech stocks. Stucky mentions the ongoing health of advertising, noting that Alphabet and Meta (META) have the opportunity to take advantage of the improving ad environment.

Stucky continues by discussing how strong fundamentals are more relevant than valuations in the short run, considering the upcoming earnings and their influence over the market. He concedes, "It's not until you start to see revision trends rollover that’s where the valuation concerns really come into the investor mindset."

When asked about where investors should look to invest their money within tech, Stucky notes that he is not advising clients to blindly dump money into mega-cap tech. Instead, he suggests keeping a long-term investment horizon while continuing to diversify their portfolio, using small-cap stocks as an example.

Switching gears to CrowdStrike (CRWD) and cybersecurity as a whole, Stucky explains the prominence of security as a cemented trend year after year. He uses the recent crash as an example of the necessity of IT resilience and the potential for further spending in the IT sector.

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This post was written by John Lesinski