This article was originally published on ETFTrends.com.
Last Friday, the Nasdaq Composite shed 1.46% and continued its slide on Monday morning with the index down over 80 points as of 11:10 a.m. ET.
Likewise, technology ETFs responded to the index-- Invesco QQQ Trust (QQQ) --down 0.98%, Technology Select Sector SPDR ETF (XLK) --down 1.20%, Vanguard Information Technology ETF (VGT) --down 1.21%, First Trust Dow Jones Internet ETF (FDN) --down 1.80%, and iShares US Technology ETF (IYW) --down 1.30%.
Facebook's meltdown last week following their latest earnings report and worst trading day ever seems to have carried over to the start of this week's trading session. Even with Amazon smashing consensus expectations with $5.07 earnings per share versus an expected $2.50 EPS in their second-quarter earnings report last week, it hasn't been enough to tow the FANG stocks (Facebook, Apple, Netflix, and Alphabet) and the rest of the tech sector out of its funk.
Facebook was down 3.6% while Netflix lost 3.9%. Other names bringing down the Nasdaq were Take-Two Interactive Software Inc, Electronic Arts and Workday Inc--down 12.7% in the aggregate.
"I wouldn't buy them (FANG stocks) today. I would buy them on a correction," said Paul Meeks of investment firm Sloy, Dahl & Holst. A correction marks a 10 percent pullback from 52-week highs. "They will have a slip up at some point and these stocks won't go down 2 percent, they'll go down 20 percent because they're volatile tech names and that's your buying opportunity."
Technology could get a much-needed boost when Apple reports their earnings on Tuesday. Analysts polled by FactSet expect Apple to post $61.14 billion (up 15% annually) of revenue and a GAAP EPS figure of $2.16 in a season which has historically been the company's weakest.
For more market trends in technology ETFs, click here.
POPULAR ARTICLES FROM ETFTRENDS.COM
- Is Now the Right Time to Buy Facebook?
- Managed Risk ETFs: Taking a Page from Insurers’ Playbook
- Custom Global Market Indexes May Be Sounding Alarms
- What Does the First Half of the Year Tell Us About What’s Coming?
- A Walk Through the First 60 Days of Retirement