By coinnews 
00:00 Speaker A
It’s time now for today’s strategy session. Four of the magnificent seven stocks set to report earnings this week. Meta and Microsoft due out Tuesday, Amazon and Apple set to report Thursday. Joining us now, we’ve got Dominic Rizzo, who is the T-Ro Price Global Technology Fund portfolio manager. Great to have you here with us. So, I just want to get your expectations and the tone you’re expecting from some of these magnificent seven names, these components reporting this week.
00:28 Dominic Rizzo
Well, first off, great to be back, guys. Um, and, you know, when I’m looking at these mag7 names, and frankly, when I’m looking at the broader technology universe, I’m cautiously optimistic heading into this week. You know, what we saw the last couple weeks of earnings is relative strength across software, semis, internet, and I think that will kind of extend into these mag7 names as they’re coming up. Um, but it’s really all going to come down to fundamentals. I thought the last spot right around where we are from a technical basis is a really great point. You know, this, this week’s really going to determine whether or not last week was just a bear, bear market rally or the start of a new, uh, a new bull market acceleration. And I’m, I’m cautiously optimistic that we’re going to remain in that bull market.
01:31 Speaker A
It’s, it’s interesting, Dominic, because I was having a conversation with a source over the weekend who talks to a lot of CEOs, and the source was telling me that sometimes CEOs are incentivized to give perhaps a little bit more optimistic picture than is the reality on earnings calls because of the way that analysts will ding them if they don’t. So how much can you trust the story that is spun on these earnings calls, especially for the tech names where expectations are so sky high?
02:05 Dominic Rizzo
Well, you know, if I look at the global technology universe, I actually think expectations have come down quite a bit from where they were in February, right? So if we look at the global technology universe, it’s trading at roughly 20 to 21 times earnings today. That peaked in February at 27 and 28 times earnings. And because of the volatility that we saw in April, right? I, where expectations exactly are is actually pretty tough to, to gauge heading into this week. But, you know, if we look at valuations, I think they’re relatively reasonable, and again, we’re at that 20 times level. Historically, we’ve kind of bottomed out mid-teens, and we would see a good time to sell in 27 to 28. So I, I, I think they’re relatively okay heading into this week. In terms of how CEOs communicate on their, their stock earnings calls, I mean, I think the great thing about the stock market is it’s impossible to trick, right? You know, the mar, the market is able to tell if, if things are getting better or worse, or we’re going to see accelerating fundamentals or decelerating fundamentals. Um, and I think that that’s what we saw all last week, right? Take, take a look the analog semiconductor names. Um, the companies called the Q1 bottom, and the market believed them. And, and, and, and I think we’re going to see some strong follow-through in those names.