Tesla: Production Even Close To Estimates, Huge For Earnings

It was reported by Electrek that Tesla is apparently on track with their Model 3 quarterly ramp but below their 6,000 / week target.

The ramp is just so big that small misses don’t really matter. Worrying about such precise measurements misses the big picture.

Tesla even coming close to their targets means that Q3 deliveries would jump about 90% from Q2. If they continue this pace deliveries will be up 3X by Q2 next year from this year’s Q2.

Being high or low from those weekly, monthly, or quarterly targets misses the point.

…And Really Misses The Point For Earnings

What’s most exciting about the story is of course earnings. Earnings are what drives stock prices.

Any data that expects Tesla comes anywhere close to their production or delivery targets means huge things for earnings.

Analysts were in shock on Q2 as S&X gross margins jumped from Q1. They were up anywhere from 500-1000 basis points from Q1 to Q2.

Why?

CEO Elon Musk said, “as we improve efficiency, then gross margin and so the profitability per car just improves dramatically.”

Well you saw that in Q2.

What happens to gross margins if deliveries even come close to being up 90% in Q3 from Q2?

What’s going to happen to gross margins when deliveries are up 3-fold by Q2 next year?

We think gross margins are going to jump.

Shorts Missing The Forest For The Trees

Even with all the communication blunders or smart short stories out there, they all get erased as production ramps 90% sequentially and 3-fold year-over-year.

Remember, “as we improve efficiency, then gross margin and so the profitability per car just improves dramatically.”

That’s now.

Q2 deliveries were up 36% sequentially and gross margins jumped. So for Q3 if deliveries are up 90% sequentially what’s going to happen to gross margins? Look out.

Plug

We’re speaking to Cadence, NVIDIA and Cirrus this week as well as covering the Citi tech conference. Join Us.

Looking For Tech Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.

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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Correction: added the word “sequentially” Sept 3, 2018, 9:57 AM EDT

What We’re Watching At The Citi Tech Conference

The Citi Global Technology Conference this Wednesday and Thursday is timely. We’re two months into the third quarter. Third quarters are important in tech because you have the build for the holiday season.

Investors will be looking for any hints from management how trends are progressing.

Here’s some of the things we’re looking for…

General Body Language

Frankly we want to make sure companies are still pumped about business. They should be. Tech’s been strong and demand has been strong. We want strong language that tech and demand have not slowed. That’s what the stocks need to move up. If we don’t hear that there could be risk.

DRAM Price Weakness Not Because Of Demand

We’ve heard some analysts and companies concerned that DRAM prices peaking and coming down in the spot market could be an early sign of weak demand. We don’t think so. We think supply has caught up with demand to some degree but, we’d guess demand has not slowed.

Capex Strong

Datacenter demand has been very strong at most semi players. Capex spending has been accelerating at the hyperscalers. We think that should obviously translate to continued strong trends at the datacenter. As long as capex remains very strong we have medium term visibility that this tech boom is very much in place.

Capex moving up also allays concerns of weaker DRAM pricing.

Trade Tensions

Any disruptions thanks to trade tensions?

Apple Food Chain

Apple’s launching new products September 12. Some Apple suppliers appear to have bottomed and we want to hear that Apple is bullish about the Fall launch and that inventory is lean enough for suppliers to benefit.

Stock Action

You’ll have the biggest funds meeting with the largest tech companies. Stock action matters on Wednesday and Thursday. What those huge funds hear can quickly get reflected in the stocks moving up or down. Ear to the train tracks.

Here’s the list of companies we’re watching more carefully.

Twitter Inc $TWTR
Applied Materials $AMAT
Arista Networks $ANET
Autodesk $ADSK
Checkpoint $CHKP
Cisco $CSCO
Intel $INTC
Juniper Networks $JNPR
KLA-Tencor $KLAC
Lam Research $LRCX
Maxim Integrated $MXIM
Micron $MU
Microsoft $MSFT
MKS Instruments $MKSI
NetApp $NTAP
NVIDIA $NVDA
Qualcomm $QCOM
Roku $ROKU
Skyworks Solutions $SWKS
STMicroelectronics $STM
Texas Instruments $TXN
Western Digital $WDC
Xilinx $XLNX

Conclusion

Septembers matter for the stock market and timely tech conferences like Citi this week are key. We want to hear strong trends and want to see good stock action. If we don’t get either we probably need to do a little more digging and maybe watch out.

We also have a full slate of upcoming company calls.

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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Updated September 2, 2018 11:17 AM EDT

Can Tesla Hold $300? And Some Other Random Thoughts

Source

Tesla’ stock held $300 yesterday but has been in a sharp downtrend since doubt surfaced about going private.

Go Profitable Or Go Private

At some point fundamentals will drive the shares again. Going profitable is much more valuable to shareholders than going private.

So while going private could fetch a measly $420, we still think going profitable can get the stock to $1000+ (join to see model). We may be low seeing Ark Investments expecting $4,000 per share.

Reuters ranks us with 4/5 stars for our estimates. Our numbers factor into the Street numbers. Our $1,000+ target is based on those same high ranking estimates

Timing

Tesla’s stock is for sure volatile so we want to try to build that position at good prices. Building at poor entries decreases confidence in the position. I want conviction to hold to $1,000 but to do that great entries help a lot.

Entering at strong entries helps have confidence to keep the position for the long term.

We had noted previously that there’s huge longer term support at about $280.  Yes yesterday looked like the stock can hold $300 which is a shorter term support.

But we’d note that the stock’s still been in a sharp downtrend.

How To Add

To add to a position we want to see it start moving up. We don’t mind getting in at strong long term supports because we’d expect the fundamentals will take us higher than that level. But even better than strong support levels is we’d simply want to see the stock stop moving down and start moving up. Somewhat simplistic, but it works.

We’ve seen managers go out of business by constantly averaging down. We don’t mind lower averages but only if we see the stock moving up.

We don’t mind adding even higher and missing the low. I’m never thinking I’m smart enough to catch bottoms. I’d rather see the stock move up, which others will then see and that can get things going all over again.

Earnings

Earnings report in October. Production and delivery whispers will become front and center again.

The Street seems way too low for $2.90 in 2019 based on our model. We’re at over $20.00 for 2019. That’s based on the company’s plans for 2018 and company comments on earnings calls about 2019. Sorry for the plug but our estimates are ranked highly too. We have no problem seeming way too high. Subscribers know we can be right more often than not.

Too Bearish

Analysts have been too bearish digging themselves a ditch they can’t get out of. Maybe they don’t have the experience, not sure, but going profitable is as good as you can get after years of losses.

I have no idea why analysts aren’t swiveling to accept that this story is about to get much much better. Earnings are what drive stock prices and you’re about to get a big swing in earnings as they go positive.

When Do Sell-Siders All Come Aboard

I do have an opinion why sell-siders are not swiveling. Sell-siders are also a herd. They want to see stock prices move up rather than have confidence in their work. 

We have confidence in our work to say that we expect the stock to rise big.  But when will the sell-side get aboard? They’ll jump aboard and believe in their work only when the stock hits $400 and $500. Then you’ll get all the upgrades that the story’s suddenly amazing. That’s how the sell-side works. But you knew that. They don’t get paid to predict very far or very high. That’s our opportunity to exploit.

Conclusion

I find myself writing about Tesla a lot publicly. I hear myself. This earnings inflection is so big. My whole career I’m focused on earnings. That’s what drives individual stock prices. That’s what really drives the market; that and interest rates.

So when you have a company saying we’re hitting earnings leverage as we ramp Model 3s and we’re going profitable, why not take heed?

I still read many comments and opinions out there that this company is a loss-maker. Ok, rearview mirror loss-maker. They are telling you profit. Nobody, not the sell side, not the bears, not the shorts, believe it.

That’s opportunity.

We haven’t had a multiple choice quiz in a while but I’m in the mood. Here goes. Let’s see who’s paying attention.

The ultimate driver for individual stock prices are
A) Really well articulated short stories from websites with over 30 million unique visitors.
B) Really well articulated short stories from websites with over 50 million unique visitors.
C) Really well articulated short stories from websites with over 60 million unique visitors.
D) Earnings.

This is a tough one so take your time and think about it.  Feel free to answer in comments.

Definition: Sell-side= brokerage firms that sell their research.

Looking For Tech Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.

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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Tesla Stock Had A Great Day Today

For any other day you wouldn’t think the stock being down 1% was such an accomplishment. But following Tesla’s (NASDAQ:TSLA) announcement that they were canceling their go-private plans, down 1% was a very strong performance.

What Are Shorts Expecting?

Shorts were licking their chops pre-market but again came up empty.

One thing I’m personally excited about is one simple thought process. The shorts and bears have been licking their chops for a long time now thinking this is a zero because of all the losses. But the stock has only gone up.

But what’s next? Think for a second. Profits.

After all those losses-stock-up-anyway, we’re going to get profits. What’s going to happen to the stock then? We think the simple logic-math says it’s going to go higher still.

Here’s the complex proprietary formula we came up with.

IF LOSSES = UP THEN PROFITS = AT LEAST UP

Not so hard, right?

And Musk’s Friday night blog comments said,

“…and we now need to show that we can be sustainably profitable. With all the progress we’ve made on Model 3, we’re positioned to do this, and that’s what the team and I are going to be putting all of our efforts toward.”

Nobody read that? Shorts? Bears? Anybody?

They are “positioned to do this.” What’s this? To be “sustainably profitable” based on the “progress we’ve made.” They are not one-quarter profitable. They are positioned to be sustainably profitable based on where they are right now.

So remember; losses = up stock then profits = at least up stock = rocket ship?

The stock’s action today being down only 1% on confirmation of no transaction was great action. Action, watching what the stock does versus what you would have expected, was amazing today.

The stock action today was saying many many investors are relieved that they get to share in the upside. We had said Musk wanted to keep that upside for himself by going private. In the end he felt bad but also didn’t understand the complicated web of taking a stock back from the public.

Conclusion

The simple fact that Musk wanted to go private meant that he saw incredible value in his company and wanted to lever that for himself. Investors smell that. Bears are too bearish and emotional and can’t see that going profitable is something huge. How long can they hold on as this earnings rocket ship takes off.

Looking For Tech Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.

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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Tesla: Seriously, Musk, Who Cares About The Shorts!

Congrats to Elon Musk and Tesla shareholders for the late Friday decision to stay public. We’ve mentioned our $1000+ 12 month price target. That’s based on using a 50X PE on 2019 earnings numbers considering Tesla starts going profitable in Q3 and/or Q4.

It sounded like this whole going-private idea was somewhat emotionally charged to avoid the shorts.

Who cares about the shorts, though!

Who Cares About The Shorts

We love shorts.  When we find a company and a story we love, it’s such gravy to know that there’s a huge short interest. Those are the players that are going to help send our loved stocks up into the stratosphere.

We’ve had plenty of them and it is so much more fun when there are huge shorts against us (ask subscribers).

Shorts Are Pent Up Stock Buying Demand

Seriously, Mr. Musk, the shorts are going to be your best friends. You want the stock to go up, right? We want the stock to go up.

How do you get stocks to go up, you need buyers.

Just like you have a backlog of orders for Model 3 and that gives you some comfort, you have a huge backlog of stock buyers in those shorts.

You should be loving the shorts knowing you have so much pent up buying demand.

We love the shorts.

All those bears and shorts are going to have to give-in as long as you simply (come close to) deliver what you set out too.

Who cares about the shorts? Seriously, stop calling them, chiding them, playing with them, acknowledging them. WHO CARES!

How about this: You deliver Model 3s, S&X, Y, Z, L, M, N, O, P and let them push the stock up as you deliver on all your targets. You say nothing about shorts and lose no sleep about one short. Just deliver.

The shorts have been a distraction pushing you to think about going private. The shorts are going to be your stock’s best friends.

Our best calls are stocks we love with a huge short interest. It’s an amazing thing to watch them have to cover as your earnings numbers come to fruition.

Forget about the shorts.

S&P 500, Here We Come

After you print successive profitable quarters and you are in the running to be an S&P candidate, don’t worry all the major institutions are also going to need a serious position in your stock. And, again, the shorts are going to be your best friend, helping the stock jump as these massive investors need to own giant size in Tesla.

Ignore the shorts!

Conclusion

Ignore the shorts. Don’t pay them any attention, time or energy. They are a great company’s best friend. They are your stock buyers in backlog.

Looking For Tech Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.

START FREE TRIAL

Read Reviews

All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Trade War: No News Isn’t Necessarily Good News

The US and China met the last two days to discuss trade. We’d love it if we heard of an imminent joint press conference. Maybe we’d hear some good news.

But so far we haven’t heard such news.

The Tell

Uncharacteristically, President Trump didn’t expect much to come out of this meeting. When Trump has been confident ahead of a meeting he usually comes away with something.

Not expecting much tells you Trump may have used this meeting for posturing which implies we also shouldn’t expect much.

More Pressure To Come?

Our guess is Trump will use the findings of this meeting to further hard-press China.

China’s stock market and economy have been struggling ever since The US applied pressure. Trump probably feels he has the upper hand.

We wouldn’t guess much comes out of this meeting and, if anything, harder US pressure can soon follows. That pressure would likely further risk China’s economy and financial markets and could be a bad news day for US markets.

Looking For Tech Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.

START FREE TRIAL

Read Reviews

All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Updated Aug 23 4:40 EDT PM, grammar.

Our $1000+ Tesla Target Was Way Too Low

Really we have a Tesla (NASDAQ:TSLA) 2019 stock price target of $1,343 so when we heard Ark Invest’s $4,000 target we thought we must be just way too low.

Gross Margins Jumping

If you backed into the numbers for Q2 you saw S&X gross margins jumped to 37% or so, up 1100 basis points from Q1. Bears made up stories why that’s bad, right?

As Model 3 gross margins go to 15-20% this year and 25-30% next year (all stated by Tesla on the Q1 and Q2 earnings calls) you can get much higher earnings. (free trial: Full model)

And you can start believing Tesla on their targets because those S&X gross margins were the real deal. It’s happening.

Yes some of it’s on the come but S&X gross margins were too big.

Earnings Inflection Of The Century 

We do simple trajectory analysis to see where the numbers are going. We’ve been doing it for 25 years. Tesla’s story is about to hit serious earnings inflection. There aren’t that many companies doing what Tesla’s about to do with this earnings inflection. We’re looking for them and there are not that many out there. And earnings are the primary driver for individual stock price performance.

Bears Way Too Bearish

I can’t believe how bearish everybody is. I think everybody’s so stuck in the mud being bearish, emotional and negative that they can’t honestly look at that Q2 S&X gross margin jump which tells you, uh oh, this is happening. Sorry shorts.

$420 For A Song

$420 is taking Tesla for a song. It’s way too cheap. I hope they don’t get away with it.

Would you give Tesla a 50 PE for earning our $26.87 in 2019? If so you get a $1,343 stock price. The sell-side’s under $3.00 for next year. Way off. No wonder Musk’s trying to nab this one on the cheap. Everyone’s missing it.

So yes, $1,000 in 1 year and Ark’s $4,000 in 10 years. That would be a 40% return a year. Not bad, right? But Musk wants much more of that upside to himself. Can you blame him?

You Think We’re Nuts

Is Ark nuts for their $4,000 target? No. Reuters ranks us for our estimates. We earned 4/5 stars. We don’t pull this stuff out of thin air. Unless they jack up operating expenditures Tesla has a real shot of blowing away the Street estimates. Isn’t that the type of stuff we’re all looking for?

Looking For Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.

START FREE TRIAL

Read Reviews

All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Tesla Technicals Confirm Deal In The Works?

tesla stock
Source

We said yesterday that a Tesla stock close above $300 was bullish. We got it.

Thursday we told subscribers we thought we’d get below $300. We got it.

This morning we told subscribers that we’re “very bullish on that strong close. It was reported that Morgan Stanley pulled their coverage of Tesla. That’s bullish for a potential nearer term announcement of funding finally secured.”

We recommended to subscribers to buy shares on the open given the apparent nearer term deal.

Add Morgan Stanley’s going quiet on Tesla to Goldman’s pulling of coverage last week.

The negative flow of funding not-so secured is turning more positive with major investment houses pulling it together.

We’d guess CEO Elon Musk is staring down this huge earnings inflection he’s expecting knowing the stock’s worth way more than $420. He’d love to lever some other assets and keep that upside (he’s tirelessly working for) to himself.

We have a target of well over $1000 based on our 2019 EPS numbers.

As said before, we hope a deal doesn’t go through because we think there’s way more upside than $420. But $420 from here would be a nice move too, no complaints.

Looking For Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.

START FREE TRIAL

Read Reviews

All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Updated Aug 21, 2018 1:14 PM EDT

Tesla: $280 Big Support

Tesla stock
Source

We told subscribers before Friday’s open on Tesla “the stock can drift below $300 to $280.”  There is major support at $280 as you can see in the chart to the left.

Today’s low hit into the $280s.

We wrote to subscribers last week, “I would be patient before adding aggressively. We need bad news to clear before we can. I’d rather buy higher on good news than buying lower without clarity because it can keep going lower without clarity.”

We went on to say, “We love the earnings inflection story but have to be cognizant of the headwinds. The bears are in charge right now with the news flow. The stock’s been holding up but I think it’s a drift lower until clarity on a few issues.”

We’d love to see the stock close above $300 for confirmation of some support.

Any news would be good news.

Scrap Go-Private?

CEO, Elon Musk does not sound like he’s giving up on going private. Funding has not been lined up though.

If they scrap the go private deal it would probably hit the stock but we’d guess the low would find itself around there. Scrapping the go-private deal would be, we believe, the best for shareholders because we have a $1000+ 12-month target price based on the earnings inflection that’s apparently starting this quarter.

Musk himself said to the New York Times that $420 was code for smoking something. That price is not high, it’s way too low.

That’s why if the private transaction is scrapped, we think ultimately it can boost the stock by removing that unnecessary $420 cap.

And remember, the stock was racing there after earnings. Had “Funding secured” not been tweeted we may have been there already.

Looking For Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.

START FREE TRIAL

Read Reviews

All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Updated Aug 20, 2018 11:00 EDT AM

Tech Stocks: What’s Hitting Semis?

smh semi stocks
Source

Semiconductor stocks have been weak of late after a recent Morgan Stanley downgrade and some negative data-points.

While the stock market is close to all-time highs the semiconductor chart (NYSEARCA:SMH) is struggling.

We pointed out semiconductor technicals being weak in early July and they have continued to under-perform.

Weak Action Last Week

While the rest of the stock market was going up on expected US-China trade negotiations, semiconductor stocks continued to get hit. Semiconductor stocks would be among the biggest beneficiaries to a trade truce. Seeing them fall is a negative action sign and needs to be noted.

Samsung Push-Outs, NAND and DRAM

Samsung pushing out equipment orders in NAND and DRAM have caused semi-equipment companies to plan for down sequential revenues in Q3.  Investors remember past cycles where that has spelled disaster.

We don’t think this is disaster this time. But with NAND pricing coming down we’ve been cautious on semi-equipment companies for some time to subscribers.

Samsung, though likely pushed out DRAM orders not because of falling prices but because of the difficulty in transitioning to the next technology node. That can ultimately bode well for DRAM suppliers as industry supply growth could fall below expectations supporting pricing.

DRAM spot pricing has also reported to come down. That can weigh on stocks until news reports otherwise. Companies like Micron (NASDAQ:MU) have been outpacing the spot market pricing but they don’t report earnings for another month to offset claims of spot price erosion.

As for NAND, Apple iPhone units being below expectations this year may have helped weigh on NAND prices. If Apple (NASDAQ:AAPL) can nail this next iPhone launch that can add some support to NAND prices.

Typical Seasonal Tech Stock Weakness

Seasonally this period of time has been difficult for tech stocks pretty much through September. Reports coming now report on the summer lull. The results of the Q3 ramp ahead of holiday don’t get reported until October which typically can benefit tech stocks.

Conclusion

The big hit is in semiconductors but there are many individual stories and non-semis that can look through the semi-equipment concerns. We’d also expect select semiconductor stocks to catch some strength later this year. But Morgan Stanley’s call came in a news air-pocket for ultimate impact. We don’t get any potential counter news flow until the broker conference circuit kicks off in September or the next round of earnings reports.

Looking For Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.

START FREE TRIAL

Read Reviews

All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Updated August 20, 2018, 6:09 PM EDT