Tech stocks join the earnings parade in a big way the week of July 14, with reports from three online giants — Yahoo (YHOO), eBay (EBAY) and Google (GOOG). What the releases say about their respective operations could help stop these names from being dead weight in otherwise excellent year for tech stocks.
With no help from YHOO stock, EBAY stock or GOOG stock, tech stocks are racking up some seriously outsized returns in 2014. The Nasdaq 100 Tech Sector index is up 13% for the year-to-date. That beats the S&P 500 by more than 6 percentage points and puts the index on pace for an annual gain of 25%.
And yet YHOO stock, EBAY stock and GOOG stock have been nothing but a drag on the broader sector of tech stocks this year.
YHOO stock is off 12% for the year-to-date through July 10. EBAY stock is down 6%. And although GOOG stock is positive for 2014, its gain of less than 4% is acting as a drag on the overall performance of tech stocks.
Investors in YHOO stock, EBAY stock and GOOG stock are looking for mixed results in their respective reports for Q2 earnings season. Whether any of these tech stocks can get off the schneid with Q2 results is very much an open question, but it’s an important one nonetheless.
Here’s what we can expect from these giant tech stocks when they release results over the course of the week: