'Fast Money' Recap: A Tale of Two Tech Giants
On CNBC's "Fast Money" TV show, Guy Adami said Google had a much better story than what it first looked like on Thursday. He added he was looking for Google to hold support at $850 and it didn't even get close to that mark, rallying hard throughout Friday, and he thinks that will continue through next week.
Josh Brown said he really liked the tech giant and would be looking to add more. He also added that the only real sour part of the earnings report was that Google didn't make as much money on mobile ad space, but the sheer volume of mobile ads and the rate they are increasing should offset going forward.
While he was forgiving on Google, the tables turned quickly for Microsoft. He said that the software giant's report was "a bomb" and that this quarter looked like an inflection point for the company's shares to go lower, citing that management did not sound optimistic about its core business. He also called out investors who bought the stock for its dividend, saying those who bought it for that reason just lost two years' worth of gains with today's double-digit percentage selloff.
Brian Kelly thought that in general the dividend perspective could be scary for certain investors. He said that as investors shifted out of bonds because of the low yields in favor of dividends, the volatility could be much harder to stomach in events such as Microsoft's selloff.
As they shifted focus to Netflix
Adami said he was going to go out on a limb and say that you should buy it. Tim Seymour said that he was really pleased with the content from the company, but the valuation was too hard gauge and therefore called it a hold. Kelly felt similar and also marked Netflix as a hold. Brown said the results would be a coin flip.