High flying internet names like Amazon.com, Inc.(NASDAQ:AMZN), Netflix, Inc.(NASDAQ:NFLX) and eBay Inc(NASDAQ:EBAY) have been brought back to earth of late, with share prices getting cut by multiple percentage points. Could a solid earnings season for names like these bring them out of the investing basement? Perhaps says Tom Lydon of ETFTrends.com.
“With the terrible weather everybody was in. Consumer goods companies are probably going to be in the toilet. People were home, they were shopping,” Lydon notes.
I think what we’re gonna see is when earnings come out, nobody was buying cars, housing numbers were down, people weren’t in the store. Retail already has warned tremendously to the downside. But there’s a lot of continued activity on the internet. When you start to see these earnings come out that’s where the big demand is gonna be and I think.”
As weather kept people inside Lydon says they were doing things like watching Netflix, and shopping on Amazon and EBay. Lydon’s favorite way to play this in the near-term is through the PowerShares Nasdaq Internet Portfol(ETF)(NASDAQ:PNQI). Yes, it’s been hit hard in the past month, but perhaps it’s a solid buying opportunity going into earnings season.
You can see the full “Breakout” segment below: