Netflix (NFLX) reported disappointing subscriber growth and underwhelming Q3 expectations in its earnings release. Friday, July 17, the stock tumbled over 7% as investors reassessed this stock’s fair valuation. Is this a foreshadowing of what is to come from the most parabolic tech stocks this earnings season?

Tech stocks have seen an unprecedented valuation push from the March lows. The trillion-dollar trio, aka Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT), have been pushed to valuation multiples that these growth powerhouses haven’t seen in a decade.

The ripping tech rally the past four months has been mostly justified with the world compressing  five years of digitalization in five months, and the Federal Reserve extending the low-interest-rate environment. Still, the market euphoria has launched many of these tech stocks through price targets like a rocket through the atmosphere.

These price targets need to either be risen (again), or the market needs to correct. Earnings season is going to put valuations and investor tenacity to the test. Will investors/traders pull profits once they see what they wanted, good or bad, or will this crazy rally continue?

This summertime quarterly results extravaganza is as good a time as any for investors to start readjusting their portfolios and roll some of their secular growth profits over to underperforming cyclical names.

Upcoming Earnings 

These next two weeks of earnings will be critical to the direction that the market takes next. Below is a chart providing all the key reports to keep an eye on.

The Takeaway

Amid this next couple of weeks of crucial earnings, I advise you to be cautious with your investment/trading decisions. We are experiencing one of the most unprecedented markets in history, with Q2 earnings expected to undergo the worst decline in over a decade while stocks drive towards all-time highs.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990's.