Strong Netflix results could uplift struggling tech stocks

Strong results from two closely watched technology earnings on Tuesday afternoon could add fuel to a rebound in semiconductor stocks and the megacap FAANG group.

Netflix Inc. blew away estimates with a fourth-quarter subscriber forecast that exceeded all five of the estimates compiled by Bloomberg News.

As Netflix soared as much as 17 percent in extended trading, Amazon.com Inc., Facebook Inc., Apple Inc. and Google parent Alphabet Inc. also gained. Meanwhile, semiconductor equipment maker Lam Research Corp. gave chip investors something to cheer about with better-than-expected forecasts for fiscal second-quarter profit and sales.

The positive reports come just in time as a rout in the biggest tech names last week helped send the S&P 500 Index to its worst weekly loss since March.

Semiconductor stocks have fallen 11 percent from a March record, and bearish analyst calls have continued to pile up.

Now read: Netflix vs Showmax vs Amazon Prime – Price and content comparison

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Strong Netflix results could uplift struggling tech stocks