Nvidia and Salesforce: Buy These Two Tech Stocks Before Earnings?

On today’s episode of Full Court Finance at Zacks we explore the market and the overall improving earnings picture. The episode then dives into

Nvidia

NVDA


and

Salesforce

CRM


before they release their first quarter financial results to help investors decide if they should buy either of the tech stocks.

Stocks jumped to start the week, with the Nasdaq up around 1.7% through late-afternoon trading Monday, as Wall Street continues to buy tech stocks when they feel there has been a big enough pullback. Meanwhile, both the S&P and the Dow started the week on a high note, up 1.2% and 0.70%, respectively. The positive start is a welcome sign after some up and down weeks amid inflation fears and the subsequent volatility.

Inflation worries kicked into higher gear after April’s big jump in consumer prices. Therefore, investors must remain focused on rising prices and see if they force the Fed to raise interest rates earlier than expected. But Wall Street has seemed to cool down on these fears, as more bullish investors look to overall GDP growth in 2021, the economic reopening, and the improving earnings picture (also read:

Looking Ahead to Q2 Earnings Season

).

Last week, Target

TGT

and Walmart

WMT

posted blowout quarterly earnings results and Wall Street reacted positively. Yet, the market largely ignored impressive quarterly results from Apple

AAPL

, Microsoft

MSFT

, and other technology giants earlier in the season. This brings us to two of the last huge names in tech left to report their first quarter financial results.

Nvidia is set to release its first quarter FY22 financial results on Wednesday, May 26. The stock was sitting nearly 10% below its records just last Thursday. But NVDA has surged since the chipmaker announced its plans to roll out a 4-for-1 stock split—Apple and Tesla

TSLA

completed splits last year.

Meanwhile, Salesforce shares have moved roughly sideways in 2021 to lag the tech space and the market. But the cloud-based business software company is coming off a record-breaking year and is poised for even more growth heading into its Q1 report due on Thursday, May 27.


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