Fast Money Traders Review Tech Sector, Recent Earnings

After an eventful earnings week, tech companies disappointed investors with their earnings on Thursday. Following the reports, CNBC’s Fast Money traders dissected some of the day’s main business news. So, let’s take a look at what they said.

“The real story in the market has been the resilience of the broader market in the wake of all the things that we’re seeing now and all the things we’ve seen over the last six months,” Guy Adami started by saying.

The experts then went into Alphabet Inc GOOG GOOGL, which tumbled on Thursday’s after-hours session on an earnings and revenue miss. Karen Finerman declared liking Alphabet, and having been long the stock for a long time. However, she continued, the decline seen on Thursday afternoon was “not disproportionate for the EPS miss,” although the call should shed more light on the results.

Related Link: After-Hours Recap: Markets & Oil Fall, Earnings Have Stocks Moving After The Bell

Finerman then continued to predict Facebook Inc FB would be down on Friday, and she was right. The stock lost more than 2.5 percent on Friday trading. In fact, “every tech at the moment is going to be looking down,” she concluded. And they were: all of the major U.S. traded mega cap tech stocks traded down on Friday.

Going back to Alphabet’s results, Brian Kelly pointed out that the decline was driven by slowing ad sales. “That’s not even just a tech thing. That could be an industry-wide, corporation-wide type of thing that’s going on,” he noted. It's unknown if this changes the tone, he continued, “but what I will say: if the stock market closes lower tomorrow [Friday] on this news, then I would say the tone has changed,” the market is not longer resisting the poor financial results. Furthermore, “if you connect all the dots… [companies] are missing earnings. Earnings are weakening. I’m not saying they’re falling apart… What I’m saying is that they’re not going to be able to grow earnings like they’ve been able to grow earnings; not in this economy,” he concluded.

However, Dan Nathan and Karen Finerman did not seem to agree with Kelly’s idea that Alphabet is not doing well – and that this is framed in a backdrop of general earnings weakness in the market, even though the declining ad revenue is something that should not be overlooked.

“This is not ‘Google’s not doing well.’ There’s really tremendous growth there [...] I think this business is phenomenal,” Finerman argued. Guy Adami concurred, citing the marked increase in paid clicks seen over the quarter.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.