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Buy These 2 Tech Stocks Before Q3 Earnings for Long-Term Growth?

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Today’s episode of Full Court Finance at Zacks takes a look at where the broader market stands as Wall Street prepares to enter the busy portion of the third quarter earnings season during the week of October 11. The episode then dives into two technology and modern entertainment companies, Netflix (NFLX - Free Report) and Snap (SNAP - Free Report) , ahead of their Q3 financial results next week to see if investors might want to buy either stock.

Last week marked another up and down stretch for the market, with a big drop followed by a quick rebound. The S&P 500 currently sits around 3.5% below its early September records, while the Nasdaq is roughly 5% under its peaks. Both these major indexes sit below their 50-day moving averages, but well above their 200-day as the bulls jump in seemingly every time stocks come close to some oversold technical levels.

The positivity that popped up later last week stemmed from debt ceiling progress and some solid unemployment figures. September’s jobs report, which came out Friday, then came well under expectations amid supply chain setbacks and delta variant worries.

There are multiple reasons for the setback, but the market didn’t react in any significant way to September’s report. This could signal Wall Street is sanguine about the U.S. economy as we enter the holiday shopping season that impacts everyone from Target (TGT - Free Report) to Apple (AAPL - Free Report) .

On top of that, the S&P 500 earnings and margins picture for Q3 and beyond remains strong despite a recent slowdown in positive revisions. Plus, the overall interest rate environment will keep investors chasing returns in equities for the foreseeable future (also read: What Will Q3 Bank Earnings Show).

The big Wall Street banks such as JPMorgan (JPM - Free Report) and Bank of America (BAC - Free Report) unofficially kick off Q3 earnings season this week, with reports from tech giants set to slowly start coming out next week. Two of the first notable technology names set to report during the busy stretch of corporate earnings are Netflix and Snap.

Netflix stock has surged to new highs in the past few months, after lagging far behind the market and fellow big tech names throughout 2021 and the last year. The streaming TV company continues to expand within a growth market despite competition from Disney (DIS - Free Report) , Amazon (AMZN - Free Report) , and many others. And some of NFLX’s other fundamentals make it a potentially attractive buy with it set to report its Q3 earnings results on Oct. 19.   

Snap trades at a roughly 10% discount to its records at the moment, heading into quarterly financial release on Oct. 21. The company has expanded its offerings to include entrainment far beyond disappearing photos and videos and it’s become a hit with advertisers for its ability to reach large chunks of the U.S. population within key younger age groups.