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Tech Stocks Roundup: Cramer Touts Disney's Buy Model With Disney+

Check out the latest news and performance numbers from the top technology and FAANG stocks, plus Palantir, Upstart, FuboTV and more.

Cathie Wood, the star fund manager at the helm of Ark Investments, hit back at billionaire investor Michael Burry Tuesday, saying the famed short-seller "doesn't understand" the fundamentals underpinning her tech bets. 

Wood, however, took to Twitter on Tuesday to defend the nature of her fund's investment strategy, saying the tech innovations she's targeting "should transform the world in the next ten years."

ARK Innovation ETF shares  (ARKK) - Get ARK Innovation ETF Report have slipped more than 5% over the past week. The fund, one of last year's outstanding performers, is down 7% so far this year despite a record run for tech stocks and numerous record-high closing levels for the Nasdaq Composite Index.

Apple  (AAPL) - Get Apple Inc. (AAPL) Report reportedly plans to appeal a $300 million jury award to Optis Wireless Technology for infringing on its wireless patents. The jury in the case reached a verdict in the U.S. District Court for the Eastern District of Texas in Marshall after Judge Rodney Gilstrap in April threw out a $506 million jury award and set the new award trial.

In his April award ruling, Gilstrap said that Apple should have been able to argue that Optis was making unfair royalty demands, but he did not dismiss the jury's liability judgment against Apple. 

Over on Real Money, contributor Mark Sebastian writes Tuesday that the volume in Apple options expiring on Friday is extraordinary. He says: Let's see how to cut a trade in AAPL as the volume in options expiring Friday and later this month is huge. Check out his trading strategies and investment ideas on Real Money now.

The Street's Jim Cramer is usually bullish on Apple stock but appears to be even more supportive of an investment in Apple shares of late. Part of the reason is that Apple could weather fears over the resurgence of COVID-19 cases better than others, writes TheStreet Apple Maven's Daniel Martin.

Here is a breakdown list of the technology and FAANG stocks to watch right now based on their performance over the past week:

Apple

Apple "remains a top tech name to own," Wedbush analyst Dan Ives said as he affirmed an outperform rating and $185 share-price target on the computer and cellphone giant. "Our favorite large-cap tech name to play the 5G transformational cycle is Apple," Ives said in a research note, "with the 1-2 punch of its massive services business and iPhone product cycle translating into a $3 trillion market cap for Cupertino in the next 6 to 12 months." Ives said that the current iPhone 13 launch is slated for the third week in September and reportedly will have at least three new camera and video-recording elements.

TheStreet Quant Ratings rates Apple as a Buy with a rating score of A.

Upstart

Upstart  (UPST) - Get Upstart Holdings Inc. Report shares jumped this past week after the artificial-intelligence-based lending platform reported second-quarter results that topped forecasts and analysts reacted positively. The company registered an adjusted profit of 62 cents a share, more than double the Bloomberg analyst consensus estimate of 25 cents. Sales totaled $193.9 million, exceeding expectations of $157.2 million. As for the analysts, Citi upgraded Upstart to buy from neutral and raised its price target to $205 from $120. The new target matches the Wall Street high, Bloomberg reports.

Citing "continued impressive performance," a Barclays' analyst upgraded Upstart to overweight from equal weight and boosted his price target on the stock of the artificial-intelligence-based lending platform to $230 from $130.

TheStreet Quant Ratings has no rating for Upstart.

Get more trading strategies and investing insights from the contributors on Real Money.

Facebook

Facebook easily beat earnings and revenue expectations seeing 100% earnings growth but gave investors cautious guidance that noted decelerating growth and headwinds ahead. The social media company has been a huge winner so far this year, wrote TheStreet's Bret Kenwell. While the quarter was solid, the guidance was not, which does leave us with some risk in the stock, according to Kenwell. However, the trend is still to the upside, so until that changes -- perhaps it becomes a downtrend or maybe it results in some sideways chop -- bulls will be hesitant to alter their strategy.

Cramer said Facebook is a steal at just 22 times earnings.

TheStreet Quant Ratings rates Facebook as a Buy with a rating score of A.

Palantir Technologies

Palantir Technologies  (PLTR) - Get Palantir Technologies Report shares moved up after the software company reported second-quarter earnings that met Wall Street's expectations and revenue that exceeded them. The company reported earnings of 4 cents a share, matching analysts' forecasts. Revenue reached $376 million against the estimate of $360 million.

TheStreet Recommends

TheStreet Quant Ratings does not have a rating for Palantir.

Amazon

Amazon  (AMZN) - Get Amazon.com, Inc. Report announced plans for a new robotics fulfillment center in Tallahassee, Fla., as part of a plan to build six new facilities in the state to expand its delivery and supply chain. The 630,000-square-foot facility will create 1,000 new jobs for humans, even as the facility is staffed with robots doing the heavy lifting. The human employees will "pick, pack and ship small items," like books and toys to customers. The facility is slated to open in Tallahassee in late 2022. Amazon said the new fulfillment centers will "power the last mile" of the company's order process as it looks to deliver products even faster than it already does.

TheStreet Quant Ratings rates Amazon as a Buy with a rating score of B.

FuboTV

FuboTV  (FUBO) - Get FUBOTV INC. Report has investors’ attention, with shares up after the company reported earnings. The rally came after the company delivered a strong earnings report, with better-than-expected results and solid guidance. It even has analysts jumping on board and raising their price targets. Some of those targets are now as high as $53. FuboTV delivered a "praiseworthy" beat and raise while it "soared over" its revenue and subscriber forecasts for the quarter, said Wedbush analyst Michael Pachter. 

"This looks like a dynamite quarter," Cramer said during a recent Mad Money Lightening Round. 

However, whether it’s Netflix  (NFLX) - Get Netflix, Inc. (NFLX) Report, Roku  (ROKU,) - Get Roku, Inc. Class A Report or another streaming stock, this group is having trouble maintaining momentum after earnings.

TheStreet Quant Ratings rates Netflix as a Buy with a rating score of B.

Alphabet

Last month, Google parent company Alphabet  (GOOGL) - Get Alphabet Inc. Class A Report said it is delaying its planned return to work for most employees until October and will require anyone working on its campuses to be fully vaccinated against COVID-19. Facebook is also requiring U.S. workers returning to its offices to be vaccinated.

The mega-cap tech stock had trouble maintaining post-earnings momentum despite strong results.

TheStreet Quant Ratings rates Alphabet as a Buy with a rating score of A.

Walt Disney Co. 

Disney  (DIS) - Get Walt Disney Company Report shares climbed after the media giant posted stronger-than-expected third-quarter earnings. Subscribers to its Disney+ streaming service topped 100 million less than two years after its launch. Revenue rose 44% to $17.02 billion, while overall subscriber totals for its Disney+ streaming service hit 116 million. 

Reacting to Disney's latest round of earnings, Cramer said Disney's streaming and parks businesses make the stock a winner no matter what happens with the delta variant of the coronavirus. 

"Disney has that buy model that you want. At home you get Black Widow, the theme parks are open...Delta hurts that revenue in some ways, but they've really built this great infrastructure in Disney+ and ESPN+, which I love. If Delta breaks hard, you're going to want Disney+ and if it clears, you're going to want theme parks so it's a win either way. They have a model that wins either way" Cramer said. 

The Street Quant Ratings rates Disney as a Hold with a rating score of C.

Netflix

Last month, Disney's top streaming rival, Netflix posted a rare decline in north American subscribers over the second quarter, and forecast weaker-than-expected additions over the summer months amid intensifying competition and a post-pandemic surge in outdoor activity.

Netflix lost 430,000 north American subs, the company said in its second-quarter earnings report last night, although its total worldwide additions of 1.54 million topped Street forecasts and took its overall total to 209 million.

The Street Quant Ratings rates Netflix as a Buy with a rating score of B.

Facebook, Apple, Amazon and Alphabet are holdings in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells these stocks? Learn more now