In a discussion with CNBC‘s On-Air Editor Jon Fortt, Jon Steinberg, who is the CEO of Daily Mail for North America, speaks on the earnings release of tech stocks like Netflix, Inc. (NASDAQ:NFLX) and  Apple Inc. (NASDAQ:AAPL).

Apple, Bitcoins, Is Apple A Good Stock To Buy, Worldwide Developers Conference

Speaking on the recent high that the Netflix, Inc. (NASDAQ:NFLX) stock has taken, Steinberg said that Netflix can be compared to cable networks like HBO and eventually according to him all cable companies can be seen becoming data companies. He explained:

“So I don’t think it’s a question of whether or not Netflix is special or not or more or less special than HBO. I think it’s a question of whether or not the stock is expensive, and I think it’s very hard to come up with any conclusion other than the fact that it’s incredibly expensive.”

Meanwhile, Jon Fortt said that Netflix, Inc. (NASDAQ:NFLX) has traditionally been outperforming people’s expectations in terms of number of subscribers. Last quarter, the company had even given a point on the number of subscribers, for the first time.

On his choice between Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT), Fortt said that he would definitely choose Apple.

On Apple Inc. (NASDAQ:AAPL), Jon Fortt said that there are two things that need to be considered: one is the launch of the iPhone 6 and its impact on the sales of the existing model i.e. either people would postpone their purchase waiting for a bigger iPhone model or else people looking for a bigger model are not going to buy the next iPhone or those who prefer a smaller model may buy more before it goes out of the market.

The second thing according to Fortt is inventory drawdown, as Apple Inc. (NASDAQ:AAPL) draws down inventory whenever a new iPhone is about to launch. He said:

“If that happens, Apple could be on the lower side of the range that it gave [and] could maybe miss that 36 million number. A lot of these analysts who have been raising their targets will be disappointed.”

Jon Steinberg added: “What’s amazing is that they’ve added so many carrier relationships in the absence of a new hardware refresh. They’ve actually been able to maintain the numbers.” Guidance on what will be coming in the next quarter or anything on the new iPhone would lead the stock instead of the earnings, according to Steinberg.

Suggested Articles:

Most Popular Fast Food Chains In America

Cheapest Cities To Live In The World