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Zacks Investment Ideas feature highlights: Amazon, Meta Platforms and Netflix
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For Immediate Release
Chicago, IL – February 9, 2024 – Today, Zacks Investment Ideas feature highlights Amazon (AMZN - Free Report) , Meta Platforms (META - Free Report) and Netflix (NFLX - Free Report) .
Surging Momentum: 3 Tech Stocks on the Verge of Another Breakout
Big tech has continued to prove its incredible resilience and ability to produce massive profits following the most recent earnings reports. Amazon, Meta Platforms and Netflix all reported impressive earnings, and all gapped up significantly following the meeting.
Furthermore, each stock enjoys a top Zacks Rank, indicating upward trending earnings revisions, and strong near-term expectations for the share price.
Although I understand some investors are hesitant to buy now or add to positions in the large cap technology stocks after they have rallied so much over the last year, but just because a stock goes up doesn’t always mean it can’t go up more.
These three stocks are all trading at historically fair relative valuations, so investors need not fear buying into an overvalued market. In fact, after seeing such strong growth and profitability in the most recent quarterly reports, and experiencing earnings estimates upgrades, the valuations appear even more reasonable.
Netflix
At the most recent quarterly earnings meeting Netflix beat estimates on both the top and bottom line, and recorded record subscriber growth. Netflix’s platform now has 261 million paid subscribers, adding 13 million in Q4 alone.
At the meeting, management announced a plan to expand the content offerings on the streaming platform, and just signed a deal with the WWE to show stream the Raw wrestling program weekly.
Netflix has a Zacks Rank #1 (Strong Buy) rating, reflecting upward trending earnings revisions. Analysts have near unanimously upgraded their earnings estimates over the last two months, with current quarter expectations rising by 10.5% to $4.41 per share and FY24 earnings climbing 6.3% to $16.93 per share.
This technical setup of NFLX stock is a prototypical post-earnings gap and bull flag and offers a high probably trade. If NFLX can trade above the $564 level, it would signal a breakout. However, if it loses support at and trades below $553, the setup is invalid, and investors may want to wait for another opportunity.
Meta Platforms
Meta Platforms also just shared a banner earnings report, also beating on both sales and earnings estimates. Sales in Q4 jumped 25% YoY to $40.1 billion and expenses decreased 8% YoY.
Additionally, Meta Platforms announced its first dividend payment after its cash pile expanded to $60 billion. They also announced a $50 billion share buyback program in an effort to return even more cash to shareholders.
META has a Zacks Rank #1 (Strong Buy), with analysts unanimously raising earnings estimates over the last two months and across timeframes.
Like the others, META stock has formed a picture-perfect post earnings bull flag. If the stock can move above the $474 level, it would indicate a breakout. Alternatively, if it trades below the $454 level of support, it may fill that gap before moving higher again.
Amazon.com
Finally, the e-commerce and cloud-computing giant, Amazon looks to have everything going for it. Another quarter of beating analysts’ estimates, a booming new advertising business, and a Zacks Rank #1 (Strong Buy) rating makes AMZN stock a worthy investment to consider.
These post earnings bull flags are the theme here today, and Amazon stock is no different. If the stock moves above the $171.50 level, it signals a breakout and should send the stock swiftly higher. But below that lower bound of $168, and it may take some time for it to set up again.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Amazon, Meta Platforms and Netflix
For Immediate Release
Chicago, IL – February 9, 2024 – Today, Zacks Investment Ideas feature highlights Amazon (AMZN - Free Report) , Meta Platforms (META - Free Report) and Netflix (NFLX - Free Report) .
Surging Momentum: 3 Tech Stocks on the Verge of Another Breakout
Big tech has continued to prove its incredible resilience and ability to produce massive profits following the most recent earnings reports. Amazon, Meta Platforms and Netflix all reported impressive earnings, and all gapped up significantly following the meeting.
Furthermore, each stock enjoys a top Zacks Rank, indicating upward trending earnings revisions, and strong near-term expectations for the share price.
Although I understand some investors are hesitant to buy now or add to positions in the large cap technology stocks after they have rallied so much over the last year, but just because a stock goes up doesn’t always mean it can’t go up more.
These three stocks are all trading at historically fair relative valuations, so investors need not fear buying into an overvalued market. In fact, after seeing such strong growth and profitability in the most recent quarterly reports, and experiencing earnings estimates upgrades, the valuations appear even more reasonable.
Netflix
At the most recent quarterly earnings meeting Netflix beat estimates on both the top and bottom line, and recorded record subscriber growth. Netflix’s platform now has 261 million paid subscribers, adding 13 million in Q4 alone.
At the meeting, management announced a plan to expand the content offerings on the streaming platform, and just signed a deal with the WWE to show stream the Raw wrestling program weekly.
Netflix has a Zacks Rank #1 (Strong Buy) rating, reflecting upward trending earnings revisions. Analysts have near unanimously upgraded their earnings estimates over the last two months, with current quarter expectations rising by 10.5% to $4.41 per share and FY24 earnings climbing 6.3% to $16.93 per share.
This technical setup of NFLX stock is a prototypical post-earnings gap and bull flag and offers a high probably trade. If NFLX can trade above the $564 level, it would signal a breakout. However, if it loses support at and trades below $553, the setup is invalid, and investors may want to wait for another opportunity.
Meta Platforms
Meta Platforms also just shared a banner earnings report, also beating on both sales and earnings estimates. Sales in Q4 jumped 25% YoY to $40.1 billion and expenses decreased 8% YoY.
Additionally, Meta Platforms announced its first dividend payment after its cash pile expanded to $60 billion. They also announced a $50 billion share buyback program in an effort to return even more cash to shareholders.
META has a Zacks Rank #1 (Strong Buy), with analysts unanimously raising earnings estimates over the last two months and across timeframes.
Like the others, META stock has formed a picture-perfect post earnings bull flag. If the stock can move above the $474 level, it would indicate a breakout. Alternatively, if it trades below the $454 level of support, it may fill that gap before moving higher again.
Amazon.com
Finally, the e-commerce and cloud-computing giant, Amazon looks to have everything going for it. Another quarter of beating analysts’ estimates, a booming new advertising business, and a Zacks Rank #1 (Strong Buy) rating makes AMZN stock a worthy investment to consider.
These post earnings bull flags are the theme here today, and Amazon stock is no different. If the stock moves above the $171.50 level, it signals a breakout and should send the stock swiftly higher. But below that lower bound of $168, and it may take some time for it to set up again.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.