We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will FAANG Stocks Continue to Shine Post Q2 Earnings?
Read MoreHide Full Article
Netflix, Inc.’s (NFLX - Free Report) performance may have disappointed investors but Alphabet, Inc.’s (GOOGL - Free Report) robust earnings results will definitely bring a sigh of relief for those who have time and again shown faith in the FAANG stocks. Tech stocks have been one of the best performers this year, and the credit largely goes to FAANG stocks that have been driving markets for a while now.
That said, given their earnings history, FAANG stocks are likely to outperform the market for the rest of 2018. At the same time, trade war fears too seem to be easing. Investors have finally started believing that tech stocks aren’t as susceptible to trade war fears as industrials.
Google Beats Estimates, Netflix Still Holds Promise
On Jul 23, Alphabet reported better-than-expected second-quarter results. Google posted earnings of $11.75 per share, beating the Zacks Consensus Estimate of $9.51 per share. Taking out revenues from Google Network Members, the company reported revenues of $27.9 billion, surpassing the Zacks Consensus Estimate of $25.65 billion.
Advertising is one of the major revenue generators for Alphabet. The company reported ad revenues of $28.09 billion, reflecting an increase of 24% from the year-ago quarter.
On Jul 16, shares of Netflix tumbled almost 13% in after-hours trading after it reported second-quarter fiscal 2018 results. Netflix managed to add only 5.2 million new subscribers in the quarter, falling shy of its forecast of 6.2 million, which disappointed investors.
However, the company reported earnings of 85 cents per share, beating the Zacks Consensus Estimate by a nickel. The figure was a lot better than 15 cents reported in the year-ago quarter. Netflix has been one of the best performers, with its shares having increased 80.4% year to date.
Facebook, Amazon and Apple on Track to Beat Estimates
Of the remaining FAANG stocks, Facebook, Inc. and Amazon.com, Inc. (AMZN - Free Report) are slated to report their second-quarter results on Wednesday and Thursday, respectively, while Apple, Inc. (AAPL - Free Report) is scheduled to report on Jul 31.
Earlier this year, Facebook’s shares suffered after it got embroiled in a data misuse scandal. However, this didn’t have much effect on the social media giant’s first-quarter results. Also, Amazon, Facebook and Apple have so far had a decent first half of 2018. Shares of Amazon, Facebook and Apple have jumped 49.6%, 14.2% and 13.2%, respectively, year to date.
Moreover, all the three tech giants have an impressive performance history. Facebook’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter average positive earnings surprise of 18.9%. Facebook has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters. The iPhone maker has a trailing four-quarter average positive earnings surprise of 5.1%. Apple has a Zacks Rank #2.
Amazon’s earnings surpassed the Zacks Consensus Estimate in the last three quarters. The company’s trailing four-quarter average positive earnings surprise is more than 100%. Amazon carries a Zacks Rank #2.
Tech Stocks Defy Trade War Fears
Trade war fears have been taking a toll on markets for quite some time now. This saw tech stocks taking a hit. However, investors have finally started believing that tech stocks aren’t as susceptible to trade war fears as industrials. This was enough to spark a rally in tech stocks last week, with the Nasdaq hitting a record high for the third time this month.
China has imposed retaliatory tariffs on a number of U.S. goods. That said, tech stocks remain untouched by others, which has somewhat made investors’ confident. A major reason behind this is China’s limitations in building its own tech industry. This eventually might restrict China from acting against U.S.-based tech players.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Will FAANG Stocks Continue to Shine Post Q2 Earnings?
Netflix, Inc.’s (NFLX - Free Report) performance may have disappointed investors but Alphabet, Inc.’s (GOOGL - Free Report) robust earnings results will definitely bring a sigh of relief for those who have time and again shown faith in the FAANG stocks. Tech stocks have been one of the best performers this year, and the credit largely goes to FAANG stocks that have been driving markets for a while now.
That said, given their earnings history, FAANG stocks are likely to outperform the market for the rest of 2018. At the same time, trade war fears too seem to be easing. Investors have finally started believing that tech stocks aren’t as susceptible to trade war fears as industrials.
Google Beats Estimates, Netflix Still Holds Promise
On Jul 23, Alphabet reported better-than-expected second-quarter results. Google posted earnings of $11.75 per share, beating the Zacks Consensus Estimate of $9.51 per share. Taking out revenues from Google Network Members, the company reported revenues of $27.9 billion, surpassing the Zacks Consensus Estimate of $25.65 billion.
Advertising is one of the major revenue generators for Alphabet. The company reported ad revenues of $28.09 billion, reflecting an increase of 24% from the year-ago quarter.
On Jul 16, shares of Netflix tumbled almost 13% in after-hours trading after it reported second-quarter fiscal 2018 results. Netflix managed to add only 5.2 million new subscribers in the quarter, falling shy of its forecast of 6.2 million, which disappointed investors.
However, the company reported earnings of 85 cents per share, beating the Zacks Consensus Estimate by a nickel. The figure was a lot better than 15 cents reported in the year-ago quarter. Netflix has been one of the best performers, with its shares having increased 80.4% year to date.
Facebook, Amazon and Apple on Track to Beat Estimates
Of the remaining FAANG stocks, Facebook, Inc. and Amazon.com, Inc. (AMZN - Free Report) are slated to report their second-quarter results on Wednesday and Thursday, respectively, while Apple, Inc. (AAPL - Free Report) is scheduled to report on Jul 31.
Earlier this year, Facebook’s shares suffered after it got embroiled in a data misuse scandal. However, this didn’t have much effect on the social media giant’s first-quarter results. Also, Amazon, Facebook and Apple have so far had a decent first half of 2018. Shares of Amazon, Facebook and Apple have jumped 49.6%, 14.2% and 13.2%, respectively, year to date.
Moreover, all the three tech giants have an impressive performance history. Facebook’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter average positive earnings surprise of 18.9%. Facebook has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters. The iPhone maker has a trailing four-quarter average positive earnings surprise of 5.1%. Apple has a Zacks Rank #2.
Amazon’s earnings surpassed the Zacks Consensus Estimate in the last three quarters. The company’s trailing four-quarter average positive earnings surprise is more than 100%. Amazon carries a Zacks Rank #2.
Tech Stocks Defy Trade War Fears
Trade war fears have been taking a toll on markets for quite some time now. This saw tech stocks taking a hit. However, investors have finally started believing that tech stocks aren’t as susceptible to trade war fears as industrials. This was enough to spark a rally in tech stocks last week, with the Nasdaq hitting a record high for the third time this month.
China has imposed retaliatory tariffs on a number of U.S. goods. That said, tech stocks remain untouched by others, which has somewhat made investors’ confident. A major reason behind this is China’s limitations in building its own tech industry. This eventually might restrict China from acting against U.S.-based tech players.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>