What I Expect From the FAANG Stocks’ Earnings Next Week

The FAANG supply package – that includes Meta Platforms, Inc. (NASDAQ:META, formerly the “F” for Facebook), apple inc (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Netflix Inc. (NASDAQ:NFLX), and alphabet inc (NASDAQ:WELL) – have lost their bite this year.

They have steadily declined due to fears of inflation, rising interest rates, supply chain problems and business slumps caused by the pandemic. So let’s use today’s Market360 to dive into FAANG stock’s earnings preview and see if they’re good buys ahead of their earnings results — and which stock will emerge as the top performer.

Meta Platforms, Inc. (META)

Meta will release its third-quarter earnings report on Wednesday, October 26, after the market close. Analysts are expecting earnings of $1.91 per share, down 69% from earnings of $3.22 per share a year ago. Revenue is expected to decline 6% year over year to $27.45 billion, compared to $29.01 billion in the year-ago quarter. Earnings estimates have been slashed 29% over the past three months, reducing the likelihood of Meta surprising on the upside.

apple inc (AAPL)

Apple is expected to report earnings for the fourth quarter of fiscal 2022 on Thursday, October 27. Analysts expect earnings to fall 2% year over year to $1.27 per share, compared to $1.30 per share a year ago. Estimates put revenue at $88.9 billion, up 8% from last year’s $81.41 billion.

As one of the most influential technology companies in the world, Apple continues to look for new ways to generate revenue. In fact, the company grew its revenue by 33% over the past year. The iPhone remains the company’s flagship product, accounting for just over 50% of sales. But as customers anticipate the next iPhone launch year after year, Apple is also focused on releasing new products – which may include a virtual reality headset and a self-driving car.

Amazon.com Inc. (AMZN)

Amazon will report its third-quarter earnings on Thursday, October 27. Analysts are expecting earnings of $0.22 per share for the upcoming quarter, down 36% from $0.31 per share a year ago. The sales estimates of $127.77 billion represent a 13% increase over last year’s sales of $110.81 billion.

Netflix Inc. (NFLX)

We heard from Netflix after the market closed on Tuesday. As I discussed Thursday, the company reported third-quarter revenue of $7.93 billion and earnings per share of $3.10 — significantly beating analyst estimates and keeping the stock the last three trading days of the week up 20%. (You can read my full Netflix earnings report here.)

alphabet inc (WELL)

Alphabet is expected to report earnings on Tuesday, October 25th. Analysts expect earnings to fall 11% year over year to $1.26 per share, compared to $1.40 per share a year ago. Revenue is expected to increase 8% year over year to $70.75 billion from $65.12 billion in the year-ago quarter.

With FAANG stock under pressure this year, it’s not surprising that most of the companies in my Portfolio Grader continue to be rated poorly.

As you can see in the transcript above, the overall grades are mixed. Apple has a B rating, making it a Buy. Google has a C rating, making it a “hold.” And Amazon, Meta, and Netflix have D ratings, making them “sells.”

While Apple leads the FAANG pack with its assessment, the others are not considered good buys prior to their earnings announcements.

So what are good buys?

That would be companies with strong fundamentals and earnings growth. And my growth investor Shopping List is crammed with these fundamentally superior stocks.

if you join me growth investor Today you have full access to my Latest Buys, Top Stocks Lists, as well as my Buy Lists for High Growth Investments and Elite Dividend Payers.

I’m confident these are the stocks that will emerge as market leaders. And as we enter a seasonally busy time of year, you will want to take advantage of all the services I have to offer.

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Source: InvestorPlace unless otherwise noted

Louis Navellier

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The publisher hereby reports that, as of the date of this email, the publisher owns, directly or indirectly, the following securities which are the subject of the comment, analysis, opinion, advice or recommendation contained in the essay below:

Meta Platforms, Inc. (NASDAQ:META), Amazon.com Inc. (NASDAQ:AMZN) and alphabet inc (NASDAQ:WELL)