TipRanks

2 ‚Strong buy‘ of FAANG stocks which should be watched as they go towards earnings

Big tech companies have been in the news recently, and not necessarily for the right reasons. Accusations of corporate censorship have made headlines in recent weeks. As serious as this is, it can have a beneficial effect – the public debate on the role of large tech companies in our digital lives is long overdue. And this discussion will just start as the Q4 and 2020 financial numbers begin to appear in full. Of FAANG shares, Netflix has already mentioned; The other four will release the results in the next two weeks. Therefore, future earnings will receive the attention they deserve, and the best Wall Street analysts are already publishing their views on some of the most important components of the market. Using the TipRanks database, we pulled in details for two FAANG members to see how Street thinks both will work when the fourth quarter numbers are published. According to the platform, they both received a lot of love from analysts, earning a „strong buy“ consensus rating. Facebook (FB) Let’s start with Facebook, the social media giant that has redefined our online interactions. Along with Google, Facebook has also provided us with digital marketing and targeted advertising, and Internet mass monetization. It was a profitable strategy for the company. Facebook’s market cap is at $ 786 billion, and in the third quarter of 2020, the company reported $ 21.5 billion on the top line. Looking at the fourth-quarter report, due for release on January 27, analysts expect revenue to reach or near $ 26.2 billion. This is in line with the company’s pattern of rising quarterly performance from the first quarter to the fourth quarter. In the projected total, revenue will rise 24% year-over-year, roughly in line with the 22% year-over-year gains already seen in the third quarter. The main metric to watch will be the growth in active daily users; This metric has decreased slightly from the second quarter to the third quarter, and further decline will be taken as an ominous sign for the company’s future. As now, the average daily number of users on Facebook is 1.82 billion. Before printing, Oppenheimer analyst Jason Hilfstein boosted his target price to $ 345 (from $ 300), while reiterating the Outperform rating (i.e. buy). Investors will receive a dividend of 26% if the analyst’s thesis is applied. (To view Helfstein’s record, click here) the five-star analyst commented, „[We] Predicted fourth-quarter advertising revenue would easily beat Street’s estimates. We’re now forecasting fourth-quarter ad revenue + 30% year-over-year versus Street’s estimate of + 25% based on declining US media benchmark (r-squared 0.95) data and acceleration of global CPM data from Gupta Media (4Q + 35% y / y). 3Q’s versus -12%). Additionally, we are very optimistic about FB’s e-commerce opportunity after conversations with checks we did and our initial work that conservatively estimates stores a $ 25-50 billion opportunity versus currently $ 85 billion. We believe stocks currently traded at 7.1x EV / NTM provide the most preferred risk / reward in the internet’s big roof. Overall, the social media empire remains darling on Wall Street, with TipRanks FB analytics presenting it as a strong buy. This is based on 34 recent reviews, which are divided into 30 buy evaluations, 3 bookings, and 1 sells. Stocks are priced. At $ 276.10, Average Target Price of $ 327.42 suggests a one-year rally of roughly 19%. (See FB Stock Analysis at TipRanks) Amazon (AMZN) Moving to e-commerce, we can’t avoid Amazon. The retail giant is $ 1.65 trillion, making it one of only four publicly-listed companies valued at over the $ 1 trillion mark. The company’s popular price is known to be high, and has grown by 74% since this time last year, outpacing the much wider markets. Amazon by increasing online sales activity during the “year of Corona.” Globally, retail online grew 27% in 2020, while total retail sales decreased by 3%. Amazon, which dominates the retail sector, is expected to end Online, at the end of 2020 with total revenue of $ 380 billion, or 34% growth year-on-year, outpacing global e-commerce gains. Coin analyst John Blackledge, rated 5-star by TipRanks, covers Amazon and is optimistic about the company’s prospects ahead of the release. Earnings. Blackledge ranks stock outperforming (i.e. buy) and its target price at $ 4,350 indicates confidence in a 31% rise in the one-year time horizon. (To view the Bledge record, click here) “We expect fourth-quarter revenue to be $ 20.8 billion, + 38.2% year-over-year versus + 37.4% year-over-year y in Q3 2020 led by AWS, advertising, subscription, and third-party sales [..] We expect growth in the US subsidiaries to accelerate in the fourth quarter of 2020 (reaching 76 million subscribers in December 2020 and roughly 74 million on average in the fourth quarter of 2020), buoyed by epidemic demand, peak day in October, and long shopping period, Plus one day delivery […] At 21, we expect strong top-line growth to continue being driven by e-commerce (aided by COVID in the advancement in the grocery), AWS and subsidiaries, “Blackledge opened. It’s no secret to anyone that Wall Street is generally optimistic about Amazon; the company has 33 recorded reviews. , 32 of them are purchases, for one booking.Shares are priced at $ 3,301.26 and the average target price of $ 3,826 means they will grow another 16% this year (see AMZN stock analysis on TipRanks) to find good stock trading ideas with valuations Attractive, visit the best stocks to buy from TipRanks, a newly launched tool that unifies all stock insights for TipRanks. Disclaimer: The opinions in this article are those of featured analysts only. Content is intended to be used for informational purposes only. It is very important to conduct Your own analysis before making any investment.