This article discusses which FAANG stocks make the most sense after earnings.
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This story originally appeared on MarketBeat
It’s a great idea to keep an eye on FAANG stocks every quarter, and to monitor their performance before and after the quarterly results are published. These stocks are not only some of most innovative, fundamentally sound businesses in the world but also make up a large portion of overall market indices. Each stock has the potential to really impact the direction of the markets.
FAANG is an acronym that refers to the United States’ strongest stocks, including Alphabet, Amazon, Apple and Netflix. These companies have delivered incredible returns over the years to investors early on, and you can easily see why they should be part of a long-term investment portfolio. Certain FAANG stocks are strong buys after earnings.
Below, we will highlight three to assist you in planning your quarter’s investment strategy. We’ll take another look at them below.
Microsoft has a reputation for producing impressive quarter-after-quarter numbers. The company’s fourth quarter results are no different. It’s one of the best FAANG stocks post-earnings, with so many positive things in its favor. As the stock nears new highs, it could soon reach $300 per share. Take into account some trends that are benefiting Microsoft’s business right now, such as the continual digital transformation of businesses around the globe, remote work revolution and growing popularity of games.
If you take the time to look at Q4 results, it becomes clear that Microsoft’s cloud business is thriving. This is yet another reason to add shares. Microsoft reported commercial cloud revenue growth of 36% year-over-year to $19.5 billion along with 51% year-over-year growth for the company’s Azure cloud platform. The company’s steady revenue stream from Microsoft Office and other software companies should enable it to make investments in areas of higher growth such as Azure. This could allow Microsoft to become the leading enterprise computing company worldwide.
Apple’s most recent earnings report was nothing less than a major blowout. However, the reaction to it has been unsatisfying. Investors need to remember that Apple stock surged significantly into the earnings report, and that it is consolidating this big move. This stock is still worth considering as a FAANG stock. The company will be revealing details about a number of products, including the iPhone 13, this fall. Investors should also be amazed at how the tech giant, which is a megacap company, was able deliver strong results in spite of a worldwide chip shortage. The company’s management acknowledged that there might be some issues with chip supply, but the firm’s new products and high services revenue will help ease these concerns.
This consumer computing company achieved a record-breaking Q3 revenue and services revenue. With the way 5G networks are going to grow over the next few years, Apple should see steady demand for its smartphones and has a fantastic opportunity to grow in emerging markets like China. The company’s Greater China sales were $14.76 billion, an increase of 58% over the previous year. This is confirmation that Apple has been growing internationally. If the stock can surpass the $150 per share record, it could rally once again. This is the kind of company any investor would be happy adding to their portfolio.
Let’s conclude.FacebookAnother great FAANG stock worth adding is the one that was recently reported. Some investors may be reluctant to expose the social media company after it warned growth would slow down in the second half 2021. However, it is worth noting that Facebook management often under promises and delivers on their guidance. Although the stock fell after the Q2 earnings, it would not be surprising for the stock to revert back to its all-time highs within the next few days.
This stock is great for those who believe in global economic recovery. It will also benefit from increased advertising spending during a strong economy. This stock is also one of the most undervalued tech stocks, with a ratio of 26.61. That’s lower than other stocks such as Apple and Amazon. Although the quarterly active user growth was disappointing, Facebook remains a solid post-earnings investment.
Publited Fri, 06 August 2021 at 09:24:03 +0000