Q2 Earnings Season Starting Soon

Q2 Earnings Season Starting Soon - FAANG stocks
TradeGM Analysis date_range July 26th, 2021

What is FAANG?

FAANG logo

The FAANG stocks are an elite group of technology stocks that combine for a market cap of nearly four trillion dollars. The individual companies that make up the FAANG stocks are Facebook, Amazon, Apple, Netflix and Google/Alphabet.

These stocks while narrowly focused in the technology sector are an important driver of economic growth.

Their sheer size means that any stock price movement (up or down) can lead to disruptions in the stock market.

They are the 800-pound gorillas of the tech world, companies of enormous size and scope, whose operations and market fluctuations have been a major driver to the NASDAQ, and the overall stock market, in recent years.

In addition to being widely known among consumers, the five FAANG stocks are among the largest companies in the world, with a combined market capitalization of over $4.1 trillion as of January 2020.

Facebook (NASDAQ:FB) — the world’s leading social media company, which also owns Instagram and WhatsApp.

Apple (NASDAQ:AAPL) — the company behind the iPhone.

Amazon (NASDAQ:AMZN) — which has ushered in the age of e-commerce and built a highly profitable cloud operation as well.

Netflix (NASDAQ:NFLX) — the first and most successful video streamer in the world.

Google (NASDAQ:GOOG) (NASDAQ:GOOGL) — technically, the search giant is now a subsidiary of Alphabet.

Sources: 

https://www.marketbeat.com/types-of-stock/faang-stocks/

https://www.fool.com/investing/what-are-faang-stocks.aspx

https://finance.yahoo.com/news/3-faang-stocks-score-perfect-210447585.html#:~:text=The%20FAANG%20stocks%20are%20Facebook,stock%20market%2C%20in%20recent%20years.

https://www.investopedia.com/terms/f/faang-stocks.asp

Why are FAANG stocks so important?

The FAANG stocks have a history of outperforming the market. The growth of these companies is almost legendary. 


In the case of the FAANG stocks, they have the attention of Wall Street because of the way they have captured the minds, hearts, and wallets of consumers.

Simply put, these stocks are popular because they have changed, and are continuing to change the way consumers interact with and think about, technology.

The below chart was taken from a reputable source (fool.com) on 28.06.2021.

Source: https://www.fool.com/investing/2021/05/19/are-the-faang-stocks-still-good-buys-today/

When are the FAANG reporting?

Facebook (NASDAQ:FB) —- 28th July 2021

Apple (NASDAQ:AAPL) —- 3rd August 2021

Amazon (NASDAQ:AMZN) —- 29th July 2021

Netflix (NASDAQ:NFLX) —- 20th July 2021

Google (NASDAQ:GOOG) (NASDAQ:GOOGL) —- 29th July 2021

Think of it this way:

Many people start their day by looking at their iPhone (Apple) to see what friends and family are up to (Facebook) or check on the latest news (Google). They end their day by coming home to see a package waiting on their doorstep (Amazon) and go inside to binge-watch their favourite show via streaming video (Netflix).

  • Facebook: 2.27 billion monthly active users. At the end of 2018, four out of the five most downloaded apps were part of Facebook
  • Apple: Apple was the first trillion-dollar company (in terms of market cap). 
  • Amazon: captures 49.1% of all online sales (that’s not a misprint). There are more than 100 million Amazon Prime memberships in the United States.
  • Almost one-fifth of all Internet bandwidth in America is consumed by people watching Netflix.
  • Google: With a market share for search of over 90%.

Sources:

https://www.newsbreak.com/news/1492410175870/these-4-stocks-could-help-form-the-next-faang-index

https://www.marketbeat.com/types-of-stock/faang-stocks/

Headlines

July starts the earning season for FAANG Stocks

Facebook Q2 -Faang

With just over a week left in Q2, investors are gearing up for earnings season. Quarterly reports are bound to feature interesting insights, particularly since many companies are up against some COVID-19-impacted year-ago comparisons. Social network giant Facebook (NASDAQ:FB) is one of those companies, as it’s up against a rather easy year-ago comparison.

Source: https://www.fool.com/investing/2021/06/22/facebook-is-likely-to-report-huge-growth-in-q2/

Please note that future forecasts do not constitute a reliable indicator of future performance. Opposite performance scenarios in different market conditions can lead to different results.

apple iphone 2022

Key Points:

  • Apple could hit a $3 trillion market capitalization in 2022, according to Wedbush analyst Dan Ives.
  • The iPhone maker’s shares are down about 5% year-to-date and earlier this year, investors dumped the company’s stocks following a historic December quarter.
  • Apple is the world’s most valuable company with a current market cap of around $2.1 trillion.
Apple store

source: https://www.cnbc.com/2021/06/08/apple-appl-bull-expects-iphone-maker-to-hit-3-trillion-market-cap-in-2022.html

Amazon prime keeps growing - faang

Amazon (NASDAQ:AMZN) just completed another successful Prime Day event (it actually lasts two days now), with more than 250 million items sold to Prime members worldwide on June 21-22. “Members shopped more and saved than any other Prime Day,” the company said in a statement. 

source: https://www.fool.com/investing/2021/06/25/amazon-prime-day-broke-records-why-keeps-growing/

Alphabet Sets New 1-Year High at $2,549.43

Key points: 

  • Alphabet Inc. (NASDAQ:GOOG) shares reached a new 52-week high during mid-day trading on Wednesday.
  • The stock traded as high as $2,549.43 and last traded at $2,549.43, with a volume of 4027 shares changing hands. 
  • The stock had previously closed at $2,539.99.

source: https://www.americanbankingnews.com/2021/06/23/alphabet-nasdaqgoog-sets-new-1-year-high-at-2549-43.html

Netflix improving content
Netflix smartphone

source: https://www.marketwatch.com/story/netflixs-improving-content-slate-could-give-stock-new-life-analyst-says-in-upgrade-11624632918

Amazon stock - Wall street

Key Points:

  • The consensus price target on Amazon shares is currently $4,230, representing a whopping 32% upside potential. 
  • In general, price targets are set for 12 months in the future, suggesting that Wall Street expects a strong rally in AMZN stock price by this time next year.
  • Amazon is the only FAANG stock whose analysts’ price targets are all above the current market price, without exception. In other words, no one on Wall Street believes that AMZN will be trading lower in a year. 
  • It is also the only FAANG stock with consensus price target at least 30% above current levels.

source: https://www.thestreet.com/amazon/stock/amazon-stock-wall-street-experts-can-agree-one-thing

Investments

Contract Size for stocks: 100

Leverage: 1:5

**Price Forecast: As per Tip Ranks

MARGIN = Lots * Contract Size * Price / Leverage

Market Prices as of June 28th, 2021 and can be subject to change

The below chart shows and includes scenarios of potential profit / loss if we were to open a long / short position of X contract and if the price goes up / down you will earn / lose X amount.

PriceLotsMarginPrice forecastPrice difference% DifferencePotential Profit / Loss
Facebook341.371 $6,827 $460.00 $118.63 35% $11,863.00
Apple133.111 $2,662 $185.00 $51.89 39% $5,189.00
Amazon3401.461 $68,029 $4,281.25 $879.79 26% $87,979.00
Netflix527.071 $10,541 $720.00 $192.93 37% $19,293.00
Google2450.171 $49,003 $2,785.97 $335.80 14% $33,580.00
Totals   $137,064     $157,904.00

* Minimum trade size on stocks: 0.01 lots

** These calculations do not include swaps and commissions and any additional charges. Please refer to our website and/or platform for more.

Here is what the analysts are saying about the FAANG stocks (provided by TipRanks)

FACEBOOK

The below chart was taken from a reputable source (tipranks.com) on 28.06.2021. 

facebook stock forecast
facebook stock forecast chart

 source: https://www.tipranks.com/stocks/fb/forecast

Apple

The below chart was taken from a reputable source (tipranks.com) on 28.06.2021.

apple stock forecast - faang
apple stock forecast chart

source: https://www.tipranks.com/stocks/aapl/forecast

Amazon

The below chart was taken from a reputable source (tipranks.com) on 28.06.2021.

amazon stock forecast - faang
amazon stock forecast chart

source: https://www.tipranks.com/stocks/amzn/forecast

Netflix

The below chart was taken from a reputable source (tipranks.com) on 28.06.2021.

netflix stock forecast
netflix stock forecast chart - faang

source: https://www.tipranks.com/stocks/nflx/forecast

Google

The below chart was taken from a reputable source (tipranks.com) on 28.06.2021.

alphabet stock forecast - google
alphabet class A stock forecast chart - faang

source: https://www.tipranks.com/stocks/googl/forecast

The below chart shows and includes scenarios of potential profit / loss if we were to open along / short position of X contract and if the price goes up / down you will earn / lose X amount.

BRONZE

PriceLotsMarginPrice forecastPrice difference% DifferencePotential Profit / Loss
Facebook341.370.25 $1,707 $460.00 $118.63 35% $2,965.75
Apple133.110.25 $666 $185.00 $51.89 39% $1,297.25
Amazon3401.460.25 $17,007 $4,281.25 $879.79 26% $21,994.75
Netflix527.070.25 $2,635 $720.00 $192.93 37% $4,823.25
Google2450.170.25 $12,251 $2,785.97 $335.80 14% $8,395.00
Totals   $34,266     $39,476.00

* Minimum trade size on stocks: 0.01 lots

** These calculations do not include swaps and commissions and any additional charges. Please refer to our website and/or platform for more.

The below chart shows and includes scenarios of potential profit / loss if we were to open a long / short position of X contract and if the price goes up / down you will earn / lose X amount.

SILVER

PriceLotsMarginPrice forecastPrice difference% DifferencePotential Profit / Loss
Facebook341.370.5 $3,414 $460.00 $118.63 35% $5,931.50
Apple133.110.5 $1,331 $185.00 $51.89 39% $2,594.50
Amazon3401.460.5 $34,015 $4,281.25 $879.79 26% $43,989.50
Netflix527.070.5 $5,271 $720.00 $192.93 37% $9,646.50
Google2450.170.5 $24,502 $2,785.97 $335.80 14% $16,790.00
Totals   $68,532     $78,952.00

* Minimum trade size on stocks: 0.01 lots

** These calculations do not include swaps and commissions and any additional charges. Please refer to our website and/or platform for more.

The below chart shows and includes scenarios of potential profit / loss if we were to open a long / short position of X contract and if the price goes up / down you will earn / lose X amount.

Gold 

PriceLotsMarginPrice forecastPrice difference% DifferencePotential Profit / Loss
Facebook341.371 $6,827 $460.00 $118.63 35% $11,863.00
Apple133.111 $2,662 $185.00 $51.89 39% $5,189.00
Amazon3401.461 $68,029 $4,281.25 $879.79 26% $87,979.00
Netflix527.071 $10,541 $720.00 $192.93 37% $19,293.00
Google2450.171 $49,003 $2,785.97 $335.80 14% $33,580.00
Totals   $137,064     $157,904.00

* Minimum trade size on stocks: 0.01 lots

** These calculations do not include swaps and commissions and any additional charges. Please refer to our website and/or platform for more.

The below chart shows and includes scenarios of potential profit / loss if we were to open a long / short position of X contract and if the price goes up / down you will earn / lose X amount.

Platinum 

PriceLotsMarginPrice forecastPrice difference% DifferencePotential Profit / Loss
Facebook341.372 $13,655 $460.00 $118.63 35% $23,726.00
Apple133.112 $5,324 $185.00 $51.89 39% $10,378.00
Amazon3401.462 $136,058 $4,281.25 $879.79 26% $175,958.00
Netflix527.072 $21,083 $720.00 $192.93 37% $38,586.00
Google2450.172 $98,007 $2,785.97 $335.80 14% $67,160.00
Investment   $274,127     $315,808.00

* Minimum trade size on stocks: 0.01 lots

** These calculations do not include swaps and commissions and any additional charges. Please refer to our website and/or platform for more.

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. Ebrókerház Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The information presented does not involve any specific investment objectives, financial situation, and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.

Please consider that no news or information shared, nor any content included in any other document available in this website, should be understood in any way, either explicitly or implicitly, directly or indirectly as investment advice, recommendation, or a proposal for an investment strategy related to a financial instrument, as these are made available to you solely for information purposes. The data and information disclosed in the news or in the website, or the analyses attached to trading charts, only reflect the result of a technical analysis done by a professionally independent third party and may change without any prior notice.

The clients of eBrókerház Befektetési Szolgáltató Zrt. open orders through the Trade GM Trader Online Trading Platform, the orders will be forwarded to an execution venue defined in our Execution Policy. Trade GM Trader Online Platform is operated by eBrókerház Szolgáltató zrt, which is authorized and regulated by the Hungarian National Bank under the licence numbers III/73.059/2000. and III/73.059-4/2002.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The materials contained on this page are for advertising and marketing purposes only and should not in any way be construed, either explicitly or implicitly, directly or indirectly. as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. You should make sure that you have sufficient time to manage your investments on an active basis. CDF are derivative financial instruments, which price is derived from the price of the underlying asset or contract to which the CFD refers (for example currencies, commodities, indices, equity, etc.). Derivative financial instruments and related markets can be highly volatile. The prices of CFDs and underlying instrument may fluctuate rapidly over wide ranges and may reflect unforeseeable events or changes in conditions, none of which can be controlled by the client or eBrókerház Befektetési Szolgáltató Zrt. Prices quoted or information may vary and change depending on market conditions. When investing in Company’s Products denominated in a currency other than that of the state in which you reside, the return may increase or decrease as a result of currency fluctuations. Any indication of past performance or simulated past performance included in an advertisement is not a reliable indicator of future results. All names, pictures and personal details of people depicted as traders in advertisements concerning past performance are included for presentation purposes only, and are not the actual traders who have made the transaction detailed in the advertisement (actual details are kept for privacy purposes). All opinions expressed by traders are not actual testimonials but rather are depictive of the actual past performance and trading experience. Any trades depicted are selected from past real successful trades and are not reliable indicator of all customers past or future trades.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. X