The second quarter report cards for FAANG titles have arrived – and it’s a mixed bag once again. But Goldman Sachs keeps its buy requests for grouping and has only one sales call between the tech giants. Google’s parent, Alphabet, and Facebook’s parent, Meta, both missed their earnings and revenue estimates, while Amazon experienced a drop in revenue. Netflix exceeded Wall Street’s earnings expectations and lost fewer subscribers than expected during the same quarter. The streaming giant warned investors last quarter that it expected to lose around 2 million subscribers, but only lost around 970,000 during the three-month period ending June 30. Apple was the only FAANG stock that beat earnings and revenues. “In many ways this earnings season has been split into two broad narratives,” Goldman analysts, led by Eric Sheridan, said on Aug.21. “Digital advertising operators have given a more cautious tone to growth as a result of macroeconomic activity, industry competition, industry headwinds due to changes in privacy and a slightly weaker brand advertising environment, while companies with more direct exposure to the consumer have shown a more optimistic tone that they have not yet seen any demonstrative change in final demand behavior, “he added. Against this backdrop, Goldman sees the “most attractive” risk-reward ratio among large-cap names with a significant presence in end markets and an ability to improve margins in various economic conditions. Why Netflix is ​​a Sale While Sheridan acknowledged that Netflix had a “better-than-feared” loss of paid subscribers in the second quarter and drove for new additions in the third quarter, he said the market may be looking beyond this metric when evaluating. of the title. “We continue to believe that Netflix will be measured by its ability to meet the growing competitive intensity of the industry and to take action against two important strategic initiatives: cracking down on password sharing and launching an ad-supported subscriber level,” he said. affirmed. Sheridan said Netflix’s guidance and initial details on those initiatives show the potential for new subscriber growth and higher margin earnings. Learn more Energy stocks are in motion. But this one has the balance sheet to beat them all, says Gene Munster, Citi tech investor Why he thinks Apple has over 40% lead JPMorgan says the rally in growth stocks has yet to go and explains when it is likely to end, it will be any successful execution on those initiatives that would likely lead Netflix to reverse its recent past of share price underperformance. Unfortunately, our visibility on timing, level of success and how those initiatives will create momentum remains low, “he added. Netflix shares closed at around $ 245 on Tuesday. [to be updated] representing a potential downside of 24.1% from Goldman’s target price of $ 186 on the stock. Amazon’s first choice is Goldman’s first choice in the Internet industry this year, according to Sheridan. The bank said the company’s second quarter earnings report indicates a “potential recovery path” for growth or margins in its core e-commerce business and sustained operational momentum in its cloud computing arm Amazon Web Services. as well as in digital advertising.
(Bloomberg) -- President Joe Biden doesn't like them. The IRS is after them. And Wall Street strategists warn that the boom won't last. Yet against all odds, Corporate...
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