Earnings season starts in earnest next week. Netflix reported. The rest of the FANG stocks report next week; Google, Facebook and Amazon. Let’s preview.
Google Earnings Monday After The Close
Google (Nasdaq: GOOG), (Nasdaq: GOOGL) reports after the close Monday with a conference call at 4:30 EDT. Last quarter showed accelerated revenue growth but weaker gross margins which dissapointed the Street. The lower margins were caused by a jump in TAC, Traffic Acquisition Cost so investors will be watching TAC. Google earnings don’t have a track record of always beating so there’s always volatility around earnings reports.
Facebook Earnings Wednesday After The Close
Facebook (Nasdaq: FB) reports after the close on Wednesday with a conference call at 4:30 EDT. As you know we’re bulled up (here and here). Our earnings are well above the Street this year despite the company trying to “kitchen-sink” expenses to appease Congress. Mark Zuckerberg also said there has been minimal business impact even with all the negative press. Technically the stock held a key level so positive news can force everybody to get back in. We’re bullish.
AMD Earnings Wednesday After the Close
AMD (Nasdaq: AMD) isn’t a FANG stock even though it starts with an “A.” But it’s on our Buy List so we squeeze it in here. The question is how much did crypto damage the quarter? Crypto currencies drove Q4 and crypto prices have dropped big time this quarter likely stalling miner purchases. We did point out two positives for crypto, one the chart, and two TSMC pointing to miner strength. Still AMD gave a monster guide last quarter which, when we flowed it through to our Our earnings, gave us huge upside. We’re staying bullish.
Amazon Earnings Thursday After The Close
Amazon reports earnings Thursday after the close with a call at 5:30 EDT. Amazon (Nasdaq: AMZN) had amazing results last quarter. We just have an issue with the valuation but we’d love to love Amazon. Amazon is the final FANG stock reporting in earnings season. Our earnings are above the Street for this year but what do you pay for it? If you want to pay 100X the Street’s 2019 numbers you are at fair value. AWS is more than 100% of their profits and has started to see nice leverage. That’s the whole earnings story for me, frankly. The other businesses are all Our earnings in combination. Yes, negative. We’ll see how they report. Amazon, like Google can be up or down big versus expectations on a quarterly basis so there are big moves either way.