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2 FAANG shares for strong buy to see rate after earnings
Big Tech has been in the news lately, and not necessarily for the right reasons. Accusations of corporate censorship have been in the news for the past few weeks. While serious, it can have a salutary effect – the public discussion of Big Tech’s role in our digital life is long gone. And the discussion will be ongoing, just as the financial years of the Q4 and the full year 2020 begin. Of the FAANG shares, Netflix has already reported; the other four will announce results over the next two weeks. The coming earnings will therefore receive well-deserved attention, and Wall Street’s best analysts publish their opinion on some of the key components of the market. Using TipRanks’ database, we looked up the details of two members of the FAANG Club to find out how the street thinks everyone will fare when they publish their fourth term numbers. According to the platform, both received a lot of love from the analysts, who deserve a consensus rating from ‘Strong Buy’. Facebook (FB) Let’s start with Facebook, the social media giant that has redefined our online interactions. Together with Google, Facebook has also brought us targeted digital marketing and advertising and the great monetization of the internet. It was a profitable strategy for the company. Facebook’s market capitalization is up to $ 786 billion and in the third quarter of 2020, the company reported $ 21.5 billion at the top. Looking ahead to the Q4 report, which appears on January 27, analysts forecast revenue at or near $ 26.2 billion. This is in line with the company’s pattern of rising quarterly performance from Q1 to Q4. At the projected amount, revenue would increase by 24% year-on-year, roughly in line with the 22% yoy increase already seen in the third quarter. The most important measure you need to pay attention to is the growth in daily active users; this benchmark has slipped slightly from Q2 to Q3 and further decline will be seen as an ominous sign for the future of the company. As it stands now, Facebook’s daily average number of users is 1.82 billion. Before the press, Oppenheimer analyst Jason Oelfstein raised his price target to $ 345 (from $ 300), while repeating an Outperform rating. Investors have a profit of ~ 26% on their own if the analyst’s dissertation were to play. (To see Helfstein’s record, click here.) The 5-star analyst said: ‘[We] expects 4Q advertising revenue to be the best estimates for Street. We now forecast 4Q advertising revenue + 30% year-on-year versus Street + + 25% estimate, based on a regression of the US standard media index data (r-square 0.95) and the acceleration of the global CPM data from Gupta Media (4Q + 35% year-on-year) compared to 3Qs -12%). In addition, we are very positive about FB’s e-commerce opportunity after discussions with our checks, and our initial work is to conservatively estimate that Stores is an opportunity of $ 25 to 50 billion compared to the current equipment of $ 85 billion. We believe that stocks that are currently trading at 7.1x EV / NTM sales offer the most favorable risk / reward in large internet capitalization. ‘Overall, the social media empire remains a darling in Wall Street, as TipRanks analysis shows FB as a strong buy. on 34 recent reviews, ranging from 30 Buy Ratings, 3 Holdings and 1 Sell. Shares are priced at $ 276.10 and the average price target of $ 327.42 indicates an upward one year of ~ 19%. (See FB stock analysis on TipRanks) Amazon (AMZN) As for e-commerce, we can not avoid Amazon. The retail giant has a market capitalization of $ 1.65 trillion, making it one of only four listed companies worth more than the trillion dollars. is very high and has grown by 74% since this time last year, far exceeding the broader markets. Amazon’s growth is supported by increased online sales activity during the ‘corona year’. Worldwide, online retail has grown by 27% in 2020, while total retail has declined by 3%. Amazon, which dominates the online retail sector, is expected to end 2020 with $ 380 billion in total revenue, or 34% more than year-on-year growth, which is higher than this year. the global e-commerce increase. Cowen analyst John Blackledge, who rates 5-star TipRanks, covers Amazon and is strong about the company’s prospects ahead of earnings. Blackledge rates the stock better than the buy (ie buy) and its price target at $ 4,350 indicates confidence in a 31% increase over the one-year time horizon. (To view here, click here). y in 3Q20 led by AWS, advertising, subscription and 3P sales [..] We estimate that the US Prime sub-growth is accelerating in 4Q20 (reaching 76MM subs in December ’20 and ~ 74MM on average in 4Q20), aided by demand for pandemic, Prime Day in October, and an extended shopping period, as well as 1-day delivery […] “In ’21, we expect strong top growth to continue, driven by e-commerce (assisted by COVID in Grocery), advocates, AWS and sub-enterprises,” Blackledge said. That Wall Street is generally strong on Amazon is no The company has 33 reviews on record, 32 of which are Buys, compared to 1 Hold. Shares are priced at $ 3,301.26 and the average price target of $ 3,826 implies that it will grow by another 16% this year. To find ideas for trading stocks at attractive valuations, visit TipRanks’ best stocks to buy, a new tool that unites all the insights of TipRanks Disclaimer: The opinions expressed in this article are solely those of the proposed Analysts are for informational purposes only. It is very important to do your own analysis before investing.