Stock Market Outlook This Friday
Stock Market Outlook This Friday. Things seem awkward as big tech giants are supposed to reveal their earnings this Friday. After the markets close this Thursday, four out of the five FAAMG stocks will report their June quarter results. These include Facebook (at 6:00 pm ET), Amazon (AMZN) at 5:30 pm ET, Apple at 5:00 pm ET and Google/Alphabet at 4:30 pm ET. The one tech giant that will be missing from revealing its earnings this Friday will be Microsoft.
However, since these four names are the ones that are leading the industry, investors and stockholders are hooked to their laptops and phones to realize what is going to go on in the stock market.
What is interesting is that not only with stock owners benefit from the gains and losses of these four companies. In fact, the truth is that these four make up to 17% of the S&P 500 value and 40% of the Nasdaq 100.
Furthermore, because of their outlook and growth rates, it is true that all of these four companies are trading above the S&P 500’s PE multiple of 25x on this year’s earnings and 19.6x on 2021 earnings.
Q2 Earnings: Facebook, Amazon, Apple and Google
What is true is that Q2 earnings of these four companies will be watched carefully by investors and stock holders for the following reasons:
- Investors were unsure and markets were volatile in the first quarter of the year due to the corona pandemic.
- Since the corona pandemic caused a lot of disturbance and uncertainty in the markets, people were reluctant to invest and gave benefit of doubt to these companies.
- People will be hooked to Q2 earnings because it might actually include the full impact of Covid-19 and give directive for Q3 and Q4, which will be more competitive and tough.
Amongst these companies, here is how each performed in 2020:
Facebook Inc. (NASDAQ: FB)
Facebook (NASDAQ: FB) stock gained 13.9% till July 27 against S&P 500 1.4% return.
Wall Street is expecting a Revenue of $16.9 billion as a Q2 2019 result for the company and $17.4 billion for Wall Street’s Q2 2020 Consensus estimate. It also predicts a YOY change of 3%.
Secondly, as far as Facebook’s earnings are concerned, then Wall Street predicts a Q2 2019 result of $0.91, $1.39 Q2 2020 consensus estimate and 53% YOY change.
Wall Street also expects Facebook’s EPS to jump by 53% by year over year basis.
Facebook has had a tough year but it made a lot of efforts in the last 6 months despite the corona epidemic and security concerns. Thereby, its shares stood in green in the last 6 months. Today, its shares stand at $230.12.
Stock Market Outlook This Friday will also include Amazon (AMZN) Inc. revealing its earnings.
Through July 27, Amazon shares were higher by 65.7%. Investors have driven Amazon shares higher on optimism because they were of the opinion that online e-shopping will be at its peak in the corona pandemic and it was. In the first quarter of the year, that was the truth.
Investors are hopeful of more in the 2nd quarter for Facebook.
Furthermore, Amazon’s revenue is expected to be $63.4 billion (its Q2 2019 results), $75-81 billion, its Amazon’s Q2 2020 Guidance, 18%-28% (it’s projected YOY change), $81.1 billion, its Q2 2020 Consensus Estimate and 28% it’s YOY projected change.
Its EPS is expected to be $5.22 in the 2nd quarter of the year.
Q1, Amazon’s revenue rose by 26% (YOY) to $75.45 billion, topping $75.45 billion.
Amazon’s (NASDAQ: AMZN) shares are valued at $3,000.33.
Stock Market Outlook This Friday will also include Alphabet Inc. revealing its earnings.
This year, Alphabet’s shares (NASDAQ: GOOGL) are up by 14.5 % (Class A) and 14.4% Class C through July 27. (Google is Alphabet’s parent company).
Wall Street expects a revenue of $38.9 billion in revenue (its Q2 2019 results) and $37.4 billion its Q2 2020 Consensus Estimate, and a 4% Projected Change (YOY).
Its earnings per share were $14.21 (Q2 2019 Result), $8.23 (Q2 2020 Consensus Estimate) and 42% (its Projected Change YOY).
According to analysts expectations, Alphabet’s revenue will slightly contract because of a drop in ad sales and because of the world economy shut down in Q2.
In Q1, Alphabet’s revenue increased by 13% (YOY) to $41.2 billion. By March-April, Alphabet too was down but today, its shares stand at $1,503.65.
Stay tuned for more updates at Tech Unveiled.