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Facebook (FB): Why Is Facebook Stock Still A Buy?

By on December 20, 2020

Facebook (FB): Why Is Facebook Stock Still A Buy?

Facebook stock (NASDAQ: FB) is priced at $276.40 today. What makes it a good and recommended buy is its consistent performance in the last one year or so.

Moreover, what can be attributed to Facebook’s success is its strength and stronghold, especially in the corona pandemic. This happened when more people resorted to online mediums for communication than before.

Facebook Stock’s Success

Furthermore, what can also be attributed to Facebook’s success is the fact that the corona pandemic is going to take much more time to ‘end’ and Facebook is going to be the prime mode of online communication amongst masses, where people stick at home to work.

Its stock, therefore, is going to rise. Facebook is also going to gain because of eCommerce ad growth, which is going to be high in the coming months, especially during Christmas.

Moreover, according to the analysts that cover Facebook stock, 42 have given it a Buy rating, and 6 rate it as hold which is pretty obvious to realize that its status is buy.

The company has a price target of $327.32, which shows a 15% return from its price on Tuesday. Its shares have gained significantly this year (by 41%), as the benchmark S&P 500 index rose by 20%. (More on S&P 500 index).

Furthermore, amongst other reasons to buy Facebook stock is the fact that it has a 52 week period- price target of $316.87 which shows that Facebook stock is going to rise in the coming months.

Facebook Stock Conclusion

Facebook’s stock has been stable and is a must add in your investor basket, especially if you want something concrete in volatile times.

Facebook is leading the ‘big tech groups‘ and has a lot more to gain in the months to come which keeps it in good books.

Stay tuned.

Stock Market Outlook This Friday

By on July 29, 2020

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.

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.

Combined with Microsoft, these five companies hold a huge share of the S&P 500 increase.

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:

  1. Investors were unsure and markets were volatile in the first quarter of the year due to the corona pandemic.
  2. 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.
  3. 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 earnings are concerned, then Wall Street predicts a Q2 2019 result of $0.91, $1.39 Q2 2020 consensus estimate and 53% YOY change.

Stock Market Outlook This Friday: Tech Unveiled

 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.

Amazon (AMZN)

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.

Alphabet Inc.

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).

Stock Market Outlook This Friday: Tech Unveiled

To Conclude

According to analysts expectations, Alphabet’s revenue will slightly contract because of a drop in ad sales. Furthermore, 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.

6 Stocks To Watch This Week

By on October 14, 2019

6 Stocks To Watch This Week

The week has started and people are enjoying the rush on the whole. Generally, things have been a little rocky because Japan has been graced by a typhoon, where as Pakistan has been blessed by an Earthquake. Nonetheless, while these calamities do have a huge impact on the markets, there are some stocks that will be outperforming this week. If you are into investing, then know that here are the 6 stocks to watch this week.

In the U.S market, things are shaky in the United States of America as well. However, you cannot lose or drop smaller gains for greater perspectives. Instead, what you need to realize and know is that life goes on as does every thing else.

This week in the stock market, and for stock enthusiasts, here are 6 stocks to watch this week.

First things first:

The top indexes such as S&P 500 (SNPINDEX:^GSPC) and the Dow Jones Industrial Average (DJINDICES:^DJI) gained 1% on homes of easing a trade war. Both of them are the top 6 stocks to watch this week.

The Dow Jones gained 16% in 2019 so far, whereas the S&P 500 was higher by 19%.

Furthermore, if you are looking for 6 important stocks to watch this week, here are the answers;

Netflix

Netflix is hoping that its subscriber growth will lead to 7 million this quarter. This means its going to get back the share it lost in the market due to fierce competition by Apple and Disney.

Netflix would essentially benefit from the movies that are coming up as well.

Netflix, is, therefore, one of the 6 top stocks to watch this week.

Costco

Costco, which goes by the label of (NASDAQ:COST) is going to report its earnings this week. Costco is another one of the 6 stocks to watch this week. Two other stocks to watch this week are Walmart and Coco-Cola. Both of these stocks are the ones to be watched this week.

Stitch Fix

Though Stitch Fix lost more than half of the worth of the premium it has been carrying, it can be said that Stitch Fix will keep its prices in check and could be one of the highlights in stocks this week. If you are looking to find out about the 6 top stocks to watch this week, this one is a must watch.

3 Out Of The 6 stocks to watch this week

A) IBM

B) Seagate Technology

C) Broadcom Chip.

As far as penny stocks are concerned, then the top 5 penny stocks to watch this week:

1- NF Energy Saving Corporation (BIMI)

2- Stage Stores, Inc. (SSI).

3- Teekay Tankers Ltd. (TNK)

4- Workhorse Group Inc. (WKHS)

5- Tsakos Energy Navigation Limited (TNP).

6- Most of the ones above.

Stay tuned.