2 FAANG shares with “strong buy” to watch profit
Big tech has been on the news lately, and not necessarily for the right reasons. Corporate censorship allegations have made headlines in recent weeks. While this is serious, it can have a beneficial effect – the public discussion about the role of big tech in our digital lives is long overdue. And that discussion will begin once the fourth quarter and full year 2020 financials are in. Netflix has already reported on the FAANG shares; The other four will be posting results over the next two weeks. So the gains ahead are sure to get well-deserved attention, and Wall Street’s top analysts are already giving their views 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 see how the road was doing when they released their fourth quarter numbers for each member. According to the platform, both received a lot of love from the analysts and received a consensus rating of “Strong Buy”. Facebook (FB) Let’s start with Facebook, the social media giant that redefined our online interactions. In addition to Google, Facebook has also brought us targeted digital marketing and advertising as well as the mass monetization of the Internet. It was a profitable strategy for the company. Facebook’s market cap is up to $ 786 billion, and in the third quarter of 2020 the company reported sales of $ 21.5 billion. Looking at the Q4 report, which is due to appear on January 27, analysts forecast sales of 26.2 billion US dollars or more. This would follow the company’s pattern of increasing quarterly performance from Q1 to Q4. At the forecast total, revenue would increase by 24% year-on-year, which roughly corresponds to the year-on-year increase of 22% already recorded in the third quarter. The most important metric to look out for is the growth in daily active users. This metric fell slightly from Q2 to Q3, and a further decline is seen as a threatening sign for the company’s future. Currently, the average daily number of users on Facebook is 1.82 billion. Before printing, Oppenheim-based analyst Jason Helfstein raised his target price to USD 345 (from USD 300) and repeated the outperform rating (ie buy). Investors can pocket a profit of ~ 26% if the analyst’s thesis prevails. (To see Helfstein’s track record, click here.) The 5-star analyst commented: “[We] 4Q ad revenue is expected to exceed Street estimates. We now forecast 4Q ad revenue + 30% YoY versus Street + 25% estimate based on a regression of US standard media index data (r-squared 0.95) and an acceleration of Gupta Media’s global CPM data (4Q + 35% im Annual comparison). y vs. 3Q’s -12%). Additionally, after talking to our checks and our initial work of conservatively estimating stores, we’re very optimistic about FB’s ecommerce opportunity, an opportunity of $ 25-50 billion versus the current $ 85 Billion dollars is. We believe stocks currently trading 7.1x EV / NTM sales offer the cheapest risk / return among internet large caps. “Overall, the social media empire remains a Wall Street darling as TipRanks Analytics presents FB as a strong buy. Based on 34 recent reviews split across 30 buy ratings, 3 holds and 1 sell, the price is around $ 276.10, and the average target price of $ 327.42 suggests a year-long upside of ~ 19%. (See FB stock analysis at TipRanks) Amazon (AMZN) If we turn to e-commerce, we can’t get Amazon The retail giant has a market capitalization of $ 1.65 trillion making it one of only four publicly traded companies valued above the trillion dollar mark. The company’s famous price is notoriously high and has been around since that time Grown 74% last year, well above broader markets. Amazon’s growth was aided by increased online sales activity during the “Corona Year.” Worldwide online retailers are global ndel grew 27% in 2020 while total retail was down 3%. Amazon, which dominates the online retail sector, is expected to grow by the end of 2020 with total sales of $ 380 billion, or 34% year-over-year growth, with global e-commerce winning. Cowen analyst John Blackledge, rated 5-star by TipRanks, covers Amazon and is bullish on the company’s prospects ahead of earnings release. Blackledge values the outperform stock (i.e., buy) and its price target of $ 4,350 means confidence in a 31% uptrend over a one year horizon. (To see Blackledge’s track record, click here.) “We forecast fourth quarter revenue of $ 120.8 billion, + 38.2% YoY versus + 37.4% YoY. y third quarter of 20, led by AWS, ads, subscriptions and 3P sales [..] We estimate the U.S. Prime Sub’s growth accelerated in fourth quarter of 20 (76 million subs in December 20 and 74 million average in fourth quarter of 20), driven by pandemic demand, October Prime Day, and extended shopping time as well the delivery was supported within one day […] We expect the strong sales growth in ’21 from e-commerce (supported by COVID in Grocery), adv., AWS & sub-businesses to continue, “said Blackledge. That Wall Street is generally optimistic on Amazon It’s no secret. The company has registered 33 ratings, 32 of which are purchases versus 1. The price of the shares is $ 3,301.26, and the average target price of $ 3,826 implies there will be more this year 16% will grow. (See AMZN stock analysis on TipRanks.) To find great ideas for trading stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are only those of the analysts featured. The content is for informational purposes only. It is very important that you conduct your own analysis, be before making an investment.