The quarterly earnings season separated the great companies from the fair ones. Among the FAANGM stocks, Google (GOOGL), Apple (AAPL), and Microsoft (MSFT) posted the best profits and business strength.
Google gave up most of its post-earnings rally. This creates a good entry point.
Amazon (AMZN) gets a mention for including its unrealized Rivian (RIVN) gains. Algorithmic machines picked Amazon.com’s non-GAAP profit to send the stock to $450. That rally only lasted briefly. Still, the e-commerce firm has strong growth from AWS, its cloud business. Growing demand for its refreshed streaming stick will help its streaming service. And the subscription rate hike for Amazon Prime will lead to higher operating margins this year.
Netflix’s (NFLX) weak subscriber growth in the quarter and disappointing outlook sent the stock to a low of around $360 after the earnings report. News of hedge funds buying the stock temporarily lifted NFLX stock. Fortunately, Netflix has a strong library of content. It broadened its material to differentiate itself from the competition. For example, K-Drama and movie hits like Squid Game will encourage customers to retain their subscriptions. Furthermore, Netflix’s subscription price hike for new customers will reduce churn and increase profits.
Among the FAANGM, GOOG, MSFT, and AAPL are obvious stocks to hold. Netflix has the best rebound potential.
