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FAANGs Earnings Season: A Critical Review of Key Players

Strategic Insights

— 1 min read

The FAANGs - Facebook, Apple, Amazon, Netflix, and Google - are among the biggest names in the US tech space, collectively worth over USD6.5 trillion. As the remaining four of the five giants prepare to report their earnings, investors are eagerly awaiting their quarterly numbers and outlooks, which will have a significant impact on the S&P 500 and Nasdaq indices. Netflix and Intel Corp, both FAANGs, disappointed with their first quarter earnings last week, and their share prices flopped in response.

Key Takeaways:

  • Netflix reported revenue of USD7.16 billion for the first quarter of 2021, up 24% year-on-year, but missed its membership targets, ending the quarter with 208 million paid memberships, below its guidance of 210 million.
  • Intel Corp's first quarter earnings were also a letdown, with revenue down 1% year-on-year at USD19.67 billion and net income tumbling 41% to GBP3.36 billion.
  • Tesla Inc, expected to report after the New York market close on Monday, is forecast to post EPS of USD0.79 in the first quarter of 2021, up sharply from USD0.23 cents a year ago.
  • Microsoft is expected to report quarterly EPS of USD1.86 on revenue of USD40.9 billion, while Alphabet is anticipated to report USD15.41 in EPS on USD41.8 billion of revenue.
  • Apple is estimated to post EPS of USD0.99 and revenue of USD76.1 billion, while Facebook is forecast to post EPS of USD2.38 and revenue of USD22.5 billion.
  • Amazon is expected to post EPS of USD9.98 on revenue of USD104.6 billion.
  • Trader focus will be on the outlook for post-pandemic life, as investors will be looking for guidance on changing consumer behavior, beyond just top and bottom lines.

Statistics:

  • Netflix revenue: USD7.16 billion (up 24% year-on-year)
  • Intel Corp revenue: USD19.67 billion (down 1% year-on-year)
  • Tesla Inc EPS forecast: USD0.79 (up sharply from USD0.23 cents a year ago)
  • Microsoft EPS forecast: USD1.86
  • Alphabet EPS forecast: USD15.41
  • Apple revenue forecast: USD76.1 billion
  • Facebook EPS forecast: USD2.38
  • Amazon EPS forecast: USD9.98
  • Netflix paid memberships: 208 million (below guidance of 210 million)

Sources:

  • Alliance News, (no date mentioned)
  • ThinkMarkets, (no date mentioned)
  • XTB, (no date mentioned)
  • Forex.com, (no date mentioned)

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