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2 “strong buy” FAANG shares to watch for gains
Big Tech has been on the news lately, and not necessarily for the right reasons. Accusations of corporate censorship have made headlines in recent weeks. While it is serious, it can have a salutary effect – public discussion of Big Tech’s role in our digital lives is long overdue. And that discussion will begin as soon as the financial figures for the fourth quarter and 2020 begin to arrive. About FAANG’s actions, Netflix has already reported; the other four will release the results in the next two weeks. Therefore, the next gains will attract well-deserved attention, and the best Wall Street analysts are already publishing their opinions on some of the most important components of the market. Using the TipRanks database, we survey the details of two members of the FAANG club to find out how Street thinks each will do when it publishes its fourth quarter numbers. According to the platform, both received a lot of love from analysts, earning the consensus rating of “Compra Forte”. Facebook (FB) Let’s start with Facebook, the social media giant that has redefined our online interactions. Along with Google, Facebook also brought us targeted digital marketing and advertising, and mass monetization of the internet. It is a profitable strategy for the company. Facebook’s market capitalization is up to $ 786 billion, and in the third quarter of 2020, the company posted $ 21.5 billion in revenue. Looking at the fourth quarter report, which will be released on January 27, analysts are forecasting revenues of around $ 26.2 billion. This would be in line with the company’s standard of increasing quarterly performance from the first to the fourth quarter. In the predicted sum, revenues would increase 24% year on year, almost congruent with the 22% annual gain already observed in the third quarter. The main metric to be observed will be the growth of daily active users; this metric fell slightly from the second to the third quarter, and an additional drop will be considered an ominous sign for the company’s future. As it stands now, the average daily Facebook user is 1.82 billion. Prior to printing, Oppenheimer analyst Jason Helfstein raised his target price to $ 345 (from $ 300), while reiterating an Outperform rating (ie, Buy). Investors can pocket a ~ 26% gain if the analyst’s thesis materializes. (To see Helfstein’s history, click here) The 5-star analyst commented: “[We] 4Q early advertising revenue will far exceed Street’s estimates. We now forecast advertising revenue for 4Q + 30% y / y vs. Street + 25% estimate based on a US Standard Media Index Data regression (r-square 0.95) and Gupta Media’s accelerated global CPM data (4Q + 35% y / y vs. 3Q’s -12%). In addition, we are very optimistic about the FB’s e-commerce opportunity following conversations with our checks and our initial work, estimating that Shops is a $ 25–50 billion opportunity against the current $ 85 billion revs. We believe that the shares currently traded at 7.1x EV / NTM sales offer the most favorable risk / reward on large Internet caps. “Overall, the social media empire remains the darling of Wall Street, as TipRanks’s analysis portrays FB as a strong buy. In 34 recent reviews, which are divided into 30 buy ratings, 3 retentions and 1 sale. The shares are quoted at $ 276.10 and the average target price of $ 327.42 suggests an increase of approximately 19% in one year. (See TipBanks FB stock analysis) Amazon (AMZN) e-commerce, we can’t avoid Amazon. The retail giant has a market capitalization of $ 1.65 trillion, being one of only four publicly traded companies valued at more than $ 1 trillion. notoriously high and has grown 74% since that time last year, far surpassing the broader markets. Amazon’s growth was supported by increased online sales activity during the ‘corona year. Globally, online retail grew 27% in 2020 , while total retail sales fell 3%. azon, which dominates the online retail sector, is projected to end 2020 with $ 380 billion in total revenue, or 34% year-over-year growth, outpacing global e-commerce gains. Cowen analyst John Blackledge, with a 5-star rating by TipRanks, covers Amazon and is optimistic about the company’s prospects before the results are released. Blackledge values Outperform (ie Buy) shares and their target price at $ 4,350, indicates confidence in a 31% upside over a year’s time horizon. (To view Blackledge’s history, click here) “We expect 4Q20 reported revenue of $ 120.8 billion, + 38.2% y / y vs. + 37.4% y / y in 3Q20 led by AWS, advertising, subscription and 3P sales [..] We estimate that US Prime’s undergrowth accelerated in 4Q20 (reaching 76 million subs in December 20 and ~ 74 million on average in 4Q20), helped by pandemic demand, Prime Day in October and extended purchase period, as well as delivery of 1 day […] In 21, we expect strong revenue growth to continue to be driven by eCommerce (helped by COVID to pull forward in Grocery), adv., AWS and sub-companies, “said Blackledge. That Wall Street is generally optimistic about Amazon is not the company has 33 registered reviews, 32 of which are purchases, versus 1 wait. The shares are priced at $ 3,301.26 and the average target price of $ 3,826 implies that it will grow another 16% this year. AMZN stock analysis at TipRanks) To find good ideas for stock trading with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all TipRanks stock insights. Disclaimer: The views expressed in this article are exclusively those of the analysts presented.The content is intended to be used for informational purposes only It is very important to do your own analysis before making any investment.