2 Big Tech Earnings We're Watching
Just like that, earnings season is upon us once again and this quarter is going to see some interesting figures from companies.
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2021-10-25 10:29

Specifically, this week will see a majority of FAANG stocks reporting, which always has a massive impact on the performance of the NASDAQ and S&P 500. There is some belief that revenues will see some regression, particularly in mobile-based companies thanks to the new app tracking and ad targeting filters from Apple ($173.07|0.51%). Let’s take a look at the impact on two of the biggest companies in the world.

Facebook (NASDAQ:FB): Ah, the evil empire. Facebook is undoubtedly amongst the most polarizing companies in the world. It’s stock has been a different story though. Shares have returned 750% to investors since the company went public, and is up about 21% year to date. Of course, shares took a tumble last week after the earnings miss of Snap (NYSE:SNAP), which the company attributed to Apple’s new advertising controls. Since a majority of Facebook’s revenues are based on revenues, analysts and investors are clearly anticipating an earnings miss for the company. Not so fast, though! Sure, a lot of people use Facebook on their mobile phones, but just as many people visit Facebook on a computer. Snap is a mobile-based app so it’s easy to see why it would be so affected by iPhone usage. We’ll see what Facebook’s earnings report brings, but if the stock continues to dip, it could be a pretty good buying opportunity.

Alphabet (NASDAQ:GOOGL): Alphabet could be in the same boat as Facebook. The company has lost billions of dollars off of its market cap over the past week, and while that may be a drop in the bucket, it does show that the market is certainly apprehensive about big tech’s future. Alphabet just may not be as affected as we think. Like Facebook, Alphabet sees so much of its ad exposure from desktop usage. As well, Alphabet has so many different revenue streams that the Apple restrictions are likely not going to affect them as much as we think. Alphabet has its hardware and equipment segments, having just announced the upcoming release of its new Pixel 6 smartphone. Early estimates are expecting revenues of over $63 billion, up from $46 billion in this quarter last year. Like with Facebook, the markets will be eyeing the impact on ad related revenues, as well as forward looking forecasts for 2022. It could just be that the Apple ad restrictions are a momentary blip for these companies, but it could also mean that big tech companies are changed forever. Both Facebook and Alphabet are expected to improve on last year’s figures, but where we could see a slowdown is on sequential quarter revenue growth. As with Facebook, watch out for the market’s reaction to Alphabet’s stock, because it could make for another incredible spot to buy the dip.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2021-10-25 10:29

About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.

Analyst Ratings
Target Price $401.01
# of Analysts 52
Last updated 2022-01-16

Nio Smashes Delivery Records and is Poised to Rebound
Nio reported its December, fourth quarter, and full-year delivery figures over the weekend, and suffice to say, Wall Street was impressed.
By Mike Sakuraba | 1 week ago

Tilray; capturing the cannabis market with another acquisition
With the acquisition of Breckenridge Distillery, Tilray is undergoing a horizontal expansion to increase its offering in the beverage alcohol sector.
By Precious Njoku | 2 weeks ago

Why You Should Buy the Tesla Shares that Elon Sold
As much as analysts say that Tesla’s stock is inflated and that the EV market is catching up to the company, we cannot deny that the stock is resilient.
By Mike Sakuraba | 2 weeks ago

Why Tesla Rebounded but Lucid, RIvian, and Nio did not
Now that Musk is finished for this year, investors seemed to take that as a bullish sign.
By Mike Sakuraba | 3 weeks ago

Why I Was Wrong About AliBaba
AliBaba’s business and stock are heading in opposite directions, but one day soon we will find a capitulation.
By Mike Sakuraba | 3 weeks ago

Why Nio is in Freefall: Is it time to sell Nio?
Nio investors are no doubt feeling some deja vu after the stock tumbled into the low single digits in the winter of 2019.
By Mike Sakuraba | 4 weeks ago

Breaking into the Cannabis industry with strength
The company recently announced annual revenue of $2.9 billion, with an adjusted earning per share of $12.46.
By Precious Njoku | 4 weeks ago