Among FAANG stocks, Netflix (NFLX), Amazon (AMZN), and Alphabet (GOOGL) have already released their quarterly data for this earnings season. Netflix released its Q3 results on October 16, Amazon released its results on October 24, and Alphabet released its results on October 28. The final two FAANG stocks, Apple (AAPL) and Facebook (FB), are set to release their results today. Market enthusiasts closely track FAANG stock prices, which have been volatile this month.
The Nasdaq 100 Technology Sector Index (NDXT) has also been volatile. Early yesterday, the day after Alphabet’s earnings release, the NDXT reached $4,999.98. Could the index surpass $5,000 with AAPL’s and FB’s releases today? Let’s first look at the other FAANG stocks this month and then decide.
GOOGL stock rises before Q3 release
Whereas Alphabet’s EPS of $10.12 fell short of analysts’ estimate of $12.42, its revenue was higher, albeit marginally. Alphabet reported earnings of $40.5 billion, just $0.2 billion higher than analysts’ estimate.
GOOGL reached its lowest price, $1,165.79, on October 3. It then crossed $1,200 on October 10 and has stayed above that mark since. The stock rose up until its earnings release on October 28, when it closed at $1,288.98. GOOGL opened yesterday at $1,276 and wrapped up at $1,260.66.
What happened to Netflix’s stock price this month
While Netflix beat analysts’ EPS forecast, its revenue missed their estimate. Its domestic viewer base was smaller but offset by its oversea subscriber count increasing.
NFLX stock closed at $286.28 on October 16 before opening the next day with a bang. In the first ten minutes of trading, the stock crossed $300. It then briefly touched $307.98 and closed at $293.35.
The stock fell to a ten-day low of $266.69 on October 22 and then starting climbing slowly until the morning of October 28, when it jumped by $5 to $284.97. Yesterday, Netflix stock opened at $280.04, 5.4% higher than its $266.74 opening on October 1.
Amazon’s stock price tumbles after the earnings release
Amazon’s cloud computing segment has always been a significant revenue contributor. In the third quarter, its revenue beat analysts’ estimate marginally, while its EPS missed their forecast. Amazon stock tanked after the earnings release, and some analysts downgraded its target price. The results were such a shocker that Jeff Bezos even lost his title as the world’s richest person.
In the third week of October, Amazon stock approached $1,800 before falling back on October 18. It gained some stream on October 21 and closed at $1,785.83, and then fell again to $1,780.86 on October 24. AMZN released its earnings results after markets closed that day.
OTC (over-the-counter) markets reacted strongly to the weak earnings release. AMZN opened at $1,704 on October 25 and was at $1,763 by midday. The stock closed at $1,762 yesterday.
Apple’s and Facebook’s earnings expected today
Apple and Facebook are set to release their quarterly results today, and Apple competitor Samsung is set to release its results tomorrow. OTC markets could see a lot of fluctuation.
As Facebook has been battling data privacy and antitrust controversies, I think its ad revenue may have tumbled in its last quarter. Twitter reported lower ad revenue in the third quarter due to internal bugs. Meanwhile, with launches set for Q4 and fiscal 2020—the iPhone 5G, Apple TV+, and AR glasses, to name a few—Apple could boost tech indexes.