What do vampires and the stock market have in common? That's easy... They both have FAANGs! In all seriousness, I'm sure by now you've heard of the five megacap tech stocks, also known as FAANG, that rule the Nasdaq: Facebook (Nasdaq: FB), Amazon (Nasdaq: AMZN), Apple (Nasdaq: AAPL), Netflix (Nasdaq: NFLX) and Google parent company Alphabet (Nasdaq: GOOGL). When looking at gains since inception, you'll find each of these companies has soared anywhere from hundreds to thousands of percentage points higher. But year to date, only two have emerged as the clear winners amid the COVID-19 crisis... Amazon and Netflix have proven to be the most resilient during this time. Because what are humans most likely to do while they're stuck at home? Shop online and watch TV. Amazon's first quarter earnings showed just how good the quarantined life has been for business. Revenue came in higher than expected at $75.5 billion. Operating income and free cash flow also increased to $39.7 billion and $24.3 billion, respectively. The company also announced a renewed partnership between its streaming service, Prime Video, and the National Football League. As well as the launch of Amazon Go Grocery in Seattle, which utilizes brand-new "Just Walk Out" shopping technology - without any checkout registers. And lastly, it announced the continued market share domination of its cloud computing platform, Amazon Web Services. The segment brought in $10.22 billion in revenue and is now available in 24 geographic regions. Netflix also reported largely positive numbers in the first quarter. Revenue was in line with expectations at $5.77 billion. And the company saw a record uptick in global paid subscribers of 15.77 million. This brought the total number of memberships to 183 million, up 23% year over year! |
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