FAANG earnings update: Profit streak continues in June quarter

Summary

• Facebook, Apple, Amazon, Netflix and Alphabet continued their earnings streak in the June quarter.
• Apple recorded US$21.75 billion in net income, while Alphabet earned US$18.52 billion
• Except for Netflix, all the high-profile technology companies saw their share price gain year to date.

The FAANG companies - Facebook Inc., Apple Inc., Amazon.Com Inc., Netflix Inc. and Google’s parent company Alphabet Inc. – saw their June quarter profit hit new records.

FAANG earnings season, which started with Netflix announcing its results last week, ended with Amazon’s second-quarter update on Thursday. All these technology giants reported a ballooning profit on strong topline growth.

Here we explore how these companies performed in the June quarter, as well as their recent stock performance.

Facebook, Inc. (NASDAQ: FB)

The social media giant saw its net income in the second quarter doubled to US$10.39 billion, or US$3.61 per share, from US$5.18 billion, or US$1.80 per share, in the same quarter of the previous year.

Facebook’s revenue, which mainly comes from advertisements, grew 56 percent to US$29.08 billion from US$18.69 billion in the year-ago quarter. The average daily active users on Facebook, Messenger, WhatsApp and Instagram platforms totaled 2.76 billion, up 12 percent.

Facebook has a market capitalization of US$1.02 trillion and a P/E ratio of 30.70. Its stock grew 30 percent year to date, while it lost 3.60 percent this week. The shares have a 52-week range of US$244.13 to US$377.55.

READ MORE: Facebook doubles Q2 profit; PayPal’s net profit declines 23%

Apple Inc. (NASDAQ: AAPL)

In its fiscal third quarter ended June 26, Apple earned US$21.75 billion, or US$1.30 per share, in net income, almost double from the US$11.25 billion, or US$65 cents per share, profit recorded in the same quarter in the previous fiscal year.

Apple saw its sales grow 36 percent year over year to US$81.43 billion as iPhone sales jumped almost 50 percent to US$39.57 billion.

Apple currently has a market cap of US$2.41 trillion and a P/E ratio of 28.52. Its stock rose 9.9 percent year to date but fell 1.3 percent this week. The shares were trading in the range of US$100.82 to US$150.00 during the last 52 weeks.

READ MORE: Microsoft’s revenue surges 21% in Q4, Apple’s Q3 income up 36%

Source: Pixabay

Amazon.Com Inc. (NASDAQ: AMZN)

The Seattle-based e-commerce giant’s second-quarter net income climbed approximately 50 percent year over year to US$7.78 billion, or US$15.12 per share, as net sales jumped 27 percent to US$113.08 billion.

Sales from online store grew 16 percent to US$53.16 billion while its cloud business Amazon Web Services recorded 32 percent growth in net sales to US$14.81 billion.

Amazon’s market cap totals US$1.82 trillion and has a P/E ratio of 68.51. The stock gained 2.17 percent year to date but fell 9.4 percent this week. Its shares traded between US$2,871.00 and US$3,773.08 in the last 52 weeks

READ MORE: Amazon’s Q2 profit surges as net sales surpass $100B for third time

Netflix Inc. (NASDAQ: NFLX)

The OOT streaming giant posted a net income of US$1.35 billion, or US$2.97 per diluted share, in its second quarter. This compares with the US$720 million, or US$1.59 per share, net income in the year-ago quarter.

Netflix added 1.54 million subscribers in the three months. It had 209.18 million paid memberships at the end of the quarter. Revenue grew 19.4 percent year over year to US$7.34 billion.

Netflix’s market capitalization totals US$227.60 billion and has a P/E ratio of 54.40. Its stock rose 1.5 percent this week but is down 4.28 percent year to date. The share price has a 52-week range of US$458.60 to US$593.29.

READ MORE: Netflix (NFLX) beats Q2 estimate with 1.5M new subscribers

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Alphabet Inc. (NASDAQ: GOOGL, GOOG)

Google’s parent company’s net income ballooned to US$18.52 billion, or US$27.26 per share, from US$6.96 billion, or US$10.13 per share, in the year-ago quarter.

Alphabet’s revenue surged 62 percent year over year to US$61.88 billion. Revenue from Google services, including YouTube ads, jumped to US$57.07 billion from US$35 billion. Google Cloud unit saw its revenue grow to US$4.63 billion from US$3 billion.

The Android owner has a market cap of US$1.82 trillion and a P/E ratio of 27.21. Alphabet’s stock is up 53.74 percent year to date, and it grew 1.6 percent this week. Its shares were trading in the range of US$458.60 to US$593.29.

READ MORE: 3M’s sales up 24% in Q2, Alphabet’s net income skyrockets by 166%

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

The reference data in this article has been partly sourced from Refinitiv.