Top FAANG earnings charts

The first-quarter earnings season is well underway, with hundreds of companies set to report their results this week, including dozens of regional banks, railroads, semiconductor giants, homebuilders, Tesla and Netflix.

Netflix is the first FAANG stock to report earnings. Yes, we continue to see FAANG even as they change their company names from Facebook to Meta Platforms and Google to Alphabet.

But it’s still FAANG. These are some of the largest companies in the world employing millions of people. What they say about their businesses matters.

For this reason, we will all continue to follow their earnings reports.

Which ones have the best track record of earnings surprises? Which records do investors actually care about? For years, unrealized or missed earnings have not been a significant factor in earnings reports. Will that change in 2023?

What to pay attention to with FAANG earnings

1. Meta Platforms (UNDERWORLD)

Meta Platforms had a difficult 2022 with large layoffs and a sharp decline in inventory. However, the Street has been bullish in 2023, pushing shares up 84% year-to-date. The meta has beaten earnings in 2 of the last 4 quarters

Analysts are once again raising estimates on Meta Platforms. It has once again the highest Zacks Rank, a Zacks Rank #1 (Strong Buy). Only about 230 companies have the highest Zacks Rank on any given day.

Meta Platforms stock is no longer as cheap as it once was, with a P/E ratio of 21.

Is the worst over for Meta Platform investors?

2. Amazon (AMZN)

Amazon has missed profits in 3 of the last 4 quarters. But do investors care?

After falling sharply in 2022, Amazon shares are up 22% year-to-date. It’s not cheap, but it never was. Amazon has a projected P/E of 75.8.

Have Amazon shares hit bottom?

3. Apple (AAPL)

Apple was the best performer in surprising results, with a 5-year breakout period. But in the most recent quarter, Apple finally failed to meet the Zacks Consensus Estimate. It missed by $0.05, reporting $1.88 compared to the Zacks Consensus Estimate of $1.93.

Apple shares are up 27.2% year to date as the Street downplayed the debacle. However, the stock remains expensive, with a projected P/E ratio of 27.4.

Is it worth buying Apple in 2023?

4. Netflix (NFLX)

Netflix has beaten 3 of the last 4 quarters, but the latest quarter was worse and it was huge. Netflix reported earnings of just $0.12, while the Zacks consensus estimate was $0.47. That is down $0.35, or 74.5%.

Netflix shares are up 14.8% year to date, but are down 39% over the past two years.

Is this a transaction? Netflix has a projected P/E of 29.9, which isn’t great, but who cares? Netflix has been a growth stock for 20 years.

Will Netflix set the tone for the rest of the FAANG stocks this earnings season?

5. Alphabet (GOOGLE)

Alphabet has missed four straight quarters after a string of unexpected earnings during the pandemic. Remember, Alphabet’s YouTube was a pandemic winner while everyone was stuck at home.

However, the stock has been sold off in 2022. Alphabet, however, has rebounded like other FAANG stocks in 2023. The stock is up 20% year-to-date.

Alphabet is trading at a forward P/E of 21.2, which is the cheapest of the FAANG stocks.

Should Alphabet be on your shortlist?

(In full disclosure, Tracey holds shares of AMZN and GOOGL in her personal portfolio.)

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