FACEBOOK, GOOGLE, AMAZON: reporting Q2 results

FACEBOOK, GOOGLE, AMAZON: reporting Q2 results

2020-07-29 • Updated

Disposition

So, we have Alphabet (Thursday, 2330 MT), Amazon (Friday, 0030 PT), and Facebook (Friday, 0100 MT) reporting at the end of this week. This will surely have an impact on the stock market. Remember that the recent advance of the S&P was largely based on the tech stocks rally, and mostly those giants. Therefore, if the market is pleased with the Q2 results, we are likely to see another rally – at least, for those stocks. If not – well, the stock market is already cooling down after the rally in the middle of July.

In general, the results of the second quarter of 2020 are supposed to be relatively weak. They will reflect the performance that took place in March, April, and May – the months that suffered the most from the virus. So the question will be how correct the market will in predicting the weakness of these results. However, this weakness is expected to be exactly relative as some indicators for some companies may as well grow: in the end, Google, Amazon, and Facebook have been significantly outperforming the S&P.

So what do we have in store for each of those companies?

Alphabet

Google’s stocks already surpassed the pre-virus high and currently trade at $1 500 per share. Being in a local dropdown, the trajectory hasn’t broken the overall uptrend yet – rather, slowed it down. Wall Street expects to hear $37.4bln in revenue and $8.23 in earnings per share on Thursday night – that would make a 4% and 42% decrease respectively for each indicator compared to 2019.

If the actual information matches these expectations, the stock price will easily make it back up to the ranges of $1 600 in a few days. If not – the rise will slow down and may even convert into something more bearish.

67.png

Amazon

This is definitely the best performer among the three. There is no need to justify it – it is easily visible. The growth of this stock was the least damaged and the most boosted by the virus. It currently trades at $3 000 experiences a consolidation similar to the other two.

A 28% increase in the revenue up to $81bln is predicted by Wall Street observers, while the EPS is expected to fall by 75% down to $1.32 compared to 2019. Judging the actual results will not be as straightforward as for Google and Facebook, but one thing is for sure: if Amazon beats these results, it may go really aggressive getting up to $3 500 in no time.

68.png

Facebook

From the technical perspective, the situation with Facebook resembles that of its peers but is a bit different. This stock not only surpassed the pre-virus level but already took the same march upwards it was in until February. On the other hand, it has been in a slowed down channel longer than Google, for example, and appears to have more volatility, especially recently. In general, the emotional surrounding of Facebook appears to be more tense and susceptible to shifts.

On the other hand, Facebook is expected to show some good results: $17.4bln of revenue and $1.39 earning per share are a forecast for the Q2. As long as the company meets these expectations, its stock will take a stronger march upwards again.

69.png

                                                                                                      LOG IN

Similar

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

XBRUSD: Prepares to Correct Intraday Rally
XBRUSD: Prepares to Correct Intraday Rally

Bearish Scenario: Sales below 80.00 with TP1: 79.34, TP2: 78.94, TP3: 78.55, and 78.00 Bullish Scenario: Buys above 78.00 (wait for a retracement to the zone) with TP: 79.34 TP2: 80.00, and TP3: 81.00

Latest news

XAUUSD: Bears Prepare To Takeover
XAUUSD: Bears Prepare To Takeover

On Friday, the gold price (XAUUSD) retreated from a recent two-week high, facing selling pressure. This decline was driven by hawkish minutes from the FOMC meeting, indicating the Fed's reluctance to cut interest rates. Elevated US Treasury bond yields, supported by a "higher-for-longer" narrative, further weakened demand for gold...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera