Facebook (FB) – Get the Class A report from Facebook, Inc. the stock rose another 2% on Monday, after big gains on Friday as investors digested the company’s new name and brand, Meta, and the 3D virtual reality universe it is potentially looking to pivot as part of its longer term strategy to move away from being a giant social networking platform.
Facebook announced that it is officially changing its name to Meta – and the company’s ticker to MVRS. Meta as “MVRS” will begin trading on the New York Stock Exchange on December 1.
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In an event Thursday showcasing the company’s shift to virtual reality, Facebook CEO Mark Zuckerberg said the world’s largest social network will now be part of an umbrella company called Meta. The divisions under Meta will be Facebook (website and app), WhatsApp, Instagram, Oculus, Portal and others.
The rebranding comes as Facebook faces a series of public relations crises, including leaked documents now known as Facebook Papers, which exposed the inner workings of the company and its penchant for passing profits. before the fight against hate speech and disinformation.
At the same time, it comes as the world pivots to a new level of technology and digital reality where engineers and developers are working on the next digital iterations of everything from art in the form of non-fungible tokens (NFT ) in real time. conversations and events including of course augmented and virtual reality games.
“Never bet against American ingenuity and innovation,” Jim Cramer told his Mad Money viewers Thursday.
Cramer said Facebook is certainly not without its problems. But the whole reason he coined the term FAANG, which stands for Facebook, Amazon (AMZN) – Get the Amazon.com, Inc. report, Apple (AAPL) – Get the Apple Inc. (AAPL) report, Netflix (NFLX,) – Get the Netflix, Inc. (NFLX) report and alphabet (GOOGL) – Get the Class A report from Alphabet Inc., it’s because these companies are constantly reinventing themselves. On Thursday, Facebook proved why it deserves to be a part of FAANG.
However, now that Facebook and Google have both changed brands, it’s time for a new acronym. That’s why Cramer unveiled MAMAA, which stands for Meta, Apple, Microsoft (MSFT) – Get the report from Microsoft Corporation (MSFT), Amazon and Alphabet.
Here’s a detailed list of tech and FAANG / MAMAA stocks to watch right now based on their performance over the past week:
Facebook’s Metaverse is a $ 10 billion project to transform the company from its much-criticized social network and family of related applications to what the founder and Zuckerberg have called an “Internet Incarnate.”
“Today we are considered a social media company, but in our DNA we are a company that builds technologies to connect people and the metaverse is the next frontier, just like social media was when we. have started, ”CEO Mark Zuckerberg said in his opening speech. “I’ve been thinking a lot about who we are as we begin this next chapter. Facebook is an iconic social media brand, but more and more it no longer encompasses everything we do,” he added. .
TheStreet Quant Ratings rates Facebook as a purchase with a rating of A.
Apple blames supply chain woes for decline in fourth quarter sales
Apple shares edged down on Monday after the tech giant said supply chain problems squeezed $ 6 billion from its September quarter sales and reported its first shortfall. earn quarterly in five years. Apple said profits for the three months ending September, the tech giant’s fiscal fourth quarter, were pegged at $ 1.24 a share, up 70% from the same period last year. and in accordance with consensus forecasts. The group’s revenue, Apple said, was up 29% from a year ago to $ 83.4 billion, just short of analysts’ estimates of a tally of $ 84.8 billion.
Apple said iPhone revenue rose 47% from a year ago to $ 38.9 billion, well below Street’s forecast of $ 41.5 billion. The company’s holiday quarter sales will also be affected by the chip shortage, Cook said, telling Reuters that “we are doing everything we can to get more (chips) and also whatever we can do operationally. to make sure we’re moving just as fast as possible. ”
Still, CFO Luca Maestri told investors on a conference call that sales for the December quarter would be “very strong” and likely hit an all-time high, with gross margins in the range of 41.5% at 42.5%.
TheStreet Quant Ratings classifies Apple as a purchase with a rating of A.
Amazon gives mixed feelings from analysts amid disappointing earnings report
Amazon shares also continued a decline on Monday that began on Friday as analysts expressed mixed feelings about the retail and tech colossus after a disappointing earnings report. A number of analysts lowered their stock price targets for the Seattle-based company, but left their ratings (buying in most cases) unchanged. Wedbush analyst Michael Pachter lowered his price target to $ 3,950 from $ 4,300 and confirmed his outperformance rating.
“Amazon posted record third quarter results, with revenue and operating profit each slightly above the midpoint of forecast but below consensus,” he wrote in a comment. “Amazon should be able to meet holiday demand in the fourth quarter, but at a cost.”
TheStreet Quant Ratings rates Amazon as a purchase with a B rating.
Several analysts increase their price targets on Google Parent Alphabet
Several analysts recently raised their pricing targets for Google’s parent company Alphabet after the tech giant beat Wall Street earnings expectations in the third quarter. Alphabet said revenue rose 41% to $ 65.12 billion, beating the estimate of $ 63.34 billion predicted by analysts polled by Refinitiv. Net income was $ 18.93 billion for the quarter with earnings per share of $ 27.99, beating estimates of $ 23.48.
BMO Capital Markets analyst Daniel Salmon, who is rated higher than the share, raised his price target to $ 3,200 from $ 3,000, just “more research income and more margins. high continue to push our estimates and our target higher ”.GOOGL) – Get the Class A report from Alphabet Inc. continues to rank among Bank of America’s best-positioned online media stocks, as the tech juggernaut prepares to release its third quarter results on Tuesday.
Alphabet continues to rank among Bank of America’s best-positioned online media stocks, as the tech juggernaut prepares to release third-quarter results on Tuesday.
TheStreet Quant Ratings classifies Alphabet as a purchase with a rating of A.
Netflix reported higher than expected revenue and added 4.4 million subscribers
Shares of Netflix surged after the entertainment streaming giant reported better-than-expected third quarter results and added 4.4 million subscribers to its service. The company also received a series of target price hikes from several analysts.
The company hinted at a potential video game based on its flagship show “Squid Game” and added that it has made progress in creating its offline consumer product offerings as it seeks other sources of revenue. to add to its subscription service in order to compete with its rival. Disney (SAY) – Get the Walt Disney Company Report. Netflix hired former Electronic Arts alumnus (EA) – Get the report from Electronic Arts Inc. and Facebook executive Peters in July to lead its games division. It also bought video game creator Night School Studio in September and launched five mobile game titles in select European markets. Netflix said the games will be included as part of a Netflix subscription with no ads or in-app purchases.
The Street Quant Ratings rates Netflix as a purchase with a B rating.
Microsoft attributes strong performance to its cloud business
Microsoft shares rose after the tech giant reported strong performance from its cloud business. The company topped analysts’ quarterly revenue estimates. First-quarter revenue increased 22% from a year ago to $ 45.32 billion. Analysts polled by Refinitiv had forecast $ 43.97 billion for the quarter. The company’s shares hit a new all-time high on Thursday after the tech giant posted profits of more than $ 20 billion in the first quarter.
As for the December quarter, Microsoft said cloud revenue could reach around $ 18.2 billion, alongside personal computing and its business division, but warned that the disruption in the business chain ‘supply could affect sales of its popular Xbox gaming console.
The Street Quant Ratings classifies Microsoft as a purchase with a rating of A +.
Zoom Video Communications shares jump after JPMorgan upgrade
Zoom Video Shares (ZM) – Get the Zoom on Video Communications (ZM) report rose last week after JPMorgan upgraded the video conferencing provider from neutral to overweight, saying the price already reflects a post-pandemic slowdown in remote video communication. JPMorgan analyst Sterling Auty has confirmed the Zoom Video price target at $ 385 per share.
“The stock has fallen more than 33% since December 9, 2020, as investors factored in slower growth after favorable winds from the pandemic,” Auty told investors in a research note. Auty added that Zoom Video’s growth will bottom out in the fourth quarter and then accelerate due to growing adoption by businesses. The market has incorporated this into the current share price, creating a “more attractive” risk / reward profile, he said.
Street Quant Ratings rates Zoom Video Communications as a sale with a D + rating.