Facebook Alphabet Microsoft Monday USBursztynskyCnbc is a weekly event where people post their thoughts, pictures and videos to the group. It’s a great way to interact with your friends. Then you can have a look at your friends’ posts, comment and like them, and even add them to your favorites list.
If you’ve been following the stock market lately, you’ve probably seen a lot of hype about Facebook Alphabet versus Microsoft. Whether you’re excited or concerned, it’s important to know what each company offers and how they stack up.
Major American Technology Companies
The term FAANG refers to a group of five major American technology companies, including Apple, Amazon, Google, Facebook, and Netflix. These companies have become synonymous with the internet, and have seen stock-price rises of 500 percent in the past five years.
FAANG Stocks
There is much discussion about the FAANG stocks. Some critics argue that they are overpriced, while others say that they are the market’s most impressive new entrants.
Although the acronym has changed over the years, the first ever FANG stock was actually Amazon’s A. It was a huge deal in 2013 when it was the first one to break the trillion-dollar mark.
Gaming Segment
However, Facebook Alphabet Microsoft Monday USBursztynskyCnbc is a far better tech company. Microsoft has a web portal, an advertising business across its search engine, and a gaming segment led by its Xbox platform. In the enterprise realm, it’s hard to find an operation that doesn’t use its Office productivity suite.
Stock-Price Rise of the Aforementioned
The stock-price rise of the aforementioned FAANG has also been a big deal. Alphabet, for instance, has enjoyed a 175% stock-price increase in the last five years.
Another FAANG stock that may be worth a look is Netflix. This company is a top application of global internet traffic. As the name implies, its products are useful to users because of its billions of other active users.
Amazon’s market capitalisation has fallen by over $246.1 billion over the past three weeks. It has lost nearly half of its value since the start of the year, and analysts expect it to continue to lose ground in the coming months.
Technology Companies
The last of the “Big Five” technology companies to report results, Amazon missed expectations for its earnings and revenue. But the company did report a 27% gain in net sales for the first quarter, partially offsetting slower growth in its core e-commerce business. Nevertheless, the company warned of a sharp decline in year-over-year sales growth.
In the wake of the global pandemic, the tech giants had been riding high, but they now face the potential to fall back. They are fighting against a wave of consumer spending that has been sluggish since the end of the recession.
Alphabet, Google, Facebook, Apple and Microsoft (known collectively as the FAANG group) are valued at more than a third of the S&P 500 index. Shares have increased by more than 75% in the past year, but investors are concerned about slowing growth.
Hiring & Operating Expenses
Investors also worry that swollen headcounts at top tech firms will cut into bottom lines. Alphabet CEO Sundar Pichai recently scaled back hiring and operating expenses, while he acknowledged that its ad revenues were lower than expected.
Microsoft, Facebook, Snap, and Apple are just a few of the technology companies that are slated to report earnings this week. Analysts expect a mixed bag of performance, with some tech giants showing strong performances and others struggling.
Investors will be paying close attention to the growth rate at Google’s core ad revenue business. The market is expecting Google’s revenues to grow at an annualized rate of 22.3%, while its parent company, Alphabet, missed expectations for ad revenue and EPS.
World’s Largest Software Company
Facebook Alphabet Microsoft Monday USBursztynskyCnbc, the world’s largest software company, is tipped to report strong demand for cloud computing products and services in the current fiscal year. However, the surging US dollar could hurt sales.
Twitter, meanwhile, reported a disappointing quarter. Its share price fell for the first time in four years. Netflix also struggled. In two days, its shares plummeted 37%, hitting a four-year low.
Final Words:
Social media companies have been struggling. While they have been able to build up their user base, they are also facing decreasing ad sales. This could put pressure on Alphabet, which has a monopoly on internet search.
Facebook and Google are in difficult situations, but both are working to reverse the trend. Facebook has been focusing on video ads. They are also trying to improve the user experience. Google is experimenting with out-of-market games packages, including Major League Baseball.
