FAANG Bites: Amazon Union, Facebook's Clubhouse Rival

Check out the latest news and performance from the FAANG stocks, including Facebook, Apple, Netflix, and more.
Author:
Updated:
Original:

Facebook  (FB) - Get Report and Amazon  (AMZN) - Get Report shares rose Tuesday after the tech titans received recognition as the top two mega-cap internet stocks from Evercore ISI.

Facebook recently traded at $308.96, up 3.45%, and Amazon was at $3,238, up 0.35%. Evercore analyst Mark Mahaney has an outperform rating on Facebook with a $370 price target. 

It’s a “structural winner, benefiting from permanent pull-forward of ad budgets online,” he said. “We expect to see material revenue growth acceleration in the first half of 2021.” He cited Facebook’s Social Commerce, WhatsApp, and Oculus units in particular. Facebook remains on Evercore’s Best Core Ideas list.

While investors wonder if the move in FAANG can stick, they are keeping their focus on Facebook since the stock was one of the first to really get moving, wrote TheStreet's Bret Kenwell.

Jim Cramer also likes Facebook. "Just stay long," Cramer says. "We're in a nice position and the stock is hitting a high here, and that's because business is so great. I know people hate FAANG periodically, and I always come back to ask how the business is in FAANG. The advertising business is on fire -- for both Facebook and Google. Both stocks are reflecting phenomenal ad sales for the first quarter, and that's because a lot of consumer products goods companies know how to reach people if they don't go to Facebook," he added. 

However, Cramer recently said he's ultimately not making any short-term bets on FAANG.

For more in-depth coverage of the FAANG stocks, including trading recommendations and investment strategies, follow the experts on Real Money.

Here is a list of the FAANG stocks to watch and their performance by percentage change over the past five days through the close of trading Thursday, Apr. 8:

Facebook | +6.15%

Facebook  (FB) - Get Report reportedly has begun testing Hotline, a combination of Clubhouse and Instagram live, in a bid to capitalize on the growing popularity of audio-driven real-time instant chatting and content. 

The social media giant rolled out a beta version of the experimental app, which allows participants to ask questions to a host via audio and text. However, unlike Clubhouse, users can also turn on their cameras. The rollout follows Twitter’s decision not to move forward with a bid for Clubhouse, which topped 8 million downloads in the iOS app store last month.

The company has released its March Coordinated Inauthentic Behavior Report, which details the company's efforts to crack down on fake accounts looking to sway politics.

Facebook said on Tuesday that it has removed 14 networks from its various social media platforms for trying to "sway politics around the world," Bloomberg News reported. It has deleted over 1,000 accounts associated with these networks, sharing inaccurate information about politics in counties including Iran and El Salvador, under fake names and while pretending to be citizens of those countries, the publication said.

TheStreet Quant Ratings rates Facebook as a Buy with a rating score of B.

Apple | +6.45%

Apple  (AAPL) - Get Report is postponing MacBook and iPad production amid the ongoing shortage in global semiconductors, Nikkei Asia reported Thursday, as the industry's supply-chain issues continue to hit the world's biggest tech companies.

Nikkei said MacBook Pro production is being hit by a lack of chips that are mounted on the computer's circuit board, while the iPad is being slowed by issues in the supply chain for display components. As yet, the paper noted, consumers haven't felt the impact of the slowdown.

Shares of Apple were rising in premarket trading even after the tech giant announced that it will delay the production of some MacBooks and iPads due to the global shortages of computer chips and other components.

TheStreet Quant Ratings rates Apple as a Buy with a rating score of A.

Amazon | +6.78%

The counting of votes cast by Amazon  (AMZN) - Get Report workers at an Alabama warehouse on whether to unionize could begin Thursday after 55% of workers mailed in their ballots to the Retail, Wholesale, and Department Store Union. 

Amazon consistently has argued that its treatment of employees is more than fair, with staff receiving $15.30 an hour in salary plus healthcare, vision, and dental benefits and a retirement plan. Workers at the plant argue that they are overworked in unsafe work environments. They took issue when Amazon ended its hazard-pay bonus, which gave workers an extra $2 an hour for working during the pandemic.

The National Labor Relations Board concluded that Amazon the company last year illegally fired two employees who'd criticized the online retail and tech giant's climate impact, media reports say.

Amazon's founder Jeff Bezos secured the top spot on Forbes' 35th annual billionaires list released Tuesday. Bezos, who has been ranked No. 1 for the last four years, saw his net worth more than double to $177 billion from $64 billion a year ago as Amazon benefitted from pandemic-era demand for online goods and services. Bezos stepped down as CEO of Amazon in early February.

TheStreet Quant Ratings rates Amazon as a Buy with a rating score of B.

Netflix | +6.10%

Netflix  (NFLX) - Get Report has plans to “hit net-zero greenhouse gas emissions by the end of 2022, the streaming company announced this past week

Its “Net Zero + Nature” plan is already being implemented, with the Los Gatos, Calif., entertainment production brand investing in several measures to cut “emissions for film and TV productions,” Variety reported.

“Netflix estimates its carbon footprint was 1.13 million metric tons,” in 2020, media reports say. This is a dip from 1.31 million in the year prior; however, the company noted that was due to production delayed amid the pandemic.

The company estimates approximately 50% of that footprint came from “physical production of Netflix films and series,” 45% from corporate operations, and 5% from cloud providers like Amazon Web Services, Variety said.

TheStreet Quant Ratings rates Netflix as a Buy with a rating score of B.

Alphabet | +8.97%

Alphabet  (GOOGL) - Get Report shares rose on Monday after the Supreme Court, overturning a federal appeals court decision, ruled in its favor in a copyright dispute with fellow tech giant Oracle  (ORCL) - Get Report

The justices determined in a 6-2 vote that Google’s use of Oracle’s software code in creating the Android operating system didn’t violate federal copyright law.

The company reportedly will stop using Oracle financial software and switch to software from SAP. Alphabet and Google's core financial systems will move to SAP in May, CNBC reported in an article published on Monday afternoon before the market closed.

The move only relates to the software Google uses to track finances, and there’s no indication that the company is moving other systems off Oracle, CNBC said, referring to an email to Google employees that it viewed.

TheStreet Quant Ratings rates Alphabet as a Buy with a rating score of A.

Facebook, Apple, Amazon, and Alphabet are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.