For these technology giants who performed so well in the last year still continue lead the market for this quarter. While many big companies are suffering from recent market concerns and consistent consequences from Brexit, FANG (Facebook (NASDAQ: FB), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX), and Google (NASDAQ: GOOGL)) just help restore the confidence of US technology sector. Except for Netflix who presented a slower grow guidance, the rest of FANG all beat the estimations from Wall Street in both revenue and profits. We see this time is so similar to January when the oil price collapsed and drug the market into a huge loss. The only difference here is the reaction from the market is so bullish that the short sell of equities is still not a key concern. Or we just didn't see the oil price is witnessing a same serious situation as January when it fell below $30 per barrel.
Facebook’s growth gained more momentum Wednesday with the tech firm reporting second-quarter sales and earnings that smashed Wall Street's expectations. Driven by mobile ad sales, Facebook raked in $6.44 billion in revenue in the second quarter, up 59 percent from the same period last year. That's better than the $6 billion in revenue that analysts surveyed by Thomson Reuters expected from April to June. The tech firm reported a profit of $2.05 billion during that time period and earned 71 cents a share. Analysts expected Facebook to post earnings of about 57 cents a share. Excluding certain expenses, the company earned 97 cents a share, topping analysts' estimates of 82 cents a share.
Amazon on Thursday reported second quarter 2016 net sales of $30.4 billion, up 31% from $23.2 billion in the second quarter of 2015—the online retail giant’s fifth consecutive quarter in the black, and its third all-time profit milestone in as many quarters. Also it recorded a quarterly profit of $857 million, or $1.78 a share, compared with $92 million, or 19 cents a share, a year earlier. Analysts expected Amazon to post profits of $1.11 per share, according to estimates compiled by Thomson Reuters and cited by the Wall Street Journal. Operating income was $1.3 billion in the second quarter, compared with $464 million a year ago.
Alphabet generated $21.5 billion in revenue during its most recent quarter, compared to $17.7 billion during the same quarter a year ago. The company’s adjusted net income amounted to $4.9 billion, compared to $3.9 billion during the same quarter last year. This equals $8.42 in earnings per share, compared to $6.99 a year ago. Analysts had expected revenue of 16.9 billion, and earnings per share of $8.04.
This lift up of the market could be short term since the concerns of a recession is not eliminated by the earnings from FANG. Also we should eye on the slowdown of emerging countries, especially for China. In the long term, the rate hikes combined with risks in the global market should be took into the measurement of US economy and financial market. The FANG are really doing well but the earnings will be a lag signal for economy.