Earlier this month, Netflix (NFLX) reported a disappointing quarter with EPS missing estimates by 24 cents which led the stock to fall 6.52% on its earnings reaction day. The rest of the FAANG group—Facebook (FB), Apple (AAPL), Amazon (AMZN), and Alphabet (GOOGL)—all reported their second-quarter results last night which we discussed in the Closer. With the exception of GOOGL, the results were very strong. Despite beating top and bottom-line estimates by $954.65 million and $1.9/share, respectively, GOOGL’s revenues were lower year over year for the first time ever and that has the stock lower today. The rest of the group beat estimates, and Amazon (AMZN) even reported a triple play for the first time in over a decade. The last triple play by AMZN was in January of 2010 back when the company’s market cap was ~$54 billion; roughly 3.4% of its current market cap over $1.59 trillion. In fact, at the open today, AMZN added more in market cap than it’s entire market cap back then.
Given the strong earnings, these stocks are flying today. In fact, Apple, Facebook, and Amazon all gapped up over 5% this morning, and as of this writing, AMZN is the only one to have pared some of those gains currently trading just over 3.8% higher on the day. In the charts below, we show how each of the FAANG stocks has performed on earnings days across each quarter in our Earnings Explorer database. On a median basis, this quarter is looking to be the best in terms of full-day performance (based on where they are trading intraday) of FAANG stocks on earnings days since Q1 2018 while the median opening gap of 6.2% is the quarter best since Q2 2015. This quarter also marked the first time since Q1 of 2018 that at least 3 FAANG stocks all gapped up over 5%. If AMZN, moves back above a 5% gain on the day, it would be the first time since Q2 of 2015 that at least three FAANG stocks rose 5%+ on their earnings reaction days.
Of the specific stocks, Facebook’s reaction today is looking to be its best earnings reaction day since January 2019 (10.82%). For Amazon (AMZN), it is the best Q2 earnings reaction day since 2015, but back in January of this year, the stock saw a much larger 7.38% gain in response to Q4 earnings. For Apple, the pop on earnings is looking like it will the stock’s best earnings reaction day since January of 2019 when it gained 6.8%. Click here to view Bespoke’s premium membership options for our best research available.
