Tech Stock Summary: Jim Cramer Disappointed With Amazon Profits

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Amazon (AMZN) – Get a report shares fell more than 7% on Friday after the online retail giant posted better-than-expected earnings but sales that missed analysts’ forecasts as well as weak guidance for the third quarter.

In a post-results conference call, Amazon CFO Brian Olsavsky blamed the tough year-to-year comparisons on his business during COVID-19 lockdowns as consumers flocked to the online retailer at the height of the pandemic and door-to-door orders.

Jim Cramer and the Action Alerts Plus team called Amazon’s earnings report subprime, noting that the outlook in particular “… is a pretty big disappointment.”

“We are convinced that the pandemic has pushed the adoption of e-commerce forward, but what a lack of income and a weaker-than-expected outlook also suggests is that demand has also grown strongly,” said the ‘AAP team.

Cramer told investors that a whistleblower occurs when the analyst maintains a buy rating, but does not increase the price target. In the case of Amazon, a number of analysts have adjusted their forecasts and pricing targets for the online retail giant.

About Real Money Cramer analyzes reports on earnings and market volatility. In his midweek column, What a Day to Celebrate Not Being Short the Stocks I Like, he says, “I’m grateful to those who say they like to sell everything I love because the crow is a dish. which is eaten cold, and do they ever eat a ton of it. ”Get more information on his real money earnings and trading ideas.

JPMorgan maintained its overweight position while lowering its price target to $ 4,100 from $ 4,600 per share. However, analyst Doug Anmuth estimates that Amazon “is still operating at a compound annual growth rate of 25-30%, even if Wall Street estimates go down.

“Price targets have been lowered en masse for Amazon,” Cramer tweeted on Friday. “Like I said last night on @MadMoneyOnCNBC, when you lower the PTs, don’t get close to it in the short term and let the fins come out.”

Amazon has adjusted its plans to return to the office amid the peak of COVID-19 cases due to the highly contagious Delta variant.

Alphabet Google (GOOGL) – Get a report is the last company to join the list of big names to push back the date of return to power of employees. The tech giant said it has extended the work-from-home policy until October 18.

Earlier, Apple (AAPL) – Get a report reportedly postponed his return to work from early September to October 1 and social media giant Twitter (TWTR) – Get a report closed its offices in New York and San Francisco, suspending reopening. The company reopened these locations on July 12.

Here’s a detailed list of tech and FAANG stocks to watch right now based on their performance over the past week:

Facebook

Facebook (FB) – Get a report easily beat profit and revenue expectations. However, management guidance rocked investors, triggering Friday’s drop, wrote Bret Kenwell of TheStreet. The social media company has been a huge winner so far this year, up 36.5% ahead of Thursday’s session. Although the quarter was strong, the outlook was not, which leaves us with some risk for the stock, according to Kenwell. However, the trend is still up, so until that changes – maybe it will turn into a downtrend or maybe a sideways cut will result – bulls will be reluctant to change their strategy. .

TheStreet Quant Ratings rates Facebook as a purchase with a rating of A-.

Apple

Apple Inc. (AAPL) – Get a report rose last week after the world’s most valuable tech company filed plans to raise billions in the bond market that could be used to boost shareholder returns. In filings with the Securities and Exchange Commission, Apple said it could sell four different notes, ranging in duration from seven to 40 years, with proceeds intended for “general corporate purposes, including the repurchases of our common shares and the payment of dividends as part of our program to return capital to shareholders, financing of working capital, capital expenditures, acquisitions and debt repayment. “

Cramer said that a successful offer of long-term bonds, with a yield premium over 30-year US Treasury bonds, would allow Apple to “buy back a crazy amount of stocks.”

TheStreet Quant Ratings classifies Apple as a purchase with a rating of A.

Pinterest (PINS) – Get a report the shares were hammered on Friday. Stocks were under pressure Thursday night after disappointing earnings and this weakness continued into Friday’s trading session. Ironically, the San Francisco-based social media service company posted excellent results. However, user growth has been very disappointing and it scares Wall Street.

TheStreet Quant Ratings classifies Pinterest as a sale with a D rating.

Shopify

Shopify (STORE) – Get a report reported second-quarter profits that beat analysts’ forecasts and revenues that exceeded $ 1 billion for the first time, as post-pandemic online shopping demand continues to drive demand for the software platform and corporate e-commerce services.

Street Quant reviews rate Shopify as a purchase with a B- grade.

Selling power

Shares of Atlassian Corp. (TEAM) – Get a report were up 24% on Friday as the Australian workflow management software company released fourth-quarter results better than analysts’ estimates. Atlassian, which rivals Salesforce (CRM) – Get a report, soft (TO WORK) – Get a report, and Microsoft teams (MSFT) – Get a report, exceeded 200,000 customers and $ 2 billion in revenue during the year.

The Street Quant Ratings rates Salesforce as a purchase with a rating of B-.

Microsoft

Microsoft shares edged up last week after the software giant reported better-than-expected fourth-quarter earnings and sales, prompting a positive response from analysts. The company received a target share price increase from Jefferies analyst Brent Thill, who sees a strong earnings report from the tech giant on Tuesday. It raised its target to $ 335 from $ 310 on the stock and maintained its buy rating for the software company.

The Street Quant Ratings classifies Microsoft as a purchase with an A rating.

Amazon

Amazon shares fell after the online retail giant posted higher-than-expected second-quarter profits boosted by Prime Day and web services, but overall revenue fell below expectations of Wall Street. Revenue was up 27.2% from a year ago to $ 113.1 billion, but is lower than analysts’ estimate of $ 115.2 billion.

TheStreet Quant Ratings rates Amazon as a purchase with a B rating.

Netflix

Netflix fell short of earnings expectations despite releasing global net subscriptions ahead of estimates. The streaming giant reported earnings of $ 2.97 per share on revenue of $ 7.34 billion. Analysts expected the company to report earnings of $ 3.18 per share on revenue of $ 7.32 billion.

“If you focus on Netflix, you miss the big picture of American companies doing very well,” said Cramer, who claimed he was “a huge supporter of Netflix for ages.”

Cramer told Jeff Marks, senior analyst at Action Alerts PLUS, that the company’s earnings announcement didn’t make Netflix look like the growth stock it was in the past.

TheStreet Quant Ratings rates Netflix as a purchase with a B rating.

Alphabet

Alphabet reported strong results after a rebound quarter that beat the company’s results of a year ago and beat analyst estimates.

“My sources within the company say they have struggled to contain their enthusiasm,” Cramer said. “That he has been this good quarter. ”He explained that Google search, the company’s biggest money generator, was“ amazing, ”as revenue jumped to $ 35.85 billion from $ 21.32 billion a year ago. Ad revenue overall, including YouTube and other streams, totaled $ 50.44 billion. “For the fraction of the cost of television,” Cramer said of YouTube , “you can reach 70% of the people that television does not”.

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