Tech stocks look set to add to recent gains with futures tied to the Nasdaq Composite priced for a more modest 57 point advance thanks in part to pre-market moves to the upside for Apple (AAPL) – Get Report, Tesla (TSLA) – Get Report, and Advanced Micro Devices (AMD) – Get Report.
In addition, Salesforce (CRM) – Get Report is trading higher, up about 6% after the company reported earnings. The post-earnings pop has been a long-time coming for bulls. While Salesforce has continually put out solid quarterly results, the market has been in no mood to bid this name higher.
Meanwhile, Splunk (SPLK) – Get Report shares traded lower on Thursday after the infrastructure software company posted fiscal second-quarter sales that missed Wall Street forecasts, prompting several analysts to lower their price targets.
Splunk shares closed at at $111.98, down 9.5% after the San Francisco-based tech company posted a wider-than-expected fiscal second-quarter loss and gave a toned-down outlook for future revenue.
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Here is a list of the technology and FAANG stocks to watch right now based on their performance over the past week:
BlackBerry (BB) – Get Report shares surged to a nine-year high Thursday as Reddit users continued to talk up the cybersecurity company. “BB is built different,” one Reddit user wrote. “Finally Wall Street is giving Blackberry the recognition and share price it deserves.”
BlackBerry was the second-most mentioned company on Stocktwits, a popular community of individual investors, over the last 24 hours, trailing fellow meme stock AMC Entertainment (AMC) – Get Report, Bloomberg reported.
Shares closed at $15.88, up 4.13%. Shares rose 32% on Wednesday and the stock has doubled since May 25, as the Reddit crowd has embraced several individual stocks.
The Street Quant Ratings rates Blackberry as a Sell with a rating score of D.
Slack posted earnings of 8 cents a share on revenue of $273 million. The company is being acquired by Salesforce in a $27.7 billion deal announced in late 2020. The transaction is expected to close within the next few months.
The Street Quant Ratings rates Slack as a Sell with a rating score of D+.
The figures, and the company’s revenue outlook for the fiscal second quarter and full year, were stronger than Wall Street analysts had estimated.
For the quarter ended April 30, the San Francisco company earned posted a loss of 4 cents a share compared with a loss of 26 cents a share in the year-earlier quarter. The latest adjusted earnings were 44 cents a share.
The Street Quant Ratings rates DocuSign as a Sell with a rating score of D.
The figures largely exceeded the estimates of Wall Street analysts. GAAP profit in the fiscal-third-quarter outlook came up short of expectations.
For the quarter ended April 30, HP Enterprise earned 19 cents a share compared with a loss of 64 cents a share in the year-earlier quarter. The latest adjusted earnings were 46 cents a share. Shares outstanding climbed 3.1% to 1.33 billion. Revenue reached $6.76 billion from $6.01 billion.
The Street Quant Ratings rates Hewlett-Packard as a Hold with a rating score of C-.
Salesforce (CRM) – Get Report advanced this past week after several analysts reiterated their optimism about the stock following the customer-relationship-management-software provider’s first-quarter print.
The company reported adjusted earnings of $1.21 a share on revenue of $5.96 billion. However, Salesforce stock is off the session highs and is struggling with the $240 area.
The Street Quant Ratings rates Salesforce as a Buy with a rating score of B-.
Shares of Affirm Holdings (AFRM) – Get Report rose Tuesday after the San Francisco commerce platform was upgraded to buy from neutral at Bank of America. Wall Street’s views for fiscal 2021 and 2022 are too low based on the potential from Affirm’s partnership with Shopify (SHOP) – Get Report and momentum from non-Peloton (PTON) – Get Report business.
TheStreet Quant Ratings rates Shopify as a Buy with a rating score of B-.
PayPal (PYPL) – Get Report, along with BlackRock (BLK) – Get Report, NBCUniversal, and Comcast Ventures (CMCSA) – Get Report, is backing Acorns Grow, the saving and investing app, which said this past week that it would go public by merging with the Pioneer Merger PACK special-purpose-acquisition company.
The combined entity is valued at $2.2 billion, the companies said. Acorns Grow, based in Irvine, Calif., says it’s the largest subscription service in U.S. consumer finance, with 4 million subscribers.
Paypal is among a few other tech companies like Apple (AAPL) – Get Report and Uber (UBER) – Get Report that have made commitments in the fight for racial equality.
TheStreet Quant Ratings rates PayPal as a Buy with a rating score of B.
Microsoft (MSFT) – Get Report will unveil a new version of iconic Windows software on June 24, according to an invitation sent to reporters. Chief Executive Satya Nadella offered a little context about the new product at Microsoft’s Build 2021 event this past week.
The fresh software includes design changes, additional capabilities for creators and developers on the Windows app store, and easier techniques for users to connect with communities, Bloomberg reports. Bloomberg also reports that the new software will likely be available for broad use this fall.
Microsoft shares dipped 0.64% Thursday to close at $245.71. The stock touched a 52-week high above $263 on April 27.
The Street Quant Ratings rates Microsoft as a Buy with a rating score of A.
Facebook (FB) – Get Report shares fell this past week after Citigroup analyst Jason Bazinet downgraded the tech titan to neutral from buy. The company depends on advertising for almost all of its revenue, and Bazinet sees ad-spending growth decelerating.
Facebook reported strong first-quarter earnings, with net income of $9.5 billion, or $3.30 a share, compared with $4.9 billion, or $1.71, a year earlier.
TheStreet Quant Ratings rates Facebook as a Buy with a rating score of A-.
Apple Inc. (AAPL) – Get Report shares edged higher this past week following the release of a rare sell rating from a Wall Street analyst that challenges the iPhone supercycle thesis of the world’s most valuable tech company.
New Street Research analyst Pierre Ferragu slashed his price target on Apple by 28%, to $90 a share, and lowered his rating to “sell”, from “neutral”, joining only one other analyst — and none of the major investment banks — in questioning the group’s near-term prospects.
Apple said iPhone revenues rose 65% from last year to $47.94 billion, well ahead of the $41.7 billion Street forecast, thanks to what CEO Tim Cook called “strong demand for the iPhone 12 family”.
TheStreet Quant Ratings rates Apple as a Buy with a rating score of A-.
The Seattle tech and online retail giant declared that it would no longer screen for marijuana for any position not regulated by the Department of Transportation.
Dave Clark, Amazon’s worldwide chief executive for consumers, said in a blog post that its public policy team would be actively supporting the Marijuana Opportunity Reinvestment and Expungement Act of 2021.
TheStreet Quant Ratings rates Amazon as a Buy with a rating score of B.
Netflix (NFLX) – Get Report said last month that it expects to add around 1 million new subscribers to its streaming service — the largest in the world — this quarter, a figure came in well shy of Street forecasts of around 4.8 million.
The estimate followed a weaker-than-expected March quarter tally of 3.98 million, which also missed analysts’ estimates of a 6.25 million total.
Today, streaming is king, and Netflix is a key player. However, Netflix shares were marked 0.6% lower in early trading this past week to change hands at $490.90 each, a move that would extend the stock’s year-to-date decline to around 9%.
TheStreet Quant Ratings rates Netflix as a Buy with a rating score of B.
Activist investor Engine No. 1 likely will gain a third seat on the board of Exxon Mobil (XOM) – Get Report, according to updated vote tallies. The initial counts showed the newest nominee from Engine No. 1’s slate elected to Exxon’s board was Alexander Karsner, a strategist at Google parent Alphabet (GOOGL) – Get Report.
Alphabet’s Google is partnering with HCA Healthcare (HCA) – Get Report to help with digital medical records. Unlike IBM’s (IBM) – Get Report attempt to “revolutionize” healthcare with Watson years ago, Cramer said Google is taking a slow, measured approach, with no Earth-shattering announcements.
Google also plans to double the number of its staffers working on artificial-intelligence ethics in coming years, the company said.
TheStreet Quant Ratings rates Alphabet as a Buy with a rating score of A.
Zoom Video Communications
The company easily beat earnings and revenue expectations, while also raising its full-year outlook for both metrics. With the company clearly doing well (and well enough to raise its full-year outlook), it should ease investors’ concern about the back-to-work trend as some employees head back to the office in hybrid work models.
“Zoom Video knocked the cover off of the ball for their first quarter. They really did. And, painted a rosier picture moving forward. It’s no wonder that the shares traded higher overnight even if the initial knee-jerk response had been lower,” wrote Stephen Guilfoyle on Real Money.
TheStreet Quant Ratings rates Zoom Video Communications as a Sell with a rating score of D+.
Salesforce, Microsoft, Facebook, Apple, Amazon, and Alphabet are holdings in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells these stocks? Learn more now.