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Alphabet, Facebook, Amazon.com, Twitter Earnings On Tap; Tesla Stock Dives

Dow futures fell Monday morning, along with S&P 500 and Nasdaq futures, ahead a huge week for earnings. Alphabet (GOOGL) on Monday kicks off a busy earnings week for high-profile, top-rated internet companies. Facebook (FB) follows late Wednesday, Amazon.com (AMZN) Thursday night and Twitter (TWTR) Friday morning. Meanwhile, automakers Tesla (TSLA), Fiat Chrysler (FCAU) and Ferrari (RACE) were falling on news.

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Tesla has asked some suppliers to rebate some of the electric automaker’s payments since 2016, the Wall Street Journal reported. That’s not a great sign for Tesla’s dwindling cash position. Tesla had about $2.7 billion in cash at the end of Q1 and is burning cash at about $1 billion per quarter. Shares tumbled 3% before the open on the stock market today. Tesla stock had already fallen nearly 9% in July.

Sergio Marchionne, suffering from complications following shoulder surgery, stepped down as CEO of Fiat Chrysler and Ferrari on Saturday. Fiat Chrysler named Mike Manley, who heads the Jeep and Ram brands as its CEO. Ferrari tapped Phillip Morris International (MO) veteran Louis Camilleri as its new leader. Fiat Chrysler stock sank 3.3% early while Ferrari plunged 3.8%.

Google, Facebook, Amazon, Twitter Stocks Highly Rated

The four internet giants are all highly rated. Facebook stock and Twitter boast a best-possible IBD Composite Rating of 99. Google parent Alphabet stock and Amazon stock come in at 98.  Amazon, a Leaderboard stock, is in range from a follow-on buy point for existing shareholders. Google stock dipped back below buy range. Twitter just formed a new base after a rapid run up.

Twitter stock has soared 81% so far in 2018. Amazon stock has shot up 55%. Fellow FANGs Facebook stock and Google stock are up 19% and 14%, respectively, outpacing the S&P 500 index and other major averages. Facebook has shot up 41% from its March 26 low.

The FANG stocks, including Netflix (NFLX) (up 88% even with last week’s tumble) are a big reason why the Nasdaq composite is up 13% this year.

Dow Jones Futures Today

Dow futures slid 0.1% vs. fair value. S&P 500 futures sank nearly 0.2%. Nasdaq 100 futures fell 0.4%.

Last week, the Dow Jones, S&P 500 index and Nasdaq composite were little changed.

Alphabet Earnings

Alphabet revenue should jump 24% to $32.6 billion after Q1’s 26% advance, the best in years. Google earnings per share are expected to climb just 7% to $9.51 a share. That reflects rising costs for the search giant. Traffic acquisition costs, what Google pays partner websites to carry its ads, have been rising. Meanwhile, Alphabet’s investments in cloud computing, self-driving cars and more are squeezing markets. The report comes days after the European Union slapped a $5 billion fine over Google’s Android mobile software.

Alphabet stock cleared a high-handle buy point of 1,201.59 on July 17. But shares pulled back the next three sessions, closing Friday at 1,197.88. The relative strength line, which tracks a stock’s performance vs. the S&P 500, is just below a record high but also hasn’t made much progress over the past year.

Facebook Earnings

Analysts expect Facebook earnings to climb 30% to $1.72 a share as revenue sprints 43% to $13.3 billion. With Facebook user growth stalling globally and especially North America, the company is relying more on Instagram to drive growth.

Facebook stock hit a new high Friday, closing at 209.94. That’s extended from a buy point of 188.42.

Amazon Earnings

The e-commerce and cloud-computing giant should report a 41% revenue gain to $53.4 billion. Amazon earnings are expected to skyrocket 525% to $2.50 a share. Much of that growth continues to be Amazon Web Services, though Google and Microsoft (MSFT) are growing cloud computing rivals.

Amazon Prime Day was a success, but isn’t part of the second-quarter results.

Amazon stock is well-extended from conventional buy points. But it’s still in buy range from a 1763.20 three-weeks-tight follow-on entry. Three-weeks-tight buy points offer a chance for existing holders to add a few more shares, but isn’t a good place to start a position.

Twitter Earnings

Twitter earnings should more than double to 17 cents. Revenue should rise 22% to $700 million.

Twitter stock shot up from a 33.88 cup-with-handle buy point in late May, running up to 47.79 on June 18. Since then shares have consolidated modestly. Shares fell more than 5% on July 19 amid reports that Twitter had suspended tens of millions of fake or suspicious accounts. Twitter steadied as it said it would have no impact on active user metrics.

Twitter stock now has a flat base with a 47.89 entry. It closed Friday at 43.42.

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