Alphabet Stock Is A Buy On Earnings; Facebook Stock, Amazon Stock Up Too

Dow Jones futures edged higher late Monday, while S&P 500 futures climbed modestly and Nasdaq futures signaled a new high for the tech-heavy composite. Google parent Alphabet (GOOGL) jumped late on stronger-than-expected earnings. Fellow FANG stocks Facebook (FB) and Amazon (AMZN), which also report this week, also climbed late. Meanwhile, Biogen (BIIB) and Texas Instruments (TXN) earnings Tuesday are important for several reasons.


Dow Jones Futures Inch Up; Nasdaq Futures Strong

Dow Jones futures advanced 0.1% vs. fair value. Nasdaq 100 futures jumped 0.6%, buoyed by Alphabet stock, as well as Facebook stock and Amazon stock. That signals a new high for the big-cap Nasdaq 100 and the overall Nasdaq composite.

S&P 500 futures climbed 0.2% as those 3 FANG stocks are all part of the benchmark index.

Alphabet Earnings

Google parent Alphabet’s earnings rose 32% vs. a year earlier to $11.75 a share, crushing views for $9.51. Revenue climbed nearly 26% to $32.66 billion, topping views for $26.2 billion. Traffic acquisition costs, or what Google pays partner website to carry its ads, unexpectedly fell as a share of revenue. Revenue excluding TAC was $26.24 billion vs. views for $25.63 billion.

Alphabet stock climbed 3.6% to 1,255 in late trade. Shares closed up 1.1% to 1,211, moving back into buy range from a high handle entry of 1,201.59. If Google stock jumps beyond the 5% chase zone ending at 1,261.67, that would represent a breakaway gap that would still be actionable.

Facebook Stock, Amazon Stock

Meanwhile, Google’s strong advertising revenue bodes well for Facebook and Amazon, which report Wednesday night and Thursday night, respectively. Facebook stock rose 1.7% in late trade. Amazon advanced 0.7%.

Why Biogen, Texas Instruments Earnings Matter

Biogen and Texas Instruments are both near buy points, so their earnings reports and guidance are worth watching just for those specific stocks. Meanwhile, the big caps kick off several biotech and semiconductor earnings reports this week. Biogen and Texas Instruments will offer an early read on whether the biotech and chip sectors can become stock market leaders.

Biogen Earnings

Analysts expect EPS to rise 4% to $5.22 with revenue up 5% to $3.25 billion. The real market-moving news could come Wednesday, when Biogen and partner Eisai offer new details regarding their drug, called BAN2401, at the Alzheimer’s Association International Conference.

Biogen stock shot up nearly 20% on July 6 on positive results for an experimental Alzheimer’s treatment. Since then, shares have formed a handle with a 367.99 buy point. Biogen stock dipped 0.2% on Monday to 358.13.

Vertex Pharmaceuticals (VRTX) reports earnings on Wednesday, while Amgen (AMGN), Celgene (CELG) and Alexion Pharmaceuticals (ALXN) are due Thursday. Vertex stock is just below an entry point, while Amgen is in a buy zone.

Texas Instruments Earnings

Diversified chipmaker TI’s revenue likely grew 7% to $3.954 billion as earnings climbed 29% to $1.33 a share. Texas Instruments stock fell 0.3% to 114.67 on Monday, finding support at its 50-day line intraday. TI is working on a 118.58 buy point from a short cup base within a longer consolidation that goes back six months.

AMD (AMD) and Qualcomm (QCOM) report on Wednesday, with industry giant Intel (INTC) due on the 26th.

Both Texas Instruments and Intel have new CEOs after the prior chief executives stepped down following violations of the companies’ personal-conduct codes.


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Originally posted 2019-09-19 23:17:58.


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