FAANG Earnings Recap: Meta Stock vs. Google Stock

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In the recent earnings season for FAANG companies, which saw releases from Alphabet (NASDAQ:GOOG), Meta Platforms (NASDAQ:META), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN), the results reflected a mixed bag. While Alphabet and Apple witnessed declines, the other three Big Tech entities experienced gains following their earnings announcements.

Among the highlights, Netflix (NASDAQ:NFLX) once again exceeded expectations, reporting a record surge in subscribers. Similarly, Meta Platforms achieved a new milestone with its market cap surging by $196 billion post-earnings, setting a record for any U.S. company.

However, Alphabet’s shares faced a significant setback, plummeting by 7.5% after its Q4 earnings release, marking the poorest performance among its FAANG peers. This downturn follows a similar trend observed after the company’s Q3 earnings, indicating persistent challenges despite strong growth.

In a comparative analysis of FAANG companies’ performance during the December quarter, Meta Platforms and Alphabet, both key players in digital advertising, showcased divergent price actions after their earnings reports.

Netflix Starts the Season Strong: Shattering Estimates Once Again

The earnings season kicked off on a high note with Netflix’s impressive performance. The streaming giant surpassed expectations by adding 13.1 million net subscribers in Q4, setting a new fourth-quarter record. Additionally, Netflix’s guidance exceeded analyst projections, reflecting robust growth driven by its ad-supported tier and crackdown on password-sharing.

Alphabet’s Advertising Revenues Trail Estimates

Although Alphabet reported a 13% rise in overall revenues in Q4, surpassing estimates and marking its strongest growth since early 2022, its advertising revenues fell short of expectations. Despite this, the cloud business emerged as a bright spot, showcasing accelerated growth and generating a substantial operating profit.

META Stock Surges to Record Highs Post-Earnings

Meta Platforms, the standout performer among FAANG stocks in 2023, delivered stellar Q4 results with a 25% revenue increase, the highest growth rate since mid-2021. Moreover, the company’s net income tripled, driven by efficiency initiatives. Meta’s upbeat Q1 revenue guidance further buoyed investor sentiment, overshadowing concerns about significant losses in its Reality Labs segment.

META vs. GOOG: A Tale of Divergence

In comparing Meta and Alphabet, both companies faced similar challenges a year ago, including a slowing digital ad market and increased competition. However, Meta’s effective addressing of these issues, coupled with aggressive cost-cutting measures, has propelled its growth trajectory. Meanwhile, Alphabet continues to grapple with perceptions of lagging in the artificial intelligence space.

Amazon Exceeds Expectations

Amazon reported exceptional earnings, with both its top and bottom lines surpassing expectations. The company achieved a record net profit in Q4 and provided optimistic guidance for Q1, reflecting strong performance and robust growth prospects.

Apple Disappoints Once Again

Apple’s earnings fell short of expectations, despite a 2% sales increase and record-high EPS. The company faced challenges from China’s economic slowdown, resulting in a decline in sales in Greater China. Apple’s cautious revenue guidance further dampened investor sentiment, contributing to a string of downgrades in the lead-up to its earnings release.

Overall, while Meta Platforms emerged as a frontrunner this earnings season, Alphabet faced notable setbacks, underscoring the diverse performance within the FAANG group.

Featured Image: Megapixl

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