Graph and Analytics
Paul Meeks

Paul Meeks

Paul Meeks Surprised by FAANG Companies March Quarter Earnings

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

If you read this blog, you know that I’ve been waiting for the major tech companies that I cover to announce their March quarter earnings. For the “FAANGs,” which includes Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google (GOOGL), and to which I’d add Microsoft (MSFT) to this group of tech titans, that news firehose blasted us last week. Of course, none of these companies gave a rosy forecast, mainly since the next period ended June 30 will be the first full quarter reflecting the COVID business lockdown. Check out Tech Investor Paul Meeks On American Business 2.0 & Re-Opening The Economy for more commentary on these tech companies

Nonetheless, I was pleasantly surprised by their results, both reported and forecasted. I owned all these stocks going into the quarter but one, FB. Now I’m back in that one too. I’m convinced that tech will continue to be a monster sector for investors as COVID has forced an even more rapid and complete transition from analog to digital businesses. And, as always is the case in tech, the strong get stronger, which bodes well for the shares of these major firms.

I still think that the market is ahead of itself because the consensus view of a fast and total return to normalcy after U.S. businesses reopen is wrong. Some economists believe that the earnings on the S&P 500 will be higher in 2021 than they even were in 2019, which was 11 years into uninterrupted economic growth and the culmination of one of the greatest bull markets of all time. Really? Can that really be expected as we roll out of this COVID economic fiasco with all the questions that remain concerning the virus and its economic impacts with many likely permanent? Okay, I’m not as bullish on the market as the next guy, so I’m more careful investing money. However, I’m incrementally bullish on tech when I do. Exiting this COVID nastiness, I recommend that tech stocks, or the shares of Business 2.0 digital companies, be at least one-third of your portfolio.

Check Out Paul's Models

Contact us to get an exclusive look at Paul's models

Investment Advisory Services offered through Independent Solutions Wealth Management, LLC, an SEC Registered Investment Adviser.
All opinions expressed Paul Meeks are solely Meeks’ opinions and do not reflect the opinions of Independent Solutions Wealth Management, LLC (“ISWM”). You should not treat any opinion expressed by Meeks as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion for educational purposes only and does not constitute investment, legal or tax advice, an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. Meeks opinions are based upon information he considers reliable, but neither ISWM nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Meeks, ISWM, its affiliates and/or subsidiaries are not under any obligation to update or correct any information provided on this website. Meeks statements and opinions are subject to change without notice. No part of Meeks compensation from ISWM is related to the specific opinions he expresses. Past performance is not indicative of future results. Neither Meeks nor ISWM guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. Before acting on information, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from an investment adviser.

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email
Please follow and like us: