The latest earnings reports for members of the Faang group of tech giants — Facebook, Amazon, Apple, Netflix and Google — are making what has been a winning trade for investors look more complex. Amazon blew past Wall Street forecasts on Thursday as its diversification into higher-margin cloud computing and the dominance of its online retail business produced the first $2bn quarterly profit in its history.
The second-quarter results were a bright spot in an otherwise gloomy week for the technology sector, coming a day after Facebook stunned investors with a prediction of slowing growth, sending its shares down nearly 20 per cent and wiping more than $120bn from its market capitalisation.
Amazon, which only crossed the $1bn mark for quarterly profit at the end of last year, reported $2.5bn in net income in the quarter ending in June. The company’s shares surged 4 per cent in after-hours trading despite revenue missing analysts’ expectations. (FT, NYT)