Revisiting FANG in the wake of ‘Chief Buzzkill’

Facebook’s ‘Chief Buzzkill’ Strikes Again

Excerpt:

Finance chiefs are often the bearers of bad news during earnings calls, with share prices reaping the consequences. That’s why many -- particularly in the tech industry -- shy away from giving precise outlook figures.

Dave Wehner learned that lesson the hard way. Shares of Facebook Inc. fell as much as 20% this morning following the CFO’s sober forecast for revenue growth this year after the market closed Wednesday. The stock is down 19% in recent trading. Mr. Wehner also said new advertising formats were less profitable than expected.

With investors used to getting record-breaking results quarter after quarter, finance chiefs at technology companies, especially at heavyweights like Facebook, Alphabet Inc. or Amazon.com Inc., must be adept at managing the company’s message and expectations when the news is grim. A sharp, reactionary swing in share price following a quarterly report dramatically raises the stakes for the next quarter.

Comment: Below is my missed FANG investment.

Compare with 2½ years ago

So yeah it was a missed opportunity! Of the FANG stocks ... 1.) I have none: 2.) AMZN, GOOG, and NFLX have value to me.

Related:

Facebook's $100 billion-plus rout is the biggest loss in stock market history https://t.co/piphWA7cgx

— James Peet (@jrpeet) July 26, 2018

Facebook approves $10 million a year for Zuckerberg family security https://t.co/YnsunCxvnm

— James Peet (@jrpeet) July 26, 2018

The $FB bloodbath: Company erased about $119.1 billion in market value, larger than 457 of the 500 companies in the S&P 500https://t.co/AN54hqVND1 pic.twitter.com/vw7tpUfID8

— James Peet (@jrpeet) July 26, 2018

Facebook market value plunges $119 billion from privacy scandal https://t.co/qM1EGP9EAd

— James Peet (@jrpeet) July 26, 2018

Facebook’s Plunge Shatters Faith in Tech Companies’ Invulnerability https://t.co/VruVn5cbRh

— James Peet (@jrpeet) July 27, 2018

Despite plunge in share price, Facebook isn’t as cheap as it looks -- Heard on the Street https://t.co/psRikR6NA1 via @WSJ

JP: why I'm still not buying $FB

— James Peet (@jrpeet) July 27, 2018

Investors Unlike Facebook: The tech giant faces new costs to reassure users and regulators. https://t.co/9OqVhULnes via @WSJOpinion

— James Peet (@jrpeet) July 27, 2018

Amazon continues its streak of profitability with a quarterly record https://t.co/bgkMfcsyit via @WSJ

— James Peet (@jrpeet) July 27, 2018

How big was $FB 120 BILLION loss?https://t.co/l6gSOakTKo pic.twitter.com/s8u2WaCRmM

— James Peet (@jrpeet) July 27, 2018

Other news ... today!

Today's 20.54% drop for Twitter $TWTR on earnings was its worst since its first report as a public company back in February 2014. It fell 24% that day. https://t.co/vFFMKBVnKu pic.twitter.com/K1GYfs5As2

— Bespoke (@bespokeinvest) July 27, 2018

SEPTICS Are Flushing the FAANGs https://t.co/dV3y9z73bC

— James Peet (@jrpeet) February 6, 2019