2 FAANG Stocks Flooded With Bull Notes After Earnings

A deluge of bull notes were dished out for each in response to the events

Assistant Editor
Jul 28, 2021 at 10:02 AM
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FAANG stocks Apple Inc. (NASDAQ:AAPL) and Alphabet Inc (NASDAQ:GOOGL) both stepped into the earnings confessional after yesterday's close, becoming the latest Big Tech names to chime in with quarterly reports. Below, we'll dig into Wall Street's reactions to the events, and take a closer look at AAPL and GOOGL out of the gate.

Analysts Bet Big on Apple Despite Chip Woes

Shares of AAPL are down 0.8% at $145.60 at last check, brushing off the blue chip's upbeat earnings report, after the company warned that the global chip shortage will worsen this quarter, dampening its revenue growth forecast. Still, Apple reported fiscal third-quarter earnings of $1.30 per share, well above analysts' $1.01 per share forecasts, on estimate-beating revenue of $81.43 billion. 

In response to the event, no fewer than 12 analysts hit Apple stock with bull notes in the form of price-target hikes, including a big $20 raise to $190 from Atlantic Equities. In addition, Independent Research upped its price target to $157 from $145, while rating the security a "hold."  Coming into today, the majority of brokerages were bullish on AAPL, with 22 out of 24 following AAPL carrying a "buy" or "strong buy" rating, versus just two tepid "hold" ratings. Plus, the 12-month consensus price target of $163.40 is a 12.2% premium to last night's close. 

On the charts, Apple stock's stellar year is highlighted by a series of surges to record highs. The latest occurred on July 15, when the security hit the $150 mark before it pulled back. The 10-day moving average helped AAPL on its latest trip up the charts, and the stock remains up 10.6% year-to-date.

GOOGL Scores Another Record Peak

GOOGL, meanwhile, is up 3.5% to trade at $2,753 -- a new all-time high out of the gate. The Google-parent chimed in with second-quarter earnings of $27.26 per share, higher than Wall Street's anticipated $19.34 per share estimate, on revenue of $61.88 billion, which also trounced forecasts. Alphabet chalked its win up to a surge in online ad spending, with ad revenue increasing 69% from one year ago.

At least 23 analysts reacted to the event by raising their price targets, including a massive bull note from UBS, who hiked its price target to $3,190 from $2,600.  Meanwhile, most analysts were bullish on Alphabet stock coming into today, with 31 out of 32 in coverage calling GOOGL a "buy" or better. Even better, the security's 12-month consensus price target of $3,022.24 is a 10.5% premium to the previous session's close. 

The equity is experiencing a stellar year on the charts as well, already up over 50% in 2021. Today's positive price action will only add to that lead and put GOOGL on track to notch its sixth win in seven trading days.

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