Meta Platforms Inc (META US, BUY, TP US$221)
Comment: 2Q22 results were a mixed bag, with revenue in line with expectations, while earnings missed slightly. The increasing popularity of Reels continues to drive positive user growth for Meta, with ad impressions also increasing by 15% YoY. Guidance for 3Q22 was soft, citing continued weakness in advertising, and FX headwinds as the main reasons.
Apple Inc (AAPL US, BUY, TP US$194)
Comment: Apple announced a revenue beat during its 3Q22 earnings call, with iPhone and Services achieving record sales for the quarter, although Mac and iPad saw negative revenue growth. The iPhone active installed base reached a new all-time high, driven by strong growth in the number of switchers attracted during 3Q22 and sustained customer loyalty, with Services also benefiting from the growing installed base of the hardware segment. The decline in Mac and iPad was attributed to supply constraints as well as unfavorable FX. Apple expects revenue growth to accelerate in 4Q22, even with continued FX headwind and reduced supply chain constraints.
Amazon Inc (AMZN US, BUY, TP US$133)
Comment: Amazon announced mixed performance in its 2Q22 results call. Revenue beat top-end guidance and analyst consensus, resulting in positive operating income that was solely attributed to AWS. However, the company recorded a net loss for the quarter, mainly due to the writeoff on equity investment in Rivian Automotive. The success of the One Meddical acquisition is yet to be seen as it will require beating experienced entrenched rivals and competing for physicians for Amazon to disrupt the healthcare sector. Amazon also provided positive revenue guidance mainly as Prime Day happened in 3Q22, despite the expected persisting FX headwind.