What could possibly be better than Facebook Inc. (NASDAQ:FBC)? While other stocks in the tech space have struggled, Facebook achieved 1.65 billion (with a “b”) monthly users and beat estimates on Q1 2016 earnings with $5.3 billion in revenue and $0.77 EPS. (Analysts expected $5.25 billion in revenue and $0.62 EPS.)
Still, the company did see a steep decline in average revenue per user in the Rest of World region which includes developing countries. Despite “Outperform” and “Strong Buy” ratings from WooTrader, the question is worth asking: “Is anything better than Facebook?”
When it comes to new users, comparisons between Twitter Inc. (NYSE:TWTRC) and Facebook are not exactly favorable for Twitter. In Q1 Twitter added about 5 million users. Facebook added 60 million (12 times as many as Twitter) yet Facebook is only 5 times the size of Twitter.
This is not to say Twitter lacks potential. MasterCard Inc. (NYSE:MAC) has hinted it wants to partner with Twitter on social media payments. (To be fair, there are rumors MC wants to do the same with Facebook.)
Reports that Twitter clinched rights to NFL streaming don’t hurt either. Not to mention the fact the 2016 Olympics and U.S. presidential elections will drive traffic this year. The question, Zacks asks, is “Will that be enough?” Conclusion: Facebook is growing. Twitter just has potential.
Say Your ABCs
Facebook may be on fire but as every investor knows, ‘past performance is no guarantee of future returns.’ Therefore, the case could be made that Alphabet Inc. (NASDAQ:GOOGC) is a superior choice to Facebook.
With total sales of almost $75 billion in 2015, Alphabet eclipses Facebook – by a bunch. As Motley Fool notes, because of the size difference Alphabet wouldn’t be expected to grow as rapidly as Facebook. Nonetheless, the company showed a whopping 24% year-over-year increase during Q4 2015.
On the “whoops” side, however, the company missed on Q1 revenue and earnings this week. Stock was down 5.3% following the earnings miss. Analyst consensus moving forward varies widely with price targets ranging from a low of $850 to a high of $1,100.
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One Of These A Day
Apple Inc. (NASDAQ:AAPLC) just reported its first revenue decline in more than 10 years. It also reported its first iPhone sales decline – ever. In addition, the company missed Wall Street estimates by what some are describing as “shockingly wide margins.”
Does this mean Apple is finished? Hardly, say most. That doesn’t mean it won’t get worse before it gets better. One Apple insider predicted the upcoming iPhone 7 might be a “boring” update that leads to further sales declines.
As BGR notes, however, the final chapter of the Apple story is far from written. The company has massive cash ($233 billion and counting), it’s on the prowl for acquisitions, it has some of the best talent in tech and it’s about to enter new markets. If the phrase “stay tuned” ever applied to any stock, it may apply to Apple.