What do Wall Street analysts think about the FAANG stocks now?
The FAANG stocks, an acronym for five popular tech stocks made famous by Jim Cramer, had rough start to 2022. Apple is down the least at 16% while Netflix has felt real pain, down over 70%.
What are Wall Street analysts opinion on these once high-fliers? Do they see a strong future ahead or more downside? We’ll dig into the analysts’ target price estimates and ratings.
First up, Meta Platforms, formerly known as Facebook…
Meta Platforms (FB) — huge disparity on the upside potential
Based on the current consensus target price, or the average of all the Wall Street analysts’ target price estimates, of 297.97, the upside potential for FB is 52.0% based on today’s intraday price of 196.01.
But within the consensus, there is huge disparity. While every analyst sees upside potential, the analyst with the lowest estimate in the consensus, 220.00, sees just 12.2% upside. At the other extreme, the analyst with the highest target price estimate of 425.00 sees 116.8% upside from here.
The consensus target price estimate has been on a steady decline over the past four months as you can see in the bottom left chart in the image above. It’s fallen 23.9% from 391.72 in late January. In just the past month it’s down 10.0% from 331.26.
As for the analysts’ ratings for FB, 14 analysts rate the stock a Strong Buy while 3 analysts have a Buy rating on the shares and another 8 analysts think FB is a Hold.
Apple (AAPL) — down the least this year, but at least 1 analyst thinks it’s about fairly valued
Apple’s current consensus target price is 189.40, which implies upside potential of 31.7%. Within the consensus, the lowest analyst estimate is 145.00 which is just 0.9% above the stock’s current price, implying that the stock is close to fair value. The highest analyst estimate in the consensus is 215.00, implying upside potential of 49.5%.
While the consensus target price is down 1.3% over the past month, it’s held steady recently. In fact, since the end of January, the target price average is up 3.0%, from 183.96.
Seventeen analysts rate AAPL a Strong Buy, 2 analysts have a Buy rating on the shares, and 2 analysts think AAPL is a Hold.
Amazon (AMZN) — a recent crack in the target price, but analysts are still bullish
The consensus target price for AMZN has held remarkably steady over the past few months, until recently. From January through mid-March, it hovered in the mid-4100 range. Then, after the company reported its last earnings, analysts began revising their estimates lower by 9.4%. The current consensus target price now stands at 3743.14, which still implies upside potential of 71.1%.
Even the least bullish analyst sees significant upside for AMZN shares. The lowest estimate in the consensus is 2800.00, which implies 28.0% upside potential. The most bullish analyst has a 4400.00 target price estimate, implying a double in the share price is possible.
Twenty-two analysts rate AMZN a Strong Buy, by far a majority of the analysts that cover the stock. Three analysts rate the stock a Buy and 1 analyst has a Hold rating. While most Wall Street analysts are bullish on Amazon, there is one lone analyst that has a Strong Sell rating on the shares.
Netflix (NFLX) — a beaten down stock ready for a comeback?
As I mentioned earlier, Netflix is down the most this year of any of the FAANG stocks. It’s 70% decline is talked about constantly in financial media, but is the stock primed for a comeback. Looking at the Wall Street analysts’ target prices, you may think so.
The current consensus target price for Netflix is 369.41. With the stock trading today at 182.38, this implies that NFLX may see 102.5% upside potential. Within the consensus, the lowest analyst target price is 235.00 and the highest is 730.00, giving NFLX an upside potential range of 28.9% to 300.3%.
Like most of the FAANG stocks, the target price estimate has been falling lately. In Netflix’s case, the fall has been dramatic. Just four months ago, the consensus target price was 675.63. It’s fallen 45.3% since then. Just last month, the consensus was 556.77. It’s taken a 33.7% dive in just those four weeks! The big question here is whether analysts will continue revising their estimates down, or if the pain has come to an end.
The vast majority of analysts, 21, see NFLX as a Hold. Six analysts rate the stock a Strong Buy while 2 analysts rate the shares a Strong Sell and another as a Sell.
Alphabet (GOOGL) — the second least bad FAANG stock this year has room to grow according to analysts
GOOGL is the “second least bad” FAANG stock with its 20% year-to-date drop, with only AAPL turning in a better bad performance. And analysts, on average, think Alphabet shares can rally by 46.1% based on their consensus target price of 3303.10.
Within the consensus, the range of analyst target price estimates for GOOGL is 2900.00 to 4183.00, giving the stock an upside potential range of 28.2% to 85.0%.
Twenty-six analysts rate GOOGL a Strong Buy, while 3 analysts have a Buy rating on the shares and 1 analyst sees the stock as a Hold.
So, there’s what Wall Street analysts currently think about the FAANG stocks. What are your opinions? Are these stocks primed to rally once the market settles down? Leave a comment!
Just a reminder: this article is not investment advice. Before taking any action do your own due diligence or consult a financial professional!
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