How Q2 Earnings Have Changed The Fundamentals Of Big Tech Stocks

Now that many companies have reported Q2 earnings, Benzinga took a look at some of the largest, most popular tech companies in the world to determine how much value investors are getting from a share of stock at the current market price.

Here’s a breakdown of how Amazon.com, Inc. AMZN 1.29%, Google Inc GOOG 1.15% GOOGL 0.86%, Facebook Inc FB 0.86%, Apple Inc. AAPL 0.34% and Netflix, Inc. NFLX 2.32% look from a fundamental standpoint now that their latest quarterly financials are factored in.

Earnings

A price-to-earnings ratio (PE) is one of the most basic fundamental metrics for gauging a stock’s value. The lower the PE, the higher the value. Here’s how the current PEs for these five big names compare.

Apple is the only stock of the group with a PE lower than the S&P 500’s overall PE of 21.1. Facebook and Netflix’s PEs of over 90 are nowhere near the typical range. Amazon is the only company that was not profitable over the last four quarters (and therefore has no PE).

Growth

However, when it comes to evaluating a stock, earnings are…

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