In the third quarter, the revenue and profitability of both technology giants surpassed analysts' expectations and pushed their share prices up again, and Friday's close, Amazon and Google parent Alphabet shares hit a record high.
In view of the stock market reaction, you can insure that the two companies to track Wall Street analysts are satisfied with the results.The following is the investment bank on Google and Amazon third quarter performance evaluation.
About Google
Cowen & Co analyst John Blackledge: Google announced strong third-quarter results in which revenue and earnings were outperforming expectations. Advertising revenue exceeded expectations primarily because of mobile search and YouTube ads Revenue continues to grow, and earnings are better than expected, and despite the increase in traffic acquisition costs, its share of revenue is in line with our expectations, and we adjust Google's performance from 2017 to 2022 to higher The discounted cash flow model covers the year 2018. The result is that we have raised our target price from $ 1075 to $ 1150.
Lou Mun Ventures analyst Gene Munster: 'Google's third-quarter results show that its growth rate is twice as expected for investors in 2015. The reason is that Google has people's daily life indispensable Looking for the future, we expect Google to add more and more use cases, and ultimately, in the foreseeable future, the realization of these products will drive Google revenue to achieve 15% to 20% year on year growth.
Wells Bank analyst Ken Sena: 'The results let us further believe that' the calculation of the inflection point 'will come for Google to enter a number of rapidly growing industries paved the way, including the automotive industry, and we believe that Google In addition, the Google cloud has a great potential, so we will raise our target price from $ 1,250 to $ 1275, in addition to the lead in the unmanned automotive industry, which is enough to offset the known dangers.
About Amazon
RBC Capital Marketer Mark Mahaney: 'Amazon surpassed a very strong third-quarter performance, with no full-food supermarkets expected, Amazon's growth accelerated, AWS growth and profitability We reiterated our rating on Amazon 's stock market, with the target price rising from $ 1,100 to $ 1,200.
Morgan Stanley analyst Brian Nowak: 'third quarter results show strong growth momentum in the Amazon, the quarterly revenue higher than expected one percentage point, the fourth quarter results outlook Which is about three percentage points higher than expected, and the driving force of the extraordinary performance comes from the Amazon's most profitable business ... We are particularly bullish on these high-margin revenues because we believe that these businesses allow Amazon to raise expectations and accelerate investment. We believe that these businesses will allow Amazon to further widen its moat and expand the availability of market size.
Cowen & Co analyst John Blackledge: 'Amazon's third-quarter results exceeded expectations, revenue and operating profit are beyond the top of the outlook. In addition, the fourth quarter revenue and operating profit guidance So we raised our fourth quarter and 2018 to 2022 revenue and operating profit expectations, the stock target price from $ 1125 to $ 1225, reiterated 'outperform' rating. '
Ken Sena, an analyst at Wells Fargo, said: 'We reiterate our rating on Amazon's' Outperform' and target price to $ 1430. In the future, we expect Amazon to take advantage of its growing consumer touch point (Retail, logistics, computing center), the application of more personalized computing methods to improve product recommendation, shorten the delivery time, more efficient recycling of products, Enhance consumer support and even warehousing automation, and the result is that in our view, Amazon will get the most revenue, which is why we will be Amazon in the first day of our stock.