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FAANG Report: Amazon's miss may be a buying opportunity; Google wrestles with sex harassment charges

Apple has found services as its second-biggest source of revenue; Netflix workplace culture said to be 'dysfunctional'
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Amazon's results miss could be a an opportunity to buy the stock.

The miss on quarterly results by Inc (NASDAQ:AMZN) may be an opening to buy the stock after shares of the world's biggest retailer slid nearly 10%, a report by Forbes said.

Revenue of $56.58 billion was $520 million below analysts' estimates and Amazon's revenue forecast for the fourth quarter — between $66.5 billion and $72.5 billion — was sharply under analyst estimates of $73.89 billion.

The report said for at least the last two years, Amazon has reported a quarter that disappointed analysts. And each time, that miss was a buying opportunity, the report concluded.

What investors seem to miss is that Amazon is turning into a profit-growth machine through Amazon Web Services and Amazon Business, it added.

Amazon stock dropped 7.8% to $1,642.32 by midsession on Friday.

READ: FAANGs for the memories ... tech stocks come off the boil

Apple Inc's (NASDAQ:AAPL) services category - the area containing everything from iTunes, the App Store, Apple Music, iCloud and more - has become the iPhone maker's second biggest source of revenue, a report by BGR said. 

That area will be a strong focus of attention when Apple reports its fiscal fourth quarter earnings on November 1.

Apple has set a target of doubling services revenue to $14 billion per quarter by 2020, the report said.

Apple stock fell 1.4% to $216.61.

Top executive of Alphabet Inc's google (NASDAQ:GOOG) assured employees that the company is serious about providing a safe workplace after a report how Google protected three executives accused of sexual misconduct over the past decade, a report by CNN Business said.

"We want to assure you that we review every single complaint about sexual harassment or inappropriate conduct, we investigate and we take action," the email written by Google CEO Sundar Pichai and Google VP of people operations Eileen Naughton said.

"In recent years, we've made a number of changes, including taking an increasingly hard line on inappropriate conduct by people in positions of authority," they said.

According to the email, 48 people at Google have been terminated for sexual harassment over the last two years, 13 of whom were senior managers and above.

Google stock lost 2.8% to $1,064.92.

FAANG Report: Facebook removes 8.7 million images of nude children; Google bans "F" word in workplace

Facebook Inc (NASDAQ:FB) is rolling out more music features on Friday to integrate its licensing partnership with all three major labels into Stories, user profiles, and its Lip Sync Live feature, a report by The Verge said.

Starting on Friday, Facebook users will be able to add music stickers to their Facebook Stories. You can search for songs, pick out the part you want to share, and add the sticker with the artist and song name. It works exactly the same way as it does on Instagram Stories, which introduced the feature in June.

Facebook is also expanding Lip Sync Live, its TikTok competitor (RIP, to Pages, so creators and artists can “connect with their fans, the report said. 

Facebook shares retreated 2.76% to $146.79.

The workplace culture of Netflix Inc (NASDAQ:NFLX) can be "ruthless, demoralizing and transparent to the point of dysfunctional," a report by the Wall Street Journal said.

Chief Executive Reed Hastings teared up as he addressed some 500 executives at a corporate retreat in July. Hastings had recently fired his chief communications officer for saying the “N-word” in full form, the rport said.

The executive, who is white, was attempting to make an emphatic point during a meeting about offensive words in comedy programming and said the slur wasn’t directed at anyone.

Netflix stock was down 2.6% to $304.71.

Reporting by Rene Pastor, contactable on [email protected]

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February 14 2019

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