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FAANG Report: Apple results may be sole bright spot for tech stocks; Amazon jumps onto mattresses

Last updated: 12:47 01 Nov 2018 EDT, First published: 12:22 01 Nov 2018 EDT

Entrance to an Apple store.
Apple's results could provide a boost to the technology sector.

Fourth-quarter results from Apple Inc (NASDAQ:AAPL) may become the sole bright spot for technology stocks after a brutal pounding in October, a report by CNBC said.

The iPhone maker is due to report results Thursday, November 1, about an hour after the close of trading.

Apple has performed better than other tech giants in October. Facebook Inc (NASDAQ:FB) closed down 7.7% for the month. Amazon was down 20%, its worst month since November 2008.

Netflix Inc (NASDAQ:NFLX) slid 19.3%. Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) the parent of Google, ended the month down 9.7%.

The tech-heavy Nasdaq composite index was down 9.2%, its steepest drop since November 2008.

Apple largely bucked the trend, finishing October down just 3.1%, the report said.

Apple shares rose 0.4% to $219.74 by midsession.

Google has purchased two large office buildings in San Jose, California, in what is an unexpected property purchase that underscores the search giant's interest in one of the largest cities in the area, a report by Mercury News said.

Potentially 1,800 to 2,000 employees of Google or its owner, Alphabet, could work in the large office campus on North First Street that the company has bought in an all-cash purchase.

“We see substantial vacancies and opportunities for expansion in north San Jose,” San Jose Mayor Sam Liccardo said in an interview. “It’s good to see Google and other companies starting to absorb that space.”

Google has jumped into downtown San Jose over the last two years with plans for a transit-oriented community of office buildings, homes, restaurants, shops and open spaces where the search giant could employ 15,000 to 20,000 workers, the report said.

Google shares eased 0.3% to $1,073.52.

READ: Google walkout - Employees stage global protest over sexual harassment, workplace culture

Amazon.com Inc (NASDAQ:AMZN) has launched a stealth move into the crowded mattress industry with two new offerings that undercut its more established competitors, a report by NBC News said.

An AmazonBasics memory foam mattress made its debut in early October. A twin mattress starts at $129.99, while the thickest king mattress starts at $239.99. Earlier this week, TJI Research spotted a new, premium offering from Rivet, a millennial-focused furniture brand owned by Amazon, the report said.

“Looking at what Amazon is doing. It's a terrifying prospect, given what they have done to other categories,” said Matt Sargent, senior vice president of retail at Magid, a research firm. "They can go into a category and be aggressively priced, because at the end of the day, they are looking for that full circle engagement.”

The global mattress market is worth $27 billion in 2017 and is forecast to be worth $43 billion by 2024, according to a report from Zion Market Research, NBC said.

Amazon shares increased 1.7% to $1,625.09.

READ: Facebook looking to acquire cybersecurity firm, according to The Information

Facebook Inc's (NASDAQ:FB) era of nonstop growth appears to have come to an end, as the rate at which the company is growing continues to decline quarter to quarter and year over year, a report by The Verge said.

The social media giant is no longer growing in the markets in which it makes the most revenue per user (North America and Europe). So the fear of more user falloff and a lack of new user retention — and the inevitable ad revenue decline that would instigate — has some critics and analysts worried about its future, the report said.

In the last few years, Facebook has endured a number of high-profile data-privacy and security scandals — from the Cambridge Analytica fiasco to an attack that allowed a hacker to steal the information of 30 million users.

While Facebook's bottom line has yet to suffer, public perception of the company seems to be near an all-time low.

Facebook stock fell 0.4% to $151.15.

READ: Netflix reports blowout 3Q results as shares soar

Sky customers can now watch Netflix Inc (NASDAQ:NFLX) via their Sky Q set-top boxes in the UK, a report by Engadget said.

The streaming service is built directly into Sky's TV guide and is accessible from the on-demand tab, the report said

If you are an existing Netflix user, you can just link your account to your Sky service. If you're not, Sky has another option for if you're thinking about getting into the likes of "Stranger Things", "The Crown", "Better Call Saul" or documentaries about dogs.

Sky's new "Ultimate On Demand" package is priced at £10 ($12.97) per month and gives you access to Netflix and Sky Box Sets. As Netflix is usually £7.99 per month and Sky Box Sets £5 a month, this represents a modest saving.

If one wants Netflix in 4K though, you'll have to sign up to the premium service, Sky Q Experience, which starts at £32 per month.

Netflix shares increased 2.7% to $310.01.

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

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