Apple Inc. (AAPL), Facebook Inc (FB): Should You Buy These Big Names After Earnings?

Facebook Inc (NASDAQ:FB) has made impressive gains on the back of the earnings report, but I see current levels as a reason to trim positions. The company showed impressive financial and user growth, but I believe challenges remain. There have been questions about the company’s prevalence in the teenager market and its ability to court these users.

In my personal experiences, I have heard from several friends of college age that Facebook Inc (NASDAQ:FB) is not their go-to platform for social networking. The company has made big strides to adjust to customer usage as mobile use increases, but then it will need to continue to adjust to market trends. Lastly, I remain unconvinced that Zuckerberg is capable of effectively leading this company. I doubt I am alone in that sentiment.

Netflix, Inc. (NASDAQ:NFLX) has show incredible growth over the past years, and now must face the lofty expectations that come with such a meteoric rise. The company needs to increase new users. Additionally, I believe the sharing of accounts, where one person gives their account information to several, is a much larger problem than the company likes to think. Instituting some control over how many devices can be used on a single account could benefit the company and grow users. The company also needs to ensure that its created content remains profitable.

Buy and sell

Apple Inc. (NASDAQ:AAPL) remains a buy after earnings given the new products on the horizon and its reasonable valuation.  I would not be buying Facebook Inc (NASDAQ:FB) at these levels. The company showed strength, but the recent increase in stock price seems a bit overdone. Likewise, Netflix, Inc. (NASDAQ:NFLX) does not seem like a buy at these levels given the lofty expectations that are backed into the stocks already large gains.

The article Should You Buy These Big Names After Earnings? originally appeared on Fool.com and is written by John Timmes.

John Timmes has positions in Apple and Facebook stock. The Motley Fool recommends Apple, Facebook, and Netflix. The Motley Fool owns shares of Apple, Facebook, and Netflix. John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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