Amazon reported its Q4 2014 results after the market close yesterday. The company reported earnings per share of 45 cents on revenue of $29.2 billion, beating earnings estimates while missing revenue estimates. Our Amazon stock analysis post Q4 highlights the valuation risks associated with Amazon’s stock, reflecting our long term negative outlook on the company.
Facebook acquisitions like Whatsapp and Instagram have helped improve user engagement and make the social networking site sticky. These recent acquisitions and innovations will help drive Facebook valuation.
IBM Q4 Earnings saw revenues fall for the fourth straight quarter in a row. Even though IBM's core business will continue to drag revenues, the company hopes that its foray into new businesses like the Apple-IBM partnership will have a positive impact on IBM stock.
Twitter stock price has formed a double top pattern. Cisco stock price is seen forming a head and shoulders pattern. Genpact stock price is seen approaching the 20 day moving average line, which has been providing support since mid-October. RSI indicates Genpact stock is oversold.
LinkedIn earnings for Q4 2014 are due on 5 Feb 2015. LinkedIn's revenue guidance for Q4 seems conservative. LinkedIn is likely to beat revenue and earnings estimates. However, LinkedIn valuations are expensive given LinkedIn's revenue growth and profitability.
Facebook reported earnings of 54 cents in Q4 2014 on a revenue of $3.85 billion, beating analyst estimates on both topline as well as bottomline. Mobile ad revenue registered 100% YoY growth and video views per day averaged 3 billion in December 2014.
Yandex's stock price fell by nearly 60% in 2014. In spite of its strong revenue growth, profitability and very cheap valuations, the strongly negative macro-economic environment outweigh fundamentals. Though attractive, Yandex could be a risky bet.