articles on investing
- At the end of July, Amazon announced disappointing financial results for Q2 2014 driven by a drop in AWS revenues.
- Two weeks after the earnings call Amazon, announced a new mobile payment service named Amazon Local Register to compete with Square and PayPal Here.
- By offering mobile payment service, Amazon could be present in the brick-and-mortar stores and leverage that to future partnerships and further income from complementary services.
- Twitter valuations have run up after strong user growth in Q2 2014.
- Twitter's recent update suggests, user base is smaller than 271 million users.
- Our Twitter stock analysis rates it a sell at its current valuations.
- ChannelAdvisor reported its July 2014 same store sales report last week
- Based on the historic relationship between ChannelAdvisor numbers and Actual revenue growth reported, we model the Amazon’s August and September same store sales growth required to beat the company’s Q3 guided growth.
- With an ever improving topline growth performance through the last few months, Amazon looks likely to beat Q3 2014 revenue guidance.
- Investors are punishing lack of earnings at Amazon and as the company has regularly failed to deliver on this metric; we reiterate our negative outlook on Amazon stock as reflected in our Amazon stock analysis.
- Apple’s upcoming iPhone 6 carries significant upside assuming production runs are inclusive of sapphire.
- A pricing tier may offset supply chain constraints.
- Assuming Apple can earn higher incremental profit from each consumer, Apple should have no difficulty with meeting FY 2014 consensus EPS estimates.
- Alibaba’s equity interest in Alipay has potentially increased to 33%, upon Alipay’s IPO.
- However, if Alibaba cannot secure regulatory approval to own any equity interest in Alipay, Alibaba will earn a royalty stream that’s equivalent to 37.5% of Alipay’s pre-tax earnings.
- Alibaba valuations will get a boost and investors can gain more upside if Alibaba can secure 33% equity interest in Alipay.
- Zynga and King are two online game developers that succeeded to unlock the potential of web 2.0 and were able to gain substantial revenues from it.
- These companies used the bullish market and buzz around their games and went public in a very disappointing debut.
- Both of them presented in Q2 2014 another decrease in revenues that increased investors’ concerns about their ability to generate revenues apart from their good old titles.
- Each company is handling that situation differently: Zynga is investing further in its business model while King attempts to penetrate new markets.
- TripAdvisor's revenue growth and future prospects look attractive.
- Profit margin contraction is expected in the coming quarters.
- TripAdvisor's valuations are likely to come under pressure, making it a risky bet.
- Priceline reported a strong Q2 performance, though missing revenue estimates marginally.
- The company beat consensus EPS estimates by 4%, with a Non-GAAP EPS of $12.51 in Q2.
- The current valuation multiples, future growth opportunities and M&A activity make Priceline an attractive investment in the OTA space.
- We reiterate our positive long term outlook on Priceline stock post Q2 results, as reflected in our Priceline stock analysis.
- Facebook trades at a reasonable valuation when compared to peers.
- Facebook’s revenue growth paired with falling incremental cost will continue to improve its profitability.
- Assuming Facebook can reverse the trend in share dilution through share buybacks, EPS growth will improve drastically.
- Netflix streaming revenue surpassed HBO's in Q2 2014.
- With growing subscriber base and focus on own content, it could be the HBO of online streaming.
- Soaring growth rates may lead to higher expectations and premium valuations.
- Netflix is a Hold Call according to current Netflix stock analysis.
- Tremendous growth foreseen in the e-commerce space in the next few years.
- Groupon to face tough competition from industry majors Amazon and eBay.
- Groupon’s e-commerce revenue as percent of total revenue is trending higher, implying a strong start to its e-commerce business.
- Priceline is slated to report its Q2 2014 numbers on Monday. Analyst consensus is Non-GAAP EPS of $12.02 on revenue of $2.15 billion.
- Priceline has trumped analyst estimates for over 15 consecutive quarters.
- Strong growth in property listings on booking.com and a solid Q2 performance by Expedia’s hotel segment indicate a Q2 beat is on the cards for Priceline.
- We reiterate our positive long term outlook on Priceline stock, which is reflected in our Priceline stock analysis.
- Pandora reported Q2 2014 results, beating EPS and revenue expectations but also presented another quarter of operating and net losses.
- The company tries to increase its falling advertising revenues as well as pushing its subscriptions revenues further in order to improve bottom line.
- In order to increase subscriptions revenue Pandora may need to retire or wind down the core music service that is based on the music genome project.
- Yandex delievered another quarter of strong revenue growth.
- Yandex valuations are much cheaper than those of its peers.
- Yandex is an attractive option for long term investors.
- Akamai technologies reported its Q2 2014 numbers on July 31 2014.
- The company beat analyst consensus on both topline as well as earnings, delivering yet another quarter of growth.
- We expect the earnings growth to continue over the long term, leading to further upside in Akamai stock price.
- Our Akamai stock analysis reiterates our positive long term outlook on Akamai.
- LinkedIn beat revenue and EPS estimates in Q2.
- LinkedIn revised its full year guidance upwards.
- LinkedIn is a great company but a risky investment at its current valuations.
- Amazon has historically pursued a topline focused strategy, which is being questioned by investors.
- Amazon’s reinvestment is generating lower sales than before, raising questions on the strategy of reinvesting more to drive topline growth.
- The cost trends in tandem with deteriorating trends in payables and inventory can take a toll on Amazon’s cash flow, the prime measure of the company’s performance.
- Our Amazon stock analysis reflects our negative long term outlook on Amazon.
- Twitter delivered exceptional revenue growth beating estimates by 10%.
- Twitter showed improvements on all metrics.
- Twitter is becoming more and more risky with rising valuations.
- Twitter is likely to beat its own revenue guidance and analyst estimates.
- Twitter engagement metrics should improve in Q2.
- Twitter is a risky bet at its current valuations.
- Yahoo reported disappointing Q2 2014 results with an increasing dependency on the company’s stakes in Alibaba and Yahoo Japan.
- Yahoo undertook a series of actions in order to minimize this dependency and close the gap on its competition.
- Yahoo’s short term disappointing results should be followed by long-term upside.
- Line is expected to IPO for more than $10 billion
- The IPO should mitigate the existing fears of Facebook over-paying for WhatsApp.
- Assuming Line can sustain a market capitalization in excess of $10 billion; WhatsApp will be worth more than $19 billion, assuming 1 billion monthly active users.
- Owning Facebook will give investors better exposure to mobile messenger services.
- Amazon delivered a disappointing Q2 earnings report after market hours yesterday.
- A topline beat was unable to quell investor fears who took note of the company's huge miss on the bottomline.
- Investors are looking forward to earnings growth and Amazon will have to deliver on this metric, sooner than later, to sustain its current valuations.
- Our Amazon stock analysis highlights the underside risks of Amazon’s stock, reflecting our long term negative outlook on the company.
Get stock analysis for:
Subscribe to our investing articles and newsletter
show top losers
|Yandex (YNDX)||30.72||1.68 (5.79%)|
|Rackspace Hosting (RAX)||32.67||0.85 (2.67%)|
|Blue Nile (NILE)||27.19||0.62 (2.33%)|
|MercadoLibre (MELI)||114.02||2.54 (2.28%)|
|Sohu.com (SOHU)||61.35||1.16 (1.93%)|
|Cogent Communications (CCOI)||33.92||0.54 (1.62%)|
|Groupon (GRPN)||6.23||0.08 (1.3%)|
Top gaining stocks from internet industry