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Amazon Woos Local Retailers To Boost Revenues

Amazon Woos Local Retailers To Boost Revenues
  • 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.
  At the end of July, e-commerce giant Amazon (NASDAQ:AMZN) reported its Q2 2014 financial results with EPS lower than analysts’ expectations and slightly higher revenues than expected. As shown in chart 1 below, Amazon showed ...
Related Tickers: AMZN continue reading ...

Twitter Stock Analysis - Is User Growth Real?

Twitter Stock Analysis – Is User Growth Real?
  • 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.
  The run up in Twitter’s (NYSE:TWTR) stock price suggests that investors are now less concerned about the company’s sluggish user growth. But have things really turned around for the micro-blogging site? As per the company’s updated earnings presentation, 11% of its active users solely used third party applications to access Twitter. What’s more, some of these users used third party applications which might have automatically contacted Twitter’s servers. ...
Related Tickers: TWTR, FB continue reading ...

Amazon: Will solid Q3 revenue growth be enough?

Amazon: Will solid Q3 revenue growth be enough?
  • 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.
  ChannelAdvisor, the provider of e-commerce ...
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iPhone 6: Huge Potential for Apple Investors

iPhone 6: Huge Potential for Apple Investors
  • 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.
  There has been a lot of speculation over whether or not Apple's (NASDAQ:AAPL) upcoming flagship device will come equipped with a sapphire screen.   This has led to two opposing arguments. One is based on the practical production possibilities coming out of the sapphire plant, and the other believes that GT Advanced Technologies has stockpiled enough sapphire to meet the initial stages ...
Related Tickers: AAPL continue reading ...

New agreement boosts Alibaba's Alipay IPO payouts

New agreement boosts Alibaba’s Alipay IPO payouts
  • 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.
  Alibaba has restructured the agreement it had with Alipay, and in this process of restructuring the equity interest, Alibaba investors will either gain 37.5% pre-tax income from Alipay for perpetuity, or they will receive a one-time payment equaling 33% equity interest ...
Related Tickers: YHOO, BABA continue reading ...

Investors Should Stay Away From One-Hit Wonders Zynga and King

Investors Should Stay Away From One-Hit Wonders Zynga and King
  • 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.
  Zynga (NASDAQ:ZNGA) and King (NYSE:KING) are two of the biggest ...
Related Tickers: ZNGA, KING continue reading ...

TripAdvisor Earnings - Risky Valuations Continue Post Q2

TripAdvisor Earnings – Risky Valuations Continue Post Q2
  • 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.
  TripAdvisor’s (NASDAQ:TRIP) stock price corrected by about 11% on 24 July 2014, the day after it announced its Q2 earnings. The company delivered accelerated revenue growth for the quarter and looked well placed to beat its full year revenue guidance. However, investors were disappointed by the company’s near 10% miss on the Non-GAAP EPS estimates. TripAdvisor’s management also lowered its full year Adjusted EBIDTA projection. Even with the downward revision of the guidance on ...
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Priceline Stock Still Attractive Post Strong Q2

Priceline Stock Still Attractive Post Strong Q2
  • 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.
  Priceline(NASDAQ:PCLN), the largest OTA (Online Travel Agency) by revenues announced its Q2 2014 results before markets opened yesterday, August 11. Priceline reported Non-GAAP EPS (earnings per share) of $12.51, crushing analyst consensus of $12.02. The company delivered solid growth ...
Related Tickers: PCLN, EXPE, OWW continue reading ...

Facebook Stock Analysis - A Fundamental Perspective

Facebook Stock Analysis – A Fundamental Perspective
  • 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.
  Facebook (NASDAQ:FB) trades at a reasonable valuation multiple when compared to peers, and is set to grow earnings at a fairly exponential pace due to favorable cost tailwinds paired with continued growth in its core business. In future years, Facebook will eventually return cash to shareholder through share buybacks, which will reduce the negative impact share dilution has had.   Facebook Valuation Over the past five ...
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Netflix streaming surpasses HBO revenue

Netflix streaming surpasses HBO revenue
  • 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.
  Netflix (NASDAQ:NFLX) seems to have added a new star to its uniform. Reed Hastings CEO, Netflix took to Facebook to announce that the video streaming service is now pulling in more subscriber revenue than HBO. “Minor milestone: last quarter we passed HBO in subscriber revenue ($1.146B vs $1.141B),” Hastings stated in his post. The market likes what it sees ...
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E-commerce to Drive Groupon’s Growth

E-commerce to Drive Groupon’s Growth
  • 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.
  The growth in e-commerce over the past few years has been tremendous. In the year 2013, B2C (Business to consumer) sales crossed $1.2 billion worldwide. Companies like Amazon and eBay, which have been in this industry for the past many years, account for a major market share in this space. According to a report by Goldman Sachs, the combined market share ...
Related Tickers: GRPN continue reading ...

Priceline Earnings Preview - Q2 2014

Priceline Earnings Preview – Q2 2014
  • 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.
  Priceline (NASDAQ:PCLN), the largest online travel agent by revenues is scheduled to announce its Q2 2014 results on August 11, Monday before markets open. Priceline stock has ...
Related Tickers: PCLN continue reading ...

Pandora Turns To Broadcast Radio As Last Resort

Pandora Turns To Broadcast Radio As Last Resort
  • 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.
    At the end of July, internet radio provider Pandora (NYSE:P) reported its Q2 2014 financial results , beating EPS and revenues expectations. Pandora reported a record high quarterly revenue of $218 million, which is ...
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Yandex Earnings Q2 2014 - Big Upside Potential!

Yandex Earnings Q2 2014 – Big Upside Potential!
  • 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.
  Russia’s search giant Yandex (NASDAQ:YNDX) reported its earnings for Q2 2014 on 29 July. The company beat analyst estimates of revenue, to deliver a strong Q2. However, Yandex stock price is still down by over 27% since the beginning of 2014 (Year To Date or YTD). Yandex valuations have been disconnected from its fundamentals since geo political tensions surrounding Russia escalated in the early part of the year. The listing of Yandex’s stock on the Moscow Exchange ...
Related Tickers: YNDX, GOOGL, BIDU, GOOG continue reading ...

Akamai Earnings Review - Q2 2014

Akamai Earnings Review – Q2 2014
  • 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.
  Akamai Technologies (NASDAQ:AKAM), the leader in content delivery solutions and one among our top stock picks announced its Q2 2014 results on July 31, 2014. Akamai stock has been among our top stock picks for close to nine months, netting 25% since being added ...
Related Tickers: AKAM continue reading ...

LinkedIn Earnings - Q2 2014 Review

LinkedIn Earnings – Q2 2014 Review
  • 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.
  Just days after Twitter (NYSE:TWTR) thrashed earnings with its quarterly results, LinkedIn (NYSE:LNKD) has come out with strong numbers in its latest earnings release. The professional networking site announced its Q3 2014 results on 31 July 2014 to register a solid revenue and EPS beat. That apart, the company displayed improvements across the board and hiked its full year revenue guidance to complete a strong all round performance. LinkedIn’s stock price was up about 6% in pre-market ...
Related Tickers: LNKD, TWTR continue reading ...

Exploring Amazon’s High PE Ratio

Exploring Amazon’s High PE Ratio
  • 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.
  Amazon’s (NASDAQ:AMZN) high PE ratio is always a matter of debate among investors. I was recently on a social network and noticed a debate following Amazon’s latest quarterly release. The argument was ...
Related Tickers: AMZN continue reading ...

Twitter Earnings - Q2 2014 - Solid Quarter But Risky Bet

Twitter Earnings – Q2 2014 – Solid Quarter But Risky Bet
  • 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.
Your browser does not support the video tag.   Twitter (NYSE:TWTR) reported its Q2 earnings on 29 July 2014 and registered a huge jump in revenue to thrash estimates. The company’s Adjusted EPS also came out ahead of consensus estimates, adding to the positive movement in all reported metrics. To add to a great quarter on all fronts, the company also revised its full year revenue and adjusted EBITDA guidance upwards, driving ...
Related Tickers: TWTR, FB continue reading ...

Twitter Earnings - Q2 2014 Preview

Twitter Earnings – Q2 2014 Preview
  • 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.
  If you are a Twitter (NYSE:TWTR) shareholder, chances are, you don’t have very fond memories of the company’s earnings announcements so far. There have only been two such occasions since the microblogging site went public late last year. However, on both occasions, the stock tanked following the earnings release. Twitter’s stellar growth was outweighed on both occasions by long term growth concerns tied to sluggish user growth and declining engagement metrics.   In this quarter however, we expect ...
Related Tickers: TWTR continue reading ...

Yahoo Increases Efforts To Boost Core Operations

Yahoo Increases Efforts To Boost Core Operations
  • 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.
In the middle of June, the Internet giant Yahoo (NASDAQ:YHOO) reported disappointing Q2 2014 results that included a lower than expected EPS of $0.37 which was $0.01 lower than analysts consensus, and $1.04 billion revenues (Ex-TAC) which were below the company’s revenue outlook of $1.08 billion. Revenue figures incorporate a quarter-over-quarter decline in each segment ...
Related Tickers: YHOO continue reading ...

Line IPO Will Establish WhatsApp Valuation

Line IPO Will Establish WhatsApp Valuation
  • 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.
  Line is pursuing an IPO with a valuation north of $10 billion. This is shortly following Facebook’s acquisition of WhatsApp for $19 billion.   This Line IPO will help put in perspective Facebook’s WhatsApp acquisition, valued at $19 billion . Whatsapp is thought to be an important ...
Related Tickers: FB continue reading ...

Amazon Earnings Report - Q2 2014

Amazon Earnings Report – Q2 2014
  • 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.
  Amazon (NASDAQ:AMZN) announced its Q2 2014 earnings report after market close yesterday, July 24th. Amazon reported a loss of 27 cents per share on revenue of $19.34 billion. The stock ...
Related Tickers: AMZN continue reading ...

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