articles on investing
- Value investing involves buying stocks which are selling at less than their worth.
- Value investors need to maintain a high "margin of safety".
- One must keep a long term horizon in value investing.
- IAC incurred significant write-down charges on account of the US Supreme court ruling against Aereo.
- Going forward, the Tinder monetization opportunity represents a good topline and bottom line growth potential.
- IAC valuations combined with Tinder monetization potential could present investors with a good upside over the next one year. Our IAC stock analysis re iterates our positive long term outlook on IAC stock.
- Twitter has officially announced that it is testing its 'buy' feature.
- Twitter will be taking on Facebook in its e-commerce foray.
- Twitter is risky at its current valuations and Facebook is relatively more attractive.
- For the first time in a while, PayPal is on the defense in a category that it has long held dominance in.
- PayPal addresses Apple pay by launching an anti-Apple payment ad campaign, and by accepting bitcoin payments.
- eBay launched a mobile ad marketplace in which it may generate $1.2-$1.5 billion in annual revenue eventually, on top of the fees it generates from transactions.
- Going forward, PayPal will develop a better strategy for monetizing mobile commerce volume, but it will take a while for these developments to unfold.
- Facebook went public in a hyped IPO in 2012 that yielded a very disappointing return from the first day of trade.
- Facebook put a very high price tag on its shares that together with a NASDAQ technical error made Facebook IPO one of the worst IPO stories ever.
- Alibaba, unlike Facebook, put a reasonable price tag on its shares and chose the NYSE over NASDAQ as the primary market to go public.
- Netflix has expanded into 6 additional European markets.
- Netflix’s global subscriber base continues to grow at blistering rates.
- Netflix’s domestic subscriber base is expected to grow to 60-90 million members, whereas the international subscriber base may grow to a much larger figure.
- LinkedIn has delivered revenue growth and monetization.
- Recent data shows lackluster user growth and engagement.
- LinkedIn is a risky bet at current valuations.
- Warren Buffett has often opposed diversification as an investment strategy, which is a central concept taught in traditional B-schools.
- Benjamin Graham, Buffett’s Guru, on the other hand viewed Diversification as a central concept to achieve market beating portfolio returns.
- Are the two at a conflict? A deeper look reveals interesting conclusions.
- Alibaba IPO shareholders will only have “claim to profits” of the Chinese owned variable interest entities without any direct ownership of these companies.
- Investors looking at the Alibaba IPO must weigh in the risks of this complicated structure and Chinese regulations in order to arrive at an informed investment decision.
- However, this isn’t a huge risk as large investors like Yahoo and Softbank are also exposed to the same risk and most China based companies listed in the US also have this inherent risk.
- ChannelAdvisor reported its August 2014 same store sales report this week
- Based on the historic relationship between ChannelAdvisor numbers and Actual revenue growth reported and also change in this relationship, we model Amazon’s September same store sales growth required to beat the company’s Q3 2014 revenue guidance.
- With ever improving ChannelAdvisor Same Store Sales numbers through the last few months, Amazon looks likely to beat Q3 2014 revenue guidance.
- Alibaba will most likely begin trading on the NYSE on Sep 19 2014.
- The chances for a retail investor to get stocks prior to listing, at the IPO price, are extremely low.
- A good strategy would be to take up a pre IPO position in Yahoo or Softbank and use them as proxy stocks to cash in on the pre listing gain in Alibaba’s valuation.
- Once the Alibaba listing is complete, investors can move funds from these proxy stocks to Alibaba stock, which will be available through any online brokerage account.
- Apple announced iPhone 6 in two screen sizes, both larger than the previous iPhone models.
- Apple’s launch of larger screen phones is in line with growing demand for bigger screen phones.
- The demand for larger screen devices and refresh cycle of iPhone 5 users will drive iPhone 6 sales and Apple topline over FY 2015.
- We re-iterate our positive long term outlook on Apple, as reflected in our Apple stock analysis.
- Microsoft stock has gained over 20% in 2014, with investors taking notice of Microsoft’s topline growth and free cash flow growth.
- Microsoft is well positioned for future growth from its cloud and gaming segments.
- Fundamentals continue to remain strong and attractive valuations combined with future growth opportunities make Microsoft a good large cap stock to invest in.
- Some sites have reportedly found more content sharing activity on WhatsApp than Twitter.
- Now Twitter seems to have added a WhatsApp direct sharing button on its mobile app.
- The new feature might help Twitter but its valuations are expensive when compared to those of Facebook.
- Alibaba is scheduled to launch its IPO this week, with trading on NYSE to begin mid-September.
- We look at potential Alibaba valuation from three perspectives.
- Anything lower than $160 billion will be a conservative valuation and could offer tremendous upside potential for shareholders.
- Risk is an integral part of equity investment, making it important to understand and measure risk of an equity share.
- Value investors judge the riskiness of a stock by looking at the fundamentals and current price levels of the stock.
- Statistically, risk of a stock is measured by deviation of a stock returns from its mean or the market.
- iWatch may have further contribution to Apple’s top and bottom line due to an increase in ASP.
- Higher component costs due to sapphire will be offset through higher pricing, thus improving the profitability of the device.
- The iWatch may be a much bigger contributor to net income and revenue than what the street is anticipating.
- Priceline’s investment stake in Ctrip is contingent upon the conversion value of the bond and stock and whether Priceline increases its stake to 10% of the total shares outstanding.
- The partnership between Priceline and Ctrip offers meaningful upside for both companies involved.
- Investing into Ctrip via Priceline offers a reasonable compromise between earnings growth and valuation, versus investing into Ctrip directly.
- Alibaba gains the benefit of favorable Chinese regulations and has huge international growth opportunity.
- Alibaba remains dominant in C2C, B2C, and B2B segments putting it in the prime position to benefit from a growing Chinese middle class.
- Organic growth in the form of higher spend per consumer, paired with monthly active user growth will continue over a long period of time (at least the next 20 years).
- Further growth opportunity in other segments like Alipay, local deliveries, and etc. will also drive significant growth in future.
- Alibaba reported improving monetization trends, paired with robust volume growth.
- Net income doesn’t compare very well to prior periods, but the high profitability excluding investment income reveals that Alibaba’s profit margin is respectable when compared to peers.
- The favorable economic backdrop, paired with high growth potential in Chinese e-commerce should be considered when determining whether or not to invest into Alibaba.
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