Rate Cut In Bankrate

Even as the second innings of earnings begin, we start to see mixed trend in the stock market. Internet stocks continue to trade flat after mixed earnings.

Bankrate stock: Poor Results

Bankrate (RATE) announced disastrous second quarter results. Bankrate top line witnessed a YoY decline of 14% to $105.5 million. To add to the woe, the company also reported net losses of $0.9 million, a decline of 5 margin points on YoY basis. Well, the company missed Wall Street’s expectations too. Bankrate’s FY 2013 guidance looks too gloomy making Bankrate stock something an investor can avoid in the near future. (See: Bankrate Quarterly Results)
Bankrate netincome chart
Source: Bankrate net income chart By Amigobulls

NutriSystem Stock: Poor Earnings

NutriSystem (NTRI) quarterly results didn't look great either. The company’s huge YoY revenue decline was offset by its operating levers. Due to this, Jun 2013 earning per share increased to 22 cents against the projected range of 15 to 20 cents. Although no-debt policy and a quarterly dividend announcement of $0.175 per share could be a positive, we are pushing NutriSystem stock to our negative watch list. NutriSystem stock tanked 3% yesterday.(See: NutriSystem Quarterly Results)

Yandex Stock Dips 4%

Continuing with an upstream of events that has made the sail difficult in the sea for Yandex (YNDX) stock, yet another big news hit the market. The co-founder of the Russian search engine, Ilya Segalovich, died due to cancer at the age of 48. Yandex stock price dipped by 4% in reaction to the news. Segalovich founded Yandex in 1997 with Volozh, his friend. The company has been a super bumper Russian search engine, controlling a total Russian market share of 62%. Yandex derives its name from “Yet ANother inDEX.”

Yahoo Stock: Fundamentals Improved

Marissa Mayer scores well as a CEO at Yahoo (YHOO). As per Insider Monkey, the company’s fundamentals improved from a score of 28/100 to 53/100 in a matter of one year. This upward movement reflects an overall improvement across a range of parameters. One important parameter that helped the push was earnings leverage. Yahoo stock price has risen 77% from the time Marissa joined Yahoo. It is important to note that the Yahoo stock trades at a low price to book ratio despite a high ROE.

Expedia Stock: Dismal Earning Results

Expedia (EXPE) continued to sink to a new low from the date of announcement of earnings results. Expedia stock witnessed a dip of 2% in the last trading session (a total of 29% from the results announcement date). As a measure, the company announced that it would invest in technology and international expansion to better compete with rivals such as Priceline (PCLN).

Capital Expenditure Spend By Internet Stocks

The capital expenditure across the internet industry witnessed an increase as companies looked to stay invested in growing economies like India and Brazil. Facebook (FB) to spend $1.6 billion towards capital expenditure in the current year. This would be utilized towards setting up data centers and building storage infrastructures. Since social media companies like Facebook have driven the expansion of internet into our day-to-day lives, we believe that there’s going to be a good return on capital investment.

Upcoming Earnings Calls

Digital River (DRIV), QuinStreet (QNST),ShutterFly (SFLY), Support.com (SPRT), Stamps.com (STMP)), Trulia (TRLA), United Online (UNTD) and WebMD (WBMD).

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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