The earnings season has been highly encouraging for internet stocks like Facebook (FB) and Baidu (BIDU), which announced strong second quarter results. The upright stock movement was also driven by better-than-expected Q2 US GDP growth number of 1.7% against the estimated 1%.
A few of the internet companies that are coming out with results this week are -
Priceline Stock: Set To Beat Revenue, Earnings Estimates
Priceline (PCLN), the online travel company and one of our top stocks will be declaring Q2 results on Thursday, the 8th of Aug, after market close. The company had come out on top of both revenue and earnings estimates for Q1 2013. The management’s guidance for Q2 2013 has come in below analyst expectations. We expect the company to report in line with the issued guidance. With a current market price of $908.4 (2nd Aug close), we see Priceline stock hitting a target price of $952, on a conservative basis. Check our Priceline stock analysis.
JCOM Stock: To Announce Q2 Earnings
Analysts have been bullish about j2Global (JCOM) over the past few months. The company provides outsourced, value-added messaging and communication services to individuals through brands like PCMAG & Ziff Davis. Investors are waiting to see if this company can beat analysts’ expectations for the fourth consecutive time. View our JCOM stock analysis.
Rackspace Hosting Q2 2013 Earnings
Yet another company announcing results this week is Rackspace (RAX), which provides cloud computing services, along with managing web-based IT systems. According to Zacks investment research, only 30% of analysts have given a strong buy recommendation to this company, probably due to its high PE ratio of 60x. We are still pessimistic about the company’s current PE ratio as compared to its expected EPS growth. Read our Rackspace stock analysis.
Source: Rackspace PE ratio by Amigobulls