AmigoBulls Internet Daily July 26, 2013

Amazon Stock

Earnings season is on but it seems to be raining losses at Amazon’s head office in Seattle. Amazon (AMZN) quarterly results for Q2 2013 were once again high on promise but low on profits. Analyst estimates of $0.06 earnings per share were shattered by a huge margin with a per share loss of $0.02. Would you really buy the 22% YoY increase in revenues when it comes along with a 200% YoY drop in profits? We ask just one question before we bet our money on this one; where are the profits and the cash?? We wouldn't bet our money on Amazon stock, not until Mr Bezos delivers on the promise of profits and cash. (See: Amazon quarterly results)

Expedia Stock: Revenue Increase This Earnings

Even as Amazon fell flat for yet another quarter, Expedia (EXPE) results seemed disappointing at first glance. A closer look revealed interesting facts. A revenue increase of 16% YoY was accompanied by an operating profit drop of 39%. However the drop in profitability was due to factors beyond the management’s control and also on account of increased investments into Trivago and eLong, two divisions which posted a phenomenal YoY growth. We will be keeping a close watch on this one as we expect the investments into these two ventures to fuel the company’s growth story in the coming months. (See: Expedia quarterly results)

Internap Networks Stock

Internap Networks (INAP) quarterly result was another interesting event. The increased focus on company owned data centers coupled with the increasing profitability of the segment can lead to a new growth story. A revenue increase of 2% YoY was fueled by an increase in the data center revenues offsetting the decline in IP services revenues. Interestingly the share of revenue from data centers rose 5% Y/Y. The data center segment margins increased by 4.9% Y/Y compared to a 4.3% YoY fall in the IP services margins. This is a certain on our watch list and do come back to keep yourself updated on the investment opportunities which might be heading your way through the Internap Doorway.(See: Internap quarterly results)

Internap Revenue Chart Q2 2013
Source: Internap revenue chart by Amigobulls

Co-Star Group Stock

Co-Star Group (CSGP), the real star performer of the US internet stocks, posted amazing earnings results for the quarter ending June ’13. This came as a ‘big bang’ because analysts had expected the company to earn $0.52 per share, against its actual $0.61. Although we admire the kind of amazing results that the company has been posting in the past, it’s P/E of 64 (annualized & adjusted) looks quite scary. (See: Costar results)

ComScore Stock

The funny part is how some company can score well, when they are projecting negative profitability! But hats off to comScore (SCOR), which has been blowing its own trumpet for quite some time. Also, it seemed to have worked in the stock market. Over the past one year, comscore stock price has shot up by 76%. Comscore surely knows how to manage the stock market. Continuing with the upward trend, the company gained around 7.0% post the announcement of recent results too. A negative net income and a high volatility makes the company an unattractive venue even to halt for a strand of shade. To add to the woe, more than 3 analysts have given a ‘sell’ rating on comscore stock. (See: comScore quarterly results)

Comscore Stock Chart
Source: Comscore stock chart by Amigobulls

Home Away Stock

You may get more respect with some healthy cash balance in your bank account, but a company is not supposed to be sitting on a huge cash pile. Homeaway (AWAY) seems to have just realized that. Their cash on hand being more than their annual revenue, BCOV announced its plans to acquire Travelmob. Revenue increase of 22% was very healthy along with the net income increase of 92%. Cash is flowing in good with $91.6 million of free cash flow. Stock market reacted positively to the results driving the stock up by 6%. (See: Homeaway quarterly results)

Brightcove Stock

How could we miss Brightcove (BCOV) today? Yeh,they reported some losses, but man they did beat the Street’s expectations. We can justify the recent price increase if we were to look for a high-growth company. We are adding BCOV to our watch list. (See: Brightcove quarterly results)

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Virendra Singh Chauhan Virendra Singh Chauhan   on Amigobulls :

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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