The bears came calling on the street as major US stocks retreated due to the prevailing uncertainty over the expected tapering of Fed’s bond buy-back. While investors were betting their money on good earnings and a strong US economic report, reluctance stemmed into their minds as the Fed is getting ready to rein in its monetary stimulus plan. Leaving the Feds to do their job, we move on to the interesting world of internet stock.
Will The New Logo Help Yahoo Stock
The Yahoo (NASDAQ:YHOO) logo is finally getting a makeover for the first time in its 18-year history. Over the next four weeks, 30 different logos will be showcased replacing the distinctive purple Yahoo logo. Is this to celebrate the reversing trend of Yahoo stock's flagging fortunes under Marissa Mayer’s leadership? Well, although we share the spirit of success, let’s wait and watch if the company continues to produce some great numbers as well. Does yahoo need a new logo? Share your thoughts on new logos that you might have noticed in the comments section below.
JCOM Stock: An Addition To Our Watchlist
j2Global (NASDAQ:JCOM) is a company that operates in the field of cloud services and digital media through channels like IGN Entertainment. Ziff Davis reported a record quarter backed by a strong revenue growth of 58% YoY. The company’s earnings per share grew 18.6% to $0.83, beating analysts’ estimates by 4 cents. The company also reaffirmed its outlook for the fiscal year: Non-GAAP net income between $2.78 and $2.98 per share and revenue between $510 million and $535 million. At this stage, the company looks quite attractive given its low valuation, consistent growth and a record second quarter (in several aspects). We at Amigobulls have decided to add this company to our positive watch list.
AOL Stock: A Strong Quarter
AOL Inc. (NYSE:AOL) announced its June 2013 ending quarterly results before markets opened yesterday. As per the management this has been yet another quarter of strong growth. The company saw a 2% YoY growth in revenues (See AOL stock chart). Now that wouldn't really qualify as strong growth. However a closer look reveals some interesting facts. Though the operating profits at first glance tell a different story, the adjusted operating profits jumped 36% YoY and the margins improved by 3% YoY. Add to that an adjusted earnings increase of 92% YoY and the numbers start looking exciting. Well the company did come out with these numbers and that’s why we think this has been a strong quarter for AOL.
Source: AOL revenue chart by Amigobulls
AOL announced its acquisition of Adap.tv, a programmatic advertising platform for a total price of $405 million. AOL believes that Adap.tv creates the world’s most powerful cross-screen solution for brands, agencies and publishers. Keep following us to know if AOL has made it to our top internet stock picks.
Groupon Stock: Disappointing Earnings
The day had its fair share of disappointments too. Groupon (NASDAQ:GRPN) came out with quarterly results yesterday which were not very impressive or representative of what we call successful growing organisations. Groupon, the online deals marketplace, registered a revenue increase of 7% YoY (see Groupon stock chart below) but saw operating margins drop by 4% Y/Y. The earnings also cut a sorry figure with a 125% YoY fall. The Groupon stock jumped 20% during after-hours trading largely on account of news of new CEO Eric Lefkofsky’s appointment and the estimate beat which the company delivered. However the new CEO needs to ensure earnings increases in the coming quarters to justify the faith shareholders have been showing.
Source: Groupon revenue chart by Amigobulls
Liquidity Services Stock: Poor Earnings Performance
Liquidity Services (NASDAQ:LQDT), the online marketplace for Surplus assets, also announced results yesterday before market hours. The June ending quarter has been a flat quarter with the company registering a revenue increase of 2% Y/Y and reporting decrease in operating margins and earnings on a Y/Y basis. The small increase in Liquidity Services revenue was more than offset by the 6% decrease in margins resulting in a 22% fall in earnings on a Y/Y basis. This performance is definitely not getting the LQDT stock onto our positive watch list as we do not believe in revenue increases and simultaneous drops in margins as a strategy which can be sustained over longer periods of time.