Earnings: AU, ICPT, DF, ACT, RAX, SCAI
10:30 am: San Francisco Fed President John Williams on CNBC
Earnings: ARES, NCV, ECA, MCK, Z, VJET, VSLR, IFF
9:00 am: NFIB small business survey
10:00 am: JOLTs
12:45 pm: San Francisco Fed's Williams on economic outlook
1:00 pm: $24 billion three-year note auction
2:00 pm: Federal budget
Earnings: M, CSCO, SHAK, NSANY, ZBRA, RL, PCP, MRKT, IGT
8:30 am: Retail sales
8:30 am: Import prices
10:00 am: Business inventories
1:00 pm: $24 billion 10-year note auction
Earnings: KSS, JWN, PRTY, AMAT, SYMC, LOCO, KING
8:30 am: Initial claims
8:30 am: PPI
1:00 pm: $16 billion 30-year bond auction
May 22nd, Friday options and futures expiration day.
Earnings: NTT, FLML, JMG, FSAM, HTM
8:30 am: Empire State survey
9:15 am: Industrial production
10:00 am: Consumer sentiment
4:00 pm: TIC data
Sentiment: Strong Buy
Goldman Sachs analysts Judy Hong and Freda Zhuo removed the stock from their firm's Conviction Buy list and downgraded it to Neutral today. They write that while the first quarter was softer, they believe this is mostly transitory, given that one-off expenses impacted results. Nonetheless, they lowered their annual EPS estimates through 2017 on the miss, slightly slower sales trends, and the fact that they previously expected the Coke deal to close at the beginning of the second quarter, not the end.
They write that they are still enthusiastic about the story long term, but the valuation is the main driver of the downgrade:
Alibaba Group (BABA) will report its first-quarter earnings before the market opens on May 7.
Wall Street analysts from Deutsche Bank to MKM Partners sounded a cautious note in their earnings preview.
Alibaba, which also relies on the advertising model, likely will face the same challenge as China’s Google BIDU, whose revenue growth in the first-quarter slowed due to the lunar Chinese New Year, which occurred in February, as well as a ramp-up of user mobile usage, which does not bring in as much money as the PC platform.
In the December quarter, mobile contributed to 42% of the transactions conducted on Alibaba’s platforms. “Mobile is growing nicely,” noted Deutsche Bank‘s Alan Hellawell III and team, who expect mobile to contribute to 47% of Alibaba’s gross merchandize value (GMV), “due to mobile adoption in urban areas and even faster mobile e-commerce penetration in lower tier markets.”
But mobile penetration is a mixed blessing, because it does not bring in as much money as the PC, yet. The bank expects Alibaba’s take-rate to fall by 8 basis points from a year ago. See my February 13 column “Mobile Jolts Alibaba, BIDU “for background information.
Apart from the seasonally weak March quarter from the Chinese New Year, “redoubled efforts to combat fraud with stricter criteria imposed on Tmall and Taobao merchants, will likely drive down GMV QoQ,” noted Deutsche. As such, the bank expects Alibaba’s revenue to rise by only 37% from a year ago. For comparison purposes, in December quarter, Alibaba’s revenue rose 53.7%. Deutsche’s estimate is in line with the street.
Investors are cautious ahead of the earnings, noted MKM Partners after looking at options and short interests:
The options markets are implying about a 7% move, but trading history is limited with only two previous quarters as a public company. Short interest of 57mn shares has increased 37% qtr/qtr and is 3.5-days to cover. Sentiment is near-term cautious and long-term positive.
The research firm lowered its price target on Alibaba from $125 to $115. Truthfully, it price target is way too high – Alibaba closed at $80.59 and the street consensus target is $107.20, according to Factset.
The research firm also lowered its price target from $125 to $115. But the reality is, MKM Partners was way off: Alibaba closed at $80.59 on Monday and the street consensus target is $107.20, according to Factset.
Earnings: CMCSA, SYY, CVC, DO, AMCX, TSN, D, MGM, LUX, GRPN, INVN, RGR, THC, ACP
10 a.m.: Factory orders
12:25 p.m.: Chicago Fed President Charles Evans
2 p.m.: Senior loan officer survey q2 tentative
3:10 p.m.: San Francisco Fed President John Williams
Happy Cinco de Mayo
Earnings: DIS, NWSA., EA, GRPN, MYL, ADM, ELAA, DISCA, K, NBL, TRW, VWC, DVN, LC, PXD, PAA, ALL, HCA, DTV, UBS, HLF, ZU, WTW, NFX, SCTY
8:30 a.m.: International trade
9:45 a.m.: Services PMI
10 a.m.: ISM nonmanufacturing
8 p.m.: Minneapolis Fed President Narayana Kocherlakota
Earnings: TSLA, MRO, SXL, RIG, TRIP, GSK, OXY, CHK, HFC, MSI, DDD, SODA, WEN, ATVI, FOX, GMCR, WFM, RYN, WBMD
7:30 a.m.: Mortgage applications
8:15 a.m.: ADP private payrolls
8:30 a.m.: Productivity and costs
9:15 a.m.: Fed Chair Janet Yellen and IMF MD Christine Lagarde on panel
10:30 a.m.: DOE oil, gasoline inventories
1:15 p.m.: Kansas City Fed's Esther George on credit markets panel
1:30 p.m.: Atlanta Fed Dennis Lockhart on monetary policy
Earnings: BABA, OWW, TIME, CBS, MNST, ZNGA, FIG, SEAS, REGN, APA, MT, BT, ING, ALU, NCLH, NUAN, NVDA, TAP, APO, RDEN, TSO, TDC
8:30 a.m.: Weekly jobless claims
8:30 a.m.: PPI
Earnings: AOL, TM, JD, BCRX, LMCA, AOL, HCN, NRG, SIRO, TRCO, BR, SSP
8:30 a.m.: Employment report
10 a.m.: Wholesale trade
Sentiment: Strong Buy
Please check the below link
Good luck and happy trading.
SAN FRANCISCO — It's usually wise to take note of what a public company and its executives say and do just before they release quarterly financial results.
While securities rules limit how much they can share, clues are there for investors who are paying attention.
Revenue Increases 55% Over First Quarter 2014
SAN FRANCISCO, April 29, 2015 /PRNewswire/ -- Yelp Inc. (YELP), the company that connects consumers with great local businesses, today announced financial results for the first quarter ended March 31, 2015.
Net revenue was $118.5 million in the first quarter of 2015 reflecting 55% growth over the first quarter of 2014.
Adjusted EBITDA for the first quarter of 2015 was $16.3 million, reflecting a 92% increase over the first quarter of 2014.
Cumulative reviews grew 36% year over year to approximately 77 million, including a record 6 million reviews contributed in the quarter.
Yelp Inc. saw the number of visitors added to its site slow in the first quarter, underpinning the company's struggles as it expands operations.
It was the second consecutive quarter that the San Francisco consumer-review site reported slower growth, even as the company reported a narrowed loss and higher revenue.