Their revenue guidance for next quarter is below consensus, so more subs not translating to more revs. And EPS guidance stinks. This is a $300 stock at best.
Article on Seeking Alpha explains why IRET could go down to $5. Great analysis here:
Look at the red ink on the cash flow statement. Company taking on debt to buy stock, not generating any cash. This will end badly. $50 stock at best.
How is overpaying for AGN a brilliant move? It just gives them an opportunity to continue with their non-GAAP shenanigans. How have they proven that they can buy companies and generate profit over time? I see only losses in their GAAP results. In a few years as patents expire and debt comes due, the company will be in big trouble as there will be no one large enough to buy and continue the Ponzi scheme.
I calculate that it translates to $10 billion for the day, 60% more than last year. Sharp slowdown from 90% growth last year.
Sorry, profits are what matter. Easy to generate revenue by selling a product at zero or low margin. In times of easy money, unsuspecting investors will lap up whatever management says. Over time, people will realize this is just a marginally profitable company at best.
Just reported a $1 billion GAAP loss for the quarter. Their non-GAAP presentation is nonsense. Items like licensing fees are regular operating expenses and cannot be ignored. This is a $100 stock at best.
Core YHOO is worth close to $0 as GAAP profit is approaching zero. Don't forget they have debt as well.
The EPS estimates on Yahoo, etc. are proforma before deducting stock compensation and intangible amortization. So they did not miss estimates. Look at the cash flow. Up substantially YoY. Company now has $4 of cash. This is a $40 stock. I'm certain it will be up tomorrow after people read the analyst notes.
Single digit tax rate, and proforma they are saying it's in the 6-7% range. How do they get away with such a low tax rate being based in California? They seem to be using the cash to pay dividends and buy back stock so it's not all stuck abroad.