Facebook Overvalued Even After One of the Biggest IPO Busts Ever

Indie Research

Stocks were unable to extend yesterday's rally, basically ending flat. Facebook (FB - News), meanwhile, continues to flounder in what is turning out to be one of the biggest IPO busts in recent memory given all the hype. Even with the declines, we still think the stock is considerably overvalued. Overall, we're still expecting a choppy summer for stocks.

The Home Improvement Retail Stocks Index was the top performing tickerspy Index on the day, led by Tractor Supply (TSCO - News) with a 3% gain. The Chinese Advertising Stocks Index was the day's worst performing tickerspy Index, with Charm Communications (CHRM - News) down -9%.

Stocks finished mixed, with the Dow down -2 points to 12,503. The S&P gained 1 point to 1,317, while the Nasdaq lost -8 points to close at 2,839. Oil fell -91 cents to $91.66 a barrel, while gold fell -$12.10 to $1,576.60 an ounce.

In economic news, the National Association of Realtors said homes sales jumped 3.4% in April from March to a seasonally adjusted annual rate of 4.62 million. That's still below the 6 million economists deem as indicative of a healthy housing market.

In earnings news, apparel designer Ralph Lauren (RL - News) said its fiscal first-quarter profit surged 29% to $94.4 million, or 99 cents per share, from $73.2 million, or 74 cents per share, a year earlier. Revenue increased to $1.62 billion from $1.43 billion. Analysts had expected a profit of 85 cents on sales of $1.6 billion. The company also doubled its quarterly dividend to 40 cents per share. Shares of Ralph Lauren rose 2.7%.

Autoparts retailer AutoZone (AZO - News) said its fiscal third-quarter profit rose 9% to $248.6 million, or $6.28 per share, from $227.4 million, or $5.29 per share, a year earlier. Revenue climbed to $2.11 billion from $1.98 billion. Same-store sales rose almost 4%. Shares of AutoZone fell -2.0%. Thirty pros held AutoZone in their portfolios at the end of Q1 and more than 200 tickerspy members own the stock in their portfolios.

Shares of DSW (DSW - News) surged 9.7% after the shoe retailer reported a fiscal first-quarter profit of $39.9 million, or 89 cents per share, and compared with a loss of -$38.1 million, or -$1.74 cents per share, a year earlier. On an adjusted basis, the company earned 98 cents compared with 87 cents a year earlier. Revenue jumped to $558.6 million from $503.6 million as same-store sales rose 7.6%. Analysts had expected a profit of 90 cents per share on $548.1 million in revenue. DSW raised its full-year EPS guidance to $3.25-$3.40 per share from $3.20-$3.25 a share. Analysts had expect a full-year profit of $3.31 per share.

Medical device maker Medtronic (MDT - News) said its fiscal fourth-quarter profit rose 28% to $991 million, or 94 cents per share, from $776 million, or 72 cents per share, a year earlier. Revenue rose 3% to $4.3 billion. Analysts had expected a profit of 98 cents per share on $4.23 billion in revenue. The company forecast fiscal 2013 EPS of $3.62-$3.70 on revenue of $16.51-$16.83 billion. Analysts were expecting earnings of $3.66 per share on $16.52 billion in revenue. Shares of Medtronic fell -2.0%. More than 50 pros held Medtronic in their portfolios at the end of Q1 and nearly 500 tickerspy members own the stock in their portfolios.

Fun and informative, tickerspy.com is a free investing website where you can track multiple stock portfolios and compare against 250 proprietary Indexes tracking themes from dividends to ETFs to green energy to precious metals. Best of all, tickerspy.com lets you spy on the portfolios of nearly 3,000 Wall Street institutions and hedge funds and see graphs of their performance. Try tickerspy.com today and find out how you stack up against investing legends like Warren Buffett!

View Comments