Updated Research Report on Liberty Interactive

Zacks Equity Research

On Jun 20, 2014, we issued an updated research report on Liberty Interactive Corp. (LINTA). Despite reporting weak financial numbers, we believe that the company’s TV home shopping business will continue to flourish. The QVC segment has transformed itself into a powerful global brand, which may help Liberty Interactive attain double-digit revenue growth.

Liberty Interactive has delivered negative earnings surprises in three quarters last year, with an average miss of 15.61%. The company reported weak financial results for the first quarter of 2014, where both its top and bottom line missed the Zacks Consensus Estimate.

Liberty Interactive’s QVC division is benefiting from the surge in online sales. Management predicts that its online sales will constitute more than 50% of the total revenue in the U.S. in 2014. The growing adoption of high-end smartphones in the U.S. is a major positive for the company. QVC has launched a synchronized content for mobile applications which allows smartphone users to get real time information about a product broadcasted on TV. This is expected to drive online sales further.

After Amazon.com Inc. (AMZN), QVC is the second-largest e-Commerce retailer in the U.S. Liberty Interactive holds approximately 38% of HSN Inc. (HSNI) and about 22% of the equity and 57% of the total votes of all classes of TripAdvisor Inc.’s (TRIP) common stock.

Notably, the company covers 300 million homes through 12 channels in eight countries. Recently, the board of directors of Liberty Interactive raised an existing share buy-back program by $1 billion.

In Dec 2013, Liberty Interactive’s e-Commerce business in the U.S. accounted for 50% of the total revenue for the first time. Moreover, in the U.K. and Japan, orders placed through mobile accounts represented over 50% of the total orders placed during the reported quarter. Exposure to international markets, such as Japan, Germany, Italy, and the U.K., will help QVC achieve a high rate of growth.

On the flipside, Liberty Interactive’s businesses are susceptible to rapid technological changes. Large cable TV operators are increasingly deploying digital TV networks, which is gaining significant market traction. This may adversely impact the channel positioning of Liberty Interactive’s networks.

Increasing deployment of personal video recorders, video-on-demand technology, and IPTV network are systematically changing the distribution and viewing habits of the common people. Meanwhile, these fundamental changes are taking a toll on the home shopping networks. Moreover, the home shopping and Internet retailing market place are getting competitive day by day. Meanwhile, the stock price of Liberty Interactive has soared over 34% in the last year and is currently trading at the high-end of its 52-week price range.

Liberty Interactive currently carries a Zacks Rank #3 (Hold).

Read the Full Research Report on AMZN
Read the Full Research Report on LINTA
Read the Full Research Report on TRIP
Read the Full Research Report on HSNI


Zacks Investment Research

  • Global Stocks Take a Dive As Trump Surges Ahead of Debate
    Business
    Foreign Policy Magazine

    Global Stocks Take a Dive As Trump Surges Ahead of Debate

    Ahead of the first in-person clash between Republican presidential nominee Donald Trump and his Democratic rival Hillary Clinton, stocks around the world traded lower. “Investors are acting extremely nervous with regards to the debate … and it highlights the fact that the markets are not focusing on the health of the economy, interest rates and geopolitical events,” Robert Pavlik, chief market strategist at Boston Private Wealth, told Reuters Monday. In Asia, where many nations risk seeing the Trans Pacific Partnership with the United States disappear after the election, the Shanghai Composite Index in China was down 1.8 percent (China isn’t a signatory to the pact).

  • This is your first look at the far more modern 2017 Jeep Compass
    Business
    CNET

    This is your first look at the far more modern 2017 Jeep Compass

    Both of Jeep's midsize offerings, the Compass and Patriot, are getting hella old. Instead of flooding the market with two new offerings, Jeep is rolling out just one, and it's using the Compass name. The 2017 Jeep Compass will be an all-new affair, and it will be built in the company's newly established manufacturing facility in Goiana, Pernambuco, Brazil.

  • Are We in a Baby Boomer Retirement Crisis?
    Business
    Investopedia

    Are We in a Baby Boomer Retirement Crisis?

    Baby boomers, born between 1946 and 1964, are heading into retirement in droves (about 10,000 a day, in fact). Along with the aging of this iconic cohort come lots of data about their poor preparation for their golden years. Insufficient preparedness and lack of financial resources for decades without steady employment paint a gloomy picture for many retirees. Are we facing a Baby Boomer retirement crisis? There may not be an easy answer, but read on for data that helps shed some light into this large generation's economic situation. (For related reading, see: How Baby Boomers Will Change the Way Others Retire.) Baby Boomer Retirement Research GoBankingRates recently published research conducted

  • Astonishing pic of Hillary Clinton shows what we've become
    Entertainment
    CNET

    Astonishing pic of Hillary Clinton shows what we've become

    Technically Incorrect offers a slightly twisted take on the tech that's taken over our lives. Dear famous person, If we want to be seen with you, we'll turn our backs on you. Please don't be offended. It's just that your fame isn't enough for us anymore. We need to attach ourselves to your fame, so that we can post the resulting picture to Twitter, Facebook and Snapchat. That way, we achieve our own sort of mini-fame. Which could be the maximal fame we ever attain. Please forgive me for this missive to the stars. There's a reason: This astounding picture was posted Sunday on Twitter by Hillary For America design lead Victor Ng. He credited the shot to Clinton campaign photographer Barbara Kinney.

  • A firm with 20 people could make a $3 billion profit
    Business
    Business Insider

    A firm with 20 people could make a $3 billion profit

    Cortec Group is poised to make a killing on its investment in a cooler maker if it successfully goes public. The small private-equity firm could make about $3.3 billion on the initial public offering of Yeti Holdings Inc., which could happen as soon as October, according to a story by The Wall Street Journal's Matt Jarzemsky. Cortec invested about $67 million in Yeti back in 2012, which means it could make 50 times its money in four years, The Journal reported.

  • Business
    Bloomberg Video

    What's Driving the Selloff in the Philippines?

    Sept. 27 -- Hans Sicat, president and chief executive officer at Philippine Stock Exchange, discusses foreign outflows from the country, Philippine stocks and his outlook for the economy. He speaks to Bloomberg's Angie Lau and David Ingles on "Asia Edge."

  • Here’s what Goldman Sachs is telling clients to do ahead of the U.S. election
    Politics
    MarketWatch

    Here’s what Goldman Sachs is telling clients to do ahead of the U.S. election

    The tone is shifting on Wall Street, where many analysts have gone from taking the U.S. presidential election largely in stride to expressing concern about the lack of investor preparedness. Analysts warned ahead of Monday evening’s first-of-three debate between Democratic nominee Hillary Clinton and the Republican standard-bearer Donald Trump that it could cause turbulence or even sock stocks. After the event was all said and done, financial markets declared Clinton winner of the debate as stock futures rallied, pointing to an upbeat start for Wall Street Tuesday. Goldman Sachs had described the debate in a note Monday as “the biggest matchup since the Mayweather/Pacquiao bout.” (For non-boxing

  • Here's what to do with your hands during a job interview
    Business
    Business Insider

    Here's what to do with your hands during a job interview

    In a job interview, every little thing matters — from your ability to make eye contact to the color of your suit. So you'll want to pay extra close attention to what you do with your hands while you're sitting across from your interviewer. Below, we'

  • Samsung Tablet Causes Emergency and Diversion on Transatlantic Flight
    Technology
    ABC News

    Samsung Tablet Causes Emergency and Diversion on Transatlantic Flight

    A Delta flight from Detroit to Amsterdam had to be diverted to Manchester, England, for two hours Saturday into Sunday after smoke and an unknown smell developed in the passenger cabin. A Delta official and a senior U.S. official told ABC News that the emergency on Flight 138 was caused by a Samsung tablet. The Delta official explained that the tablet fell inside a seat and became jammed after the seat either reclined or was returned to its upright position. Underneath the seat cover, the tablet and foam then started smoking, and passengers could smell a strange odor. The flight was diverted to Manchester, where the seat was replaced. After two hours on the ground, the flight was airborne, en

  • In gas drilling country, the honeymoon is over on royalties
    Business
    Associated Press

    In gas drilling country, the honeymoon is over on royalties

    Jan Brown pores over his royalty statement and wonders where all the money went. A few months ago, the nation's second-largest natural gas producer siphoned $2,201 worth of gas from his 240-acre property — but paid him only $359 after taking deductions for transportation and processing. Brown, 59, who relies on the royalties as his sole source of income, says the deductions are outrageous and claims his lease forbids them.

  • What Happens to Your Credit Score When You Buy a House?
    Business
    Realtor.com

    What Happens to Your Credit Score When You Buy a House?

    If you’ve just bought a new home, chances are you spent quite some time worrying about your credit score. After all, your credit score affects your ability to get a mortgage, and the interest rate you’ll pay on that mortgage. You’ll likely start seeing minor dings in your credit score as soon as you begin applying for mortgages.

  • The maker of the EpiPen just made a big change to the story it told Congress last week
    Business
    Business Insider

    The maker of the EpiPen just made a big change to the story it told Congress last week

    The pharmaceutical company Mylan, which makes the EpiPen, is now saying it understated the profits it derives from the life-saving allergy drug by 60% in a congressional hearing last week, according to The Wall Street Journal. Mylan paid a 7.4% tax rate last year after moving its business to The Netherlands for tax purposes. The company's CEO, Heather Bresch, was called to the House of Representatives to answer for why her company had raised the EpiPen's price by 500% since it purchased the drug in 2007.

  • Is Cisco Systems Stock Really Worth $37? -- The Motley Fool
    Business
    The Motley Fool

    Is Cisco Systems Stock Really Worth $37? -- The Motley Fool

    It's often best for investors to largely ignore the stream of upgrades and downgrades coming from analysts. The worst mistake an investor can make is acting on the opinion of others without doing research of his or her own. It can still be useful to see what analysts are saying, but things like price targets should be taken with a grain of salt. Recently, shares of networking-hardware giant Cisco Systems (NASDAQ:CSCO) received a price-target bump from Deutsche Bank. Citing new growth areas like cloud security, Deutsche raised its price target on Cisco stock to $37, up from a previous target of $35. This new price target implies that shares of Cisco could rise 20%. Is Cisco really worth $37 per

  • A Casino Stock Worth the Gamble -- The Motley Fool
    Business
    The Motley Fool

    A Casino Stock Worth the Gamble -- The Motley Fool

    The gaming industry has been through a lot of turmoil in the past two years, mainly in the world's largest gaming market of Macau. Gaming revenue in Macau has dropped by half and as new resorts from Melco Crown (NASDAQ:MPEL), Las Vegas Sands (NYSE:LVS), and Wynn Resorts (NASDAQ:WYNN) have been completed, they have spread the revenue that's left among a growing number of resorts. And with MGM Resorts (NYSE:MGM) completing a project next year, the supply problem isn't over yet. But declines in gaming doesn't mean casinos aren't spitting out cash quarter after quarter. In fact, there's some decent value in gaming stocks if you know where to look. Here's how the big four stack up right now. Where

  • World
    WSJ Live

    Hundreds Killed in Aleppo in Fresh Fighting

    Syria and its Russian allies pressed an assault on Aleppo in what the United Nations called the most intense bombing in years of warfare there, and residents said hundreds of civilians had been killed since a cease-fire fell apart last week. Photo: Getty Images.

  • Why Bank of America's Shares Are Tanking Today -- The Motley Fool
    Business
    The Motley Fool

    Why Bank of America's Shares Are Tanking Today -- The Motley Fool

    Shares of Bank of America (NYSE:BAC) are off to a forgettable start this week, down more than 3% as the closing bell on Monday approaches. An SEC investigation found that Merrill Lynch caused market disruptions on at least 15 occasions from late 2012 to mid-2014 and violated the Market Access Rule because its internal controls in place to prevent erroneous trading orders were set at levels so high that it rendered them ineffective. For example, Merrill Lynch applied a limit of 5 million shares per order for one stock that only traded around 79,000 shares per day. Other trading strategies had limits set as high as 25 million shares, which Merrill Lynch reduced to 50,000 shares after the SEC's investigation began.

  • Ariad Pharmaceuticals (ARIA) Stock Climbs, Coverage Initiated at Leerink
    Business
    The Street

    Ariad Pharmaceuticals (ARIA) Stock Climbs, Coverage Initiated at Leerink

    NEW YORK (TheStreet) -- Shares of Ariad Pharmaceuticals (ARIA) were advancing in late afternoon trading on Monday as Leerink began covering the stock with an "outperform" rating and $20 price target earlier today. "Despite recent strong stock performance, Ariad shares still trade at a discount to other commercial stage oncology biotech companies while the top line is expected to grow above that of its peers with a 35% 2016 to 2018 compound annual growth rate (CAGR)," the firm said. Ariad's brigatinib drug for certain types of lung cancer is "underappreciated" by Wall Street due to its late entry into the market, Leerink said. But the firm said that brigatinib is "well-positioned" to exceed commercial

  • T-Mobile US to Buy Spectrum from Charter Communications
    TMUS
    Zacks

    T-Mobile US to Buy Spectrum from Charter Communications

    Leading U.S. national wireless carrier T-Mobile US Inc. TMUS recently entered into an agreement with cable MSO (multi service operator) Charter Communications Inc. CHTR to acquire a license of 700 MHz A Block spectrum for Eastern Montana from the latter

  • Oracle Slashes Larry Ellison and Co-CEO's Pay Substantially
    ORCL
    Zacks

    Oracle Slashes Larry Ellison and Co-CEO's Pay Substantially

    Shares of Oracle Corporation ORCL have witnessed a moderate rise over the last 12 months. The company’s stock provided a return of 8.8% compared to the S&P 500’s 12.0% over the period. While emerging opportunities in the Software as a Service (Saas) and

  • Why Oil Prices Will Rise More And Sooner Than Most Believe
    Business
    Oilprice.com

    Why Oil Prices Will Rise More And Sooner Than Most Believe

    As the September 26 to 28 “informal” meeting of OPEC producers in Algeria draws near, media speculation could easily cause mental anguish. On oil news websites simultaneous headlines claim OPEC will both fail and succeed in capping output. Called by OPEC August 8, the stated purpose of the gathering was, “OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability to the oil market”.

  • Business
    StreetAuthority Network

    2 Gold Miners Beating The S&P 500 By More Than 2,300% In 2016

    From 2012 to the end of 2015, the price of gold fell almost 50%. The price of gold is up 26%, more than a 300% premium to the S&P 500's 6% return. Gold's sudden reversal is being driven by the same trend that's driving the U.S. dollar.

  • Business
    U.S.News & World Report

    Is 4 Percent Still the Safest Retirement Amount?

    Back in 1994, William Bergman, a now-retired California financial planner, published a report in the Journal of Financial Planning that pegged 4 percent as the "safest" withdrawal number that would hike the odds of retirees not outliving their money. By and large, Bergman's 4 percent rule was meant to cover 30 years worth of retirement savings. Thus, if a newly-minted 65-year-old retiree could manage to limit annual withdrawals to 4 percent of savings, he or she would still have retirement fund cash available to them by his or her 95th birthday.

  • Philippines' Duterte pivots to China, Russia as investors flee
    Politics
    AFP

    Philippines' Duterte pivots to China, Russia as investors flee

    Philippine President Rodrigo Duterte said Monday he would seek closer economic ties with China and Russia, as the local currency and stock market extended declines following Western criticism of his deadly war on crime. The peso hit a seven-year low to the dollar on Monday and foreign investors pulled out from local shares for a 23rd straight day, which analysts said was due to growing uncertainty over Duterte's handling of what has been one of Asia's best-performing economies in recent years. "I will open trade alliances with Russia and China so all you other investors, just go.

  • Should I Get a FHA Loan or Conventional Mortgage?
    Business
    Credit.com

    Should I Get a FHA Loan or Conventional Mortgage?

    Federal Housing Administration loans and conventional loans remain the most popular financing types for today's mortgage borrowers. But which program makes the most financial sense for you? Here's how to decide. The Nuts & Bolts of FHA Loans FHA loans

  • 6 Key Facts Social Security Doesn't Always Tell Retirees -- The Motley Fool
    Politics
    The Motley Fool

    6 Key Facts Social Security Doesn't Always Tell Retirees -- The Motley Fool

    Claiming Social Security is one of the most important financial decisions you'll ever make. Many Americans prefer to turn to the Social Security Administration for help in figuring out when to take their Social Security benefits, and the SSA provides a lot of valuable information both on its website and through its personnel. Yet a recent study from the General Accounting Office took a closer look at the way that the SSA interacts with people filing for Social Security benefits, and it found that in the process of handling in-person claims, the SSA's claims specialists didn't always provide all the key information that people need in order to make an informed choice. Below, we'll look at six