The Zacks Analyst Blog Highlights: Apple, Expedia, Twitter and Microsoft - Press Releases
For Immediate Release
Chicago, IL – May 05, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Apple (AAPL), Expedia (EXPE), Twitter (TWTR) and Microsoft (MSFT).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday’s Analyst Blog:
Technology Stock Roundup
So much happened over the past week that it’s a difficult job to put in one place. But here’s an attempt to touch on the main points.
Earnings Highlights
Apple: Apple (AAPL) beat on both the top and bottom lines on account of strong iPhone and Mac sales. However, iPads continued to disappoint, more or less as expected. Demand was particularly strong in China and other Asian countries, where revenues jumped 71% and 48%, respectively.
Expedia: Expedia (EXPE) shares gained post earnings, as the company was able to offset the negative currency impact hitting most tech companies this earnings season. The company saw exceptional strength in its Asian business, which offset the currency issue. However, its growth requires significant investment in inventory and marketing, so the earnings pressure may be expected to continue.
Twitter: Twitter (TWTR) shares plunged post earnings, although the company managed to beat earnings estimates while missing on the top line. The company blamed its new direct-response ads for its revenue miss versus expectations. Revenue growth was however quite strong at 74% overall and 109% for the international business with monthly active users growing 18% to 302 million.
LinkedIn: LinkedIn on the other hand, missed on both top and bottom lines with share prices taking a tumble. The guidance was also disappointing with both second quarter and full-year revenues missing the Zacks Consensus Estimate.
Salesforce Takeover Rumors
Ever since Bloomberg came out with a report saying that Salesforce.com had engaged bankers with respect to an offer to buy out the company, the market has been agog with speculations as to who the suitor might be. But the list isn’t that long, simply because they would have to fork out more than $50 billion. So only the deepest-pocketed tech companies, like Oracle, Microsoft, SAP, IBM, Google, etc qualify.
And of these, SAP has vehemently denied any such move, while Oracle has made unenlightening statements. But Oracle has an incentive: it needs to grow its cloud business just about as fast as possible and it raised $10 billion through a note issue last week. IBM is focused similarly, but the company is going through a more difficult transition and its cash position makes an acquisition of this size unlikely.
That leaves Google and Microsoft, both of which have the incentive and the cash to make it happen. But will Google want to part with so much cash to boost its leading position in the advertising business? Isn’t it still a fast-growing business with many initiatives to further grow revenue?
On other hand, Microsoft has promised to generate $20 billion from the cloud business by 2015 and CEO Nadella has been hobnobbing with Benioff (Salesforce CEO). Its CRM business is also in competition with Salesforce’s and it may not hurt to take out a competitor. As with all speculation, it’s really hard to tell, but Salesforce shares jumped anyway.
Microsoft Build Conference
At the Build Conference held last week, Microsoft (MSFT) announced new features in Windows 10, and four new software development kits for developers to bring their Web, .NET, Win32, Android and iOS code to Windows. Developers are also being encouraged to create one app that will run across all Microsoft devices. It also announced new Azure data services, a new browser and HoloLens, a virtual reality device that still appears to be in the making.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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