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Tyson Tanking on Weak Earnings; Facebook Too High? Apple Too Low?

Dan Berman
Hot Stock Minute
Tyson Tanking on Weak Earnings; Facebook Too High? Apple Too Low?

Tyson Foods (TSN) is down sharply after releasing a very disappointing earnings report within the past half hour. The company posted profits of 36-cents a share when estimates were for 45-cents. It also missed considerably on revenues. The stock has been up 25% year to date, but is trading about 6% lower on this news. Tyson has been contending with increasing costs due to drought conditions, which have increased the cost of animal feed.

Next is Vornado (VNO), which reports after the closing bell. This is the real estate investment trust that had one of the largest stakes in JCPenney (JCP) but unloaded millions of shares amid the recent turmoil at the retailer. Vornado is expected to post both earnings and revenue that are substantially down from a year ago. Nevertheless, shares of the company are trading just a few points below their 52-week high which was set 362 days ago.

Apple (AAPL) is trading higher again this morning. Shares shot up nearly 7% last week and are up nearly 15% over the past two weeks. What's propelling them higher? It could be the company's record-breaking bond issue, designed to return cash to shareholders who've seen the stock tumble from more than $700. Apple is still down 20% from a year ago. Nevermind those highs it hit last fall. But the company regained the title of "world's largest" by market capitalization last week.

Finally there's Facebook (FB). Barrons published an article this weekend saying the social network is worth no more than $25 a share, though it's currently hovering above $28. Barron's says Facebook is trading at 75 times its earnings. It also points out that increasing mobile ad revenue is coming at the expense of desktop dollars. In addition it says the company's expenses are up 60%. Even with a post earnings-report climb last week, Facebook shares are down 26% from their IPO price last may.