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Bank Earnings Preview, & Trending Stocks: AVGO, NFLX, AMZN | Free Lunch

Ryan McQueeney
Merrimack (MACK) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

On today’s episode of Free Lunch, Associate Stock Strategist Ryan McQueeney touches on the latest analyst sentiment and investor reactions to news affecting trending stocks like Broadcom AVGO, Netflix NFLX, and Amazon AMZN. Later, he is joined by Dave Bartosiak to preview Friday morning’s big bank earnings reports.

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Free Lunch is the newest show from Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.

Up first, Ryan discusses Broadcom’s rough morning of trading after the chip behemoth announced it is purchasing CA Inc. CA for $18.9 billion in cash. CA is a giant in the mainframe software industry, but that business is falling out of favor as customers continue to shift toward cloud computing.

So why would Broadcom shell out so much cash for a dated brand? Some have said desperation after its Qualcomm QCOM merger fell through, while others have suggested it might be another moment of brilliance from CEO Hock Tan.

Ryan digs into these reactions and gives his own perspective on the story. Next, the host analyst notes related to Netflix and Amazon which have hogged headlines this morning.

Netflix shares dipped in early trading after analysts from UBS lowered their rating to neutral from buy, citing the video streaming giant’s stretched valuation. Eric Sheridan, the leading analyst on UBS’ note, credited Netflix’s work in content and technology, but ultimately described the goods news as “priced in” to the stock.

On the opposite end of the spectrum was Canaccord Genuity’s note on Amazon, which included a new $2,000 price target for the e-commerce stock. Ryan discusses both notes and shares his thoughts on Netflix, Amazon, and other “FAANG” stocks on the first half of today’s show.

On the second half of the episode, Ryan is joined by Zacks Strategist Dave Bartosiak to preview Friday morning’s top bank earnings reports from the likes of JPMorgan JPM, Citigroup C, and Wells Fargo WFC.

Rising rates should be a catalyst for these big financials, but a flattening yield curve has led to apathy from analysts—a feeling that both Dave and Ryan mirror. Nevertheless, make sure to check out the episode to hear exactly what they have to say about the big banks!

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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
Wells Fargo & Company (WFC) : Free Stock Analysis Report
 
Citigroup Inc. (C) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
 
Broadcom Limited (AVGO) : Free Stock Analysis Report
 
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