|Bid||0.00 x 800|
|Ask||0.00 x 1300|
|Day's Range||198.13 - 202.33|
|52 Week Range||123.02 - 218.62|
|Beta (3Y Monthly)||1.30|
|PE Ratio (TTM)||29.44|
|Earnings Date||Jul 24, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||222.97|
Jul.19 -- Ross Gerber, chief executive officer of Gerber Kawasaki Wealth and Investment Management, and Bloomberg Opinion's Shira Ovide, discuss Facebook Inc.'s plans for a new cryptocurrency on "Bloomberg Technology." Ovide's opinions are her own.
Stock futures: After the stock market reversed Friday, Amazon, Facebook, ServiceNow are back to buy points ahead of earnings this week. What should you do?
Whether they call it a Freedom Dividend or a baby bond, some 2020 Democratic contenders have embraced the tenets of a universal basic income (UBI). Proponents of UBI — including Tesla (TSLA) CEO Elon Musk and Facebook (FB) CEO Mark Zuckerberg — argue that it would help workers impacted by job automation and provide Americans with a safety net. About 36 million Americans — or 25% of U.S. jobs — have “high exposure to automation” over the next few decades, according to a Brookings Institute analysis published in January, with more than 70% of their tasks “at risk of substitution.” Jobs in food preparation, office administration, transportation and production are at greatest risk for automation, the report said.
Amid all the talk of antitrust, government regulation and cryptocurrency plans, it might be nice for Big Tech just to focus on earnings this week — unless they are bad, of course.
They include sizzling household names -- such as McDonald's and Facebook -- and regional banks -- such as First Commonwealth -- and they are all names to keep an eye on this week as earnings come in.
The $5 billion bomb the Federal Trade Commission is expected to drop on Facebook Inc. would seem to presage choppy waters for the social-media company, but investors hardly seem to care.
Are you ready? This week's onslaught of earnings includes three FANG stalwarts, Facebook, Alphabet and Amazon. And the results are likely to set the tone for the rest of this earnings season. So far 15.3% of the S&P 500's market cap has reported 2Q results. According to Credit Suisse, earnings are beating by 6.8%, with a whopping 81% of companies exceeding their bottom-line estimates.“No matter what the economic circumstances are, no matter what the backdrop is, there’s this dynamic that companies like to lowball and analysts like to give them headroom,” Ed Keon, chief investment strategist at QMA told CNN. “The fact that numbers are coming in better than expected — it’s been the case for decades now.”Meanwhile the FANG group is trading toward the high-end of its 5-yr historical range. That’s despite increased US regulatory pressure, with tech executives recently appearing in front of the House Antitrust Subcommittee to discuss dominant platforms, market power, and innovation. Although the Street isn’t dismissing these concerns completely, analysts are nonetheless sticking to their ‘buy’ calls.Top Wedbush analyst Daniel Ives expects business model tweaks and potential DOJ/FTC fines in a worst-case scenario rather than forced breakups of the underlying businesses. The analyst writes: “We reiterate our belief that this broader Beltway vs. Big Tech battle is more bark than bite… The further analysis of the business models from these FAANG names will cause some near-term uncertainty, but ultimately we view it as a positive, potentially acting as a catalyst for more technology innovation/diversification over the coming years.” With this in mind, let’s now take a look at what the Street is expecting for these three key stocks this week: Facebook Inc (FB)Facebook is out with its second quarter number this Wednesday, July 24. Going into the print the mood is bullish. This is a stock with a firm ‘Strong Buy’ analyst consensus, racking up 35 buy ratings in the last three months. That’s versus just 4 hold ratings during the same period. Meanwhile the average analyst price target stands at $222 (12% upside potential).“After a turbulent 2018, the scandalous news flow has continued this year, but the stock is climbing this tall wall of worry” wrote five-star Monness analyst Brian White. He reiterated his FB buy rating ahead of the print with a $250 price target, suggesting 26% upside potential. The analyst is optimistic about the company’s growth trajectory, especially with its new cryptocurrency Libra. “Facebook is laying the foundation for the next era of growth with stories, increased privacy, innovations such as Libra, more e-commerce and new frontiers” the analyst told investors. Essentially, Libra enhances the Facebook ecosystem, says White, providing entry into the financial services industry and supporting increased e-commerce that in turn can drive more ad spending.For the second quarter he is modeling for 24% revenue growth, to $16.44 billion. That’s just below the Street at $16.51 billion. Encouragingly, White also believes FB will exceed his EPS estimate of $1.82 (the Street is also more confident at $1.87). Nonetheless, the analyst notes that the 2Q:19 revenue growth projection represents a sharp deceleration from the incredible 42% growth delivered last year. In terms of the all-important user numbers, White forecasts total DAU (daily active users) of 1.601 billion, up 9% year-over-year. He is anticipating the same rate of growth (9%) for monthly active users, which would take the number to an eye-watering 2.438 billion (up 3% from last quarter). And looking ahead, the analyst is hoping for 3Q:19 revenue guidance of $16.92 billion (up 23%; Street is at $17.05 billion) with EPS of $1.83 (Street is at $1.85). Alphabet Inc (GOOGL)Close on the heels of FB’s earnings report comes Alphabet’s big day on July 25. Like Facebook, GOOGL boasts a ‘Strong Buy’ Street consensus with 27 buy ratings vs 5 hold ratings. These analysts see the stock surging 18% in the coming months to reach $1,334.Five-star Cowen & CO analyst John Blackledge sees prices rising even higher to $1,400. For the quarter he is expecting similar revenue growth to last quarter for O&O (owned and operated) sites of 19% year-over-year. That’s in-line with Street estimates. “We delivered robust growth led by mobile search, YouTube, and Cloud with Alphabet revenues of $36.3 billion, up 17% versus last year, or 19% on a constant currency basis,” Alphabet Chief Financial Officer Ruth Porat said last quarter. However top-rated Barclays analyst Ross Sandler believes a revenue beat is possible- and spies a favorable set-up especially for long-term investors. “Checks suggest Sites may be in-line to a tad better than 1Q's 19% ex-fx growth, which would surprise consensus. A few of the factors that drove the deceleration in 1Q persist in 2Q (ie - Youtube clean-up), but others should have less impact (travel Easter shift, Olympics, etc)” he wrote in a July 9 report. Additionally, recent UX changes could help 2H based on our checks, the analyst told investors. As a result, Sandler is modeling for $27.7 billion, or +18.8% ex-fx, for sites, and $37.5 billion for overall Alphabet revenue, with $10.28 in GAAP EPS. As for the rest of the year, the Barclays analyst remains a upbeat about GOOGL’s potential, writing “Regulatory tape-bombs are likely to continue, but at 23x 2020E EPS with optionality in many areas, we like the setup into 2H where we expect trends to pick up.” Amazon.com Inc (AMZN)Amazon is also out with its earnings report on July 25. Ahead of the print, AMZN remains one of the Street’s favorite stocks. This is a stock that has managed to score 35 buy ratings in the last three months, with only one analyst published a neutral hold rating. And even with shares trading at a lofty $1,964, the Street still sees 15% upside potential for the coming months. “AMZN is our top mega-cap long idea heading into 2Q – you own the name into retail revenue growth acceleration regardless of margin compression, full stop” cheers Barclays’ Ross Sandler.Stifel Nicolaus’ Scott Devitt echoes this positive outlook. Note that this analyst is ranked in the Top 50 out of over 5,200 tracked analysts for his strong stock picking skills. “We expect continued strength in Amazon’s high-margin businesses, AWS and Advertising, which should continue to be a tailwind for operating margin and allow the company to invest more heavily in its retail capabilities, including one-day delivery” the analyst tells investors. He is expecting 2Q:19 revenue estimate of $63.0 billion (with 20% year-over-year growth), above consensus and near the high-end of the guided range. For AWS revenue, Devitt is forecasting at $8.5 billion (39% y/y growth), in line with the Street’s expectations, driven by continued momentum in enterprise migrations. That’s with operating income of $3.55 billion (5.6% margin), below consensus (5.9% margin), but near the high of guidance thanks to AWS efficiencies and advertising scaling. If we look ahead to 3Q, Devitt expects management to guide revenue above expectations driven by a strong Prime Day (items sold up ~75% y/y). However he does caution that margin guidance could fall below the Street expectations. The analyst cites investments in one-day shipping, international, and AWS as responsible for the drag. Nonetheless the bullish thesis remains firmly intact: “Amazon is well-positioned as the leader in retail/cloud, and should continue to gain share in the advertising market as it adds new tools/services, makes strategic acquisitions, and leverages its valuable consumer data” concludes Devitt. The analyst reiterated his AMZN buy rating on July 19 with a $2,300 price target (17% upside potential).
Keep an eye on the social media giant's revenue growth and spending outlooks, as well as its active user figures and any commentary shared about its stories services.
After recent reports of a record-setting fine, it needs to put its history of consumer privacy issues behind it.
(Bloomberg Opinion) -- In Europe, people are used to watching their TV for free. Or sort of. In much of the region – France, Germany, the U.K. – there’s a license fee: anyone with a TV set has to pay an annual fee of $100 to $200 for the privilege. The levies help to fund public-service broadcasters like the BBC and ARD.The problem is that broadcasters are hemorrhaging viewers to streaming platforms like Netflix Inc. or Amazon.com Inc.’s Prime video service. And for TV stations whose biggest revenue stream is advertising, fewer viewers mean fewer ad dollars, compounding the flight to digital ad platforms like Facebook Inc. and Google.In response, broadcasters want to create their own Netflix rivals to buttress themselves against the tech firms’ incursions. The streaming video giants’ advantage is their scale: They can justify the investment in major new productions because they can reach large global audiences. That, in theory, helps them charge higher prices, since they have better content and more of it.That’s harder when you’re a local European player, which is why commercial and public-funded broadcasters are trying to join forces. But they’re also butting up against regulators who are wary of giving too much power to one organization, or of consumers losing access to content for which they’ve theoretically already paid through a licence fee.On Friday, it was the U.K.’s turn. ITV Plc, the maker of the Golden Globe-nominated series Bodyguard, and the publicly owned British Broadcasting Corp. announced they were teaming up to offer Britbox in their home market. (A version of it already has 500,000 subscribers in the U.S.)It’s easy to find the problems with the service. For 5.99 pounds ($7.50) a month, customers will get a handful of new shows as well as access to both broadcasters’ back catalogs. For ITV, that means programs that have been on its existing video-on-demand platform for at least a month, and, for the BBC, a year. This could be a tough sell to domestic viewers who will have already had the chance to view them for free. That the regulator, Ofcom, was so quick to approve the arrangement suggests that the two have hardly created a new titan.In the circumstances, ITV Chief Executive Officer Carolyn McCall deserves some credit for getting the project across the line at all. It was an uphill struggle to get this far, with the BBC reportedly reluctant to share its treasure trove of content. It should now become easier to find further broadcast and distribution partners: Viacom Inc.’s Channel 5 or BT Group Plc are obvious potential candidates.French broadcasters are having similar issues. France Televisions, M6-Metropole Television SA and Television Francaise 1’s joint offering, Salto, has been struggling to secure regulatory clearance. It’s had to make 20 undertakings, including that it will get no more than 40% of content under exclusivity from its parent firms, according to a report this week in newspaper Les Echos.The European players may be following the lead of their American peers in steadily pulling more shows from Netflix in order to run them on their own rival platforms. But to reach the scale they need in order to compete, they are also encountering regulatory difficulties that the likes of Comcast Corp., AT&T Inc.’s WarnerMedia and Walt Disney Co. don’t face.Life is going to get tougher for Netflix and Amazon in Europe, for sure. But as long as the publicly-funded titans zealously guard their content and regulators remain reluctant to bless closer alliances, the region’s traditional commercial broadcasters are going to find it far harder to beef up and steal subscribers than their counterparts in the U.S.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Facebook's (FB) second-quarter 2019 results are likely to gain from continued subscriber growth, driven by rapid adoption of Stories and Watch despite numerous controversies.
After several straight sessions of declines, it looked like we would get a bounce in the Nasdaq today. However, late in the session stocks began to sink due to escalating tensions in the Persian Gulf. It's got investors selling into the weekend and putting their worries on hold.Source: Shutterstock Where does that leave the Nasdaq now? Trading the Nasdaq TodayThe Nasdaq looked like it was bouncing hard on a near-test of the 20-day moving average from Thursday. The morning price action in the PowerShares QQQ ETF (NASDAQ:QQQ) -- which closely follows the Nasdaq's action -- looked like it might run back up to new highs. After all, Friday's high of $193.83 wasn't all that far from its all-time high of $194.19.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Click to EnlargeWith Friday's reversal though, it leaves the QQQ with a possible break below channel support (blue line). However, it's still holding up over prior range resistance near $191. While the action is discouraging, investors don't have much to fret so long as the QQQ is north of $191 and the 20-day moving average. Below these levels opens up the door to further declines, and obviously earnings will play a large role. * 10 Tech Stocks That Are Still Worth Your Time (And Money) We heard from Netflix (NASDAQ:NFLX) on Wednesday and from Microsoft (NASDAQ:MSFT) on Thursday. But next week will be busy.Investors will hear from Facebook (NASDAQ:FB), Tesla (NASDAQ:TSLA), PayPal (NASDAQ:PYPL), Amazon (NASDAQ:AMZN) Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Comcast (NASDAQ:CMCSA), Starbucks (NASDAQ:SBUX) and Charter (NASDAQ:CHTR), among others next week. Microsoft Leads EarningsMicrosoft (NASDAQ:MSFT) reported a top- and bottom-line beat, but the stock couldn't muster much in the way of gains. The stock jumped over $4 per share and hit new 52-week highs, but it couldn't maintain the gains.Shares closed higher by just 0.18%, but investors have to be somewhat disappointed. Earnings blew past expectations and revenue of $33.7 billion came in more than $900 million ahead of consensus expectations. First-quarter guidance and management's full-year outlook both came in ahead of estimates too. It was a strong report, despite the tepid price action.Some investors are fretting over the slowing growth rate in Azure, but make no mistake, MSFT stock remains a powerful entity. The stock is still in an uptrend and commands the market's highest valuation, maintaining north of $1 trillion. Other Earnings From FridayChewy (NYSE:CHWY) doesn't trade on the Nasdaq, but many consider it a tech play because it's an e-commerce company. The stock looked like it was going to push higher and potentially breakout over downtrend resistance, but sellers knocked it back down. Now it's flirting with a potential breakdown below its post-IPO gains.Here's the how-to-trade setup of the chart, along with Crowdstrike (NASDAQ:CRWD).CRWD also reported earnings, but shares soared to new post-IPO highs on the move. The rally is quite attractive, given that it was putting together a beautiful wedge pattern. The company delivered a top- and bottom-line earnings beat and guided for better-than-expected earnings and revenue results next quarter. Around the Water CoolerMicron (NASDAQ:MU) always draws a lot of eyes, but it's drawing extra attention on Friday. Shares climbed 1.9% on the day and closed at $45.52. The stock is pushing through a significant level between $44 and $45, a level the Top Stock Trades column flagged earlier this week.After surging to new all-time highs earlier this week, Roku (NASDAQ:ROKU) stock was under selling pressure on Friday, falling 1.99% to $106.85. That's despite news of Roku's plans to expand first to Brazil and other global markets.The company has been putting up robust growth numbers all across the board. Whether that's streaming hours, revenue, platform growth, etc. It's helped fuel the stock's massive run from sub-$30 in late December to more than $100 currently. 90% of its revenue comes from the U.S. and unlike other streaming plays, Roku does not have to dump hundreds of millions or even billions of dollars into developing its own content. * 5 Top Stock Trades for Monday: BA, CHWY, SKX Instead it's viewed as the operating system for streaming entertainment, providing a low-cost solution for millions of customers to access dozens of streaming options. This could be a big opportunity for the company if Roku executes well.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN, GOOGL, ROKU and SBUX.The post Nasdaq Today: Can Big Tech Earnings Lead to Record Gains?Â appeared first on InvestorPlace.
The stock market pulled back for the week amid heavy earnings. Netflix dived, Microsoft rose, Facebook Libra faced critics. Some top stocks broke out.
Snap (NYSE:SNAP) stock will release its earnings report on Tuesday, July 23 after the bell. Since December, SNAP stock has outperformed all but three stocks in the market as companies flocked to their ad platform and user growth returned.Source: Shutterstock Still, SNAP stock has risen to a high valuation and remains volatile. Also, if past quarters serve as an indication, earnings reports tend to inspire extreme moves in the stock. Given that reality, I would stay out of Snap going into earnings. SNAP Earnings ExpectationsWall Street expects Snap to post a loss of 10 cents per share. If SNAP stock meets earnings estimates, that would be an improvement from the same quarter last year, when the company lost 14 cents per share. Wall Street also forecasts revenues of $359.56 million. That number is 37.1% higher than the revenue figure for second quarter 2018 when the company brought in $262.26 million.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Tech Stocks That Are Still Worth Your Time (And Money) Historically, earnings reports have significantly moved the stock in previous quarters. The Q1 report led to a 6% decline in SNAP, and that was a tame reaction for this equity. SNAP earnings have usually inspired extreme reactions in previous releases. The Q4 report sent the equity higher by 22%. It also saw an 11.3% decline following Q3 2018 earnings and a 7.3% after last year's Q2 report. Snap Stock's Dramatic TurnaroundThis time last year, Snapchat looked destined to become the next MySpace. The platform could not grow its user base and could not attract beyond the teen and young adult user base. Moreover, unlike Twitter (NYSE:TWTR), it had a design vulnerable to copycats. It seemed like just about any feature that Snap launched became quickly co-opted by Facebook (NASDAQ:FB).However, the company redesigned its platform. As our own James Brumley pointed out, some users bristled, but advertisers loved the platform. Top and bottom-line growth began to turn around. In the first quarter, the company again saw growth in its user base as the active user count rose to 190 million, four million more than the previous quarter.Still, it could take a stellar earnings report to send SNAP upward. Since bottoming at $4.82 per share in December, Snap stock has nearly tripled in value.This has left SNAP stock with an elevated valuation. Consensus estimates do not forecast a profit in the foreseeable future. Also, at current prices, Snap trades at around 15.5 times sales. Consequently, many have turned either neutral or bearish on the stock. Luke Lango refers to the rally as "likely in the rear-view mirror." James Brumley claims that analysts are "turning bullish at the top."Brumley also mentions that Snapchat stock became the fourth-best performer in 2019. This earnings report could influence whether it stays in the top five. The Bottom Line on SNAP StockConsidering the history of SNAP stock, I would expect an extreme move after earnings. It also looks more likely to fall than rise. The management of Snap, Inc has finally found a way to derive significant revenue growth and a return in interest to the platform. This helps to explain why it has risen from below $5 per share to the $14.50 per share price range in seven months. * 3 Food Stocks to Buy for Fast and Big Profits However, with an elevated sales multiple and profitability still far into the future, SNAP stock looks fully priced at these levels. Given this possibility of a huge swoon, I would not want to own this equity when management announces earnings.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Expect an Extreme Reaction in SNAP Stock Following Earnings appeared first on InvestorPlace.
Snap Inc. reports earnings on July 23 and new numbers from web analytics firm Similarweb show something to encourage investors.
Comcast (CMCSA) shares popped after Goldman Sachs issued a positive note on the company recently. Goldman upgraded its rating for Comcast to "buy" from "hold."