June 30, 2013
Facebook(FB) briefly topped its IPO price of $38 during market hours today, before falling back to $37. The stock is up 50% this month after releasing a surprisingly good quarterly earnings report. In addition, the company plans on expanding its mobile ads division while releasing a new line of TV styled ads on its website. These ads are expected to sell at $2.5 million each, which is about the price of a Superbowl TV ad.
Apple(AAPL) CEO Tim Cook is currently in talks with China Mobile on plans to release its flagship iPhone to their customers. China Mobile is currently the largest mobile carrier in terms of customers, and also one of the only carriers in China that doesn't already offer Apple devices. If a deal is made between these two companies, it could significantly boost revenue for both of them.
Herbalife(HLF) jumped 10% today on reports that billionaire investor George Soros may hold a significant stake in the company. The stock has been extremely volatile these past few days after topping earnings and raising forecasts. However, it dropped sharply when Perishing Square CEO Bill Ackman questioned the reports released by the company. Earlier, Ackman recommended short selling the company and sent shares down nearly 50%. It is currently up nearly 80% since December of 2012.
Quantum Fuel Systems Technologies Worldwide(QTWW) performed a reverse stock split of 4-1, sending shares up 325%. The company develops systems for storing and transporting natural gas, and has faced increased competition in an unstable field. With the United States scouring the Bakken for new oil and gas resources, such systems are of less need. QTWW has seen many periods of revenue decline, and has seen debt grow to over $13 million.
CardioNet(BEAT) is up nearly 40% today after releasing an earnings report that greatly surpassed the Wall Street consensus. On a volume of 7.8 million, it is one of the largest gainers on the Nasdaq today. CardioNet engages in the development of cardiac monitoring systems and has seen continued revenue growth in the last few quarters. With over $18 million in cash, the company is well positioned to continue its rate of growth.
eHealth(EHTH) is up nearly 30% today on news that it has reached a deal with the government under the Affordable Care Act. This deal will allow the company to enroll citizens of 36 states that are eligible for for certain insurance plans. The news sent the stock up to prices that were last seen before the market crash of 2008.
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Wednesday, July 31, 2013
Tuesday, July 30, 2013
Stereotaxis up 250%; iPhone 5C Rumors Accelerate; Herbalife Sheds Gains
July 30, 2013
Stereotaxis(STXS) received FDA approval for its Vdrive and V-Sono systems, sending the stock up over 250%. The Vdrive line of products have been utilized in Europe since 2011, aiding greatly in the performance of heart surgeries and the field of cardiology. Sterotaxis Board Chairman Mills has stated, "More than 68,000 ICE catheters are used in U.S. EP labs each year." This number is growing at a rate of 15%, which represents great growth potential for this company that specializes in their production. On a volume of 14 million shares, it is the largest gainer on the Nasdaq today.
Apple(AAPL) gained 1.5% during market hours on hopes of the release of its new iPhone 5C. The tech giant previously relied on growth through a rapid release of products, but has fallen short over the last few months. Earlier today, Amazon began taking preorders for iPhone 5C cases. This further confirms rumors of the lower tiered iPhone. If the rumors are true, this new device would be cheaper than the current iPhone 5 and would access a larger variety of customers. It would help Apple expand its presence in developing countries and provide more room for growth.
Herbalife(HLF) gained 10% during early trading hours, but shed that amount and fell into negative territory by the end of the market session. The $6 billion maker of nutritional supplements topped earnings expectations for the 18th time in a row yesterday, causing the stock to skyrocket during after market hours. It started off the day by adding to those gains, but sank on questions posed by billionaire investor Bill Ackman. Ackman questioned the values disclosed in its report and the lacking presence of its new auditor. HLF has been the subject of extreme volatility in recent quarters as Ackman and rival investor Ichan debate over its future.
Facebook(FB) rose 6.5% as it neared its IPO price of $38. The online social media giant announced that it plans on partnering with game developers to promote online and mobile gaming through the development of new titles. In addition, the company plans on releasing TV style adds on its site which will each sell for a whopping $2.5 million. This would allow it to better cash-in on its hundreds-of-millions of active users, and greatly increase its revenue.
Sources:
Yahoo! Finance
Associated Press
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Stereotaxis(STXS) received FDA approval for its Vdrive and V-Sono systems, sending the stock up over 250%. The Vdrive line of products have been utilized in Europe since 2011, aiding greatly in the performance of heart surgeries and the field of cardiology. Sterotaxis Board Chairman Mills has stated, "More than 68,000 ICE catheters are used in U.S. EP labs each year." This number is growing at a rate of 15%, which represents great growth potential for this company that specializes in their production. On a volume of 14 million shares, it is the largest gainer on the Nasdaq today.
Apple(AAPL) gained 1.5% during market hours on hopes of the release of its new iPhone 5C. The tech giant previously relied on growth through a rapid release of products, but has fallen short over the last few months. Earlier today, Amazon began taking preorders for iPhone 5C cases. This further confirms rumors of the lower tiered iPhone. If the rumors are true, this new device would be cheaper than the current iPhone 5 and would access a larger variety of customers. It would help Apple expand its presence in developing countries and provide more room for growth.
Herbalife(HLF) gained 10% during early trading hours, but shed that amount and fell into negative territory by the end of the market session. The $6 billion maker of nutritional supplements topped earnings expectations for the 18th time in a row yesterday, causing the stock to skyrocket during after market hours. It started off the day by adding to those gains, but sank on questions posed by billionaire investor Bill Ackman. Ackman questioned the values disclosed in its report and the lacking presence of its new auditor. HLF has been the subject of extreme volatility in recent quarters as Ackman and rival investor Ichan debate over its future.
Facebook(FB) rose 6.5% as it neared its IPO price of $38. The online social media giant announced that it plans on partnering with game developers to promote online and mobile gaming through the development of new titles. In addition, the company plans on releasing TV style adds on its site which will each sell for a whopping $2.5 million. This would allow it to better cash-in on its hundreds-of-millions of active users, and greatly increase its revenue.
Sources:
Yahoo! Finance
Associated Press
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Monday, July 29, 2013
Herbalife Tops Earnings For The 18th Time In A Row
July 29, 2013
Herbalife topped earnings for the 18th time in a row after it released its quarterly earnings report on market close. With $1.22 billion in revenue, it topped the higher end Wall Street consensus by $40 million. This sent shares up nearly 6%, following 3.6% gain achieved during market hours. Following this report, Herbalife raised its guidance for the rest of the year. Though its third quarter projections lie slightly below analyst expectations, the company expects growth of 16.5-18.5%. This raises its revenue expectations for 2013 much higher than analyst expectations.
Herbalife(HLF), a company specializing in nutritional goods, has been on a winning streak lately. After a long downward streak, the company's stock has made a fantastic return. From December of 2012, the stock has risen over 100% on countless earnings beats and the influence of large hedge fund investors.
Over the past few quarters, Herbalife has been extremely volatile due to the back-and-forths of billionaire investors Carl Ichan and Bill Ackman. Ichan argued that HLF was a long term hold while Ackman suggested shorting the stock. Their influence sent HLF spiking up and down 10% again and again. In December, Ackman recommended short selling $1 billion worth of shares, which sent the stock plummeting 30%! Ichan then announced 16.5% stake in the company which helped it double its value since bottoming out.
The company has relatively high amounts of both cash and debt. When combined, its debt outweighs by about $250 million. If HLF continues to top earnings, this value shouldn't cause any worry. The company's current P/E Ratio is lower than most of the industry, and its projected value shows room for growth. Though its revenue is shadowed by some of the larger companies, it has posted better growth than many other companies. Herbalife may be able to provide returns to billionaires like Ichan and Ackman, but its extreme volatility makes it a dangerous investment for those who cannot hold long term.
Sources:
CNBC
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Herbalife topped earnings for the 18th time in a row after it released its quarterly earnings report on market close. With $1.22 billion in revenue, it topped the higher end Wall Street consensus by $40 million. This sent shares up nearly 6%, following 3.6% gain achieved during market hours. Following this report, Herbalife raised its guidance for the rest of the year. Though its third quarter projections lie slightly below analyst expectations, the company expects growth of 16.5-18.5%. This raises its revenue expectations for 2013 much higher than analyst expectations.
Over the past few quarters, Herbalife has been extremely volatile due to the back-and-forths of billionaire investors Carl Ichan and Bill Ackman. Ichan argued that HLF was a long term hold while Ackman suggested shorting the stock. Their influence sent HLF spiking up and down 10% again and again. In December, Ackman recommended short selling $1 billion worth of shares, which sent the stock plummeting 30%! Ichan then announced 16.5% stake in the company which helped it double its value since bottoming out.
The company has relatively high amounts of both cash and debt. When combined, its debt outweighs by about $250 million. If HLF continues to top earnings, this value shouldn't cause any worry. The company's current P/E Ratio is lower than most of the industry, and its projected value shows room for growth. Though its revenue is shadowed by some of the larger companies, it has posted better growth than many other companies. Herbalife may be able to provide returns to billionaires like Ichan and Ackman, but its extreme volatility makes it a dangerous investment for those who cannot hold long term.
Sources:
CNBC
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Apple Supplier Accused of Labor Violations; EU To Approve Merger; Caterpillar Authorizes Share Buyback
July 29, 2013
The European Union is set to approve a deal allowing US Airways(LCC) and American Airlines(AAMRQ) it merge into the world's largest airlines company. The $11 billion merger was delayed for many months over concerns of a lack of competition if the deal were to be completed. In order to gain approval, the airlines gave up many slots at airports in both Europe and the US. The issue will soon come to a resolution as the EU plans to vote on the issue on Aug. 6. American Airlines filed for a Chapter 11 Bankruptcy Protection in 2011 and is currently listed on the OTC Stock Market, while US Airways trades on the NYSE. Both stocks remained relatively unchanged after the release of this news.
Caterpillar(CAT) authorized a share buyback worth approximately $1 billion today. Its stock shot up over 1% upon the release of the statement. The company will immediately repurchase 11 million shares from French bank Societe Generale. The price of the entire buyback will vary depending on stock performance within the next three month and may cost less than expected as CAT is currently on a 6 month losing streak. Before the financial crash of 2008, the company board approved buying back over $7 billion worth of the company's stock and is currently about 2/3 of the way there.
Hudson's Bay Co. will buy Saks Inc.(SKS) in a $2.4 billion deal that will allow the Canadian company to expand the New York based luxury retailer into Canada. Saks has been struggling for the past few years as people are spending money more conservatively, causing many earnings drops for the company in the past few quarters. Its debt has risen to over $300 million and it only holds about $5 million in cash. Despite all of this, the stock has gained nearly 50% this year, and shot up 4% today.
Apple's(AAPL) Taiwanese supplier, Pegatron, was accused of violating Chinese law by overworking and underpaying its employees. China Labor Watch reported there were many under-aged employees who had to work for over 10 hours a day at the company's factory. Apple stated it would investigate the allegations, while Pegatron denied them. The company is set to produce Apple's low cost iPhone that is rumored to be released later this year. Apple is continuously shifting its production line away from Samsung as a series of lawsuits have interfered with the relationship of the two tech giants. Despite the news, AAPL rose 1.5% during market hours.
Sources:
Reuters
Associated Press
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
The European Union is set to approve a deal allowing US Airways(LCC) and American Airlines(AAMRQ) it merge into the world's largest airlines company. The $11 billion merger was delayed for many months over concerns of a lack of competition if the deal were to be completed. In order to gain approval, the airlines gave up many slots at airports in both Europe and the US. The issue will soon come to a resolution as the EU plans to vote on the issue on Aug. 6. American Airlines filed for a Chapter 11 Bankruptcy Protection in 2011 and is currently listed on the OTC Stock Market, while US Airways trades on the NYSE. Both stocks remained relatively unchanged after the release of this news.
Caterpillar(CAT) authorized a share buyback worth approximately $1 billion today. Its stock shot up over 1% upon the release of the statement. The company will immediately repurchase 11 million shares from French bank Societe Generale. The price of the entire buyback will vary depending on stock performance within the next three month and may cost less than expected as CAT is currently on a 6 month losing streak. Before the financial crash of 2008, the company board approved buying back over $7 billion worth of the company's stock and is currently about 2/3 of the way there.
Hudson's Bay Co. will buy Saks Inc.(SKS) in a $2.4 billion deal that will allow the Canadian company to expand the New York based luxury retailer into Canada. Saks has been struggling for the past few years as people are spending money more conservatively, causing many earnings drops for the company in the past few quarters. Its debt has risen to over $300 million and it only holds about $5 million in cash. Despite all of this, the stock has gained nearly 50% this year, and shot up 4% today.
Apple's(AAPL) Taiwanese supplier, Pegatron, was accused of violating Chinese law by overworking and underpaying its employees. China Labor Watch reported there were many under-aged employees who had to work for over 10 hours a day at the company's factory. Apple stated it would investigate the allegations, while Pegatron denied them. The company is set to produce Apple's low cost iPhone that is rumored to be released later this year. Apple is continuously shifting its production line away from Samsung as a series of lawsuits have interfered with the relationship of the two tech giants. Despite the news, AAPL rose 1.5% during market hours.
Sources:
Reuters
Associated Press
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Friday, July 26, 2013
Activision, Amazon Rise; Expedia Plummets
Activision Blizzard (ATVI) announced today that it will buy
back 429 million shares of their stock from Vivendi, a French mass media
company, for $5.83 billion. Once this transaction is completed, Vivendi will no
longer be the majority shareholder. The company will be independent, with most
of its shares owned by the public. ATVI will be led by CEO Bobby Kotick and
Co-Chairman Brian Kelly. The stock jumped at this announcement, rising by more
than two dollars, or fifteen percent.
Yesterday, Amazon(AMZN) reported a surprise loss of $7 million even though revenue grew 20% to $15.7 billion. This caused investors to worry about the future profitability of Amazon due to its low profit margin and growing operating costs. When the report was released after hours, the stock shed 3%. However, investors still remain optimistic about future growth prospects for the company, causing share to rise 3% by the closing bell.
Expedia(EXPE), the online travel giant, reported earnings that fell short of analyst estimates by $0.17 per share! Revenue rose 16% this quarter to $1.21 billion, which was over $50 million off the projected $1.26 billion. Earnings fell over 30% from the same quarter last year to a dismal $71.5 million. The company's earnings drop was largely due to rising expenses from its sales, marketing, and technology divisions. This indicates that the company's profit margin is shrinking rapidly, and may force management to take cost-cutting measures. Over eight analysts downgraded the company, prompting shares to drop nearly 30% and making it one of the largest movers on the Nasdaq. Expedia still maintains a healthy $800 million in cash, which might not last if the company continues to face growth in operating expenses.
Sources:
The Wall Street Journal
Yahoo! Finance
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Yesterday, Amazon(AMZN) reported a surprise loss of $7 million even though revenue grew 20% to $15.7 billion. This caused investors to worry about the future profitability of Amazon due to its low profit margin and growing operating costs. When the report was released after hours, the stock shed 3%. However, investors still remain optimistic about future growth prospects for the company, causing share to rise 3% by the closing bell.
Expedia(EXPE), the online travel giant, reported earnings that fell short of analyst estimates by $0.17 per share! Revenue rose 16% this quarter to $1.21 billion, which was over $50 million off the projected $1.26 billion. Earnings fell over 30% from the same quarter last year to a dismal $71.5 million. The company's earnings drop was largely due to rising expenses from its sales, marketing, and technology divisions. This indicates that the company's profit margin is shrinking rapidly, and may force management to take cost-cutting measures. Over eight analysts downgraded the company, prompting shares to drop nearly 30% and making it one of the largest movers on the Nasdaq. Expedia still maintains a healthy $800 million in cash, which might not last if the company continues to face growth in operating expenses.
Sources:
The Wall Street Journal
Yahoo! Finance
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Thursday, July 25, 2013
Zynga and Amazon Post Losses, Shares Plunge
July 25, 2012
Amazon(AMZN) shocked investors Thursday night, reporting a net loss even though revenue increased. During the same quarter last year, the company reported earnings of $7 million. This quarter, the company lost $7 million. Overall, revenue rose over 20% to $15.7 billion, which just missed average expectations by $30 million. Amazon has generally had a low profit margin, with the number often dropping into negative territory. This was not helped by the fact that the company’s operating expenses rose 23%, mirroring its revenue growth to an astounding $15.63 billion. The weak earnings may have been due to rising costs in technology and online streaming.
Amazon(AMZN) shocked investors Thursday night, reporting a net loss even though revenue increased. During the same quarter last year, the company reported earnings of $7 million. This quarter, the company lost $7 million. Overall, revenue rose over 20% to $15.7 billion, which just missed average expectations by $30 million. Amazon has generally had a low profit margin, with the number often dropping into negative territory. This was not helped by the fact that the company’s operating expenses rose 23%, mirroring its revenue growth to an astounding $15.63 billion. The weak earnings may have been due to rising costs in technology and online streaming.
Due to the
fact that Amazon often reinvests revenue into company growth, these numbers can’t
always be used to assess future growth. With nearly $4 billion in cash after
the calculation of debt, investors have nothing to worry about yet. Amazon’s
expectations for revenue for the next quarter lie in the $15-17 billion range,
indicating that the company should be able to keep up its growth rate. The fact
that it has not been profitable scared off loyal investors, sending shares down
$7, or nearly 3%. AMZN is up 40% this year.
Zynga(ZNGA) reported a loss of $0.01 per share, much less than the $0.04 analysts expected it to lose. Its quarterly revenue came in at $231 million. This is over 30% less than the amount it pulled in during the same quarter last year. Similarly, its number of monthly users decreased by nearly 20 million as users are quickly transferring over to apps and mobile gaming. Many smaller developers have come up with more addicting games, such as Candy Crush(which boasts an impressive 35 million players daily). Zynga has also had a change of management this month, recruiting Microsoft Xbox manager Don Mattrick as CEO in hopes of a turnaround. Zynga also decided to exit the online gambling industry, therefore forfeiting huge potential profits. The company shot up over 10% during market hours, following Facebook's lead, but quickly dropped after hours once its earnings report was released. CEO Marttick has stated that the next few quarters for Zynga may be shaky, sending shares down 14%.
Zynga(ZNGA) reported a loss of $0.01 per share, much less than the $0.04 analysts expected it to lose. Its quarterly revenue came in at $231 million. This is over 30% less than the amount it pulled in during the same quarter last year. Similarly, its number of monthly users decreased by nearly 20 million as users are quickly transferring over to apps and mobile gaming. Many smaller developers have come up with more addicting games, such as Candy Crush(which boasts an impressive 35 million players daily). Zynga has also had a change of management this month, recruiting Microsoft Xbox manager Don Mattrick as CEO in hopes of a turnaround. Zynga also decided to exit the online gambling industry, therefore forfeiting huge potential profits. The company shot up over 10% during market hours, following Facebook's lead, but quickly dropped after hours once its earnings report was released. CEO Marttick has stated that the next few quarters for Zynga may be shaky, sending shares down 14%.
Sources:
Associated Press
Reuters
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Reuters
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Facebook, Boston Scientific, Zynga, Qualcomm Rise; Crocs Plummets
July 25, 2013
Facebook (FB) leaped upwards by more than eight dollars, or 31%. This was due to an extremely positive earnings report, which showed massive growth in advertising revenue. New types of advertisements that are placed into users' feeds have caused the number of clicks to skyrocket. The company's advertising revenue went up by 61 percent versus a year ago, reaching $1.6 billion. Mobile ads are becoming an increasingly important part of Facebook, with 41 percent of advertising revenue coming from this sector. While investors had concerns when FB botched their IPO, starting at $38 and dropping to the twenties, it is making a huge comeback. Today was a busy day for the stock, with a trading volume of over 350 million - almost ten times the three month average and making it the most traded on US markets.
Facebook (FB) leaped upwards by more than eight dollars, or 31%. This was due to an extremely positive earnings report, which showed massive growth in advertising revenue. New types of advertisements that are placed into users' feeds have caused the number of clicks to skyrocket. The company's advertising revenue went up by 61 percent versus a year ago, reaching $1.6 billion. Mobile ads are becoming an increasingly important part of Facebook, with 41 percent of advertising revenue coming from this sector. While investors had concerns when FB botched their IPO, starting at $38 and dropping to the twenties, it is making a huge comeback. Today was a busy day for the stock, with a trading volume of over 350 million - almost ten times the three month average and making it the most traded on US markets.
Zynga(ZNGA) is currently up $0.26, or
8% on hopes that it will be able to benefit from Facebook's earnings report.
The billion-dollar company has faced steep revenue decline in recent quarters
and has recently had a change of management. Since it has a strategic
partnership with Facebook, strong reports from the world's largest social
network may bring revenue increases for Zynga. The company is set to release
its quarterly earnings report after the market closes, and are sending shares
up on high hopes.
Boston
Scientific(BSX) is also one of the volume leaders today, with over 50 million
shares exchanging hands. The company reported earnings that topped the Wall
Street consensus EPS by about $0.03. In addition, management upped its forward
guidance for the company, suggesting a possible turnaround for the multibillion
dollar company that has struggled in recent quarters. Its revenue has been
falling for quite some time, but this time was much less than expected. Boston
Scientific engages in the development of medical devices targeted at a variety
of diseases.
Chipmaker
Qualcomm (QCOM) rose by two dollars, or three percent, after reporting strong
third quarter earnings. The company, which makes chips for mobile devices such
as the iPhone, has benefited from increased demand for smartphones across the
world. Third quarter revenue jumped 35% to $6.24 billion, which beat the Street's
estimate of $6.24 billion. As the demand for smartphones increases, Qualcomm is
positioned to grow as well.
It wasn't all
gains for the stock market, however. Iconic shoemaker Crocs (CROX) dropped by
three dollars, or twenty percent. The company reported quarterly earning that
were well below analysts' predictions. Earnings fell by 43%, with a revenue
growth of just 10%. Weak sales of the company's foam shoes have been attributed
to cool temperatures, but investors are concerned that the shoes are losing
popularity. CROX gave a revenue forecast of 300 to 310 billion for the third
quarter, below analysts' estimate of $325.3 billion. EPS is projected to be
$0.20 to $0.23, far below the estimate of $0.36. CROX has been trying to
diversify for a long time, but their dominant source of income is still their
shoes. With diversification attempts failing and their core product falling out
of style, the future of CROX is uncertain.
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Wednesday, July 24, 2013
Facebook Climbs 17% After Earnings Report
July 24, 2013
Facebook(FB) reported its quarterly
earnings report after hours today, with revenue rising over 50%! Its quarterly
revenue came in at $1.813 billion, topping the Wall Street average estimate by
$195 million. The company earned over $300 million this quarter, as opposed to
the same period last year where the company faced a net loss. These numbers
were surprising due to the fact that rivals Google and Yahoo recently reported
disappointing revenue and outlooks this week. FB rallied nearly 20% after
hours, rising from its close of $26.5 to $31. Mobile ad revenue grew strongly
this quarter, rising to equal over 40% of the company’s ad revenue. This is up
10% from the previous quarter. Even though the company has faced rapid growth
in mobile ads, Google still dominates with approximately a 50% market share of
the nearly $9 billion market.
Facebook
has experienced a surge in usage, with nearly 700 million people using the
website on a regular basis. This is a sharp rise from last year, when there
were only 666.5 million regular users. As Facebook's user-base increases, so
does its revenue from ads. Even with competition from startups, Facebook
managed to increase mobile advertising revenue by 76 percent. The company has
worked on increasing the number and types of advertisements, while maintaining
the CPC value (cost-per-click). New ads that are present within users' feeds
are being noticed, which has led to increasing clicking and more profit for
Facebook. Users have
complained to CEO Mark Zuckerberg about the presence of these ads, and he has
stated that his company will strive to improve their quality so that they are
more aesthetically pleasing.
Facebook still faces stiff competition
from smaller rivals and start-ups that are quickly gaining ground in the mobile
advertising market. WhatsApp is a company that operates a "cross-platform
mobile messaging app" that is available on Windows, Android, IOS, and
Blackberry. It has shot up to be the #1 downloaded app on many of these
platforms, gaining millions of users. Though this poses no immediate threat to
Facebook, it shows the potential of smaller rivals to quickly gain market share
in an online world. Blackberry has also released news that it plans on
expanding the presence of Blackberry Messenger, or BBM, so that it is available
on all platforms. BBM currently has tens of millions of active users daily, and
opening the option to IOS and Android users would help it grow exponentially.
This could very well put a dent into Facebook's revenue once it is released.
Sources:
http://finance.yahoo.com/
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Apple, Ford, VMware Surge; Broadcom Plummets - Google Announces New Product
July 24, 2013
Shares of Ford(F) were up over 3% in early trading as the company reported revenue growth of 13%, greatly exceeding analyst estimates. The company has been facing growing sales in the US, and losses in Europe and Asia have narrowed. Ford has recently stated it will begin developing its own hybrid car systems after finishing a partnership with Toyota. In addition, the company plans on hiring over 800 new workers to keep up with the rising demand for its vehicles. With all this in place, the company recently raised its guidance for the next few quarters.
VMware, a virtualization and cloud computing company jumped nearly 17%. or almost $12, after their Q3 earnings beat expectations and the stock received two upgrades from analysts. The company has shown remarkable growth this quarter, and their "vSphere" virtualization software is starting to show an increase in usage.
Broadcom(BRCM) became one of the largest movers on the Nasdaq today, sinking a staggering 15%. The company reported earnings that were slightly below estimates yesterday, and lowered its revenue expectations for its third quarter. Seven analysts downgraded the stock today, sending it down to multi-year lows. BRCM dropped nearly $5 on a volume of 66 million, over eight times its daily average.
Google(GOOG) announced a new device called the Chromecast. The Chromecast is a USB-like device that connects into the HDMI port of your TV. When connected to the Internet, it allows for the user to use YouTube, Pandora, Netflix, and basically all types of media accessible through Google Chrome. Unlike competing devices, such as the Apple TV, the Chromecast is designed to use a phone, tablet, or laptop as a remote control. Priced at $35, it poses a big threat to competing devices. Google also announced that it will soon be releasing its next generation of Nexus Tablets that will yield sharper screens and slimmer bodies. Its stock has been fairly volatile today, starting the day up a couple percent and then gradually dropping into negative territory.
Sources:
www.barrons.com
http://finance.yahoo.com/
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Tuesday, July 23, 2013
Apple Releases Earnings
Apple released their 3rd Quarter earnings today, in a conference call conducted after the market closed. The company slightly beat analysts' estimates in terms of revenue, but did not show major growth. Revenue was $35.3 billion, versus $35 billion from last year. This increase is the smallest in six years, raising oncerns that Apple may be losing its talent for innovations that have boosted the stock to stratospheric prices. Since the release of the iPad in 2010, Apple has been unable to release a revolutionary product, instead releasing new generations and versions of old devices/software. The company's rate of growth has been slowing down considerably for the past few years, and is now almost zero.
Apple's report also showed a fundamental change in the source of earnings. iPhones showed huge growth this quarter. However, the growth was in older generation devices, and the average price of units purchased decreased from $608 to $581. This decrease in gross margin could potentially represent a problem later on.
While iPhones have shown growth, other sectors within Apple have not fared so well. iPads in particular have shown a decline in sales- down 14 percent from last year. iPods and Macs have remained relatively stable, with slight declines over the past few years. As Apple's profits become increasingly dominated by low-cost, older iPhones, the company could destabilize and run into trouble as competitors gain a larger hold on the market.
Apple is an amazing company, with a plethora of groundbreaking consumer products that have established the company as a tech giant. Its 3rd Quarter earnings show a solid performance, with continued dominance in the mobile market. Investors, however, should be wary of this stock. While the stock used to be extremely volatile, 3rd Quarter earnings indicate a steady stabilization of the company. This may prevent large growth in the future, at least until Apple releases a new groundbreaking product.
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Apple's report also showed a fundamental change in the source of earnings. iPhones showed huge growth this quarter. However, the growth was in older generation devices, and the average price of units purchased decreased from $608 to $581. This decrease in gross margin could potentially represent a problem later on.
While iPhones have shown growth, other sectors within Apple have not fared so well. iPads in particular have shown a decline in sales- down 14 percent from last year. iPods and Macs have remained relatively stable, with slight declines over the past few years. As Apple's profits become increasingly dominated by low-cost, older iPhones, the company could destabilize and run into trouble as competitors gain a larger hold on the market.
Apple is an amazing company, with a plethora of groundbreaking consumer products that have established the company as a tech giant. Its 3rd Quarter earnings show a solid performance, with continued dominance in the mobile market. Investors, however, should be wary of this stock. While the stock used to be extremely volatile, 3rd Quarter earnings indicate a steady stabilization of the company. This may prevent large growth in the future, at least until Apple releases a new groundbreaking product.
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Lockheed Martin Advances Deal With Pentagon; Apple Drops Before Earnings
July 23, 2013
Wendy's(WEN) topped estimates this morning, sending the stock up a staggering 10%. The company hasn't been doing so well in recent quarters due to stiff competition from larger rivals like McDonald's, who recently reported disappointing fast-food data yesterday. Wendy's plans to decrease expenses and up profit margins through the sale of approximately 400 more of its restaurants to private owners. This would decrease the number of restaurants owned by the company to 15%, but could significantly improve quarterly reports. WEN is up 50% this year.
Wendy's(WEN) topped estimates this morning, sending the stock up a staggering 10%. The company hasn't been doing so well in recent quarters due to stiff competition from larger rivals like McDonald's, who recently reported disappointing fast-food data yesterday. Wendy's plans to decrease expenses and up profit margins through the sale of approximately 400 more of its restaurants to private owners. This would decrease the number of restaurants owned by the company to 15%, but could significantly improve quarterly reports. WEN is up 50% this year.
Starbucks(SBUX) announced today that it would enter into a strategic partnership with Dannon to sell yogurt through its coffee stores. This partnership allows for Starbucks to expand its product line and helps Dannon gain access to a new demographic. Starbucks is currently moving its way into healthier foods and drinks, and this new effort allows for the company to increase its presence in other areas of the food industry. SBUX dropped 2% as investors take profits before the company's next earnings date.
Apple(AAPL) dropped 1.4% today ahead of its earnings to be released after the market closes. The company has been performing extremely well in the past few years, but has recently faced a series of revenue decreases, stock downgrading, and short sales. Investors are cautiously waiting for the report, which is unpredictable as companies like Samsung gain foothold in the global mobile market. Investors are expecting to hear news on the company's future prospects and the eagerly awaited iWatch.
Cisco(CSCO) will buy SourceFire for $2.7 billion, representing a near 30% premium on its stock price as of Monday's close. This acquisition will help it improve its marketable security which has caused worries this year. With Snowden's release of government data collected through technology giants such as Google and Microsoft, personal security has become a rapidly growing industry. This acquisition may give Cisco an advantage over larger rivals as they compete to recapture user confidence.
Lockheed Martin(LMT) reported profit rises of 10%, sending the stock up nearly 2%. The company has reported that it has progressed its discussions with the government on its line of F-35 fighter jets. If it is able to close this deal with the pentagon, it may represent an increased revenue of nearly $5 billion. In addition, the growing drone industry has propelled the stock up 33% this year.
Sources:
http://wallstcheatsheet.com/
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Monday, July 22, 2013
Netflix Stumbles; Google and Texas Instruments Rally
News surfaced today that Google(GOOG) took a 6.3% stake in Himax Technologies'(HIMX) display subsidiary, Himax Display. This confirmed reports that Himax has long been the producer of the liquid crystal silicon chips used in Google Glass, whose rumors have allowed the stock to rise 235% this year. HIMX ended the trading day up 30%. GOOG also rose nearly 2%, making up for the losses it experienced on a disappointing earnings report Friday.
Netflix's(NFLX) second quarter earnings rose an impressive 20% from the same quarter last year, meeting analyst's expectations. However, the stock dropped 7% after hours on reports that its gain in US subscribers missed analyst expectations by about 250,000. NFLX is up over 200% this year due to two earnings toppings that sent the stock shooting up over $50 twice. Also, the company has face significant revenue increase and the backing of activist investors such as Carl Ichan.
Hasbro(HAS) released second quarter earnings with revenue falling 16% along with the trends of the rest of the games industry. Its sales for boys toys fell steeply, but the stock rallied 3.4% on future prospects for the company. HAS announced today that it has expanded relationships with Disney(DIS), allowing it to produce toys based on Star Wars and Marvel characters for another few years.
Texas Instruments (TXN) released a third quarter revenue forecast that is better than analysts reported, due to increased confidence from customers. Sources of income for the company are changing, with more income derived from analog and embedded circuits, which have a higher gross margin than wireless circuits. This shift could cause an increase in future earnings. TXN also released second quarter earnings, which showed a 9% decrease in gross revenue, but an increase in net income from $446 million to $660 million. The stock closed up 16 cents, or 0.43%. It is currently up 0.78 cents, or 2.08%, in after-hours trading.
Sources:
http://www.fool.com/investing/
http://finance.yahoo.com/news/
Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
Friday, July 19, 2013
Google, Microsoft, AMD, TSM Fall - GE Jumps
Microsoft shot down more than four dollars, or eleven percent, today. This loss is the first in a long time, breaking a period of gains that catapulted the stock from $28 to $36. It dropped so much due to disappointing Q4 results, reflecting the weakening PC market. As mobile devices become more and more dominant, it is becoming harder for Microsoft and other computer companies to stay on top. Due to the Q4 results, MSFT has slipped down to $31 - a price that it climbed above this May.
Google (GOOG) also fell today, by $16 or almost 2%. This was due to the publication of their Q2 results, which revealed a 6% decline in the CPC (cost-per-click) value. Basically, this value determines how much money Google receives every time someone clicks an advertisement on their websites. Since selling ad space is Google's main way of generating revenue, this decline spells trouble for the company. While the CPC has been declining over the past year, the rate of decline had been decelerating until recently. Investors were optimistic over this deceleration, which led to the stock's impressive gains. However, Google's CPC decline may decrease investors' optimism over the upcoming weeks/months. Google plans to continue to expand into the mobile ad market, giving investors reason to expect continued growth. The company achieved many new milestones this year, including its Google Cars, its Google Glasses, and its YouTube revenue topping $1 billion per quarter.
Taiwan Semiconductor(TSM) fell another 2%, adding to the 10%
it shed yesterday. The company released an earnings report that was above the
consensus estimate, but forecasted a Q3 revenue that was a couple billion below
what Wall Street expected. This caused concern for the company’s ability to
stay afloat in an extremely competitive mobile devices market. In addition,
larger rivals like Samsung and Intel are able to roll out chips at cheaper
prices, making it difficult for the company to attract new customers. TSM
currently operates three Fab manufacturing plants that are each worth an
estimated $12 billion!
GE reported earnings that were just slightly above Wall
Street estimates today. The conglomerate’s stock rose by about 5% during
trading hours due to an increase in their order book. Its industrial branch
stated that its backlog rose to $223 billion, with orders in the US rising 20%!
In addition, the company has received $26 billion worth of orders for its jet
engines this year! However, the financial division of the company, GE Capital,
posted another revenue decline. This branch of the company was responsible for
the decline of the company during the 2008 recession. Currently, it represents about 1/3 of the
company but is rapidly decreasing in size. CEO Jeff Immelt plans to continue
shrinking it to return GE back to its industrial roots.
Intel rival AMD also fell today, by a massive 62 cents or 13.5%. This was due to a forecasted drop in gross margin (profit from sales minus production costs), as well as a downgrade to "Sell" by Goldman Sachs analyst James Covello, who believes that it is overvalued. AMD has been hurt by the declining PC market, which is at record lows.Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.
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