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.
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