The ‘Hidden Value’ of Amazon’s Media Business
Amazon’s media businesses today are worth about $500 billion, or 38% of the internet giant’s total value, according to new analysis from Needham. Analyst Laura Martin, who initiated coverage of the stock Wednesday with a $3,200 price target, says Amazon’s media assets are 90% as valuable as AWS, “but these revenue streams are somewhat ‘hidden’ since AMZN doesn’t break out their revenue or operating income.”
Shopify is Underappreciated, Despite Stock Doubling in 2020: Analyst
Shares of Shopify are up more than 100% since the start of 2020, but RBC believes the e-commerce stock is still undervalued. Internet analyst Mark Mahaney raised his price target to $1,000 (from $850) on Wednesday after the bell.
Survey of Netflix Subscribers Indicates Pricing Power Abroad
International growth is the key for Netflix as it faces intense competition in the U.S. and abroad. Jefferies surveyed Netflix subscribers across the U.S, UK, and India, and found that the streaming service has the flexibility to raise prices in some of its most important markets.
Controversial Trucking Company Nikola Scores Bullish Call from Wall Street
Nikola, the auto company with a $23 billion valuation and zero revenue, has won over a new bull on Wall Street. Cowen’s Jeffrey Osborne initiated coverage of Nikola with an OUTPERFORM rating and a price target of $79. The PT is based on 2025 sales.
What the Rise of TikTok Means for Snap
TikTok has been the most popular app of 2020 and is showing little signs of slowing down. Despite competing for screen time from a similar demographic, Wall Street believes the two video-first mobile apps can co-exist.
DraftKings vs. FanDuel: The Fight for Market Share
Unsurprisingly, sports betting handle and revenue have cratered significantly as the entire sports industry was sidelined by COVID-19, but the quiet stretch will likely prove to be the calm before the storm between DraftKings and FanDuel.
EA the Most Likely Suitor for Warner Bros. Games: Analyst
AT&T is considering the sale of its Warner Bros. gaming division, according to a CNBC. Jefferies analyst Alex Giaimo says in a recent note that “ATVI and EA are the most logical buyers, each with enough cash to absorb the reported $4B asking price.”
Tesla Investor Ross Gerber on Model Y, Battery Tech, Nikola, and More
Tesla’s meteoric rise past $1,000 a share sparked downgrades from Goldman Sachs and Morgan Stanley, but investors focused on the long-term story of Tesla should not get distracted by near-term commentary about valuation, according to notable Tesla investor Ross Gerber.
Lululemon Remains a Favorite Among Analysts After Earnings
Lululemon shares pulled back following a mixed earnings report, but analysts are rallying around the athletic-wear company and calling it a best-of-class specialty retailer.
Better Coffee Play: Starbucks or Dunkin’?
Starbucks vs. Dunkin’: Lower price points and higher drive-thru availability could give Dunkin’ an edge if social distancing measures persist and economic fallout from COVID-19 persists.
Power Balance in Food Delivery Shifts As Just Eat Takeaway Steals Grubhub From Uber
Grubhub is set to be acquired by Just Eat Takeaway.com for $7.3 billion following a failed attempt by Uber to purchase the food delivery company.
Chewy Shares Have the Bite to Match the Bark
Chewy had a lot to prove in order to match Wall Street’s elevated expectations heading into its earnings report and the pet e-tailer lived up to the hype.
Is Stitch Fix the Future of Retail? The Jury Is Still Out
Stitch Fix missed across the board when it delivered its quarterly earnings report on June 8. The data-driven personal styling company generated net revenue of $371.7 million, a drop of 9.1% from last year, even as the pandemic accelerated consumer adoption of online shopping.
Amazon Price Target Raised to a Street High $3,300 by RBC Despite "Disturbing" Trend
Online Retail is a “Structural Winner from the COVID Crisis” and Amazon is likely the best global play off of Online Retail, according to RBC analyst Mark Mahaney.
Market is Overlooking Power of Barstool Brand for Penn National: Analyst
Union Gaming raised its price target for Penn National to $40 from $28 in part because it believes the market is underestimating the influence of the Barstool brand and its key personalities, namely founder Dave Portnoy and CEO Erika Nardini.
Why It Might Not Be Too Late to Buy DraftKings Stock
Canaccord Genuity raised its price target for shares of DraftKings to $50 from $35 and reiterated its BUY rating on Wednesday, citing platform engagement and potential for accelerated sports betting legalization.
A “Post-Quarantine Glow Up” is Coming for Shares of Ulta and Estée Lauder: Analyst
New consumer behavior trends are emerging amid COVID-19, creating opportunities for companies with exposure to skincare and other self-care products, according to Piper Sandler analyst Erinn Murphy. While the recovery of makeup remains murky, the gravitation towards skincare is shaping up to be a habit that will live on after the pandemic.
Zynga’s $1.8 Billion Acquisition Puts Its Strong M&A Track Record to the Test
Zynga is acquiring Turkish mobile-game developer Peak Games for $1.8 billion, its largest acquisition of all time. Peak Games titles include Toon Blast and Toy Blast. The deal is expected to close in the third quarter of 2020.
Electronic Arts’ Monopoly on NFL Video Games
Electronic Arts quickly shut down any speculation that Take-Two Interactive would soon be encroaching on its turf in NFL gaming. EA reached an agreement with the NFL on Thursday to extend its exclusive rights to NFL simulation video games through 2026. That means the lucrative Madden franchise will have another few years with zero competition.
These Are the Casino Stocks Best Positioned for a Gaming Recovery
Las Vegas Sands and Wynn Resorts are best positioned to lead the gaming industry’s recovery, according to UBS. The firm says LVS’s and WYNN’s higher Macau exposure relative to its peers gives the two casinos a headstart in returning to 2019 revenue levels.