Amazon’s Ad Business Worth $350 Billion: Analyst
Amazon’s stock price is ignoring the company’s booming advertising business, according to Jefferies analyst Brent Thill, who now values the segment at $350 billion. Thill upped his estimate from $300 billion, citing a surge in consumers flocking to Amazon for grocery shopping as a result of the pandemic.
The 3 Top Reasons Walmart Wants a Piece of TikTok
Walmart is considering a joint bid for TikTok and the increasingly blurred line between retail and social commerce is one of the key reasons that TikTok’s viral video factory would accelerate sales for Walmart.
Virgin Galactic Scores Bullish Call, $22 PT from Cowen
Cowen says buy Virgin Galactic because of its first-mover advantage in commercial spaceflight and exposure to point-to-point hypersonic travel. The research firm initiated coverage of Virgin Galactic with an Outperform rating and a $22 price target.
Instagram Reels Might be the Real Deal
Facebook’s answer to TikTok has a chance to also be a solution for driving Instagram’s next leg of growth. A new survey conducted by Jefferies indicates Reels is an early success and suggests the video product has potential to keep more users inside the app for longer.
Peloton PT Raised to $72 a share by Stifel
Peloton has changed the fitness industry forever, and demand for the connected fitness bike will remain elevated over the next several quarters, according to Stifel analyst Scott Devitt. The firm raised its price target to $72 a share from $62.
Pressure Mounts for Lyft as Rideshare Rebound Stalls and California Shutdown Looms
Ridesharing is bouncing back slower than expected, and the delay is taking a toll on Lyft’s business and testing the patience of Wall Street. Lyft reported weak second quarter results with revenue tanking 61% y/y.
Uber’s New Reality is that Delivery > Rides
Uber delivered mixed Q2 results, with delivery continuing to serve as a safety net while mobility recovers slower than expected.
Roku’s Audience Growth is Impressive, But Ad Outlook Remains Fuzzy
Roku is finding itself caught between two diverging trends, and investors are stuck choosing which to weigh more heavily. As an aggregator of streaming entertainment content, Roku is a clear winner emerging from the mass exodus from cable television. The problem in the near-term is, however, the lack of visibility into digital advertising strength, which Roku is heavily reliant on.
Ranking Big Tech’s Earnings Performance
Apple, Amazon, Alphabet, and Facebook all reported earnings Thursday. Here is a look at how each of them fared.
Impact of Spotify’s Podcast Splurge Remains Unclear
Spotify’s guidance for the second half of 2020 indicates upcoming podcast content does not seem to be increasing 2020 monthly active users compared to prior expectations, according to Wells Fargo media analyst Steven Cahall.
Why Tesla’s Profit Win Streak Matters and Makes It Look Like Amazon
Tesla shares continue to defy gravity following a beat on Q2 expectations. Revenues for the quarter were $6 billion, above consensus of $5.2 billion. The big story, though, is that Tesla notched its 4th consecutive quarter for the first time ever. Non-GAAP EPS was $2.18 vs. consensus loss of $0.48.
Snap’s “Puzzling” Earnings Results Cool Off the Stock and Raise Questions About TikTok
Snap delivered better-than-expected revenue for the latest quarter despite shrinking ad budgets from major advertisers who are struggling with the pandemic, but the social media company disappointed investors with slower-than-anticipated user growth and conservative guidance.
Ridesharing’s Rebound is Stuck in Traffic
Ridesharing’s rebound is taking longer than expected as activity in major cities remains stagnant due to persistent fears related to the pandemic and the reimplementation of strict social distancing requirements by certain states.
Why Wall Street Got Netflix Earnings Wrong
Weak Q3 subscriber guidance is overshadowing a record 2nd quarter for Netflix. Q3 guidance of 2.5 million was lower than 5.3 million consensus on Wall Street due to demand pull-forward related to the pandemic, according to some analysts.
Twitter Earnings Preview: Engagement vs. Ad Strength
The question for Twitter heading into earnings on Thursday is whether engagement on the social media app was enough to outweigh a digital advertising environment crippled by the coronavirus. Wedbush analyst Michael Pachter, who has a NEUTRAL rating and 12-month price target of $30, sees upside for user growth but remains pessimistic about broader advertising trends.
4 Stocks with “Rocket Ship” Path to Recovery
Why settle for a V-shaped recovery when you could aim for a “Rocket Ship” recovery? RBC analyst Mark Mahaney identifies four large-cap stocks he believes are most COVID-resistant.
Early Look at Netflix Q2
App data and search interest trends indicate subscriber growth is ahead of schedule for the latest quarter, according to Stifel. The analyst, Scott Devitt, raised his price target to $500 ahead of Netflix’s earnings report on Thursday, July 16.
Nikola Upgraded to Overweight by JPM on Potential of Hydrogen Economy
Shares of Nikola are attractive after falling 40 percent in July month-to-date, according to JPMorgan. The firm upgraded the electric trucking company to OVERWEIGHT from NEUTRAL, and reiterated its $45 price target.
Vroom in the Fast Lane of the Used Car Market
The used car market has been largely untouched by digital innovation, creating a big opportunity for Vroom, an online-focused used car retailer that allows customers to purchase a vehicle online and have it delivered to their home.
Uber Snags Postmates in Food Delivery Arms Race
After whiffing on a deal for Grubhub, Uber reached an agreement to acquire Postmates in a $2.65 billion deal. Postmates is the #4 player in the food delivery business, behind DoorDash, Uber Eats, and Grubhub. Wedbush analyst Dan Ives says the move is the “right acquisition at the right time.”