/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): The Wit And Wisdom Of Warren Buffett and Charlie Munger Teaser (s): Last weekend, I was in Omaha to participate in my annual ritual of attending the Berkshire Hathaway annual shareholders meeting. I like Warren Buffett and I absolutely adore Charlie Munger. Source (s): Forbes DocumentDate (s): 18 minutes ago DocumentDate_raw (n): 1430972325000 Link (s): http://www.forbes.com/sites/chanderchawla/2015/05/07/the-wit-and-wisdom-of-warren-buffett-and-charlie-munger/ DocumentKey (s): HTTPwww.forbes.com/sites/chanderchawla/2015/05/07/the-wit-and-wisdom-of-warren-buffett-and-charlie-munger/ DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): Tesla's battery plans overshadow earnings Teaser (s): Forty-five minutes into a conference call with analysts to discuss first-quarter earnings, Tesla CEO Elon Musk decided to share some eagerly awaited news about the company's highly anticipated Model 3 sedan. Source (s): CNBC DocumentDate (s): 41 minutes ago DocumentDate_raw (n): 1430970975000 Link (s): http://www.cnbc.com/id/102654541 DocumentKey (s): HTTPwww.cnbc.com/id/102654541 DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): UPDATE 1-Oil falls after hitting 2015 highs, markets still well supplied Teaser (s): ... * Markets remain well supplied despite strong demand. * OPEC will not cut output alone -Gulf delegate. * Prices hit 2015 highs after first U.S. Source (s): Reuters DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1430969625000 Link (s): http://in.reuters.com/article/2015/05/07/markets-oil-idINL4N0XY0N820150507 DocumentKey (s): HTTPin.reuters.com/article/2015/05/07/markets-oil-idINL4N0XY0N820150507 DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] Headline (s): Keurig Green Mountain Inc Stock Dives After Earnings Miss Teaser (s): During the second quarter, Keurig Green Mountain repurchased a total of 7.0 million shares at a cost of $837 million. The company posted non-GAAP earnings of $1.03 per share on net sales of $1.127 billion, a 2% year over year increase. Source (s): Rapid News Network DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1430968234000 Link (s): http://rapidnewsnetwork.com/keurig-green-mountain-inc-stock-dives-after-earnings-miss/15644/ DocumentKey (s): HTTPrapidnewsnetwork.com/keurig-green-mountain-inc-stock-dives-after-earnings-miss/15644/ DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): Zynga's newly reinstated CEO cutting over 350 jobs Teaser (s): “FarmVille,” you say? Zynga's headquarters this year will look more like a bloody scene from a first-person shooter game. The San Francisco-based video-game maker said Wednesday it will slash 18 percent of its workforce by the fourth quarter as it looks to ... Source (s): New York Post DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1430966250000 Link (s): http://nypost.com/2015/05/06/zyngas-newly-reinstated-ceo-cutting-over-350-jobs/ DocumentKey (s): HTTPnypost.com/2015/05/06/zyngas-newly-reinstated-ceo-cutting-over-350-jobs/ DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): Asian shares slip, euro hovers at 2-month peak amid global bond rout Teaser (s): Tokyo's Nikkei lost 0.6% in the first trading day of the week. Japanese financial markets were closed from Monday to Wednesday for public holidays. Source (s): Livemint DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1430965575000 Link (s): http://www.livemint.com/Money/ZPmg29S7IBJhrZ0kyyubcM/Asian-shares-slip-euro-hovers-at-2month-peak-amid-global-b.html DocumentKey (s): HTTPwww.livemint.com/Money/ZPmg29S7IBJhrZ0kyyubcM/Asian-shares-slip-euro-hovers-at-2month-peak-amid-global-b.html DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): Wendy's Selling 640 Restaurants and Bakery Teaser (s): Wendy's announced late Wednesday afternoon that they decided to sell 640 company-owned restaurants located throughout the United States and Canada, as well as their bakery in Zanesville, Ohio. Source (s): WDTV DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1430962875000 Link (s): http://www.wdtv.com/wdtv.cfm?func=view§ion=5-News&item=Wendys-Selling-640-Restaurants-and-Bakery-23002 DocumentKey (s): HTTPwww.wdtv.com/wdtv.cfm?func=view§ion=5-News&item=Wendys-Selling-640-Restaurants-and-Bakery-23002 DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): Alexion Puts Its Soaring Stock Price to Good Use Teaser (s): Alexion Pharmaceuticals is putting its high-flying stock to good use. The drugmaker's $8.4 billion offer for its rival Synageva BioPharma includes an astonishing 136 percent premium. Source (s): New York Times DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1430960175000 Link (s): http://www.nytimes.com/2015/05/07/business/dealbook/alexion-puts-its-soaring-stock-price-to-good-use.html DocumentKey (s): HTTPwww.nytimes.com/2015/05/07/business/dealbook/alexion-puts-its-soaring-stock-price-to-good-use.html DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): Fox's Earnings Decline But Still Top Views Teaser (s): 21st Century Fox Inc. FOXA -0.71 % 's earnings declined less than analysts expected last quarter as the box-office performances of “Taken 3” and “Kingsman: The Secret Service” as well as higher cable channel fees helped offset declining profits at the Fox ... Source (s): Wall Street Journal DocumentDate (s): 7 hours ago DocumentDate_raw (n): 1430946149000 Link (s): http://www.wsj.com/articles/foxs-earnings-decline-but-still-top-views-1430946124 DocumentKey (s): HTTPwww.wsj.com/articles/foxs-earnings-decline-but-still-top-views-1430946124 DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] WSODIssue (s): |139881|194599|277068 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Protests and sustainable food are on the menu at the Milan Expo Link (s): http://folionation.squarespace.com/news/2015/5/6/protests-and-sustainable-food-are-on-the-menu-at-the-milan-e.html Thumbnail (s): DocumentDate_raw (n): 1430942160000 DocumentDate (s): May 6, 2015 DocumentDate_smart (s): 3:56 PM DocumentKey (s): 1107-290734296785735333104-2QB508C1959OG7Q0R9C0EULK8B ContentType (s): Article TrackingPixel (s): Teaser (s):

A lot of people are criticizing the Milan Expo and its supposed commitment to sustainable food production.

The 2015 Milan Expo kicked off last week with protests and clashes as the police fired tear gas and marchers set cars on fire. While this year's theme is sustainable food production, protestors cite the inclusion of high-profile multinationals like Coca-Cola (KO) and McDonald's (MCD) as proof of the Expo's exploitative, wasteful and corrupt nature. And then, as The Atlantic points out, there's the question of whether a corporation's Chief Sustainability Officer actually does anything. 

There's also the price tag. The Italian government has spent $14 billion on the six-month event, which it hopes will generate $10.75 billion in revenue, create 191,000 jobs and help lift the nation after years of economic decline. Officials predict the Expo will increase the nation's GDP by $11.2--$15.6 billion, but opponents argue that the Expo will only be a boon for the participating corporations—not Italy.

Even Pope Francis criticized the Expo, saying, "In certain ways, the Expo itself is part of this paradox of abundance, it obeys the culture of waste and does not contribute to a model of equitable and sustainable development."

But there are food companies with a less questionable interest in sustainable food production. Below is a list of such stocks and their EPS growth this year as well as their sales growth quarter over quarter.

Click on the interactive chart to view data over time. 


1. Keurig Green Mountain Inc. (GMCR, Earnings, Analysts, Financials): Engages in the specialty coffee and coffee maker business. Market cap at $17.11B, most recent closing price at $110.00.

EPS growth this year at 18.40%.

Sales growth quarter over quarter at 0.00%.

 

2. Lifeway Foods Inc. (LWAY, Earnings, Analysts, Financials): Manufactures dairy and non-dairy health food products. Market cap at $319.07M, most recent closing price at $19.57.

EPS growth this year at -45.20%.

Sales growth quarter over quarter at 14.80%.

 

3. United Natural Foods Inc. (UNFI, Earnings, Analysts, Financials): Distributes natural, organic, and specialty foods, as well as non-food products in the United States. Market cap at $3.36B, most recent closing price at $67.84.

EPS growth this year at 15.60%.

Sales growth quarter over quarter at 22.50%.

 

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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10 (o): [object Object] WSODIssue (s): |104092|5996288|27294563|52980244|6214722|24812378 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Tesla wants to come into your home Link (s): http://folionation.squarespace.com/news/2015/5/6/tesla-wants-to-come-into-your-home.html Thumbnail (s): DocumentDate_raw (n): 1430936700000 DocumentDate (s): May 6, 2015 DocumentDate_smart (s): 2:25 PM DocumentKey (s): 1107-290734296785735332963-612L6G24H9SJDQSOQJ9KNLKIA4 ContentType (s): Article TrackingPixel (s): Teaser (s):

First Tesla tackled the electric car. Now it's taking on the electric grid, one house at a time. 

Tesla (TSLA) is entering the home battery market with the launch of its newest division and product: Tesla Energy and the Powerwall. With this initiative, the electric carmaker has the opportunity to diversify its business and make the electric grid more efficient.

According to the company, its home battery is supposed to be good for the environment:

“Once we’re able to rely on renewable energy sources for our power consumption, the top 50% of the dirtiest power generation resources could retire early. We would have a cleaner, smaller, and more resilient energy grid.”

Presently, Tesla is viewed mostly as a car marker, so the stock is most comparable to firms like General Motors (GM) and Ford Motors (F). However, if the home battery endeavour is successful, Tesla may become a global energy player.

Investors are already anticipating growth—Tesla’s stock is up 20 percent in the last month. By comparison, Ford and GM shares are flat.

SolarCity (SCTY) is another way to gain exposure to Tesla’s battery storage devices. The firm—where Tesla CEO Elon Musk serves as chairman—is already offering energy storage systems for homes using Tesla’s technology, though it’s worth nothing that grid independence will likely take several years, if not longer. If SolarCity’s systems are a success, traditional utility companies will likely have to adapt and alter electricity plans and/or rates for consumers.

In the last year, SolarCity’s stock has risen around 17 percent, compared to a drop of 7 percent for First Solar (FSLR), another alternative energy firm, and Trina Solar (TSL), which is down 8.6 percent. 

Tesla Energy is taking Tesla beyond the realm of the electric car. This could ultimately make the company’s stock less risky, and many people expect astronomical growth for the company over the coming years. However, if Tesla falters, the stock may come under severe selling pressure. 

Written by Chris Lau

Disclosure: Author owns shares of Ford.

Click on the interactive chart to view data over time. 

1. Ford Motor Co. (F, Earnings, Analysts, Financials): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap at $62.01B, most recent closing price at $15.53.

 

 

2. First Solar Inc. (FSLR, Earnings, Analysts, Financials): Manufactures and sells solar modules using a thin-film semiconductor technology. Market cap at $5.69B, most recent closing price at $56.81.

 

 

3. General Motors Company (GM, Earnings, Analysts, Financials): Operates as a global automaker. Market cap at $56.32B, most recent closing price at $35.01.

 

 

 

4. SolarCity Corporation (SCTY, Earnings, Analysts, Financials): Designs, manufactures, installs, maintains, monitors, leases, and sells solar energy systems to residential, commercial, government, and other customers in the United States. Market cap at $5.89B, most recent closing price at $59.28.

 

 

5. Trina Solar Limited (TSL, Earnings, Analysts, Financials): Designs, develops, manufactures, and sells photovoltaic (PV) modules worldwide. Market cap at $1.12B, most recent closing price at $12.17.

 

 

6. Tesla Motors Inc. (TSLA, Earnings, Analysts, Financials): Designs, develops, manufactures, and sells electric vehicles and advanced electric vehicle powertrain components. Market cap at $29.15B, most recent closing price at $232.95.

 

 

(Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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11 (o): [object Object] Headline (s): Janet Yellen Sees a Modest Risk in 'Quite High' Stock Prices Teaser (s): WASHINGTON - Janet Yellen, the Federal Reserve chairwoman, said Wednesday that stock prices were “quite high,” stronger language than she had used previously. Source (s): New York Times DocumentDate (s): 13 hours ago DocumentDate_raw (n): 1430925646000 Link (s): http://www.nytimes.com/2015/05/07/business/economy/yellen-calls-stock-prices-quite-high.html DocumentKey (s): HTTPwww.nytimes.com/2015/05/07/business/economy/yellen-calls-stock-prices-quite-high.html DMSourceID (s): Google ContentType (s): Article 12 (o): [object Object] WSODIssue (s): |100104|174297|204118 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Things are tough out there for a telecom company...just ask Ericsson Link (s): http://folionation.squarespace.com/news/2015/5/5/things-are-tough-out-there-for-a-telecom-companyjust-ask-eri.html Thumbnail (s): DocumentDate_raw (n): 1430838840000 DocumentDate (s): May 5, 2015 DocumentDate_smart (s): May 5, 2015 DocumentKey (s): 1107-290734296785735331291-48STBO5KC7AHI0GHFE4PJ7ARUB ContentType (s): Article TrackingPixel (s): Teaser (s):

The telecom sector isn't as glorious as it once was as Swedish giant Ericsson saw during the first quarter.

Ericsson (ERIC), the cell phone maker turned communications tech provider, saw its stock price fall sharply after its first-quarter results missed expectations. Even though revenue rose, profit of 2.1 billion Swedish crowns was weaker than the expected 3.3 billion. The drop now knocks down the forward price multiples for Ericsson’s stock.

The tough quarter means the market is adjusting for weakness ahead. Yet, while Ericsson’s market size dwarfs that of Motorola Solutions (MSI), another former cell phone giant, or Juniper Networks (JNPR), investors expect more from its competitors as indicated by their share prices:

One reason for the recent jump in Juniper’s stock price is that investors speculate Ericsson will buy the company.

Part of Ericsson’s lackluster quarterly results can be attributed to weak demand in the US due to a drop in capital spending at telecom firms like AT&T (T) and Verizon (VZ). LTE deployment, which Ericsson helps carry out, is starting in other markets, but it’s slow. Meanwhile, 4G deployments in markets like China are picking up—in under a year, 4G reached 100 million subscribers.

During the first quarter, Ericsson acquired a Chinese firm in an effort to boost its OSS/BSS (Operational Support Systems) offering. This could help sustain the company’s sales growth in the region.

However, there are some risks. Operating cash flow was weak in the first quarter, though the firm did build up working capital. By the end of the fiscal year, the excess should normalize as Ericsson completes networks projects for customers. Additionally, the company faces slowness in American markets, but higher demand for 4G in China could very well offset that slump.

Ultimately, rumors that Ericsson will acquire Juniper are likely false since Ericsson doesn’t typically make big acquisitions. And though the April 23rd selloff of Ericsson’s shares that pushed the stock down by 8.2 percent was significant, once the Juniper acquisition rumors disappear, Ericsson’s stock could rebound. 

Written by Chris Lau

Disclosure: Author owns shares of Alcatel-Lucent​

Click on the interactive chart to view data over time. 

 

1. Ericsson (ERIC, Earnings, Analysts, Financials): Provides communications equipment, professional services, and multimedia solutions to mobile and fixed networks operators worldwide. Market cap at $35.30B, most recent closing price at $10.97.

 

 

2. Juniper Networks Inc. (JNPR, Earnings, Analysts, Financials): Designs, develops, and sells products and services that provide network infrastructure to create environments for the deployment of services and applications over a single network. Market cap at $10.99B, most recent closing price at $27.07.

 

 

3. Motorola Solutions Inc. (MSI, Earnings, Analysts, Financials): Provides business and mission critical communication products and services for enterprise and government customers worldwide. Market cap at $12.60B, most recent closing price at $60.68.

 

 

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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13 (o): [object Object] WSODIssue (s): |106871|27294563 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Is GM losing speed or revving up for a comeback? Link (s): http://folionation.squarespace.com/news/2015/5/5/is-gm-losing-speed-or-revving-up-for-a-comeback.html Thumbnail (s): DocumentDate_raw (n): 1430837640000 DocumentDate (s): May 5, 2015 DocumentDate_smart (s): May 5, 2015 DocumentKey (s): 1107-290734296785735331247-575KC1CG8IA989BNPJDTKMNO9C ContentType (s): Article TrackingPixel (s): Teaser (s):

The battered carmaker's earnings disappointed some, but it may not be time to count GM out of the race. 

After peaking at $38.87 in March, shares of General Motors (GM) are pulling back. An April 24th downgrade by an analyst at Buckingham from buy to neutral didn’t help either. The analyst cited transaction pricing, especially in China, along with concerns about GM’s international businesses as reason for the decision. Meanwhile, Greenlight Capital, a Hedge Fund, is starting a new position in the company. Let’s take a look at what about the carmaker disappoints some and excites other.

GM trades at a forward P/E of just 6.95, compared to 10.83 for Fiat Chrysler (FCAU):

The company is also buying back shares to boost shareholder value. The firm said it wants to buy back shares as quickly as it can, but having $20 billion in cash levels is a first priority. Still, it has an initial $5 billion share buyback plan.

GM reported earnings of $0.86 per share on April 23, although this missed consensus estimates of $0.97 per share. Return on invested capital was strong in China, and the company expects capital spending on Cadillac to improve. GM still reported an operating loss in Europe though it fell from $284 million a year ago to $239 million. Additionally, global sales improved by 1.9 percent from a year earlier.

Investors who want greater exposure in the growth of automobile demand in European market may want to consider Fiat Chrysler. In March, car registrations of Fiat Chryslers grew 13.4 percent year-over-year to 97,796 units. 

Fiat is up nearly 40 percent in 2015. If Dodge Ram pickup sales continue to improve, then the stock should move up too.

Fiat Chrysler is a more expensive stock than GM, but chances are good sales will improve in the quarters ahead. GM may have disappointed markets, but its turnaround continues. Difficulty in Russia and the US will pass. Profit margins are improving each quarter and have done so over the last year. New products for Buick, Malibu, and CT6 could also act as a positive catalyst for GM.

Written by Chris Lau

Click on the interactive chart to view data over time. 

 

1. Fiat Chrysler Automobiles N.V. (FCAU, Earnings, Analysts, Financials): Designs, engineers, manufactures, distributes, and sells vehicles and components. Market cap at $19.10B, most recent closing price at $14.80.

 

 

2. General Motors Company (GM, Earnings, Analysts, Financials): Operates as a global automaker. Market cap at $57.02B, most recent closing price at $35.40.

 

 

 

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

14 (o): [object Object] WSODIssue (s): |36276|72887506|205778 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Maybe Microsoft has a bright future after all Link (s): http://folionation.squarespace.com/news/2015/4/28/maybe-microsoft-has-a-bright-future-after-all.html Thumbnail (s): DocumentDate_raw (n): 1430254080000 DocumentDate (s): April 28, 2015 DocumentDate_smart (s): Apr 28, 2015 DocumentKey (s): 1107-290734296785735323225-5EMI5I7KC7NRTDURBR1AGLT5C0 ContentType (s): Article TrackingPixel (s): Teaser (s):

Microsoft may not be the it brand when it comes to computers, but the tech titan is staging a comeback.

Despite reporting lower licensing for Windows and Office, Microsoft (MSFT) is generating strength in other ways through growing sales of its server software and products, smartphones and tablets. The tech company’s stock shot up 10.5 percent on Thursday, April 23, after it released its third-quarter fiscal year 2015 earnings. Chances are good there’s more upside for the stock.

Sales for services and products related to the server market grew by 12 percent in the third-quarter. This increase offset the drop in Windows Original Equipment Manufacturer (OEM) licensing, which dropped 19 percent for the Pro version and 26 percent for the non-Pro Windows.

Hardware sales were strong by unit volume: Microsoft sold 8.6 million Lumia smartphones, which generated $1.4 billion in revenue. Surface tablet revenue grew 44 percent to $713 million.

Office 365, the cloud version of Microsoft Office, saw its subscriptions jump to 12.4 million. In the quarters ahead, investors should anticipate continued subscription revenue growth since the Office app has already reached 100 million in downloads. As users grow accustomed to quality apps like Outlook for email management and more features go up, sign-ups will likely rise

Thanks to the slow post-holiday months, the third quarter was a tough period for hardware sales. Yet, higher Surface sales suggest that Microsoft may win market share from Apple’s (AAPL) iPad. Surface has differentiating features from the rest of the tablets: its pen works very well with Office OneNote, and the tablet doubles as a laptop with a physical keyboard.

By comparison, Google (GOOG) isn’t really addressing the tablet market as effectively as it should. The last Nexus 7 refresh was in 2013, and the Nexus 9 is at the higher end of the consumer budget range. Further, Google Docs doesn’t have as nice a design as Office 365.

For now, Apple investors are showing little concern for competition from Microsoft. Apple’s stock is up over 50 percent in the last year:

Bottom line

Microsoft’s business is diversified. The company is shifting its revenue from software to cloud subscriptions. Hardware sales are growing by unit volume and revenue. The Surface refresh may appeal to a wider user base, which could mean higher sales. If Microsoft’s stock dips on investors’ profit taking (selling when a stock is high), it may be a good time to start buying shares.

Written by Chris Lau

Click on the interactive chart to view data over time. 

1. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $772.65B, most recent closing price at $132.65.

 

2. Google Inc. (GOOG, Earnings, Analysts, Financials): Builds products and provides services to organize information. Market cap at $189.20B, most recent closing price at $555.37.

 

 

3. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $388.54B, most recent closing price at $48.03.

 

 

 

(Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

15 (o): [object Object] WSODIssue (s): |45563793|68572657|73703934 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Is Wall Street done liking Facebook? Link (s): http://folionation.squarespace.com/news/2015/4/27/is-wall-street-done-liking-facebook.html Thumbnail (s): DocumentDate_raw (n): 1430156520000 DocumentDate (s): April 27, 2015 DocumentDate_smart (s): Apr 27, 2015 DocumentKey (s): 1107-290734296785735321471-47PDEKNJQTMUU54RL8RJT9S1BE ContentType (s): Article TrackingPixel (s): Teaser (s):

Facebook's earnings were pretty solid, but the stock has been falling since Thursday—what gives?

Facebook (FB) reported first-quarter earnings last week, and the social networking giant didn’t disappoint. User activity rose during the period, helping the company boost revenue by 41.6 percent year-over-year. So why have shares dipped since April 23?

During the first three months of the year, Facebook earned $0.42 per share on revenue of $3.54 billion. Revenue from mobile grew to 73 percent of ad revenue. Activity from mobile users also grew. Mobile MAUs was up 24 percent to 1.25 billion. 

Despite the growth, shares fell after Facebook released its earnings, probably due to investors' profit-taking (selling their Facebook shares to take advantage of the run-up). The stock is still pretty expensive, though, with a forward P/E of 31.17, which is higher than the S&P 500’s 18.50 and Weibo’s (WB) 27.26 but less than Twitter’s (TWTR) 63.29.

Investors might find Facebook's $228.9 billion valuation justified if they believe the company’s revenue and growth figures will keep up their pace in the next year and beyond.

Meanwhile, stock compensation was still high and GAAP (generally accepted accounting principles) earnings of $0.18 per share were down 28 percent from last year. GAAP income also fell to $933 million compared to $1.075 billion last year. After excluding share-based compensation and amortization of intangibles, non-GAAP income was higher in Q1 year-over-year.

Higher costs pose another risk for investors. In Q1, costs rose 57 percent to $1.7 billion. Much of the costs were due to stock compensation though higher marketing costs also contributed.

Facebook’s stock has performed very well for a while, but it may be time to exercise caution. Though purchases in Instagram and WhatsApp are proving successful due to strong usage, investments in virtual reality have yet to play out. Facebook remains a solid growth play, but investors who do not hold shares may want to wait for a drop before starting a position.

Written by Chris Lau

Click on the interactive chart to view data over time. 

1. Facebook Inc. (FB, Earnings, Analysts, Financials): Operates as a social networking company worldwide. Market cap at $228.96B, most recent closing price at $81.53.

 

 

2. Twitter Inc. (TWTR, Earnings, Analysts, Financials): Operates as a global platform for public self-expression and conversation in real time. Market cap at $33.26B, most recent closing price at $50.82.

 

 

3. Weibo Corporation (WB, Earnings, Analysts, Financials): Operates a social media platform for people to create, distribute, and discover Chinese-language content. Market cap at $3.49B, most recent closing price at $17.20.

 

 

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