Category Archives: oud

China Internet Giant JD.com Dives After Mixed Q1 Earnings

JD.com ( JD ), one of China’s four biggest Internet companies, posted mixed Q1 earnings early Monday and gave an outlook slightly short of views. Its shares were among the many U.S.-traded techs falling after Chinese markets retreated overnight on renewed concerns about that nation’s economic recovery. JD, China’s largest online direct sales company, similar to Amazon.com ( AMZN ), reported revenue of $8.4 billion, slightly above the consensus of $8.35 billion and up 48% in local currency year over year. Its revenue has grown at double- or triple-digit rates for more than 18 quarters. The company recorded a per-share loss of 2 cents minus items, matching the consensus estimate of analysts polled by Thomson Reuters. Its Q2 revenue guidance of $9.8 billion to $10.1 billion was slightly below the consensus of $10 billion at the midpoint. IBD Take: JD.com ranks just No. 17 in its group. IBD Stock Checkup can help explain why. JD stock was down 8.5%, near 23, in morning trading in the stock market today , but U.S. shares of Alibaba ( BABA ) and  Tencent Holdings ( TCEHY ) were flat. Baidu ( BIDU ) stock was down 3%, near 168, Monday morning after it announced new measures  in response to a student’s death and a government probe into its health care advertising Alibaba, Tencent and Baidu are China’s largest Internet companies, along with JD. Alibaba is China’s largest etail company, while Baidu is China’s largest search company, and Tencent leads in gaming and social networking. JD said its gross merchandise volume, which is the total value of goods sold on its website, rose 55% in local currency to the equivalent of $20 billion. “We had a solid first quarter of the year with healthy growth in revenues, new users and mobile traffic,” said JD CEO Richard Liu said in the company’s earnings release. Alibaba turned in a quarterly earnings report Thursday that largely eased concerns of slowing performance, despite a sluggish Chinese economy.

Apple Stock Oversold; RBC Sees Buying Opportunity

  Apple ‘s ( AAPL ) recent stock slide is an overreaction to the company’s disappointing March-quarter earnings report and could spell a buying opportunity, RBC Capital Markets analyst Amit Daryanani said in a research report Sunday. Before Monday, Apple shares had fallen in 14 of the last 16 trading sessions and were down 17.3% since April 14. Apple stock was up nearly 1%, near 93.50, in morning trading on the stock market today . Daryanani reiterated his outperform rating on Apple stock, with a price target of 120. “Investor feedback on Apple post-earnings call is skewed negative,” Daryanani said. “But we think the stock is oversold and should see a healthy bounce from here.” Apple stock has come under “severe pressure” since its fiscal second-quarter earnings report on April 26, he said. “There has been increased investor interest especially at current levels as investors are trying to gauge if the stock is near a bottom,” Daryanani said. “Our perspective remains — stock is oversold and valuation should provide support at these levels.” For fiscal Q2, Apple posted its first year-over-year sales decline since 2003 and first-ever drop in iPhone unit sales. For the current Q3, Apple is targeting sales of $42 billion, down 15% from the same period last year. Apple’s iPhone sales are slumping because of tough comparisons to the huge iPhone 6 upgrade cycle and slowing smartphone sales overall. Bears on Apple stock say iPhone replacement cycles will be extended and that the upcoming iPhone 7 won’t be compelling enough to spur upgrades. They see Apple struggling in China and profit margins heading down. Bulls on Apple stock say iPhone growth will accelerate over the next few years and services revenue, including App Store and Apple Pay, will continue to grow rapidly. Also, new products, such as a rumored Internet TV service, could provide a lift to Apple over the next five years, Daryanani said. RELATED: Apple Stock Hits 2016 Low Amid Doubts About Its Future Apple Watch Still Preferred By Dudes; Fitbit Liked By Ladies

SolarCity’s Losses Expected To Deepen Amid Slow Rooftop Bookings

No. 1 residential installer SolarCity ( SCTY ) was poised late Monday for its fourth consecutive quarter of double-digit sales growth, but its losses were expected to widen again. The consensus of 18 analysts polled by Thomson Reuters expects SolarCity to report $108.4 million in sales, up 61%. The company, however, is seen posting an adjusted loss of $2.31 a share vs. a $1.52 per-share loss in the year-earlier quarter. SolarCity’s losses have ballooned from below 50 cents in 2013. Previously, SolarCity said it expected its adjusted loss to come in at $2.55-$2.65 a share. The company also anticipated installing 180 megawatts for the period, which would be up 26% vs. the year-earlier quarter. SolarCity stock is down 57% for the year, having crashed 34% since April 22 on reports of slow residential bookings in the first quarter. In early trading on the stock market today , shares were down 3.8% at 21.01. Stock in rival Sunrun ( RUN ) was down 1.9% to 7.36. Last year, SolarCity pledged to curb its annual 80% growth rate — aiming instead for about 40% — in order to narrow its losses. Sales grew 57% in 2015, but losses also deepened to $7.91 a share from $3.88 a share for 2014.