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Zillow Stock Jumps On Revenue Outlook, Litigation Costs Rise

Zillow ( Z ) stock jumped after the online real estate portal reported first-quarter revenue that topped views and raised its full-year, 2016 sales forecast. The Internet company posted a loss of 13 cents a share, excluding items, compared with earnings of 2 cents a share a year earlier. Zillow stock, which has been highly shorted, jumped nearly 13% in premarket trading in the stock market today . The online real estate data provider said quarterly revenue rose 14% from a year earlier to $186 million vs. consensus estimates of  $177 million. Seattle-based Zillow forecast second-quarter revenue in a range of $203 million to 208 million. Analysts polled by Thomson Reuters had modeled $193 million. Zillow upped full-year 2016 revenue guidance to $830 million at its midpoint, from its earlier forecast of $810 million vs. consensus of $806 million. “ Zillow has meaningful opportunities for upside to both estimates and multiple as it better monetizes the massive, high value audience that it has built around its platform,” said Heath Terry, a Goldman Sachs analyst in a report. “Aggregated unique visitors across Zillow properties reached 156 million in Q1 vs. 124 million in Q4.” Zillow said it expects litigation expenses to reach $50 million to $55 million for the full year, compared with prior expectations of $36 million. It’s involved in litigation with News Corp. ( NWS ) and the National Association of Realtors. “Zillow appears to have pricing power. We have lingering concerns about this name, including valuation, the ultimate total addressable market, and potential fallout from litigation,” said Thomas Champion, an analyst at Cowen & Co. “However, Zillow appears to have re-established a cadence of beat-and-raise results while hitting the seasonally strong period of the year.” Zillow has an IBD Composite Rating of 65 out of a possible 99. IBD’s Internet-Content group is ranked No. 59 out of 197 industry groups.

Forget Allergan: Pfizer Has Its Sights On This Cancer Drugmaker

Less than a month after Pfizer ( PFE ) scrapped its $160 billion takeover of Allergan ( AGN ) over new anti-inversion rules, the drug giant is eyeing a possible bid for cancer biotech Medivation ( MDVN ), Reuters reported late Tuesday. Pfizer has approached Medivation for talks, according to Reuters. That could lead to an offer that would top a $9.3 billion bid for Medivation from France’s Sanofi ( SNY ). Medivation has rejected Sanofi’s $52.50-share bid as undervaluing the company, which is best known for prostate cancer drug Xtandi. Medivation shares have been trading well above that Sanofi offer price, closing down 0.8% to 57.52 on the stock market today. Medivation rose above 60 late Tuesday on the Pfizer report. Pfizer stock rose 2.7% to 33.70 during the regular session, breaking out of a consolidation, after the pharmaceutical king reported its best quarterly earnings per share gain in more than six years. Pfizer’s 32% EPS rise , better than expected, benefited from several one-time factors, including its recent Hospira takeover.

Investing Action Plan For Wednesday: Tesla, Fitbit, Priceline, Shale

Here’s your Investing Action plan for Wednesday: What you need to know as an investor for the coming day. Tesla Motors ( TSLA ), Fitbit ( FIT ),  Priceline ( PCLN ), Whole Foods Market ( WFM ) and several shale energy companies report earnings on Wednesday. Investors should also pay attention to U.S. oil inventory and production data as well as economic reports on productivity, service sector activity and jobs. Tesla Motors Luxury electric vehicle maker Tesla Motors will report first-quarter financial results after the market closes Wednesday. The consensus estimate on revenue is $1.59 billion, up 45% year over year. The consensus is for a per-share losses of 58 cents, worse than to loss of 36 cents, as polled by Thomson Reuters. Investors will be looking for management comments on Tesla’s delivery targets, as production of the Model X ramps up. Tesla stock hit a seven-month high of 269.34 earlier this month following upbeat Model 3 preorders. But shares have pulled back, falling 3.9% on the stock market today to 232.32, approaching its 50-day and 200-day moving averages. Mobileye ( MBLY ), which provides advanced driver assistance systems for Tesla and several other automakers, reports Thursday morning. Mobileye stock fell 2% Tuesday. Priceline Priceline is expected to report double-digit Q1 sales and earnings growth when it reports before the market open Wednesday. The consensus is for revenue of $2.12 billion, up 15% year over year, and EPS of $9.65, up 19%. A week ago CEO Darren Huston tendered his resignation over an inappropriate-at-work relationship. Priceline stock fell 0.15% to 1354.64. It’s close to a buy point at 1,361.73. Fitbit Fitbit ( FIT ) reports after the close Wednesday. The consensus is for revenue of $443 million , up 32% year over year but the third quarter in a row of deceleration. EPS is pegged at 3 cents, a plunge from a profit of 27 cents a year ago. The maker of wearable fitness devices beat Wall Street’s sales and earnings targets for the holiday quarter, but its guidance for the current quarter fell well short of expectations. Fitbit stock tumbled 6.5% Tuesday to 17.18. Shares have rallied since late February but are still far below their August 2015 peak of 51.90. Whole Foods Market Whole Foods Market is expected to report fiscal Q2 revenue of $3.75 billion, up 3%, and EPS of 41 cents, down 5%. The stock fell 1% Tuesday. Meanwhile, natural foods products grocery rival  Sprouts Farmers Market ( SFM ) reports earnings Thursday morning. Sprouts slid 3.4%. Shale Earnings While a few shale companies have already reported, some of the leaders are coming up, as crude prices rebound to the highest levels since November. Results will be grim, but investors will be looking to see if shale producers plan to slash capital spending even further, or announce plans to step up drilling. Continental Resources ( CLR ) on Wednesday is expected to report a per-share loss that widens to 37 cents from a 9-cent-loss a year ago. Revenue is seen falling 24.5% to $440 million, marking a fifth straight decline. Carrizo Oil and Gas ( CRZO ) and Noble Energy ( NBL ) will announce quarterly results before the market opens Wednesday. Oil Inventories The Energy Information Administration at 1:30 p.m. ET will release U.S. petroleum inventories and production levels. Supplies are near record highs, but U.S. crude output has been falling as shale companies slash drilling. Late Tuesday the American Petroleum Institute estimated that weekly crude inventories rose by 1.3 million barrels, while gasoline stockpiles slid 1.2 million barrels. Economic Reports Employment: ADP will release its estimate of private-sector payrolls for April, ahead of the Labor Department’s big employment report on Friday. Economists expect ADP to report a gain of 193,000 jobs. Productivity: The Labor Department releases nonfarm productivity figures for Q1. Economists expect a 1.2% annualized decline after Q4’s 2.2% drop. Trade deficit: The Commerce Department releases U.S. trade figures for March. The trade gap likely shrank to $41.4 billion vs. February’s $47.1 billion. Service sector: ISM releases its nonmanufacturing index for April. Economists expect the service-sector gauge to show a reading of 54.7, little changed from the solid gain of 54.5.