Tag Archives: yhoo

Verizon Pain From Strike Seen Growing; Wells Fargo Cuts Estimates

Verizon Communications ( VZ ) is starting to feel the pain from the ongoing strike by nearly 40,000 wireline workers, according to Wells Fargo, which on Friday lowered its Q2 and full-year profit-margin and revenue estimates for the telecom giant. Two unions representing about 39,000 Verizon landline workers, including those that work on its FiOS TV and broadband services, went on strike April 13. Verizon’s wireless workers, however, are not unionized, except for roughly 100 employees. Verizon has a total workforce of nearly 178,000. “While the striking employees are almost all wireline workers, we believe the strike has become a distraction to its wireless operations. VZ has been less promotional with its wireless offerings in Q2, and recent checks have shown some unfavorable (customer-switching) trends,” Wells Fargo analyst Jennifer Fritzsche said in a research report. Verizon and the two unions — the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) — have reopened talks, with a federal mediator involved. “While a federal mediator has the two sides back at the bargaining table, a near-term resolution is still unclear,” Fritzsche wrote. “Management recently indicated that install and order activity for FiOS has ‘significantly dropped’ as employees have been primarily focused on repair and maintenance. “Accordingly, we are cutting our Q2 and 2016 wireline revenue estimates by $343 million and $826 million. We are also lowering our Q2 and 2016 wireline margin estimates.” Verizon stock rose 3 cents to 49.66 in the stock market today , and it’s mostly been trading below the key 50-day line since touching a 16-year high of 54.49 on April 5. Verizon is widely regarded as the  front-runner to acquire Web portal Yahoo ( YHOO ).

The 5 Big-Cap Internet Stocks With The Strongest Fundamentals

The companies with the best fundamentals among large-cap Internet stocks are Facebook ( FB ), Amazon.com ( AMZN ), Netflix ( NFLX ), Alphabet ( GOOGL ) and Priceline ( PCLN ), says RBC Capital Markets. Internet trends for these top five in their respective sectors — online advertising, retail and travel — remain very consistent, with strong revenue growth year over year, RBC said in a research report. Online advertising seems to be flowing en mass to Google-owner Alphabet and Facebook, with the two now accounting for close to 55% of global online advertising revenue, up from 50% three years ago, says the report from RBC analyst Mark Mahaney. And Amazon continues to show dramatically greater-than-average growth in the online retail sector. “We believe online retail demand trends have remained solid, particularly highlighted by Amazon’s retail sales acceleration,” Mahaney wrote. But, he said, “there’s little ad oxygen for the likes of Yahoo ( YHOO ).” Online travel remains a duopoly of Priceline and Expedia ( EXPE ), while it’s increasingly hard to see anyone catching up to Netflix in terms of video-streaming subscribers, he wrote. Netflix Though shares of Netflix have continued to decline following Q1’s weak international subscriber guidance and domestic price change worries, “We view the fundamental global subscriber growth story as intact,” Mahaney said. Mahaney has a price target on Netflix of 140. Netflix rose 1.4% to 89.12 in the stock market today . The stock is down 20% since reporting first-quarter earnings on April 18, and it’s on the IBD Swing Trader list as a potential short-sale opportunity. Priceline He has a price target on Priceline of 1,600, as growth and profitability trends remain intact. Priceline stock rose 0.4% to 1283.47 on Monday. Priceline is down 6% since reporting Q1 earnings on May 4. Alphabet On Alphabet, Mahaney’s price target is 1,000, as it remains one of the best portfolio plays on the biggest Internet trends. Alphabet stock climbed 0.75% to 730.30 Monday. The stock is down 7% since reporting Q1 earnings on April 21. Facebook On Facebook, the price target is 165, with Mahaney saying the social media company is firing on all cylinders. Facebook stock fell about 1% to 118.67, but it’s up 8% since reporting Q1 earnings on April 27. Facebook is holding above a buy point at 117.09. Amazon The price target on Amazon is 800. Amazon stock edged up 0.1% to 710.68. Still, it’s up 16% since reporting Q1 earnings on April 28. It also is on Swing Trader, but as a long possibility.

Five Top Picks In The Internet Sector With Strongest Fundamentals

The companies with the best fundamentals among large-cap Internet stocks are Facebook ( FB ), Amazon.com ( AMZN ), Netflix ( NFLX ), Alphabet ( GOOGL ) and Priceline ( PCLN ), says RBC Capital Markets. Internet trends for these top five in their respective sectors — online advertising, retail and travel — remain very consistent, with strong revenue growth year over year, RBC said in a research report. Online advertising seems to be flowing en mass to Google-owner Alphabet and Facebook, with the two now accounting for close to 55% of global online advertising revenue, up from 50% three years ago, says the report from RBC analyst Mark Mahaney. And Amazon continues to show dramatically greater-than-average growth in the online retail sector. “We believe online retail demand trends have remained solid, particularly highlighted by Amazon’s retail sales acceleration,” Mahaney wrote. But, he said, “there’s little ad oxygen for the likes of Yahoo ( YHOO ).” Online travel remains a duopoly of Priceline and Expedia ( EXPE ), while it’s increasingly hard to see anyone catching up to Netflix in terms of video-streaming subscribers, he wrote. Though shares of Netflix have continued to decline following Q1’s weak international sub guidance and domestic price change worries, “We view the fundamental global subscriber growth story as intact,” Mahaney said. Mahaney has a price target on Netflix of 140. Netflix stock was trading near 89, up nearly 2%, in afternoon trading in the stock market today . The stock is down 20% since reporting first-quarter earnings on April 18, and it’s on the IBD Swing Trader list as a potential short-sale opportunity. He has a price target on Priceline of 1,600, as growth and profitability trends remain intact. Priceline stock was up a fraction near 1,279 Monday afternoon. Priceline is down 6% since reporting Q1 earnings on May 4. On Alphabet, Mahaney’s price target is 1,000, as it remains one of the best portfolio plays on the biggest Internet trends. Alphabet stock was near 727, up a fraction, Monday afternoon. The stock is down 7% since reporting Q1 earnings on April 21. On Facebook, the price target is 165, with Mahaney saying the social media company is firing on all cylinders. Facebook stock was near 118, down 1%, but it’s up 8% since reporting Q1 earnings on April 27. The price target on Amazon is 800. Amazon stock was flat, near 709. Still, it’s up 16% since reporting Q1 earnings on April 28. It also is on Swing Trader, but as a long possibility.