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October 2015 |
Archives |
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Friday, October 30, 2015, 2:21 PM — by Rob DeFrancesco, TechStock Radar |
Susquehanna Ups LinkedIn PT to $300 |
Susquehanna raises its LinkedIn (LNKD, $244.31) price target to $300 from $270, saying it has increased confidence that there is earnings upside based on improved execution in the core Talent Solutions unit and signs that newer growth drivers (such as Sponsored Updates and Sales Navigator) are starting to kick in.
LinkedIn is a holding in the Tech-Stock Prospector Vulture Portfolio.
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Friday, October 30, 2015, 11:22 AM — by Rob DeFrancesco, TechStock Radar |
Imperva Shares Surge 18%; Topeka Upgrades |
Topeka Capital upgrades Imperva (IMPV, $71.93) to ‘Buy’ and boosts its price target to $80 from $67 following last night’s strong Q3 results.
In the latest quarter, the provider of database and Web application security solutions delivered revenue growth of 48%, powered by product revenue growth of 55%. Subscription revenue (19% of total revenue) surged 93% thanks to solid growth in the cloud security services unit.
The firm believes Imperva over the next few years is capable of driving 25%+ revenue growth combined with significant operating leverage.
Imperva shares today are up more than 18%.
Imperva is a holding in the Tech-Stock Prospector Small-Cap Portfolio. |
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Friday, October 30, 2015, 10:03 AM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Palo Alto Networks |
Following the 21% drop from the September high of $189.72 to Tuesday’s low of $150.21, Palo Alto Networks (PANW, $160.56) shares have rallied a bit and are back above the 200-day moving average of $160.19.
The all-time high of $200.55 was reached in July. |
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Friday, October 30, 2015, 9:01 AM — by Rob DeFrancesco, TechStock Radar |
Sterne Agee CRT Upgrades LinkedIn |
Sterne Agee CRT upgrades LinkedIn (LNKD, $241.80 pre market, +11.4%) to ‘Buy’ with a price target of $300 following last night’s excellent Q3 report. Upside momentum is returning to the core Talent Solutions unit. The firm notes Q4 revenue guidance was ahead of expectations and could still be conservative. |
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Thursday, October 29, 2015, 4:50 PM — by Rob DeFrancesco, TechStock Radar |
LinkedIn Reports Strong Q3 Results |
Shares of LinkedIn (LNKD, $239.81 after hours, +10.5%) are up more than 10% in after-hours trading following the release of strong Q3 numbers and upbeat Q4 guidance.
In Q3, EPS of 78 cents topped the consensus estimate by 32 cents. Revenue rose 37% to $779.6 million, well above the consensus of $755.6 million. Talent Solutions revenue (64% of total revenue) advanced 46% to $502 million, with Hiring contributing $461 million (+34% y/y).
For Q4, the company sees EPS of 74 cents (above the consensus of 67 cents) on revenue of $845 million to $850 million, vs. the consensus of $845.9 million. |
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Thursday, October 29, 2015, 11:34 AM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Apple |
After yesterday’s gain of 4.1%, Apple (AAPL, $118.76) shares have paused, hitting resistance at $119.30. The stock is sitting just below the 200-day moving average of $121, the next key upside level to watch. |
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Thursday, October 29, 2015, 9:09 AM — by Rob DeFrancesco, TechStock Radar |
PayPal Delivers Mixed Q3 Results |
PayPal (PYPL, $34.55 pre market, -5.4%) last night released its first earnings report since the spin-out from eBay (EBAY).
In Q3, revenue rose 14% to $2.26 billion, coming in just shy of the consensus estimate of $2.27 billion. EPS of 31 cents topped the consensus by two cents.
Total payment volume (TPV) of $69.7 billion rose 20% (+27% adjusted for FX). The number of mobile payment transactions processed rose 38%.
PayPal reiterated its 2015 EPS guidance range of $1.23 to $1.27.
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Wednesday, October 28, 2015, 4:29 PM — by Rob DeFrancesco, TechStock Radar |
A New All-Time High for Ultimate |
Shares of Ultimate Software (ULTI, $202.82) today rose 7.1% and hit an all-time high of $209.60 after the provider of cloud-based HCM solutions issued a 2016 revenue growth outlook of 23%, above the consensus estimate of +21.6%.
In Q3, Ultimate’s revenue rose 22%, driven by 23% growth in recurring revenue. |
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Wednesday, October 28, 2015, 12:03 PM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Gigamon |
Shares of Gigamon (GIMO, $27.83) today are up more than 5%. The stock consolidated for a couple sessions after last Friday’s one-day pop of 21.5% following the release of strong Q3 results and bullish Q4 guidance.
The 200-day moving average is trending upward from $25.11. The RSI is up to 71.7. Friday’s high of $28.50 is the upside level to watch.
Gigamon, a provider of network visibility solutions, is a holding in the Tech-Stock Prospector Small-Cap Portfolio.
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Wednesday, October 28, 2015, 11:04 AM — by Rob DeFrancesco, TechStock Radar |
Roth Negative on Yelp |
Roth Capital initiates Yelp (YELP, $22.37) at ‘Sell’ with a price target of $17.50 based on stepped-up competition in local search from the Google unit of Alphabet (GOOGL) and Facebook (FB).
The firm says these aggressive moves by two Internet giants indicate low barriers to entry when it comes to Yelp’s core reviews business. |
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Wednesday, October 28, 2015, 10:04 AM — by Rob DeFrancesco, TechStock Radar |
JP Morgan Remains Positive on Twitter |
JP Morgan reduces its Twitter (TWTR, $28.33) price target to $46 from $50, but maintains its ‘Overweight’ rating, saying positive changes (product, leadership and overall strategy) are accelerating. The firm believes the Q4 outlook could be conservative. |
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Wednesday, October 28, 2015, 9:02 AM — by Rob DeFrancesco, TechStock Radar |
RBC Capital Cuts Twitter Target |
RBC Capital reduces its Twitter (TWTR, $27.90 pre market, -10.7%) price target to $34 from $41 after last night’s Q3 report, which showed meager MAU growth. The firm says user growth is vanishing and engagement trends are uncertain.
Total MAUs of 320 million (+1.2% sequentially) missed the consensus of 321 million. Core MAUs (ex SMS Fast Followers) were up just 3 million sequentially to 307 million. U.S. MAUs were flat sequentially at 66 million.
While the company reported better-than-expected revenue/EPS results for the September quarter, guidance was weak. For Q4, the company sees revenue of $695 million to $710 million, below the consensus of $739.7 million.
In Q3, EPS of 10 cents topped the consensus by five cents, while revenue rose 57% to $569 million, above the consensus of $559.6 million.
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Tuesday, October 27, 2015, 3:15 PM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: ServiceNow |
Shares of ServiceNow (NOW, $80.04) have pushed above the $80 level for the first time since the the beginning of August. The RSI is up to 64.7. The 200-day moving average is trending upward from $75.46. The all-time high of $83.52 was reached in April. |
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Tuesday, October 27, 2015, 9:02 AM — by Rob DeFrancesco, TechStock Radar |
Drexel Hamilton Upgrades VMware |
Drexel Hamilton upgrades VMware (VMW, $59.74) to ‘Buy’ with a price target of $73 based on valuation.
While the stock has bounced back from its October 21 low of $52.72, it remains well below the early October high of $82.03.
The forward P/E on the 2015 consensus EPS estimate of $4.06 is 14.7. |
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Monday, October 26, 2015, 12:08 PM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Proofpoint |
In the security sector, Proofpoint (PFPT, $64.37) shares are sporting a high RSI of 59.3. The stock is back to the September highs after last week’s sharp earnings-related rebound.
There is short-term resistance at $65.63, with additional resistance at $67.40 from August. The 200-day moving average continues to trend upward from $58.80. |
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Monday, October 26, 2015, 10:20 AM — by Rob DeFrancesco, TechStock Radar |
Goldman Upbeat on PayPal |
Goldman Sachs adds PayPal (PYPL, $35.61) to its ‘Conviction Buy’ list, saying the company’s growth outlook could be conservative based on large merchant TPV growth and positive trends at the Braintree payments unit. The firm maintains its price target of $45. |
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Monday, October 26, 2015, 9:21 AM — by Rob DeFrancesco, TechStock Radar |
Needham Bullish on Ultimate Software |
Needham is upbeat on Ultimate Software (ULTI, $195.31), saying the company is well-positioned to benefit from strong HCM/payroll demand trends, particularly with respect to mid-market customers increasingly moving to cloud-based software.
The firm points out some key growth areas in HR/HCM: compliance, ACA reporting, pre-hire activities for background testing, learning management and video recruiting. |
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Friday, October 23, 2015, 12:28 PM — by Rob DeFrancesco, TechStock Radar |
New Highs for Facebook & Alphabet |
Shares of Facebook (FB, $101.69) today hit an all-time high of $102.15, while Alphabet (GOOGL, $732) traded to a record high of $752.50.
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Friday, October 23, 2015, 9:02 AM — by Rob DeFrancesco, TechStock Radar |
Jefferies Ups Alphabet Target to $900 |
Jefferies boosts its Alphabet (GOOGL, $751.17 pre market, +10.2%) price target to $900 from $800 following last night’s solid Q3 results, calling out mobile search as the key positive.
The firm says online video is the biggest online ad growth driver, with YouTube the premier vehicle to play that trend.
Alphabet shares are up 10% in pre-market trading.
Alphabet (Google) has been a core holding in the Tech-Stock Prospector Vulture Portfolio since May 2010.
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Thursday, October 22, 2015, 5:40 PM — by Rob DeFrancesco, TechStock Radar |
Alphabet Delivers Solid Q3 Results |
Shares of Alphabet (GOOGL, $745 after hours, +9.3%) are up more than 9% in after-hours trading following the release of solid Q3 results: EPS of $7.35 beat the consensus estimate by 14 cents on revenue of $18.68 billion (+13% y/y), above the consensus of $18.5 billion.
The company called out growth in mobile search revenue, along with contributions from YouTube and programmatic advertising.
Paid clicks rose 23% (acceleration from +18% in Q2), while CPC declined 11%.
The company in Q4 will begin a Class C share repurchase program totaling $5.1 billion.
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Thursday, October 22, 2015, 12:04 PM — by Rob DeFrancesco, TechStock Radar |
RBC Capital Hikes Ultimate PT to $200 |
RBC Capital raises its Ultimate Software (ULTI, $189.12) price target to $200 from $190 based on the positive demand environment in the integrated HCM/payroll space.
The firm looks for solid 2016 guidance, citing recent strength in bookings. For 2016, the consensus revenue estimate of $750.1 million represents growth of 21.6%.
On the earnings side, the 2016 consensus EPS estimate of $3.08 indicates growth accelerating to 23.6% from +18% expected for 2015.
Ultimate shares are not far from their all-time high of $195.18 reached in August.
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Thursday, October 22, 2015, 10:33 AM — by Rob DeFrancesco, TechStock Radar |
Earnings Winner: Proofpoint Jumps 14% |
Shares of Proofpoint (PFPT, $63.29) are surging 14% after the provider of cybersecurity solutions last night delivered strong Q3 results, raised 2015 revenue guidance and issued a bullish first look at 2016.
Revenue in Q3 advanced 37%, driven by growth of 43% in protection & privacy. The TAP advanced malware business once again showed growth of 100%+.
For 2016, the company sees revenue growth of 29% to 30%, above the consensus estimate of +27%.
Proofpoint is a holding in the Tech-Stock Prospector Small-Cap Portfolio. |
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Thursday, October 22, 2015, 9:01 AM — by Rob DeFrancesco, TechStock Radar |
OpCo Downgrades VMware |
OpCo downgrades VMware (VMW, $55.38) to ‘Perform’ based on secular and competitive headwinds causing the vSphere virtualization business to go into decline.
Also, the firm believes the newly announced Virtustream cloud services joint venture with EMC (EMC) could weigh on VMware’s financial results for years.
Virtustream (50/50 owned by VMware and EMC) will be focused on the hybrid cloud—bringing together vCloud Air, Virtustream, object storage and managed cloud services. The transaction, expected to close early next year, will involve Virtustream’s results being consolidated into VMware’s financials starting in Q1’16.
VMware shares yesterday fell 19% on concerns about slowing core growth along with questions about the Virtustream JV and its drag on earnings. The cloud services business in general is highly competitive and offers lowers margins.
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Wednesday, October 21, 2015, 12:04 PM — by Rob DeFrancesco, TechStock Radar |
SanDisk to be Acquired by Western Digital |
SanDisk (SNDK, $77.09) will be bought by Western Digital (WDC, $75.22) for $86.50 a share in a deal worth roughly $19 billion in cash and stock.
Western Digital sees annual run-rate synergies of $500 million within 18 months of the deal’s closing, which is expected in calendar Q3 2016.
For more on SanDisk, see TechStock Radar—October 20, 2015. |
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Wednesday, October 21, 2015, 11:01 AM — by Rob DeFrancesco, TechStock Radar |
Morgan Stanley Downgrades Twitter |
Morgan Stanley downgrades Twitter (TWTR, $29.11) to ‘Underweight’ with a price target of $24 (down from $36) based on limited user growth, declining engagement, rising ad competition and weak incremental demand from advertisers.
For 2016, the firm sees revenue of $2.94 billion, well below the consensus estimate of $3.23 billion.
Twitter shares today are down 5.8%. |
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Wednesday, October 21, 2015, 10:11 AM — by Rob DeFrancesco, TechStock Radar |
SolarWinds Going Private |
SolarWinds (SWI, $58.50) shares today are up more than 16% on news the company will be taken private by Silver Lake Partners and Thoma Bravo at $60.10 a share in a $4.5-billion cash deal. The transaction is expected to close in Q1 2016.
In July, SolarWinds shares hit a 52-week low of $35.
We were optimistic about SolarWinds’ ability to integrate its various acquisitions and sell more bundled offerings when we profiled the company in the February 2015 issue of Tech-Stock Prospector (TSP #156).
For more on SolarWinds, see TechStock Radar—October 9, 2015. |
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Wednesday, October 21, 2015, 9:07 AM — by Rob DeFrancesco, TechStock Radar |
JP Morgan Remains Bullish on GoPro |
JP Morgan believes the recent sharp sell-off in GoPro (GPRO, $30.31) shares has been overdone, saying the market is underestimating the company’s long-term growth prospects. Future catalysts include the drone launch in Q1 and the introduction of virtual reality applications.
Last week, GoPro shares traded to a new low of $26.68, down nearly 70% from the 52-week high.
The stock now trades at 17.9 times the 2015 consensus EPS estimate of $1.69. On the 2016 consensus of $1.96, the P/E is 15.5 (below the expected growth rate of 15.9%). |
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Tuesday, October 20, 2015, 4:31 PM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Apple |
Shares of Apple (AAPL, $113.77) today showed relative strength, rising 1.8% in a weak session for the overall market.
The stock closed back above its 50-day moving average (at $112.15) for the first time since July. |
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Tuesday, October 20, 2015, 12:35 PM — by Rob DeFrancesco, TechStock Radar |
SanDisk Advances on Takeover Chatter |
Shares of SanDisk (SNDK, $76.83) today are up more than 6% on continued takeover chatter.
Bloomberg reports the maker of flash memory chips is in advanced talks to be bought by Western Digital (WDC), the leading provider of hard disk drives. SanDisk would give Western Digital a bigger presence in the faster-growing ~$14-billion solid state drive (SSD) market.
JP Morgan says a WDC/SNDK combination would control about 28% of the enterprise flash SSD segment. It would be the #1 supplier in the $6-billion enterprise portion of the SSD market, which is expected to expand at a 20%+ CAGR through 2019.
Bloomberg sources say Western Digital is thinking about doing an all-cash offer, with a possible buyout range of $80 to $90 a share. The report cautions that talks could still fall apart.
SanDisk shares hit a 52-week low of $44.28 on August 24.
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Tuesday, October 20, 2015, 11:03 AM — by Rob DeFrancesco, TechStock Radar |
Fitbit Shares Rally 6% |
Fitbit (FIT, $39.67) shares today are rallying more than 6% after Morgan Stanley reiterated its $58 price target and said it has increased confidence in its bull-case target of $79.
The firm believes Fitbit’s opportunity in the enterprise is just getting started. With more employers these days expanding their health programs and willing to subsidize fitness trackers for their workers, Fitbit is a natural beneficiary. The firm says Fitbit is already seeing encouraging adoption rates across the enterprise market. |
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Tuesday, October 20, 2015, 9:05 AM — by Rob DeFrancesco, TechStock Radar |
Jefferies Lifts Facebook Target |
Jefferies raises its Facebook (FB, $98.47) price target to $130 from $120 based on growth prospects for Instagram and video ads.
The firm sees Instagram contributing 2016 revenue of $531 million, going to $1.4 billion in 2017.
Within two years, video ads could become a multi-billion dollar business for Facebook thanks to TV budgets increasingly shifting online, says Jefferies.
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Monday, October 19, 2015, 4:09 PM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Intel |
Intel (INTC, $33.59) shares finished today with a gain of 1.6%. Since the September 24 low of $27.87, the stock has advanced 20.5%. The RSI is up to 76.1.
If the positive action continues over the near term, traders will be watching resistance at $34.75 from May 29.
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Monday, October 19, 2015, 11:21 AM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Tableau |
Shares of Tableau Software (DATA, $88.53) pushed through short-term resistance at $87.50 and are approaching the 50-day moving average at $91.15. The RSI is rising from 54.5.
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Monday, October 19, 2015, 10:04 AM — by Rob DeFrancesco, TechStock Radar |
Pacific Crest Downgrades Oracle |
Pacific Crest downgrades Oracle (ORCL, $36.72) to ‘Sector Weight,’ saying the software giant will see more disruptions to new license and maintenance revenue as it continues to transition to the cloud.
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Friday, October 16, 2015, 1:27 PM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Workday |
Shares of Workday (WDAY, $78.17) are trying to make it back above this week’s high of $78.62.
After that, the next upside level to watch is the 200-day moving average at $81.87.
The stock has quickly rebounded 17% from the September 30 low of $66.36.
For more on Workday, see our latest update in the October 2015 issue of Tech-Stock Prospector (TSP #164). Order the latest issue here for download to your Kindle or Kindle reading app for iOS (iPhone & iPad) and Android.
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Friday, October 16, 2015, 11:09 AM — by Rob DeFrancesco, TechStock Radar |
A New High for Paycom |
Shares of Paycom (PAYC, $41.95), a provider of cloud-based HCM solutions, this morning hit an all-time high at $42.50.
For our latest update on Paycom, Tech-Stock Prospector subscribers should see the September 2015 issue (TSP #163).
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Friday, October 16, 2015, 9:10 AM — by Rob DeFrancesco, TechStock Radar |
DA Davidson Bullish on FireEye |
DA Davidson starts FireEye (FEYE, $29.92) at ‘Buy’ with a price target of $51 based on various catalysts over the next several months—including potential product growth re-acceleration, continued traction of the endpoint solution, stronger ties with strategic partners and demonstrable progress with operating leverage.
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Thursday, October 15, 2015, 4:18 PM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Facebook |
Shares of Facebook (FB, $95.96) continue to rebound and are nearing the September high of $96.49. The RSI is rising from 60.7. There is additional resistance at $98.74 from August. |
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Thursday, October 15, 2015, 11:04 AM — by Rob DeFrancesco, TechStock Radar |
Barclays Bullish on Nimble Storage |
Barclays starts Nimble Storage (NMBL, $23.94) at ‘Overweight’ with with a price target of $30 based on the company’s growth potential in next-generation storage.
For fiscal 2016 (Jan.), the consensus revenue estimate of $338.1 million indicates growth of 48.5%.
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Thursday, October 15, 2015, 10:07 AM — by Rob DeFrancesco, TechStock Radar |
SanDisk on the Rebound |
Shares of SanDisk (SNDK, $70.45) have been rallying following a Bloomberg report late Tuesday that the chipmaker is exploring a possible sale.
In the April 2015 issue of Tech-Stock Prospector (TSP #158), we said SanDisk stock—then trading around $67.25—had downside risk to the $50 to $55 range.
On August 24, SanDisk hit a 52-week low of $44.28. The shares have since rebounded 59% off of that level. |
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Thursday, October 15, 2015, 9:05 AM — by Rob DeFrancesco, TechStock Radar |
Argus Upgrades Facebook |
Argus upgrades Facebook (FB, $94.07) to ‘Buy’ with a price target of $115 based on the company’s success in mobile and increased monetization across its social media properties. |
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Wednesday, October 14, 2015, 11:44 AM — by Rob DeFrancesco, TechStock Radar |
Piper Jaffray Positive on HomeAway |
Piper Jaffray is positive on HomeAway (AWAY, $28.35) for 2016, saying a pricing catalyst is approaching for the online vacation rentals marketplace. Guest booking fees or a subscription price increase could drive revenue growth next year above expectations, says the firm. Piper maintains its price target of $39. |
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Wednesday, October 14, 2015, 10:02 AM — by Rob DeFrancesco, TechStock Radar |
JMP Downgrades Twitter |
JMP Securities downgrades Twitter (TWTR, $29.18) to ‘Market Perform’ based on limited visibility in terms of engagement growth. The firm sees lagging engagement expansion causing a negative impact to longer-term monetization. |
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Wednesday, October 14, 2015, 9:09 AM — by Rob DeFrancesco, TechStock Radar |
TripAdvisor Shares Jump on Priceline Partnership |
Shares of TripAdvisor (TRIP, $82.50 pre market, +23.7%) this morning are up more than 23% in pre-market trading after the company announces a strategic partnership with Priceline (PCLN, $1,345) involving participation in the instant booking platform.
Within Priceline, Booking.com will be the first brand to implement the partnership.
Instant Booking will enable travelers to see Booking.com-branded hotel listings and simply click on the “Book Now’ button to book on TripAdvisor directly.
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Tuesday, October 13, 2015, 4:07 PM — by Rob DeFrancesco, TechStock Radar |
Intel Reports Solid Q3 Results |
Intel (INTC, $32.04) reports Q3 EPS of 63 cents, five cents above the consensus estimate, on revenue of $14.47 billion, vs. the consensus of $14.22 billion.
For Q4, the company expects revenue of $14.3 billion to $15.3 billion, vs. the consensus of $14.83 billion. |
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Tuesday, October 13, 2015, 11:37 AM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Salesforce |
Shares of Salesforce (CRM, $77.85) have advanced 15% off of the September 29 low of $67.71. The RSI is rising from 68.1. Both the 50-day and 200-day moving averages are trending upward.
The all-time high (from April) stands at $78.46. |
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Tuesday, October 13, 2015, 9:03 AM — by Rob DeFrancesco, TechStock Radar |
Job Cuts at Twitter |
Twitter (TWTR, $28.74) will lay off as many as 336 employees, representing about 8% of the workforce.
For Q3, the company says revenue will come in at or above the high end of the previous guidance range of $545 million to $560 million. The consensus estimate is $559.1 million. |
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Monday, October 12, 2015, 4:32 PM — by Rob DeFrancesco, TechStock Radar |
VMware Hits New 52-Week Low |
Shares of VMware (VMW, $72.28) today closed down 8.1% on heavy volume.
Concerns about decelerating growth in license revenue and uncertainty over how the company will fare as part of Dell are behind the sharp drop.
The stock, well off its 52-week high of $93.43, today hit a fresh 52-week low at $69.75. |
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Monday, October 12, 2015, 11:05 AM — by Rob DeFrancesco, TechStock Radar |
Mizuho Downgrades VMware |
Mizuho Securities downgrades VMware (VMW, $71.24) to ‘Neutral’ and lowers its price target to $75 from $95, saying the company’s ownership by Dell could negatively impact its relationships with other hardware/services vendors that have been critical to its success.
The firm also sees a higher risk for headwinds as VMware transitions to more subscription sales.
VMware shares this morning are down 9.4%. Earlier, the stock hit a new 52-week low of $70.25. |
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Monday, October 12, 2015, 9:06 AM — by Rob DeFrancesco, TechStock Radar |
Dell to Acquire EMC |
Dell announces it will buy EMC (EMC, $27.87) in a deal worth approximately $67 billion. It’s the largest enterprise tech acquisition in history.
EMC shareholders will receive $24.05 a share in cash along with a tracking stock linked to a portion of EMC’s interest in VMware (VMW, $78.66), which will remain publicly traded.
EMC shareholders are to receive 0.111 shares of the new tracking stock for each EMC share. At VMware’s Friday close of $78.66, the tracking stock would be valued at $8.73, giving the entire deal a value of $32.78 a share.
There is a 60 day go-shop period for EMC.
The transaction is expected to close sometime between May and October of next year.
EMC is a long-time holding in the Tech-Stock Prospector Vulture Portfolio.
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Friday, October 9, 2015, 4:31 PM — by Rob DeFrancesco, TechStock Radar |
More EMC Buyout Speculation |
There are various reports circulating about a potential Dell-for-EMC (EMC, $27.87) deal.
Some are speculating the buyout could come in around $27.25 a share, while others see a bid of $30 or more. It’s likely that a VMware (VMW, $78.65) tracking stock would be part of the mix, as EMC owns 80% of the provider of virtualization infrastructure solutions.
Right now, there is nothing concrete to report. Dell is said to be working on putting together the complex financing package needed to get the deal done. We may know more as early as next week.
EMC is a long-time holding in the Tech-Stock Prospector Vulture Portfolio.
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Friday, October 9, 2015, 12:03 PM — by Rob DeFrancesco, TechStock Radar |
SolarWinds Jumps on Potential Deal |
Shares of SolarWinds (SWI, $47.01) today are up more than 12% on heavy volume after the company issued a statement saying its board of directors, in response to an unsolicited expression of interest from a third party, has commenced a review of its strategic alternatives, retaining JP Morgan as its financial advisor.
SolarWinds, a provider of infrastructure solutions covering network and application performance management, cautions that no decision has been made to enter into any transaction at this time, and that there can be no assurance any deal will occur.
With today’s gain, the market cap is up to $3.6 billion. For 2015, the consensus revenue estimate of $506.5 million represents growth of 18.2%.
Earlier, the stock popped after Reuters reported the company is in talks with several private equity firms about a potential leveraged buyout.
For more on SolarWinds, Tech-Stock Prospector subscribers should see the February 2015 issue (TSP #156). |
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Friday, October 9, 2015, 11:31 AM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Twitter |
Twitter (TWTR, $31.04) shares have rebounded 27.5% from the October 2 low of $24.34. The stock is pushing off of the 50-day moving average of $27.55.
There is resistance at $36.75 from July. The 200-day moving average stands at $37.90. |
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Friday, October 9, 2015, 9:03 AM — by Rob DeFrancesco, TechStock Radar |
Leerink: Fitbit Sell-Off Overdone |
Leerink Partners believes the sell-off in Fitbit (FIT, $34.57) shares this week following the launch of Microsoft's Band 2 has been overdone. The stock is down 11% from Monday's high of $38.97.
The firm doesn’t think Band 2, which is positioned as a direct competitor to Fitbit’s Surge, will take substantial share.
Leerink looks for Fitbit to maintain its market leadership position in the face of intensifying competition in the fitness wearables space.
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Thursday, October 8, 2015, 4:26 PM — by Rob DeFrancesco, TechStock Radar |
Netflix Shares +6% on Price Increase |
Netflix (NFLX, $114.93) shares got a boost after the company announced a $1 increase to $9.99 a month for its most popular Standard streaming subscription plan.
The stock today closed up 6.3% on heavy volume.
On a technical basis, Netflix shares are back above the 50-day moving average of $109.20. There is resistance from August at $119.35. |
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Thursday, October 8, 2015, 12:05 PM — by Rob DeFrancesco, TechStock Radar |
GoPro Slumps on Downgrade |
GoPro (GPRO, $27.55) shares today are down 6% after Cleveland Research reduces its rating to ‘Neutral’ based on softness in action camera shipments and a lack of near-term positive catalysts. The firm sees risk to guidance. |
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Thursday, October 8, 2015, 11:03 AM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Marketo |
Shares of Marketo (MKTO, $32.47), a provider of cloud-based marketing automation solutions, have pushed through short-term resistance. A move to $33.25 would fill the gap on the chart from February.
From its July low of $23.17, the stock has rebounded 40%.
The 52-week high stands at $35.63 from February 10. |
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Thursday, October 8, 2015, 9:10 AM — by Rob DeFrancesco, TechStock Radar |
Needham Bullish on EMC |
Needham reiterates its EMC (EMC, $25.96) price target of $30, saying media reports of a possible merger with privately held Dell do not change its bullish view on the storage vendor on a standalone basis.
The firm sees upside in the stock if a deal is consummated (in whole or in part) or if no deal occurs and instead a buyback/dividend increase is announced. “Zero action is extremely unlikely at this juncture,” says Needham.
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Wednesday, October 7, 2015, 10:04 AM — by Rob DeFrancesco, TechStock Radar |
Morgan Stanley Cuts GoPro Price Target |
Morgan Stanley reduces its GoPro (GPRO, $29.35) price target to $35 from $62 based on disappointing demand for the HERO4 Session product.
The firm says GoPro will remain a niche alternative to smartphone videos.
GoPro shares this morning are down more than 4%. |
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Wednesday, October 7, 2015, 9:03 AM — by Rob DeFrancesco, TechStock Radar |
BofA/Merrill Remains Positive on FireEye |
BofA/Merrill lowers its FireEye (FEYE, $31.18) price target to $50 from $60, but reiterates its ‘Buy’ rating, saying the investment case for the stock is compelling at these levels for several reasons:
1-A pure-play way to gain exposure to some of the fastest growing security segments
2-Improving operating margins
3-A high degree of recurring revenue
4-An extensive product portfolio that expands the TAM
Going into Q3 earnings season, the firm highlights FireEye’s high exposure to public spending (15% to 20% of revenue), where it expects solid demand trends following recent breaches. |
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Tuesday, October 6, 2015, 3:35 PM — by Rob DeFrancesco, TechStock Radar |
An Activist Investor for GrubHub |
Pelham Capital has filed a 13D on GrubHub (GRUB, $27.48). The money manager owns 4.4 million shares, representing a 5.2% stake.
The activist investor says it has engaged in and expects to continue to engage in dialogue with GrubHub IR and management.
As of Q2, T. Rowe Price was the #1 holder of GrubHub, with 11.23 million shares.
GrubHub shares are down 42% from the 52-week high of $47.95 on concerns about increased competition in the restaurant pick-up & delivery segment. Last week, the stock hit a 52-week low of $23.53. |
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Tuesday, October 6, 2015, 12:11 PM — by Rob DeFrancesco, TechStock Radar |
Skyworks Dips |
Following the announcement of the PMC-Sierra (PMCS) acquisition, shares of Skyworks Solutions (SWKS, $75.24) today are down 8% on heavy volume.
The August 24 low stands at $70.80. |
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Tuesday, October 6, 2015, 9:02 AM — by Rob DeFrancesco, TechStock Radar |
Skyworks to Acquire PMC-Sierra |
Chipmaker Skyworks Solutions (SWKS, $81.87) is buying PMC-Sierra (PMCS, $7.69)—a provider of semiconductor and software solutions for storage, optical and mobile networks—for $2 billion in cash.
The buyout price of $10.50 a share is a 36.5% premium to last night’s close.
The deal is expected to close in the first half of 2016 and result in annual cost synergies totaling $75 million within 12 months. Skyworks looks for 75 cents of incremental EPS on an annual basis.
Skyworks says it will have annual revenue of more than $4 billion and gross margin in the 55% range upon completion of the acquisition.
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Monday, October 5, 2015, 4:57 PM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Cisco |
Shares of Cisco Systems (CSCO, $26.85) today rose 4.2% on active volume and closed above the 50-day moving average of $26.52 after failing to do so during the early September rebound. The RSI is rising from 59.9.
The 200-day moving average is trending sideways from $27.47. There is resistance at the August high of $29.21.
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Monday, October 5, 2015, 11:08 AM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: F5 Networks |
Rallying off of the September low of $111.43, shares of F5 Networks (FFIV, $121.96) have retaken the 200-day moving average at $121.58. The RSI is rising from 58.1.
There is short-term resistance at $123.22. The 50-day moving average stands at $123.46. |
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Monday, October 5, 2015, 9:03 AM — by Rob DeFrancesco, TechStock Radar |
Piper Jaffray Remains Bullish on EA |
Piper Jaffray reiterates its Electronic Arts (EA, $66.49) price target of $86, saying the stock should be bought on any “sell the news” reaction to the upcoming Star Wars: Battlefront title launch on November 17.
EA is expected to benefit from continued growth of the hardware installed base via a strong pipeline of games through the remainder of this year and into mid-to-late 2016, says the firm.
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Friday, October 2, 2015, 4:28 PM — by Rob DeFrancesco, TechStock Radar |
Google Becomes Alphabet |
Alphabet is here. The core Google (GOOGL, $656.99) division (made up of search, Android and YouTube) is now a subsidiary of the Alphabet holding company.
Google’s more experimental growth projects have been separated from the main business.
Alphabet Class A common shares begin trading Monday under the GOOGL symbol.
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Friday, October 2, 2015, 3:08 PM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: CyberArk |
Shares of CyberArk Software (CYBR, $52.79) are on the rebound from this week’s low of $47.35 and are approaching the 50-day moving average at $53.35. The RSI is rising from 55.
The 200-day moving average is trending upward from $54.59. There’s short-term resistance at $54.74. |
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Friday, October 2, 2015, 10:22 AM — by Rob DeFrancesco, TechStock Radar |
Chart Watch: Mobileye |
Shares of Mobileye (MBLY, $47.27) rebounded off of the September 28 low of $41.63—a successful test of the September 11 low of $41.08—and are now back above the 200-day moving average of $47.
There is short-term resistance around $49.60. |
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Friday, October 2, 2015, 9:03 AM — by Rob DeFrancesco, TechStock Radar |
OpCo Upgrades Google |
OpCo upgrades Google (GOOGL, $642) to ‘Outperform’ with a price target of $700 based on valuation. The firm increases its price target by $30 because of positive changes in its sum-of-the-parts analysis.
OpCo is particularly upbeat on YouTube, pointing out usage is accelerating. The service is growing at the fastest rate in more than two years, according to the firm.
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Thursday, October 1, 2015, 4:28 PM — by Rob DeFrancesco, TechStock Radar |
Twitter Drops 8% on CEO Concerns |
Twitter (TWTR, $24.67) shares today fell 8.4% on heavy volume because of concerns that cofounder Jack Dorsey, also CEO of payment processor Square, will be named permanent CEO.
The bears argue Twitter needs a focused CEO to help jumpstart consumer engagement and user growth, not one running two companies.
With Square preparing an IPO for sometime in Q4, investors worry Dorsey may be spread too thin to effectively manage Twitter.
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Thursday, October 1, 2015, 11:22 AM — by Rob DeFrancesco, TechStock Radar |
Citi Bullish on Skyworks |
Citi starts chipmaker Skyworks Solutions (SWKS, $81.66) at ‘Buy’ with a price target of $115, saying new market opportunities in IoT connectivity (connected home, machine to machine, wearables) and automotive (infotainment, in-cabin connectivity, vehicle control) are expected to drive a 20%+ CAGR over the next two to three years.
Skyworks is best-positioned among the RF players to take advantage of opportunities across the Internet of Things semiconductor market, says Citi. The firm predicts a 29% CAGR for the segment through 2017. |
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Thursday, October 1, 2015, 10:01 AM — by Rob DeFrancesco, TechStock Radar |
Stephens Upgrades Workday |
Stephens upgrades Workday (WDAY, $69.74) to ‘Overweight’ with a price target of $85, saying management at the user conference this week had a more positive tone, particularly related to upside potential for the Financials segment.
The firm believes there is a higher likelihood that Workday over the coming quarters scores multiple large deals for its Financials offering. |