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TechStock Radar
E-mail: Rob@techstockprospector.com
Technorati
August 2018
Archives
 
Tuesday, August 14, 2018, 10:01 AM — by Rob DeFrancesco, TechStock Radar
Cowen Bullish on NVIDIA

Shares of NVIDIA (NVDA, $260.09) are holding comfortably above the 50-day moving average of $252.63 after rebounding from the July 2 low of $233.26.


Cowen sees a favorable set-up headed into FQ2 (July) results on Thursday, saying well-documented choppiness in the gaming channel will be offset by continued robust datacenter demand and backlog. 


The firm sees little risk to near-term numbers from crypto, as the company de-risked that segment with earlier guidance. Cowen maintains its NVDA price target of $325.

 
Tuesday, August 14, 2018, 9:15 AM — by Rob DeFrancesco, TechStock Radar
Morgan Stanley Lifts Salesforce Target

Morgan Stanley ups its Salesforce (CRM, $144.45) price target to $178 from $153, saying it expects a faster pace of overall revenue growth during the next few years, with secular tailwinds firmly intact.


Unlocking data trapped in legacy systems via the MuleSoft unit brings Salesforce to the forefront of driving digital transformations for its customers, says the firm. Morgan Stanley believes consensus expectations likely underestimate Salesforce’s growth potential and improved track record in M&A.

 
Tuesday, August 14, 2018, 9:05 AM — by Rob DeFrancesco, TechStock Radar
August Issue of TSP Available on Kindle

Download the new issue of Tech-Stock Prospector to your Kindle or Kindle reading app for iOS (iPad & iPhone) and Android. 


Order the latest issue of TSP here.


Here are some of the topics covered in the August 2018 issue:

*The expanding market for eSports

*OTT video content continues to proliferate

*Sports streaming on the Akamai platform

*Electronic Arts sees potential in subscriptions

*Facebook resets expectations

*Accelerated growth at Tableau Software

*HubSpot benefiting from new products

*Small-Cap Focus: Varonis stumbles

*Ultimate Software makes a smart acquisition

*Atlassian partners with Slack in workplace chat


*Apple surprises to the upside

*Why some smart investors like Skyworks 

*Tech Focus: 5G wireless will help drive IoT

*Apptio tracks costs related to cloud computing

*Coupa Software looks to expand internationally

*Deal Report: Cisco buys Duo Security

*Assessing the competitive environment for Okta

*Cornerstone OnDemand could be turning the corner

*Arista Networks beats expectations on cloud demand

*Peripheral opportunities for Intel in networking and IoT

 
Monday, August 13, 2018, 10:09 AM — by Rob DeFrancesco, TechStock Radar
Needham Trims Microchip Target

Needham trims its Microchip Technology (MCHP, $87.55) price target to $120 from $130 as the company clears through roughly $100 million of excess Microsemi inventory, which had been “stuffed” into the channel ahead of the acquisition.


The firm believes Microchip can clear out the excess inventory during the next two quarters. 


More concerning was management’s commentary around tariffs and the possible impact on demand, says Needham. While that situation needs to be monitored, the firm says EPS of $8 in FY’21 still appears to be on track.


For more on Microchip, see TechStock Radar—August 10, 2018.

 
Monday, August 13, 2018, 9:20 AM — by Rob DeFrancesco, TechStock Radar
Piper Bullish on Amazon Ad Business

Piper Jaffray believes that by 2021 advertising operating income will likely exceed income from the AWS unit at Amazon (AMZN, $1,886).


The firm thinks it’s reasonable to assign Amazon’s emerging advertising business a value of $150 billion to $190 billion. 


Piper assumes $8 billion of ad revenue in 2018 doubles to $16 billion by 2020, with margins improving along the way. A “reasonable” operating margin profile for this revenue stream would drive 2020 operating profits of $10 billion to $12 billion, says the firm.


Piper maintains its AMZN price target of $2,100.

 
Friday, August 10, 2018, 10:28 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Splunk

After a successful test of the 200-day moving average around the $95 level at the end of July, Splunk (SPLK, $105.64) shares have rebounded to the 50-day moving average of $106.59. The RSI is rising from 54.9.


There’s short-term resistance at $106.61 and $108.33.

 
Friday, August 10, 2018, 10:16 AM — by Rob DeFrancesco, TechStock Radar
Microchip Dips 12%

On the Microchip Technology (MCHP, $85.67) earnings call last night, CEO Steve Sanghi gave an update on the recently completed acquisition of Microsemi (on May 29), saying it found that “Microsemi management was extremely aggressive in shipping inventory into the distribution channel.”


Microsemi’s distributors had four months of inventory on hand, whereas Microchip’s distributors typically carry just two and a half months inventory. Sanghi said it will take a couple of quarters to work off Microsemi’s excess inventory in the channel.


Microchip shares this morning are down more than 12%.

 
Thursday, August 9, 2018, 10:07 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Electronic Arts

Shares of Electronic Arts (EA, $128.68) are down significantly from the all-time high of $151.26 reached on July 13, but have been holding above the 200-day moving average at $123.76.


There is short-term support at $125.30 and $127.10. Short-term resistance stands at $130.78.

 
Thursday, August 9, 2018, 9:47 AM — by Rob DeFrancesco, TechStock Radar
SailPoint Hits New High

Shares of SailPoint Technologies (SAIL, $28.41), provider of an enterprise identity governance platform, are surging nearly 10% this morning following the release of  strong Q2 results. 


Earlier, the stock hit a new post-IPO high at $29.80. SailPoint went public in November 2017 at $12, with an opening trade at $14.90.


In Q2, total revenue rose 39% to $54.6 million, beating the consensus estimate of $49.9 million. Subscription revenue of $25 million was up 53%, while license revenue of $19.1 million advanced 43%. 


Per-share earnings came in at three cents, five cents above the consensus.


For 2018, SailPoint’s new revenue guidance range is $233 million to $236 million, upwardly revised from the previous guide of $225 million to $229 million.

 
Wednesday, August 8, 2018, 10:47 AM — by Rob DeFrancesco, TechStock Radar
2 Bulls on CyberArk

JP Morgan upgrades CyberArk Software (CYBR, $70.62) to ‘Overweight’ and boosts its price target to $85 from $60 following last night’s release of strong Q2 results. Revenue was up 35% on license revenue growth of 36%.


CyberArk in Q2 experienced healthy demand for its privileged account security solutions across several key verticals and all geographies.


The company should see valuation expansion on the back of four straight quarters of solid top-line results, says JP Morgan. The firm believes CyberArk can post strong revenue growth through 2020.


UBS raises its CYBR price target to $74 from $71, saying the company in Q2 demonstrated broad-based strength, driven by improved sales productivity and a return to consistent execution.


CyberArk shares this morning are up more than 14%. A new 52-week high was reached at $71.25.

 
Wednesday, August 8, 2018, 9:15 AM — by Rob DeFrancesco, TechStock Radar
Cannacord Hikes Twilio Target to $80

Canaccord Genuity raises its Twilio (TWLO, $75.10) price target to $80 from $52 following Q2 results that showed upside on every metric the firm tracks. 


The firm highlights three key bullish points: Twilio turned profitable one quarter earlier than expected, Q3 guidance was well above the consensus and the new Flex cloud contact center application platform is showing solid early traction.


Twilio shares yesterday surged 18.7%. A new all-time high was reached at $77.31.


Since January 2017, Twilio has been a holding in the Tech-Stock Prospector Small-Cap Portfolio, added when the stock was trading at $27.56.

 
Tuesday, August 7, 2018, 10:07 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Facebook

Facebook (FB, $186.95) shares have rallied back above the 200-day moving average of $181.67. The stock is recovering off of the pivot low of $166.56 reached on July 30.


The next upside level to watch is the 50-day moving average, which is trending sideways from $195.27.

 
Tuesday, August 7, 2018, 10:03 AM — by Rob DeFrancesco, TechStock Radar
Twilio Shares Hit New All-Time High

Shares of Twilio (TWLO, $73.05), provider of a cloud communications platform, this morning are up more than 15% after the company last night reported Q2 revenue growth of 54%, sharp acceleration from 48% growth in Q1 and 41% growth in Q4. Per-share earnings of three cents beat the consensus by eight cents. 


Twilio shares this morning hit a new all-time high at $77.31.


Twilio has been a holding in the Tech-Stock Prospector Small-Cap Portfolio since January 2017, added when the stock was trading at $27.56.

 
Monday, August 6, 2018, 9:17 AM — by Rob DeFrancesco, TechStock Radar
Barclays Downgrades Intel

Barclays downgrades Intel (INTC, $49.63) to ‘Equal Weight’ and lowers its price target to $53 from $62 because it believes upside in the shares will be challenging until the company’s margins hit bottom.

 
Monday, August 6, 2018, 9:05 AM — by Rob DeFrancesco, TechStock Radar
Stifel Adds Facebook to Select List

Stifel adds Facebook (FB, $177.78) to its Select List, saying it believes expectations are now at an appropriate level to allow for longer-term outperformance given the material reset that followed the company’s “painful” Q2 update. 


The firm maintains its Facebook price target of $202.

 
Friday, August 3, 2018, 9:58 AM — by Rob DeFrancesco, TechStock Radar
Chart Watch: Intel

After dipping to a low of $46.43 on July 30, Intel (INTC, $49.56) shares have rebounded back above their 200-day moving average at $48.66.


The stock is now in the middle of the late-July gap on the price chart that runs up to $51.87.


The 50-day moving average is trending downward from $52.47.

 
Friday, August 3, 2018, 9:53 AM — by Rob DeFrancesco, TechStock Radar
JP Morgan Remains Bullish on Okta

JP Morgan does not see the Cisco Systems (CSCO, $42.62) acquisition of Duo Security having a major impact on Okta (OKTA, $53.63).


Duo is best known for its multi-factor authentication (MFA), and MFA is only one out of six products offered by Okta, explains the firm.

 
Thursday, August 2, 2018, 10:45 AM — by Rob DeFrancesco, TechStock Radar
MKM Partners Still Bullish on Facebook

MKM Partners reduces its Facebook (FB, $173.23) price target to $230 from $255, but remains bullish on the company, saying the recent pullback in the stock represents a buying opportunity.


The firm admits deceleration in revenue growth is coming sooner than it had thought, but says it knew it would eventually happen, and thinks it’s been reflected in the stock for a long time.


MKM believes Facebook has a near-term potential accelerator in messaging.

 
Thursday, August 2, 2018, 10:16 AM — by Rob DeFrancesco, TechStock Radar
Cisco to Acquire Duo Security


Cisco Systems (CSCO, $41.94) is buying privately held Duo Security—a provider of unified access management and multi-factor authentication solutions delivered via the cloud—for $2.35 billion in cash.


Duo’s zero-trust authentication and access solutions verify user identities and the health of their devices before granting them access to applications.


Duo competes with Okta (OKTA, $51.56), which sports a market cap of $5.5 billion. Okta went public in April 2017 at $17, with an opening trade at $23.75. The post-IPO high of $61 was reached on June 7.


For more on Okta, see the June 2018 issue of Tech-Stock Prospector (TSP #196).

 
Wednesday, August 1, 2018, 10:14 AM — by Rob DeFrancesco, TechStock Radar
Apple Hits New High

Apple (AAPL, $198.25) shares this morning traded to a new all-time high at $199.26 following last night’s strong FQ3 (June) earnings report (revenue up 17%) and solid FQ4 (Sept.) top-line guidance. 


Needham ups its Apple price target to $220 from $210 based on an expanding ecosystem of “subscribers.” The firm’s research indicates that an average iOS consumer stays within the Apple ecosystem for 10 years.


Apple has been a core holding in the Tech-Stock Prospector Vulture Portfolio since May 2013, added when the stock was trading at $61.68.

 
Wednesday, August 1, 2018, 9:53 AM — by Rob DeFrancesco, TechStock Radar
2 Bulls on Tableau

Citi thinks the recent sell-off in Tableau Software (DATA, $105.63) stock provided a good entry point. The firm believes the company is well positioned going into the Q2 earnings report after the close tomorrow.


Deutsche Bank upgrades Tableau to ‘Buy’ with a price target of $120 (up from $105), saying demand remains strong for the company’s data analytics solutions. 


Tableau shares traded to a new 52-week high of $112.42 on July 24. Yesterday’s pivot low was $100.80.

   
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