Mark Mahaney's Take On Facebook And Alibaba Ahead Of Earnings
"This is a high borrowed stock for the quarter. Very different set up than we had with Netflix or Amazon or Google. They probably need to do $0.50, the Street is in there at $0.48."
Mahaney continued, "They’ll probably repeat the guidance they gave last quarter, about 50 to 70 percent OPEX growth for the full year. People are going to wonder where they are spending that on and finally those metrics needs to keep improving, we need to see decent teens, double-digit growth in users and engagement levels keep growing and have to be there."
When asked if Facebook’s stock is ripe for a pullback, Mahaney replied, "No, I don’t think so, I just think there’s not a lot of upside on this particular print, but we like the stock here. It’s not one of our top two picks. I prefer those Amazon and Google, I think those setups somewhere interesting there, but nonetheless we like the stock."
"Baba, I don’t think the bar is as high here,” Mahaney said. “They need to do something close to 50 percent year-over-year GMV growth. The numbers that we all got from the singles day back in November 11th looked very positive. They should be able to print that kind of number."
"The overhang here," he said, "is the lock-up expiration that comes at the end of March. So, it's hard to see a big gap-up in this stock until you get some more of that supply out in the market."
Latest Ratings for BABA
|Sep 2016||Deutsche Bank||Maintains||Buy|
|Sep 2016||Daiwa Capital||Maintains||Buy|
|Aug 2016||JP Morgan||Assumes||Overweight|
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