Baird: Internet Stocks 'On Track' This Earnings Season

Analysts at Baird released a report this week providing their take on the most recent data for many large Internet stocks. Overall, trends in search and e-commerce are mixed, while social media is demonstrating relative strength.
Based on their data analysis, analysts expect in-line Q1 results for many Internet names, but they see upside to social media earnings.

Facebook Inc FB
According to the report, Facebook’s share of programmatic display increased by 46 percent year-over-year (Y/Y) and pricing trends are positive. Analysts expect a slight earnings beat from Facebook, but note that expectations are high.

Google Inc GOOG GOOGL
Analysts are predicting in-line earnings from Google and note “mixed trends” in click volume and cost per click (CPC) numbers.

Amazon.com Inc AMZN
Analysts call Amazon “the best e-commerce game in town” and highlight Amazon’s same-store sales grown of greater than 22 percent in each of the first three months of 2015. Baird’s Q1 Inventory Survey indicated acceleration in unit growth and Prime revenue, but other third-party sources have suggested slowing Y/Y e-commerce growth. Baird predicts in-line Q1 results.

eBay Inc EBAY
According to Baird’s monthly marketplace tracker, the first half of 2015 has been “challenging” for eBay. However, analysts believe that trends will improve later in the year.

Other names
While Baird mostly prefers large-cap names, analysts are also slightly bullish on Twitter Inc TWTR, Yelp Inc YELP and Xoom Corp XOOM. Analysts are calling for “in-line to slightly better” Q1 numbers from the three names.

In addition, analysts expect in-line results from ChannelAdvisor Corp ECOM, Zulily Inc ZU and Shutterfly Inc SFLY.

Disclosure: the author holds a short position in Amazon.