Market Overview

Things To Watch For As Internet Earnings Season Continues This Week

Share:
Things To Watch For As Internet Earnings Season Continues This Week

Following last week’s positive report from Netflix, Inc. (NASDAQ: NFLX), several internet firms will be reporting their earnings numbers this week. Those key names include Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook Inc (NASDAQ: FB) and Alibaba Group Holding Ltd (NYSE: BABA).

The upcoming results come amid positive e-commerce data, which bodes well for leading internet firms.

“Overall, our checks suggest continuing positive online spending trends in Q4, although F/X headwinds and widespread product discounting (e-commerce) could limit upside,” Baird analyst Colin Sebastian wrote in a note.

Looking ahead, Sebastian expects outlooks from Internet firms to reflect ongoing high levels of investments reflecting multiple long-term secular growth opportunities.

Internet Roundup

Following are Wall Street’s brief take on the upcoming quarterly earnings of leading internet companies:

  • Alibaba: Cantor Fitzgerald analyst Youssef Squali expects third-quarter results to come in line with Street expectations, driven by growth in active users and rising monetization amid resilient Chinese consumer spending.
  • Alphabet: Baird says third-party data points suggest stable and healthy search spending growth, while mobile commerce strength over the holiday period should offset ongoing pricing pressures.
  • Amazon: Sebastian says Amazon is the key beneficiary of positive e-commerce/cloud spending trends, pointing to another strong top line/GMV growth, although margins likely remain under pressure from ongoing investments.
  • Cimpress NV (NASDAQ: CMPR): Squali expects second-quarter results to come in line with his estimates, with double-digit growth core Upload and Print and slight recovery in core Vistaprint growth. However, the results could be hurt by currency fluctuations.
  • eBay Inc (NASDAQ: EBAY): “We expect 4Q16 results to come in line with Street expectations, and show further progress in management's initiatives to revive topline growth through improvements to its structured data, machine learning, user experience and merchandising,” Squali wrote in a note.
  • Facebook: Sebastian’s checks show continued traction in product ads, with incremental Instagram spending could also provide some upside.
  • Paypal Holdings Inc (NASDAQ: PYPL): Squali anticipates solid fourth quarter results, in line with consensus estimates, on strong growth trends in mobile commerce along with surge in active users, rising engagement and greater penetration of merchants.
  • On other small and mid-cap firms, Sebastian expects generally positive reports from ChannelAdvisor Corp (NYSE: ECOM), Shutterfly, Inc. (NASDAQ: SFLY), Yelp Inc (NYSE: YELP) and Wayfair Inc (NYSE: W) on healthy mobile/e-commerce trends. That said, the analyst noted that margin issues could weigh a bit on Shutterfly and Wayfair.

    Posted-In: Analyst Color Earnings News Previews Analyst Ratings Movers Tech Trading Ideas Best of Benzinga

     

    Related Articles (AMZN + BABA)

    View Comments and Join the Discussion!
    Don't Miss Any Updates!
    News Directly in Your Inbox
    Subscribe to:
    Benzinga Premarket Activity
    Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
    Market in 5 Minutes
    Everything you need to know about the market - quick & easy.
    Daily Analyst Rating
    A summary of each day’s top rating changes from sell-side analysts on the street.
    Fintech Focus
    A daily collection of all things fintech, interesting developments and market updates.
    Thank You

    Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

    2017: The State Of Cryptocurrencies (Part 1)

    Stock Index Futures Little Changed