|Bid||0.00 x 1100|
|Ask||0.00 x 1300|
|Day's range||41.88 - 43.39|
|52-week range||36.41 - 52.50|
|Beta (3Y monthly)||0.88|
|PE ratio (TTM)||24.48|
|Earnings date||30 Oct 2018 - 5 Nov 2018|
|Forward dividend & yield||N/A (N/A)|
|1y target est||51.22|
On October 22, Brendan Iribe, the cofounder of Facebook’s (FB) VR (virtual reality) unit, Oculus, left the company. He disclosed the news in a tweet as well as on his Facebook page. Iribe served as Oculus’s CEO until 2016 but later shifted to a lower-ranking position at Oculus.
GrubHub (GRUB) third-quarter earnings are likely to benefit from its rapidly growing active diner base and strengthening delivery business. However, intensifying competition is a concern.
Square (SQ) is set to release its third-quarter results at a time when Caviar is taking a position as a key piece of its omnichannel strategy. Caviar is able to serve customers across different channels, such as physical locations and digital platforms. In an interview with CNBC last month, outgoing Square CFO Sarah Friar discussed the company’s efforts to bring the omnichannel experience to restaurants through Caviar.
Yelp (YELP) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
As much as the digital advertising market is expanding, with global spending on digital ads on track to hit $227.1 billion in 2018 according to Zenith estimates, Twitter (TWTR) and many of its peers in the digital advertising business have sought to diversify beyond advertising. When Twitter reports its third-quarter results on October 25, there will likely be a lot of investor attention on how its diversification efforts are progressing. Alphabet (GOOGL), Facebook (FB), and Snap (SNAP) are also making efforts to diversify their businesses beyond advertising, which currently accounts for the vast majority of their revenues.
The addressable market for meal kit companies like Blue Apron (APRN) and HelloFresh is growing. Blue Apron is expected to report third-quarter results on November 1. Tough competition for customers has contributed to Blue Apron’s woes with the company blaming revenue decline in the second quarter on the decrease in the number of customers it serves.
Twitter (TWTR) is gearing up to report its third-quarter results at a time when it has recently expanded the monetization opportunity for video publishers on its social network. Starting early this month, Twitter began allowing publishers to monetize their videos globally via in-stream advertisements, ads that are inserted into videos and can appear just before the video begins playing. Twitter launched in-stream video ads in the United States in April last year and has since been rolling out the capability to more markets, reaching nearly 20 global markets so far.
Groupon (GRPN) and IBM (IBM) recently settled their differences over patents, putting an end to a dispute that was on the verge of escalating. Groupon agreed to pay $57 million in damages to IBM to settle a jury ruling that had infringed on a number of IBM patents related to e-commerce. The jury awarded $82.5 million in damages to IBM in the case.
Twitter’s (TWTR) advertising business only returned to growth in the past three quarters after several consecutive quarters of decline. The company’s advertising revenue rose 23% YoY (year-over-year) in the second quarter, 21% YoY in the first quarter, and 1.0% YoY in the fourth quarter of 2017. It had been falling for at least the last four consecutive quarters.
Research is a key area for technology companies, and many spend large portions of their revenue on R&D. Baidu (BIDU) has said that it funnels ~15% of its annual revenue to R&D projects. Facebook (FB) and Alphabet (GOOGL) spent ~20% and 15% of their 2017 revenues on R&D, respectively.
Twitter (TWTR) is scheduled to report its third-quarter results on October 25. Twitter’s revenue fell 4.3% YoY in the comparable period last year. Twitter has posted profits in the past three consecutive quarters supported by a combination of revenue growth and cost controls.
Facebook (FB) recently appointed Adam Mosseri to run its Instagram subsidiary. Mosseri is a longtime Facebook executive who began as a product designer at Facebook’s namesake social network in 2008. He was leading Facebook’s newsfeed team before he moved over to Instagram as its product leader, where he worked alongside Instagram founders and executives Kevin Systrom and Mike Krieger.
GrubHub (GRUB) has struck a deal to acquire campus food-ordering platform Tapingo. Tapingo’s platform is used by food outlets on more than 150 college campuses, and it reaches more than half a million student diners. Students use Tapingo to place food orders in advance, and food outlets such as on-campus cafes and restaurants use the platform to accept advance orders, thereby saving time for both vendors and diners.
VMware (VMW) bought start-up firm CloudHealth Technologies in October 2018. The acquisition provides multi-cloud management support to its customers across different cloud platforms like Amazon AWS (AMZN), Microsoft Azure (MSFT), and the Google Cloud (GOOGL) platform. It will help customers reduce costs and boost efficiency through proper cost management and cost analytics across multiple clouds. It also offers compliance and a secure environment for the different public cloud platform.
Facebook (FB) disclosed on September 28 that an attack on its computer system exposed the personal information of as many as 50 million people who use its flagship social network, which hosts over 2.2 billion accounts. The attack was the worst in Facebook’s 14-year history, and the company’s founder and chief executive, Mark Zuckerberg, described it as a very serious issue. Facebook fell nearly 3.0% the day the company disclosed the data breach, highlighting investor concerns about the potential implication of the breach on the company’s business going forward.
Snap (SNAP) stock gained as much as 5.0% following reports that Instagram founders are leaving the company, apparently because of tensions with parent company Facebook (FB). Instagram is one of Facebook’s digital properties and a huge threat to Snap’s Snapchat. Instagram has more than a billion monthly users and 500 million daily users.
Alphabet’s (GOOGL) Google has decided to lift its ban on some cryptocurrency ads. The search engine giant will now allow some regulated advertisers that are approved by Google to promote crypto businesses and services in the United States and Japan. Reportedly, Google has still banned ads related to ICOs (initial coin offering), wallets, and trading advice.
It appears Groupon (GRPN) and IBM (IBM) are not about to put their guns down anytime soon. After a period of push and pull over patents, a jury in Delaware returned a verdict in July that Groupon infringed on several patents belonging to IBM. Therefore, the jury decided that Groupon should be made to pay at least $82.5 million to IBM in damages.
Alphabet’s (GOOGL) Google, Facebook (FB), Twitter (TWTR), and other tech companies have been facing increasing pressure from lawmakers in the United States and the European Union to curb the spread of fake news and misinformation on their platforms. Russian hackers used these social media platforms to spread misinformation and influence the results of the 2016 US presidential election and the United Kingdom’s Brexit vote, so lawmakers want to ensure that the companies have resolved the problem ahead of the EU elections next spring.
Yelp (YELP) seems well-positioned for future earnings growth and it is seeing rising earnings estimates as well, coupled with a solid Zacks Rank.
Social media giant Facebook (FB) topped earnings expectations in its second-quarter results, which it reported on July 25. However, it missed on revenue due to sluggish growth in its number of global daily active users and challenges surrounding its business model. Facebook has cautioned investors about its sluggish revenue growth in the near term. Its revenue growth rate is expected to fall in the high single digits compared to previous years in the third and fourth quarters.