Instagram is clearly emerging as the next major driver for Facebook stock.
Menlo Park, California-based social networking giant, Facebook Inc. (NSDQ:FB) acquired Instagram way back in 2012, for a seemingly huge, $1B. With 30M odd users at the time, Facebook paid a value of over $33 per Instagram user at that time. That looked like big money for a platform which wasn’t generating a dollar in revenue at the time of the acquisition. However, in hindsight things look significantly different and today, Instagram looks the likely successor to take on the mantle of driving Facebook’s growth. With 600M monthly users on the platform, a number of wall street analysts have recently upgraded Facebook stock citing the growing success and popularity of Instagram. Does the Instagram growth story make FB stock a worthy buy today? Let’s dig deeper.
top ten stocks: The Michaels Companies, Inc.(MIK)
- [By Laurie Kulikowski]
We rate MICHAELS COS INC as a Sell with a ratings score of D+. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow.
- [By Benzinga News Desk]
Goldman Sachs (NYSE: GS) has at least one billion reasons to hope President Trump’s paring back of Dodd-Frank will include the Volcker Rule: Link
ECONOMIC DATA 10:30 a.m. Dallas Fed Manufacturing Business Index 11:30 a.m. 6-Month Bill Auction 11:30 a.m. 3-Month Bill Auction 1 p.m. 2-Year Note Auction 1:15 p.m. Chicago Fed President Evans Speaks 6:30 p.m. FOMC Member Kaplan Speaks ANALYST RATINGS Piper Jaffray upgraded Best Buy Co (NYSE: BBY) from Neutral to Overweight Wells Fargo upgraded Allscripts Healthcare (NASDAQ: MDRX) from Market Perform to Outperform Mizuho upgraded Universal Health Service (NYSE: UHS) from Neutral to Buy Piper Jaffray downgraded The Michaels Companies (NASDAQ: MIK) from Overweight to Neutral JMP Securities downgraded KB Home (NYSE: KBH) from Market Outperform to Market Perform Raymond James downgraded Sierra Wireless Inc. (NASDAQ: SWIR) from Outperform to Market Perform
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- [By Jim Cramer]
42.37% is the gross profit margin for MICHAELS COS INC which we consider to be strong. Regardless of MIK’s high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.57% trails the industry average.
MICHAELS COS INC has improved earnings per share by 19.4% in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.70 versus $1.04).
- [By Jim Cramer]
After a year of stock price fluctuations, the net result is that MIK’s price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don’t lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- [By JPMorgan]
MIK’s results over the past year point to the company’s success in improving merchandising, marketing, and in-store execution plus the benefits of having a functioning e-commerce website. We believe part of the challenge for the bears is both a lack of appreciation for the category as well as missing the historical context of how leadership has evolved. Indeed, the difference in focus on "the front end" under CEO Chuck Rubin (who arrived in 2013) vs. a more process-oriented and margin-focused CEO prior to his arrival left a lot of impactful, low hanging fruit opportunities. Finally, while we acknowledge that longer term the sustainable comp is lower than the recent ~4% underlying trend, we point to the low volatility of sales, high cash generative nature of the business, barriers to entry (e.g., high SKU density, low inventory turns, lack of brands), and MIK’s market leadership as reasons why the multiple has the potential to expand over time (a la AZO). Balance sheet de-levering should also make the PE look increasingly cheap over time and transfer cash/value to equity holders.
top ten stocks: NTN Buzztime, Inc.(NTN)
- [By Lisa Levin]
NTN Buzztime Inc (NYSE: NTN) shares were also up, gaining 26 percent to $7.22. NTN Buzztime reported a Q4 loss of $0.22 per share on revenue of $5.98 million.
top ten stocks: Progenics Pharmaceuticals Inc.(PGNX)
- [By Ben Levisohn]
After meeting with the senior management team of Progenics (PGNX) , Valeant’s partner for oral Relistor, we continue to think that this drug would be a good addition to Valeant’s GI (gastrointestinal) franchise. The PDUFA date for oral Relistor is 7/19/16. AlthoughValeant is leading interactions with the FDA, Progenics is highly confident regarding an approval in July based on its discussions with Valeant. Progenics believes that oral Relistor could be a $1B+ opportunity for Valeant, even with the recent decrease in opioid usage. For context, we estimate ’16 sales of $9.9B for Valeant. An approval for oral Relistor would also help remind the Street that Valeant’s brand drug pipeline is underappreciated, in our view. We think pipeline advancements for brand drugs could drive multiple expansion forValeant shares (on P/E).
- [By Lisa Levin]
Progenics Pharmaceuticals, Inc. (NASDAQ: PGNX) shares shot up 29 percent to $6.37 after announcing the FDA approval of RELISTOR tablets for the treatment of opioid-induced constipation in adults with chronic non-cancer pain.
top ten stocks: Estee Lauder Companies, Inc. (The)(EL)
- [By Ben Levisohn]
The 20 stocks meeting those requirements are: Ralph Lauren (RL), Time Warner(TWX), Twenty-First Century Fox(FOXA), PepsiCo(PEP), Estee Lauder(EL), Tesoro(TSO), XL(XL), Ameriprise Financial,(AMP), Unum(UNM), Merck(MRK), AbbVie(ABBV), Gilead Sciences(GILD), General Dynamics(GD), Alaska Air(ALK), United Continental(UAL), Delta Air Lines(DAL), Oracle(ORCL), eBay(EBAY), Apple(AAPL), and Centurylink(CTL).