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.
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