Tag Archives: LNKD

4 Social Network Stocks With Long-Term Uptrend [Seeking Alpha]

While Nasdaq has gained 8.23% year to date, leading social media companies, except Facebook Inc. (FB) with only 5.17% gain, were up much more significantly, including Pandora Media Inc. (P) with 42.28% increase, LinkedIn Corp. (LNKD) with 53.03% surge and Zynga Inc. (ZNGA) with 52.35% advance, as seen from the chart below.

(click to enlarge)

Source: Google Finance

Facebook Inc.

Facebook, with a market cap of $62.25B, is the world’s largest online social network with over 1.06 billion total users and around 618 million daily active users.

FB was upgraded by Argus from hold to buy with a price target of $36.00 on April 5, 2013. On the same day, Oracle Investment Research initiated coverage on FB with a strong buy rating and a price target of $38.00, and the analysts said,

We think the new ‘Facebook Home’ hit a home run with their new HTC rollout. Incorporating Facebook as the ‘front and center’ theme to drive user interface on mobile devices.

Analysts currently have a mean target price of $33.20 for FB, suggesting 21.21% upside potential based on the closing price of $27.39 on April 5, 2013.

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Zynga And LinkedIn: Turnaround Story Vs. Amazing Growth [Seeking Alpha]

Zynga Inc. (ZNGA) and LinkedIn Corp (LNKD) are two highly debated, watched Internet technology stocks with high trading volume, which had recently received updated calls from analysts. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.

Zynga Inc.

ZNGA was up 2.06% and closed at $3.42 on March 22, 2013. ZNGA had been trading in the range of $2.09-$13.55 in the past 52 weeks. ZNGA has a market cap of $2.70B. With the recent pullback, ZNGA may present a short-term buying opportunity for investors with strong risk tolerance.

Recent Analysts Calls

On March 22, 2013, CLSA initiated a new coverage with an underperform rating and a target price of $3.50 on ZNGA. On March 20, 2013, BofA/Merrill Lynch downgraded ZNGA from buy to neutral based on its valuation, following a significant run in the stock. Analyst Justin Post said the stock already reflects potential value from its games and cautioned about risk from new competitive real-money poker launches. Post said,

The only driver of meaningful earnings surprise in 2013, in our view, is with a hit new social PC game, which is unlikely and difficult to predict.

Analysts Estimates

Analysts currently have a mean target price of $3.84, suggesting 12.28% upside potential. Analysts, on average, are estimating an EPS of -$0.04 with revenue of $222.46M for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of -$0.05 with revenue of $956.10M, which is 16.70% lower than 2012. For 2013, analysts are predicting an EPS of -$0.01 with revenue of $1.03B, which is 8.10% higher than 2013.

5 Outperforming Social Network Stocks: Rebounding And Flying High In 2013 [Seeking Alpha]

The Nasdaq has logged a solid gain of 5.76% YTD as of February 8, 2013; however, it is much less impressive compared to the following 5 social network companies: Facebook Inc. (FB), Groupon Inc. (GRPN), Yelp Inc. (YELP), LinkedIn Corporation (LNKD), and Zynga (ZNGA). Below is the chart showing YTD performance for 5 social network companies, as compared to the Nasdaq index.

Source: Google Finance

More Mobile

In 2012, Facebook stated

we anticipate that the rate of growth in mobile usage will exceed the growth in usage through personal computers for the foreseeable future and that the usage through personal computers may be flat or continue to decline in certain markets, including key developed markets such as the US, in part due to our focus on developing mobile products to encourage mobile usage of Facebook.

This means that the future of social media will shift toward the networks that make engagement on the go easy. Traditional media must provide better mobile experiences and ensure mobile interfaces are streamlined and fast-loading. More revenue models also need to be established on the mobile platforms.

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Increasing Ad Spending Will Benefit Facebook And LinkedIn [Seeking Alpha]

Monday’s market sentiment was driven by extreme greed with Fear & Greed Index at 93, which had decreased from the previous close of 94. As reported by CBOE, the total put/call ratio was 0.97 for the day. The index put/call ratio was 1.01, and the equity put/call ratio was 0.76. The CBOE volatility index (VIX) put/call ratio was 0.46. In the following, top stocks had been identified through our daily options scanning process, with the scanning criteria where the daily call volume ratio was above 2.00 (2x of the average call volume) with a call volume above 10,000.

Name (Ticker) Call Volume Average Call Volume Daily Volume Ratio
Facebook Inc. (FB) 425,927 196,461 2.17
LinkedIn Corporation (LNKD) 16,734 5,075 3.30

Source: Schaeffer’s Research

Facebook Inc.

Facebook is the world’s largest online social network with over 900 million monthly active users. According to most third-party reports, Facebook has more than 500 million daily users spending more time on facebook.com than any other websites. In 2012, Facebook became the most popular app in the United Stated and ended the year with more than 85 million unique adult visitors on Android and iOS, which is about 11 million more unique visitors than Google Maps. Investors are expecting more revenue from mobile advertising as Facebook is still in the early stages of developing ads for users who access Facebook via mobile devices. FB closed at $32.47 with 2.95% gain on January 28, 2013. FB had been trading in the range of $17.55-$45.00 since its IPO.

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Top Bullish Stocks On Thursday: Potash, Nokia And LinkedIn With Unusual Call Activities [Seeking Alpha]

All three major indices extended the gain on Thursday, where the S&P 500 index advanced to the highest level in five years amid better-than-estimated data on Chinese exports. Tiffany & Co (TIF) dropped 4.52% on disappointing sales. The company also expects FY 2012 EPS at the low end of prior guidance, $3.20-$3.40 per diluted share. S&P led the gain with a 0.76% increase. Dow Jones followed with a 0.60% jump, and Nasdaq closed 0.51% higher. SPY, DIA and QQQ all continued to close well above their 50-day and 200-day MAs. All sectors closed in the green again, and the financial sector gained the most, with a 1.20% increase.

The market sentiment is driven by extreme greed now, with the Fear & Greed Index at 85, decreased from the previous close of 81. As reported by CBOE, the total put/call ratio for today was 0.78, and the index put/call ratio was 0.70. The equity put/call ratio was 0.66, and the CBOE volatility index (VIX) put/call ratio was 0.31. In the following, top stocks had been identified through our daily options scanning process, with the scanning criteria where the daily call volume ratio was above 3.00 (3x of the average call volume) with a call volume above 10,000.

Name (Ticker) Call Volume Average Call Volume Daily Volume Ratio
Potash Corp. of Saskatchewan, Inc. (POT) 27,880 6,769 4.12
LinkedIn Corporation (LNKD) 14,375 3,816 3.77
Nokia Corporation (NOK) 110,129 29,719 3.71

Source: Schaeffer’s Research

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