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The Zacks Analyst Blog Highlights: Amazon, LinkedIn, Expedia, Apple and Yahoo

For Immediate Release

Chicago, IL – May 03, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Amazon (AMZN), LinkedIn (LNKD), Expedia (EXPE), Apple (AAPL) and Yahoo ( YHOO).

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Here are highlights from Monday’s Analyst Blog:

Tech Earnings Roundup

While a huge chunk of technology companies reported last week, Amazon (AMZN), LinkedIn (LNKD) and Expedia (EXPE) were the star performers. Apple ( AAPL) disappointed, confirming negative sentiments. Last week also saw some developments on the Yahoo (YHOO) sale front and Alphabet’s decision to launch its own startup incubator.

Here are the top stories-

Earnings Reports

Amazon : The leading online retailer beat the Zacks Consensus Estimate on both the top and bottom lines . The high-margin AWS business was the only one that grew in the seasonally softer selling period, which was positive for margins. The FX impact on revenue came down significantly in the last quarter. Profitability improved across segments although management added a word of caution about AWS margins, saying that the levels of investing, price reductions and cost efficiencies could make them lumpy going forward. The guidance was also better than expected.

Apple : Apple missed the Zacks Consensus Estimate for both revenue and earnings as its most important product line iPhones failed it. The all-important Chinese market also declined 26%. iPhone units and revenue were both down from last year. iPads also declined, but that was more or less as expected.

Apple shares fell 8% in response and investors remain concerned about growth prospects in China (on which it is highly dependent). Particularly so because Carl Icahn just dumped his shares citing uncertainty in Apple’s relationship with China. The company remains mum on the issue, which doesn’t help.

Also, IDC’s smartphone market share numbers (detailed in the last section below) show that Chinese phone makers are growing market share. While their current focus is on the low end, things could change in the not-too-distant future with a little help from the Chinese government.

LinkedIn : The professional networking company reported solid results, beating the Zacks Consensus Estimate on both top and bottom lines. Mobile and contribution from acquisitions were responsible for the strength in revenue. Both the domestic and international businesses grew strong double-digits. Premium subscriptions also grew double-digits. Cash flow was positive. Guidance was more or less in line with estimates.

Expedia : Perhaps the greatest surprise of the week, Expedia beat the Zacks Consensus Estimates for both revenue and earnings , defying historical trends. Two acquisitions, trivago and HomeAway grew strongly in the last quarter. Orbitz also made a good contribution, but it’s currently in the process of being integrated into Egencia, so maybe things will pick up further once that’s done. The company appears to be delivering on its acquisition strategy that seeks to consolidate its domestic business and leverage it for international growth. As a result, the operating margin expanded in the last quarter and adjusted EBITDA jumped 73.5%.

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AMAZON.COM INC (AMZN): Free Stock Analysis Report
 
LINKEDIN CORP-A (LNKD): Free Stock Analysis Report
 
EXPEDIA INC (EXPE): Free Stock Analysis Report
 
APPLE INC (AAPL): Free Stock Analysis Report
 
YAHOO! INC (YHOO): Free Stock Analysis Report
 
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