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Analysts liked what they saw from Meta Platform 's latest earnings report. The company projects revenue between $29.5 billion and $32 billion, while analysts expected sales of $29.5 billion, per Refinitiv. Goldman's Eric Sheridan also hiked his price target to $300, noting Meta maintained its momentum from the fourth quarter of 2022. Meanwhile, Bank of America's Justin Post noted that Meta's revenue recovery can drive the next leg higher for the stock. He also hiked his price target on Meta shares to $305 from $270, implying upside of 45.6%.
Analysts are upbeat after better than expected quarterly results from Google parent company Alphabet . Despite a challenging macroeconomic environment that has caused companies to pull back advertising, Alphabet also beat analyst expectations on ad revenue. Alphabet stock gained more than 3% in extended trading after the earnings beat. GOOGL YTD mountain Shares of Alphabet gained after a quarterly earnings beat on Wednesday. "We expect GOOGL shares to continue to build its short-term momentum as company specific events (Google I/O, Google Marketing Live, etc.)
Netflix's mixed quarterly results had something for the bulls and the bears, as analysts weighed their outlook on the streaming service against a delay in the password sharing crackdown and lackluster guidance. Hodulik upgraded Netflix to buy from neutral, saying he expects growth will inflect with double-digit profit growth and rising free cash flow. What's more, he said restricting password sharing could become "meaningfully accretive" for Netflix as soon as the third quarter. Netflix turned to an ad-supported plan, and a password sharing crackdown, after reporting its first subscriber loss last year. He cited mixed subscriber growth, light guidance, and uncertainty around the delayed rollout in the password sharing crackdown.
E-commerce growth may have slowed post-pandemic, but Goldman Sachs remains bullish on the sector and thinks there is more growth ahead. Stocks to play it Goldman has named a number of e-commerce stock picks, including three that made the bank's global conviction list — a compilation of the bank's top buy-rated picks. Goldman also said China was the world's largest e-commerce market, with an estimated $1.5 trillion in e-commerce sales in 2022, or about 43% of total sales globally. The e-commerce market grew in 2020 as consumers stayed home during pandemic lockdowns. Goldman estimates that global e-commerce penetration jumped by about 6 percentage points in 2020, double the growth rate of the pre-pandemic era.
Netflix reports earnings after the bell Tuesday and traders know that pretty much all that matters to the stock is how many subscribers did the streamer add for the prior period. Netflix's recent streak of subscriber surprises come after the streaming giant struggled to add subscribers in the fourth quarter of 2021 and glaringly missed consensus expectations in the following quarterly period. But Netflix has doubled off its 52-week low as it got its subscriber mojo back. Here's a look at recent quarters' subscriber additions vs. Wall Street estimates and the subsequent stock reaction, according to Goldman Sachs data. Although ad-supported subscribers represent 1% of Netflix's U.S. subscriber base, Goldman analysts expect this plan to attract additional members.
Goldman Sachs has highlighted several opportunities for investors to play an uncertain environment now that the fourth quarter earnings season is over. With that in mind, Goldman highlighted Amazon as its top pick for the remainder of the year, among several other large cap, buy-rated stocks. Here are some of Goldman's other tech picks: The firm has a $145 price target on Amazon, which implies upside of about 54% from Monday's closing price. In gaming, Goldman names Take-Two Interactive its top pick. Goldman has a $155 price target on Take-Two, which is almost 34% above where it closed Monday.
Airbnb 's latest quarterly earnings outperformed expectations, but most analysts are still concerned about the stock going forward. Several analysts covering the stock reiterated their neutral or sell ratings on Airbnb a day after the company reported its calendar fourth-quarter results, citing ongoing risks for the short-term rental name. The analyst has a price target of $160 per share, implying upside of 32.3%. JPMorgan's Doug Anmuth also reiterated a neutral rating on the stock, noting that online travel is growing more competitive. Sheridan raised his price target on the stock to $98 per share from $87.
The company's long-term revenue outlook is also promising for investors, according to the analyst. The analyst also noted that management's "focus on reprioritizing investments" could help Pinterest grow margins and long-term profitability. Sheridan maintained his price target of $30 per share on Pinterest, implying a 9.2% upside from the stock's closing price of $27.48 as of Monday. He reiterated his neutral rating on Pinterest shares and issued a price target of $26 per share, implying downside of 5.4%. JPMorgan lowered its price target to $27 from $28 and maintained its neutral rating for the stock.
Its stock was hit harder than peers Apple and Alphabet , which also reported on Thursday evening. Shares of Apple were trading up about 4% on Friday morning while Alphabet was down about 1%. Amazon said it expects revenue of between $121 billion and $126 billion in the current quarter. Similarly, despite Alphabet's misses, analysts are bullish on its prospects for artificial intelligence and highlighted its strong core business. WATCH: Arete Research's Richard Kramer on the outlook for Apple, Amazon and Alphabet
But even with these near-term headwinds, analysts remain confident in the long-term thesis for the e-commerce giant and its growth trajectory. The results from Amazon come on the heels of a difficult 2022 that saw the e-commerce bellwether shed roughly half its value and post its slowest year of growth . At the same time, revenue for its Amazon Web Services division fell short of Wall Street's estimates and showed slowing sales growth as business spending dwindles. Moderating growth within the company's cloud unit marked one of the biggest concerns for analysts, but nowhere near a shock. Revenue growth came in at 20% for the quarter, and below the already slow 27.5% growth rate the company experienced in third quarter.
Analysts are willing to overlook Alphabet' s disappointing quarter in lieu of its artificial intelligence push and focus on costs. Shares of the search giant fell more than 4% after the company missed Wall Street's expectations for the fourth quarter. But, analysts lauded the company's focus on artificial intelligence as it faces mounting pressures from popularized Microsoft-backed chatbot ChatGPT . Alphabet CEO Sundar Pichai said the company plans to release its LaMDA language model with search components "very soon." GOOGL 1D mountain GOOGL falls after earnings Analysts also cited some confidence in the company's push to reengineer its cost structure and reduce inefficiencies.
Meta Platforms is turning its focus toward efficiency, and analysts seem to like the narrative shift from the battered technology giant. "Our management theme for 2023 is the 'Year of Efficiency' and we're focused on becoming a stronger and more nimble organization." META YTD mountain Meta Platforms shares have already surged 27% this year Analysts also seemed to praise the company's move to lower its outlook for capital expenditures and operating expenses. The word "efficiency" came up over 25 times on the company's earnings call, according to Morgan Stanley's Brian Nowak. The analyst has an outperform rating on Meta and hiked his price target to $275, which implies upside of nearly 80%.
Snap may have trouble keeping up with ever-rising competition going forward, according to UBS. He also reiterated a price target of $10, which implies downside of 13.5% from Tuesday's close, and trimmed his 2023 revenue outlook on Snap. "We see increasing competition everywhere," analyst Lloyd Walmsley wrote in a client note on Wednesday. Given the magnitude of competition and Snap's relatively subscale nature, we see risk to revenue acceleration. Other analysts also grew more cautious on the stock after Snap's latest quarterly report.
Six stocks Goldman Sachs likes ahead of earnings
  + stars: | 2023-01-21 | by ( Alex Harring | ) www.cnbc.com   time to read: +7 min
Goldman Sachs' analysts have stocks they are confident about going into a new earnings season. The stocks we found are Amazon , ServiceNow , Colgate-Palmolive , Boeing , Microsoft and Cleveland-Cliffs . Colgate-Palmolive Analyst Jason English raised estimates ahead of Colgate-Palmolive's Jan. 27 earnings as headwinds from foreign exchange turn in to tailwinds. While English said the uncertain global environment could hurt Colgate's business, he still expects the toothpaste and soap maker to meet Goldman's 9% per-share earnings growth forecast for the year. Specifically, we are now forecasting AWS growth to decelerate to +21% YoY (vs. +27.5% YoY in Q3'22) with more subdued growth expectations in 2023.
Netflix 's strong fourth-quarter subscriber growth and solid content slate may signal the start of better times for the streaming stock, but it may be too early to buy up shares, according to some Wall Street analysts. Netflix reported 7.66 million adds, compared to 4.57 million subscribers expected by StreetAccount estimates. Analysts view the company's new advertising tier and its content slate as key to Netflix's financial performance in the months ahead. Since reporting second-quarter earnings results, Netflix shares have risen more than 46%. On the leadership front, Supino and analysts view the CEO transition as a positive for the company.
Watch CNBC's full interview with Goldman Sachs' Eric Sheridan
  + stars: | 2022-12-14 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Goldman Sachs' Eric SheridanGoldman Sachs' Eric Sheridan joins 'TechCheck' to discuss finding value in enterprise computing companies, the reasons behind the company naming Uber as its top 2023 pick and subscription services at the consumer level.
Top pick - Amazon Amazon has enjoyed bullish ratings from Wall Street even as it's plunged roughly 45% year to date. In addition, "adoption of AWS can accelerate through improved operating efficiencies and hiring freezes can deliver improving operating income," Arounian wrote. Citi has a buy rating and $145 price target on the stock. Goldman Sachs also sees a buying opportunity for Amazon as one of its own top picks, with a buy rating. Top pick - Meta Meta Platforms is Citi's second pick in technology – the company has a buy rating and $168 price target on the stock.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUber's product set is leading to a rising utility level, says Goldman Sachs' Eric SheridanGoldman Sachs' Eric Sheridan joins 'TechCheck' to discuss finding value in enterprise computing companies, the reasons behind the company naming Uber as its top 2023 pick and subscription services at the consumer level.
As investors prepare their portfolios for the new year, Goldman Sachs revisited laggard stocks that have the potential to outperform at the start of 2023. In the past, stocks that lagged the broader market tended to become leaders in the first quarter of the following year, according to Goldman Sachs. Goldman Sachs searched for laggards across several different criteria. Another stock that made the list includes Adobe , which Goldman Sachs considers a buy-rated quality stock trading at a reasonable valuation. In October, Goldman Sachs analyst Kash Rangan identified the name as a tech stock that is resilient in a downturn .
Goldman Sachs named Amazon and Etsy as top stock picks heading into 2022 holiday season. Analyst Eric Sheridan expects growth will decelerate in the fourth quarter for retailers, as they deal with a longer and more promotional end-of-the-year period than normal. Companies are dealing with the effects excess inventory, and inflation squeezing consumers. Retailers are expected to offer double-digit holiday discounts this year, from 10% to 32%, particularly in electronics and computers, according to the note. Meanwhile, Etsy is leaning into its differentiated inventory, selling and gifting homemade and affordable products.
A few stocks that were unloved this year look set to turn the page heading into 2023, according to Wolfe Research. Wolfe Research searched for unloved names with buy ratings from less than 40% of analysts covering them. According to Wolfe Research, Carnival is expected to accelerate earnings by 647%. Pinterest has low short interest, just 5.5%, according to Wolfe Research. Regardless, the airline company has a high 2Q22 earnings quality score of 96, and it's forecasted to accelerate earnings by 17%, according to Wolfe Research.
Target on Wednesday reported that its profit fell by 50% as it tried to clear out excess inventory in the third quarter. To find a list of top-ranked retail stocks, CNBC Pro searched Tipranks for names in the sector rated at least a "strong buy" and with a more than 20% upside to the consensus price target. Callaway Golf has the largest upside to its consensus price target, with analysts saying it could surge more than 79% from where it currently trades. Jefferies boosted its price target on the name after its third-quarter earnings beat expectations and it raised its guidance for the fourth quarter. The company is strongly backed by Wall Street and has a more than 43% upside to its consensus price target as it's been beaten up this year.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe problem for travel stocks is fear of a weakening consumer next year, says Goldman's SheridanEric Sheridan, Goldman Sachs managing director, joins 'TechCheck' to discuss Sheridan's thoughts on Uber's quarterly earnings results, if Uber's result foreshadows what investors will hear from other companies and more.
The company's share price has dropped by more than 15% since then. Amazon's third-quarter earnings disappointed investors on Thursday, sending the company's stock into a tailspin. What's Wall Street saying? Outcry over grueling and unsafe working conditions from employees has not tipped the scale for shareholders or Wall Street analysts. His firm holds Amazon stock.
Amazon 's disappointing quarterly results signaled to analysts that even the giants aren't immune to a macro slowdown. Analysts trimmed price targets and estimates to reflect a broader macro slowdown at the e-commerce giant following the results, with analysts at Deutsche Bank and Wolfe Research saying it's time to "batten down the hatches." However, most analysts remain bullish on the company's long-term trajectory, maintaining their outperform and buy ratings on the stock. That said, analysts across the board trimmed price targets and estimates to reflect the broader macro pressures. He trimmed his price target on the stock to $137 from $157 a share, suggesting 23% upside ahead for the stocks.
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