Thursday, October 27, 2016

Tesla up $10 Despite Negative Analyst Comments

Tesla has a rare profitable quarter - Monster beat against analyst expectations (Tesla reports Q3 non-GAAP EPS 71c, consensus 9c) - guides solid-idly with respect to the Model 3 launch. Indicates its going to redefine Uber's model (The largest privately held company known) Yet the street continues to talk down the price as a 20-30% short float remains. 

Tesla quarter not as good as it looks, says JPMorgan  

JPMorgan analyst Ryan Brinkman says Tesla's Q3 earnings report is not as good as it looks. At first glance, the quarter looks like a "very strong beat" across all metrics, Brinkman tells investors in a research note. Tesla, however, reported a $139M benefit from the sale of Zero Emission Vehicle credits versus its guidance for a negligible amount, which alone helped earnings per share by 73c, the analyst contends. Brinkman also sees some "comparability issues" relative to Tesla's reported revenue, gross profit, and net income given the "complicated" change in accounting methodology. The analyst views the quarter as good, just not as good as it looks on the surface. He keeps an Underweight rating on Tesla with a $180 price target. The electric carmaker is up 5%, or $10.16, to $212.40 in pre-market trading.

Goldman sees Tesla's capital needs pushed out until Q3 2017 

Goldman analyst David Tamberrino said Tesla reported a solid Q3 but it is not enough to overcome what he sees as increased risk to the company's capital deployment strategy and uncertainty in 2017 from the Model 3 launch. The analyst now expects Tesla will need to raise capital in Q3 2017 from Q4 2016 previously as the Model 3/gigafactory capex spend is weighted towards 1H 2017. Tamberrino raised his price target on Tesla to $190 from $185 and maintains his Neutral rating.

Oppenheimer remains cautious on Tesla Model 3 ramp  

Following Tesla's Q3 results, Oppenheimer analyst Colin Rusch expects bulls and bears to see support for their theses in this quarter's report. While bulls will point to profitability, cash generation, solid deliveries, and guidance for Model 3 production in 2017, bears will pick apart gross margin, he noted. The analyst is encouraged by the company's improved cash management but remains cautious on the ramp of the Model 3 being slower and more expensive than investors expected weighing on shares. Rusch reiterates a Perform rating on the stock.

Tesla catalysts should drive shares higher, says Baird

Baird analyst Ben Kallo said Tesla beat Q3 estimates across the board and management gave positive commentary. The analyst noted its strong gross margins and improved operational efficiency. He also noted that management said a capital raise may not be necessary for the ramp of its Model 3. Kallo reiterated his Outperform rating and $338 price target on Tesla shares.

Friday, October 21, 2016

Microsoft Trades at Dot Com Bubble Levels - All Time Highs

This is a very good thing for the NASDAQ and overall markets. The last time Softee was at these levels was the peak of my trading career at the end of the gogo 90's. I own a Surface Pro and will definitely be looking forward to the launch of the PRO 5. Their earnings had a size-able beat due to the continued loyalty by big business to their office suite, and developing cloud business.

Pre market range $60.11 to 60.48. Last night ALL TIME HIGHS of $60.75 look to be taken

Disclosure: Long $MSFT

Analyst Action:

Microsoft results point to 'successful' mobile cloud strategy, says Oppenheimer 

Following another "strong" quarter, Oppenheimer analyst Timothy Horan says Microsoft's results point to a "successful" mobile cloud strategy which is set to overlay artificial intelligence and may become a dominant full service cloud/communication service for enterprises. Further, the analyst believes multiple recent partnerships and customer wins as well as the pending release of SQL for Linux in the cloud should help drive solid growth over the next few years. He reiterates an Outperform rating and $62 price target on the shares.

Tuesday, October 18, 2016

Netflix trading up 20% on a solid earnings beat and guide - Analyst Summary

Netflix is positive on the year now after dropping earlier in the 1st quarter of 2016.

Here are some the analyst upgrades so far pre market:

Netflix price target raised to $138 from $122 at Piper Jaffray 

Piper Jaffray analyst Michael Olson raised his price target for Netflix to $138 saying is "back on track" with its Q3 earnings report. Both domestic and international subscriptions came in above consensus, Olson tells investors in a post-earnings research note. He expects the earnings report to alleviate some concerns around a spike in churn last quarter from the un-grandfathering of the price increase. The analyst keeps an Overweight rating on Netflix.

Netflix price target raised to $133 from $125 at Loop Capital 

Loop Capital analyst David Miller raised his price target for Netflix to $133 saying the company exceeded all of his metrics in Q3. The analyst keeps a Buy rating on the shares.

Netflix price target raised to $140 from $122 at JPMorgan  

JPMorgan analyst Doug Anmuth raised his price target for Netflix to $140 following the company's Q3 results. The stock is up 19%, or $18.84, to $118.64 in pre-market trading. Netflix is almost past its pricing changes and the benefits are starting to show up in the numbers, Anmuth tells investors in a research note. He believes the company's originals are working well, and notes some have global appeal. Anmuth thinks Netflix sets up as a "cleaner story" into 2017 and he reiterates an Overweight rating on the shares.