Why LinkedIn Stock (LNKD) Looks Poised To Rally

Following a disastrous revenue outlook in February, LinkedIn Corp (LNKD) reported Q1 results on April 29th that topped Wall Street estimates, soaring 35% on year over year basis to $861M.

The business-oriented social media company trades at a forward P/E ratio of 30.91x (2017 estimates), price to sales ratio of 5.37x, and a price to book ratio of 3.74x. Given the steady annual earnings growth in the 20% to 25% range, paying just over 30x EPS isn’t outrageous for the $15B company.

At 105.5M monthly active users, LinkedIn falls short of Twitter’s 310M and Facebook’s massive 1.65B user base. However, on a revenue/user ratio, LinkedIn’s $28.30 generated per user is quadruple that of Twitter and is well above the $10.80/user that Facebook (the largest social media company) is bringing in on the top line.

Their Talent Solutions segment is leading the company … Read More »

Social Media Stocks Sector Analysis: FB, TWTR, LNKD, IACI, WB

This was originally published on See It Market on June 2nd

In this post I want to take an intermediate-term and longer-term look at the charts of five social media stocks. The first three that I will look at are household names that you hear about ton a dailybasis (and probably use on personal level as well): Facebook (FB), Twitter (TWTR), and LinkedIn (LNKD). But stocks like IAC/InterActiveCorp (IACI) and Weibo (WB) are smaller companies in the sector that are worth paying attention to – both social media stocks have big growth potential.

IACI is the $6B owner of dating sites like Match, OkCupid, and Tinder. They also operate in search via About.com, Ask, Dictionary.com, and Investopedia. As well, they own the popular video-sharing subscription service called Vimeo.

Then there is Weibo, a $3B … Read More »

Why Large Option Traders Are Targeting Criteo S.A.

Around 2 P.M. EST on February 18th, someone purchased 2,500 Criteo S.A. (CRTO) March $45 calls for $1.82-$1.90 each. The $450K+ bet led to call activity being 16x the average daily volume and the call to put ratio was 8:1. Following this action there was another 1,500 bought for $1.85-$2.10 the very next day. This unusual options activity begs the question, why would he/she be making such an aggressive bet over the next month of trading?

To start off Criteo reported Q4 EPS of EUR 0.37 per share vs the Wall Street consensus estimate of EUR 0.24 per share on revenue of EUR 96M vs the EUR 90.7M estimate (74.5% year over year growth) early that morning on the 18th. They issued Q1 revenue guidance of EUR 96M-99M and FY15 guidance of EUR 433M-440M. … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Facebook (FB) and Pandora Media (P).

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Smart Money Report

ATW- 3,000 Oct $50 calls were bought for $0.50 each, against open interest of 7 contracts. The call to put ratio is 104:1. Call activity is 36x the average daily volume. Implied volatility rose 14% to 26.86. Total call open interest is 2,587 contracts.
FB- A rollout from 6,383 Sep 5 weekly $74 calls (credit) into 7,660 Nov $77.50 calls (debit). Volume was below the open interest in both options. The call to put ratio is 2:1.
FTI- 2,000 Oct $60 calls were purchased for $0.70 and 4,000 Oct $52.50 puts were sold for $0.25, resulting in a bull risk reversal. Volume was above the open interest in both options. Option activity is 18x the average daily volume.
LGF- 3,000 Jan 2015 $30 puts were sold for $1.34-$1.38 each, against open interest of 2,071 contracts. After coming out of the base … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a call rollout in Facebook (FB) and a bull risk reversal in FMC Technologies (FTI).

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Smart Money Report

FB- Facebook will release Q2 earnings after the bell tonight. Analysts are looking for $0.32 in EPS and revenue of $2.8B. The options market is implying a $4.96 move, or 7.01%, in either direction through Friday’s close. The call to put ratio is currently 1.43, led by activity in the Sep $80 calls. The stock has moved higher after earnings on 4 out of the last 5 reports (5 out of the last 7 too). The whisper number for tonight is $0.36 in EPS vs the $0.32 consensus Wall Street estimate, according to EarningsWhispers.com.
APC- 10,000 Jan 2016 $160 calls were bought for $1.72 each, against open interest of 11,092 contracts. 10,000 were bought yesterday. There was also sizable buying in the Nov $135 calls today.
ATML- More than 7,000 Aug $9 calls were bought for $0.50 each, against open … Read More »

Smart Money Report

FB- A rollout from 20,000 July 19 $65 calls (credit) into 60,000 July 19 $70 calls (debit). Volume was below the open interest in both options. I still look for Facebook to complete the measured move to $72 soon.
MPC- 4,500 Oct. $90 calls were purchased for $1.80 each, against open interest of 879 contracts. The call to put ratio is 2:1. Call activity is over 4x the average daily volume. Net call premium is +$599K vs. net put premium of +$311K. Implied volatility rose 20.3% to 29.91. The stock broke through the 200-day SMA, but has support at the $80 level. Marathon Petroleum trades at a P/E ratio of 7.83x (2015 estimates) with 20% EPS growth, -1.1% revenue growth (-6.6% this year), P/S ratio of 0.27x, 2.09% dividend yield, and has an average analyst price target of $105. … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a call rollout in Facebook (FB) and call selling in Sirius XM (SIRI).

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Smart Money Report

DG- A rollout from 5,000 June 6 weekly $55.50 calls (credit) into 5,000 June 13 weekly $56 calls (debit). Volume was above the open interest in the June 13 weekly $56 calls.
FB- A rollout from 25,000 June 21 $62.50 calls (credit) into 25,000 July 19 $62.50 calls (debit). Volume was above the open interest in the $62.50 calls. Shares of Facebook tested the 100-day SMA this week and are now starting to move higher.
FDX- 2,000 Oct. $135 puts were sold for $3.40-$3.45 each, against open interest of 1,144 contracts. Earnings are due out on 6/18.
SBGI- A rollout from 4,600 June $30 calls (credit) into 4,600 July $31 calls (debit). Volume was above the open interest in the July $31 calls. There was big buying in the (SBGI) July $32 calls yesterday.
TITN- More than 1,000 June $17.50 calls were … Read More »

Smart Money Report

TSLA- Tesla Motors is set to announce Q1 earnings after the bell tonight. Analysts are looking for $0.12 in EPS and revenue of $700 million. Option traders are pricing in a $20.60 move, or 10.25%, in either direction through Friday’s close. The call to put ratio in (TSLA) options is currently 1.02, led by a seller of 1,150 June 21 $200 puts for $16.10 each (this trade was tied to a 50k share sale at $202.06). The stock has moved higher after earnings on three out of the last four reports.
AMAT- Another 13k Jan. 2015 $22 calls were purchased for $0.78 each, against open interest of 97,181 contracts. Earnings are due out on 5/15. On 4/15, open interest was 56,091 in these calls.
FB- 6,200 June 21 $55 puts were bought for $1.93 each, against open interest of 17,182 … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight put buying in Facebook (FB) and Las Vegas Sands (LVS).

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Smart Money Report

AAPL- Apple is set to announce Q2 earnings after the bell tonight. Analysts are looking for $10.17 in EPS and revenue of $43.6 billion. The options market is implying a $20.10 move, or 3.80%, in either direction through Friday’s close. Call to put ratio in (AAPL) options is currently 1.28, led by a buyer of 600 July $565 calls for $7.20 each. The stock has moved lower on six out of the last seven reports.
FB- Another big report due out tonight will come from Facebook. Analysts are looking for $0.24 in EPS and revenue of $2.4 billion. Option traders are pricing in a $6.03 move, or 9.82%, in either direction through Friday’s close. The call to put ratio in (FB) options is currently 1.79, led by a buyer of 6k May 17 $65/$70 call spreads for a $1.51 … Read More »

Smart Money Report

HFC- 4,691 May $44 puts were sold for $0.55 each, against open interest of 20 contracts. The stock briefly tested the $44 level this month before moving higher.
GILD- 2k Mar. 28 weekly $74 puts were bought for $1.66-$1.88 each, against open interest of 553 contracts. The other big trade in (GILD) was a buyer of 2k Aug. $75 calls for $6.05 each, making a longer-term bullish bet. There was a rollout from 20k May $80 puts (credit) into 20k May $70 puts (debit) yesterday.
SI- 1,400 May $125 puts were sold for $1.30-$1.40 each, against no previous open interest. (SI) trades at a P/E ratio of 14.54 (2014 estimates), 10.9% revenue growth, and a P/S ratio of 1.15x.
SWHC- Over 1,200 June $15 calls were bought for $0.50-$0.60 each, against open interest of 3,708 contracts. Open interest has been building … Read More »

Smart Money Report

FDX- Fedex is set to announce Q3 earnings before the bell tomorrow morning. Analysts are looking for $1.52 in EPS and revenue of $11.5 billion. The options market is implying a $4.25 move, or 3.08%, in either direction through Friday’s close. The put to call ratio in (FDX) options is currently 1.36, led by sizable put selling. The stock has moved higher after earnings on the two previous reports.
ORCL- Oracle will report Q3 earnings after the bell tonight. Analysts are looking for $0.70 in EPS and revenue of $9.4 billion. Option traders are pricing in a $1.72 move, or 4.47%, in either direction through Friday’s close. The call to put ratio in (ORCL) options is 1.75, led by a buyer of 5k Mar. 2014 $38 puts for $0.78. The stock has moved higher after earnings on three of … Read More »

Smart Money Report

APD- A rollout from 3,978 Mar. $120 calls (credit) into 3,500 Apr. $120 calls (debit). Volume was above the open interest in the Apr. $120 calls. 9k Jan. 2015 $135 calls were bought for $3.90 each yesterday.
JPM- 5,599 Apr. 11 weekly $55.50 puts were sold for $0.52 each, against open interest of 130 contracts. Earnings are due out on 4/11.
VMW- 4,797 Apr. $100 puts were purchased for $1.80 each, against open interest of 531 contracts.
YNDX- 4k Jan. 2015 $30 puts were sold for $4.65 each, against open interest of 602 contracts.
FB- Facebook shares are on pace to close below the middle Bollinger Band (20-day SMA) for the first time since January, down 2.69% today. The call to put ratio in (FB) options is currently 1.29, led by a buyer of 4,884 Apr. 2014 $67.50 puts for $2.55 each.

Free … Read More »

Smart Money Report

BYD- Boyd Gaming will report Q4 earnings after the bell tonight. Analysts are looking for -$0.25 in EPS and revenue of $688 million. The options market is implying a $1.50 move, or 13.08%, in either direction through Mar. options expiration. Call to put ratio in (BYD) options is currently 2.64, led by a buyer of over 1,200 June 2014 $14 calls for $1.15 each. The stock has moved higher after reporting earnings on three out of the previous four reports.
SPLS- Staples is set to announce Q4 earnings before the bell tonight. Analysts are looking for $0.39 in EPS and revenue of $6.0 billion. Option traders are pricing in a $1.25 move, or 9.21%, in either direction through Mar. options expiration. The put to call ratio in (SPLS) options is 7.80, led by sizable buying in the Mar. 2014 … Read More »

CRM- Salesforce.com will report Q4 earnings after the bell tonight. Analysts are looking for $0.06 in EPS and revenue of $1.1 billion. The options market is implying a $4.52 move, or 6.89%, in either direction through Friday’s close. Call to put ratio in (CRM) options is currently 1.59, led by a seller of of 2k Mar. $65 puts for $2.73 and a buyer of 900 Apr. $70/$75 call spreads for a $1.04 debit. The stock has moved higher after reporting earnings on five out of the past seven reports.
KOG- Kodiak Oil & Gas is also set to announce Q4 earnings after the bell. Analysts are looking for $0.19 in EPS and revenue of $270 million. Option traders are pricing in a $1.10 move, or 9.46%, in either direction through Mar. options expiration. Nearly 20k set in open interest in the … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight large call buying in Facebook (FB) and a call rollout in Garmin (GRMN).

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Smart Money Report

JWN- Nordstrom will report Q4 earnings after the bell tonight. Analysts are looking for $1.34 in EPS and revenue of $3.7 billion. The options market is implying a $2.70 move, or 4.54%, in either direction through Friday’s close. Call to put ratio in (JWN) options is 4.03, led by a buyer of 4,634 Feb. $62.50 calls for $0.17 each. The stock has fallen on the next day after earnings for the past five quarters.
PCLN- Priceline.com will also be releasing earnings tonight. Analysts are looking for $8.29 in EPS and revenue of $1.5 billion. Options traders are pricing in a $75.80 move, or 5.92%, in either direction through Friday’s close. The call to put ratio in (PCLN) options is currently 1.04. The stock has risen on the next day after earnings for the past five quarters.
AUDC- Over 5k Mar. … Read More »