2016-06-02 Why LinkedIn (LNKD) Stock Looks Poised To Rally | Why LinkedIn Stock (LNKD) Looks Poised To Rally
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 »
Smart Money Report
CVX- Chevron is set to announce Q1 earnings before the bell tomorrow morning. Analysts are looking for $2.55 in EPS and revenue of $54.5 billion. The options market is implying a $2.00 move, or 1.60%, in either direction through Friday’s close. Call to put ratio in (CVX) options is currently 1.72, led by buying in June 21 $125 and July $130 calls. The stock has declined after earnings on the last three reports.
LNKD- LinkedIn will report Q1 earnings after the bell tonight. Analysts are looking for $0.34 in EPS and revenue of $467 million. Option traders are pricing in a $13.05 move, or 8.14%, in either direction through Friday’s close. The call to put ratio in (LNKD) options is currently 1.19, led by activity in the May 2 weekly $170 calls. The stock has declined after earnings on … Read More »
Smart Money Report
LGF- Lions Gate Entertainment will report Q3 earnings after the bell tonight. Analysts are looking for $0.44 in EPS and revenue of $834 million. The options market is implying a $2.50 move, or 7.91%, in either direction through February options expiration. Call to put ratio in (LGF) options is currently 5.11.
LNKD- LinkedIn is also set to announce Q4 earnings after the bell tonight. Analysts are looking for $0.39 in EPS and revenue of $438 million. Option traders are pricing in a $22.75 move, or 10.28%, in either direction through Friday’s close. The call to put ratio in (LNKD) is 1.32.
EXPE- A rollout from 3k Feb. $65 puts (credit) into 3k Apr. $65 puts (debit). Volume was above the open interest in the Apr. $65 puts. Earnings are due out tonight.
FLR- More than 3,600 Mar. $82.50 calls were sold … Read More »
Free Trade of the Day
Notes: LinkedIn (LNKD) is set to announce Q4 earnings on Thursday, February 6th.
LinkedIn (LNKD) Options Trade Idea
Buy the (LNKD) Jan. 31 weekly $220 Put for $6.80 or better
Stop loss- None
Upside target- $20.00
Updates: Avago Technologies (AVGO) shares rose 1.28% on Friday, which is about $2 above where we will look to get long the semiconductor device maker.
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Stock Watchlist Update
How To Trade LinkedIn After Today’s 4% Drop
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