Upcoming speech in Vegas plus FB/INVN updates
On Thursday, November 20, 2011, from 10:30 am – 11:30 am I will be giving a presentation called “10,000 Days: The Shocking Concept That Will Change the Way You Trade and Invest Forever”
FREE Entry/Registration. Come by and watch it if you can.
Nobody wants to be long for a trade into the Fed 2pm EST announcement? Daytraders fleeing. Everybody’s on their toes into the Fed. Wouldn’t be surprise if stocks do absolutely nothing for a day or two, would it? Just to frustrate the maximum number of participants, like the markets are wont to do.
Here’s a couple of good analyst notes on FB and INVN for you this morning, courtesy of a Too Big To Fail bank or two that you’re still propping up with welfare.
“The focus coming out of FB’s 3Q earnings lies squarely on the outlook for 2015 expense growth, which includes a 50-70% increase in non-GAAP expenses. This compares to FB’s guide for 30-35% non-GAAP expense growth in 2014 and our pre-earnings expectation for a 35% increase in 2015. FB delivered another strong quarter and is very well-positioned in an increasingly mobile and social Internet landscape, and to be clear, FB is investing into strength and future growth opportunities. Key areas of investment include: 1) recent acquisitions such as Oculus, WhatsApp, and LiveRail; 2) AdTech initiatives including Atlas, FAN, and LiveRail; and 3) core product and user growth. We’re now modeling 55% non-GAAP expense growth in 2015 on 37% revenue growth, and our 2015 non-GAAP operating margin compresses 550bps Y/Y to 52.7% and our non-GAAP EPS comes down 3% from $2.06 previously to $1.99. Earnings growth will be pressured near-term, but we believe there is long-term leverage in FB’s model and strategic investments will drive a bigger business over time.”
and
“The sequential decrease in gross margin was primarily attributable to two factors: a non-recurring inventory charge largely related to earlier generations of the company’s products that reduced the gross margin by approximately eight percentage points, and a shift in revenue mix towards lower margin, high volume customers that reduced the gross margin by approximately five percentage points. For Dec, they see revs $108-115MM (vs. the St $116MM) on EPS of 0.17-0.21 (vs. the St 0.30). They reit. prior F15 rev guide.”
The fact that guidance for next quarter includes ongoing margin issues, I lost a little bit of sleep over the $INVN disaster last night. I am making calls and reading up on it further but mea culpa on today’s action for sure.
And don’t forget this week’s Live Q&A Chat at 2pm EST at http://tradingwithcody.com/chat.
