Photo: Flickr / cobalt123
In tech stock land today, this is going to be the buzz.JPM’s Doug Anmuth takes out the hatchet on big tech.
Here’s a summary from the morning Ripple note by Adam Crisafulli & Michael Pagliarulo
Internet: Lowering Estimates for FX and Macro Headwinds : GOOG, AMZN, EBAY, PCLN, AWAY Most Exposed. We’re lowering estimates for a handful of Internet companies based on softer international currency and potential macro headwinds, primarily from overseas. We believe stocks have already taken some of this impact into account, but we still expect to see consensus move lower for many names as we approach 2Q earnings over the next 6 weeks.
Beyond FX, macro and the broader market, we would point to softness in newer Internet companies over the past year and seasonality as additional factors that currently weigh on the sector. However, we believe the recent sell-off is making some of our favourite names that much more attractive, with only limited changes to core fundamentals. Priceline and Amazon remain our top 2 large-cap picks, and we’re more constructive on Google at current levels. Among SMid-caps we prefer LinkedIn and Pandora, neither of which we have adjusted estimates for here.
We’ll have more details as we peruse the notes.