Latest news with #Mahaney
CNBC
20-07-2025
- Business
- CNBC
Top Wall Street analysts are confident about the potential of these 3 stocks
The earnings season is on, and investors are paying attention to how the leading companies are faring. However, tariffs and other challenges remain on the minds of investors. While top Wall Street analysts also watch the quarterly results closely, they generally have a broader focus and assess the company's ability to navigate short-term difficulties and deliver attractive returns over the long term. Here are three stocks favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on their past performance. First on this week's list is ride-sharing and delivery platform Uber Technologies (UBER). The company is scheduled to announce its second-quarter results on Aug. 6. In a preview note on Uber's Q2 earnings, Evercore analyst Mark Mahaney stated that he expects the company to report a 17% year-over-year growth in gross bookings to $46.8 billion, slightly above the Street's estimate and within the company's guidance. The analyst expects revenue growth of 18%, modestly above the Street's expectations, and EBITDA (earnings before interest, tax, depreciation, and amortization) of $2.09 billion, in line with the consensus estimate. Mahaney's estimates are based on favorable industry checks for consumer demand trends, third-party data checks, and Evercore's non-deal roadshows (NDR) with UBER management. The analyst's expectations are also backed by Evercore's 8th Annual U.S. Ridesharing Survey and insights from its NDR with DoorDash management. Despite the stellar year-to-date rally, Mahaney stated that UBER remains a top pick for Evercore. He attributed the stock's rise to multiple factors, including better-than-expected growth in Mobility and Delivery bookings over the past two quarters and positive key user metrics and the impressive rollout of Waymo in Austin on the Uber network. "Key to our Long Thesis – we believe there will be 'more Austins' – more successful robotaxi partner rollouts for Uber, and not just with Waymo, over the next 12-18 months," said Mahaney and reaffirmed a buy rating on UBER stock with a price forecast of $115. Meanwhile, TipRanks' AI analyst has an "outperform" rating on UBER stock with a price forecast of $108. Mahaney ranks No. 219 among more than 9,800 analysts tracked by TipRanks. His ratings have been profitable 60% of the time, delivering an average return of 15.9%. See Uber Technologies Statistics on TipRanks. We move to Alphabet (GOOGL), the parent company of search engine giant Google. In a Q2 earnings preview of the companies in the internet space, JPMorgan analyst Doug Anmuth reaffirmed a buy rating on GOOGL stock and increased the price forecast to $200 from $195. In comparison, TipRanks' AI analyst has a price target of $199 on GOOGL stock with an "outperform" rating. Anmuth explained that his higher estimates mainly reflect better channel checks and third-party data as well as more favorable forex changes. Anmuth added that his revised price target is based on a multiple of about 20-times his 2026 GAAP earnings per share (EPS) estimate of $9.89. The analyst believes that Alphabet deserves to trade at a premium to the S&P 500, given that it is one of the few companies in this index with a double-digit percent revenue and EPS growth on a very large base. He also highlighted the company's more than 30% GAAP operating income margin. "We believe Alphabet's fundamentals are solid and the company will remain both a driver of and primary beneficiary of an increasingly digital economy & advances in Generative AI," said Anmuth. He highlighted Alphabet's continued focus on innovation. Anmuth sees a healthy runway across Search and YouTube ads, with artificial intelligence (AI) fueling higher return on investment (ROI) and a shift in TV dollars to online channels. Furthermore, he said that Alphabet's non-ad businesses, like Cloud and YouTube subscription services, still have substantial scope to grow. Anmuth also said that the companies within Alphabet's Other Bets division, including Waymo and Verily, provide potential upside. Overall, Anmuth is bullish about Alphabet's ability to innovate around generative AI, control costs and deliver impressive revenue growth. Anmuth ranks No. 56 among more than 9,800 analysts tracked by TipRanks. His ratings have been successful 65% of the time, delivering an average return of 21.6%. See Alphabet Stock News and Insights on TipRanks. Anmuth is also bullish on social media giant Meta Platforms (META) and raised the price target for the stock to $795 from $735 while maintaining a buy rating ahead of the company's Q2 results. In comparison, TipRanks' AI analyst has an "outperform" rating on META stock with a price target of $798. The analyst explained that the upgraded price target is based on about 27-times his 2026 GAAP EPS estimate of $29.53. Anmuth believes that META stock's premium valuation to the S&P 500 is justified, as he has greater confidence in the company's robust top-line growth and ongoing cost efficiencies. "We believe Meta's virtual ownership of the social graph, strong competitive moat, and focus on the user experience position it to become an enduring blue-chip company built for the long term," said Anmuth. The analyst noted Meta Platforms' strength in terms of scale, growth, and profitability, with its extensive reach and engagement continuing to drive network effects. Anmuth also noted the company's targeting abilities that offer huge value to advertisers. Anmuth stated that Meta will invest in the massive growth opportunities offered by the two big tech waves – AI and Metaverse, while also focusing on cost discipline. Despite significant infrastructure investments, the analyst expects Meta Platforms to deliver strong revenue and EPS growth in 2026. He noted Meta's solid track record in delivering returns on higher spending. See Meta Platforms Insider Trading Activity on TipRanks.
Yahoo
11-07-2025
- Business
- Yahoo
One tech giant is getting buried in the record-setting stock market
Netflix (NFLX) has gone missing in the market's summer rally. Netflix stock has fallen 5.5% in July, a stark contrast to the continued surge of Big Tech companies like Meta (META), Amazon (AMZN), and Nvidia (NVDA), which surpassed the $4 trillion market cap earlier this week. The streaming giant's recent struggles are particularly striking given its performance over the past year, which saw it consistently surpass Wall Street expectations with substantial subscriber growth, impressive earnings, and expanding profit margins. Evercore ISI analysts led by Mark Mahaney wrote in a note that Netflix is among the "least risky" large-cap internet names heading into earnings. They cited strong subscriber satisfaction trends and growing ad tier traction. "NFLX has a very consistent recent track record of exceeding its revenue and operating income guidance," Mahaney said. Shares of Netflix are up more than 90% over the past year. Netflix is set to report second quarter earnings on July 17. JPMorgan analysts anticipate revenue of roughly $11 billion and operating income north of $3.7 billion, both solid double-digit growth from a year ago. The company's 2025 outlook boasts projected revenue approaching $45 billion, operating margins around 30%, and free cash flow as high as $9 billion. Still, the recent sell-off reflects rising investor hesitation around valuation and future upside. JPMorgan, which downgraded Netflix to Neutral, reaffirmed that call this week, citing a less compelling risk/reward profile following the stock's sharp run-up. It maintained a $1,230 price target and warns that Netflix's near-term may already be priced in. Evercore ISI echoed a similar tone, noting that Netflix now trades at around 41 times forward earnings, a level that leaves little room for error. Just three months ago, Evercore ISI described the space as being in a "Net Stock Bear Market," with many large-cap internet names trading near trough valuations. Now, that sentiment has reversed. Many of those same names have surged 40% or more since April, driving what Evercore ISI called a "Net Stock Bull Market." With stock prices soaring, investors appear to be rotating into names with cleaner setups, or taking some chips off the table in names like Netflix, where expectations are already high. But the company's fundamentals remain strong. Netflix's ad-supported business reaches roughly $94 million monthly users globally, per Evercore ISI. Ad revenue is expected to double in 2025. Content momentum is also building. The second half of 2025 includes the return of "Squid Game," "Wednesday," and "Stranger Things." The company has been steadily raising prices and expanding globally, driving stronger-than-expected average per revenue in several markets. Others could be eyeing tech giants with more room to run. Meta trades at a lower multiple. Even with retail sector tariff headwinds, Amazon is still benefiting from cloud strength. Meanwhile, Nvidia has become AI's biggest darling. Francisco Velasquez is a reporter for Yahoo Finance. He can be reached on LinkedIn and X.
Yahoo
11-07-2025
- Business
- Yahoo
One tech giant is getting buried in the record-setting stock market
Netflix (NFLX) has gone missing in the market's summer rally. Netflix stock has fallen 5.5% in July, a stark contrast to the continued surge of Big Tech companies like Meta (META), Amazon (AMZN), and Nvidia (NVDA), which surpassed the $4 trillion market cap earlier this week. The streaming giant's recent struggles are particularly striking given its performance over the past year, which saw it consistently surpass Wall Street expectations with substantial subscriber growth, impressive earnings, and expanding profit margins. Evercore ISI analysts led by Mark Mahaney wrote in a note that Netflix is among the "least risky" large-cap internet names heading into earnings. They cited strong subscriber satisfaction trends and growing ad tier traction. "NFLX has a very consistent recent track record of exceeding its revenue and operating income guidance," Mahaney said. Shares of Netflix are up more than 90% over the past year. Netflix is set to report second quarter earnings on July 17. JPMorgan analysts anticipate revenue of roughly $11 billion and operating income north of $3.7 billion, both solid double-digit growth from a year ago. The company's 2025 outlook boasts projected revenue approaching $45 billion, operating margins around 30%, and free cash flow as high as $9 billion. Still, the recent sell-off reflects rising investor hesitation around valuation and future upside. JPMorgan, which downgraded Netflix to Neutral, reaffirmed that call this week, citing a less compelling risk/reward profile following the stock's sharp run-up. It maintained a $1,230 price target and warns that Netflix's near-term may already be priced in. Evercore ISI echoed a similar tone, noting that Netflix now trades at around 41 times forward earnings, a level that leaves little room for error. Just three months ago, Evercore ISI described the space as being in a "Net Stock Bear Market," with many large-cap internet names trading near trough valuations. Now, that sentiment has reversed. Many of those same names have surged 40% or more since April, driving what Evercore ISI called a "Net Stock Bull Market." With stock prices soaring, investors appear to be rotating into names with cleaner setups, or taking some chips off the table in names like Netflix, where expectations are already high. But the company's fundamentals remain strong. Netflix's ad-supported business reaches roughly $94 million monthly users globally, per Evercore ISI. Ad revenue is expected to double in 2025. Content momentum is also building. The second half of 2025 includes the return of "Squid Game," "Wednesday," and "Stranger Things." The company has been steadily raising prices and expanding globally, driving stronger-than-expected average per revenue in several markets. Others could be eyeing tech giants with more room to run. Meta trades at a lower multiple. Even with retail sector tariff headwinds, Amazon is still benefiting from cloud strength. Meanwhile, Nvidia has become AI's biggest darling. Francisco Velasquez is a reporter for Yahoo Finance. He can be reached on LinkedIn and X. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
One tech giant is getting buried in the record-setting stock market
Netflix (NFLX) has gone missing in the market's summer rally. Netflix stock has fallen 5.5% in July, a stark contrast to the continued surge of Big Tech companies like Meta (META), Amazon (AMZN), and Nvidia (NVDA), which surpassed the $4 trillion market cap earlier this week. The streaming giant's recent struggles are particularly striking given its performance over the past year, which saw it consistently surpass Wall Street expectations with substantial subscriber growth, impressive earnings, and expanding profit margins. Evercore ISI analysts led by Mark Mahaney wrote in a note that Netflix is among the "least risky" large-cap internet names heading into earnings. They cited strong subscriber satisfaction trends and growing ad tier traction. "NFLX has a very consistent recent track record of exceeding its revenue and operating income guidance," Mahaney said. Shares of Netflix are up more than 90% over the past year. Netflix is set to report second quarter earnings on July 17. JPMorgan analysts anticipate revenue of roughly $11 billion and operating income north of $3.7 billion, both solid double-digit growth from a year ago. The company's 2025 outlook boasts projected revenue approaching $45 billion, operating margins around 30%, and free cash flow as high as $9 billion. Still, the recent sell-off reflects rising investor hesitation around valuation and future upside. JPMorgan, which downgraded Netflix to Neutral, reaffirmed that call this week, citing a less compelling risk/reward profile following the stock's sharp run-up. It maintained a $1,230 price target and warns that Netflix's near-term may already be priced in. Evercore ISI echoed a similar tone, noting that Netflix now trades at around 41 times forward earnings, a level that leaves little room for error. Just three months ago, Evercore ISI described the space as being in a "Net Stock Bear Market," with many large-cap internet names trading near trough valuations. Now, that sentiment has reversed. Many of those same names have surged 40% or more since April, driving what Evercore ISI called a "Net Stock Bull Market." With stock prices soaring, investors appear to be rotating into names with cleaner setups, or taking some chips off the table in names like Netflix, where expectations are already high. But the company's fundamentals remain strong. Netflix's ad-supported business reaches roughly $94 million monthly users globally, per Evercore ISI. Ad revenue is expected to double in 2025. Content momentum is also building. The second half of 2025 includes the return of "Squid Game," "Wednesday," and "Stranger Things." The company has been steadily raising prices and expanding globally, driving stronger-than-expected average per revenue in several markets. Others could be eyeing tech giants with more room to run. Meta trades at a lower multiple. Even with retail sector tariff headwinds, Amazon is still benefiting from cloud strength. Meanwhile, Nvidia has become AI's biggest darling. Francisco Velasquez is a reporter for Yahoo Finance. He can be reached on LinkedIn and X. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
11-07-2025
- Business
- Business Insider
Why Wall Street analysts think Alphabet may be the most overlooked Big Tech stock
When it comes to AI, Nvidia may be the star of the show, but some Wall Street analysts have their eyes on another Big Tech name: Alphabet. It's certainly a less popular pick this. year. Investors have soured on Alphabet in recent months on concerns that AI could disrupt the company's core search business. With platforms such as ChatGPT, users can directly access answers to their questions without clicking on links, reducing ad exposure for Google. Alphabet stock is down 6% year-to-date, but that dip is exactly what makes it appealing, according to Mark Mahaney, Evercore ISI's head of internet research. On CNBC on Thursday, Mahaney called Alphabet one of the best "dislocated high quality" names in the market. Fears about AI have resulted in Alphabet shares trading at a discount, but Mahaney thinks the perceived threat to search is overblown, pointing out Alphabet's robust business lines with YouTube, Google Cloud, and Waymo. In a worst-case scenario where search does indeed slow down, growth in these other segments could drive upside to the stock. Eric Sheridan, co-business unit leader of the TMT group at Goldman Sachs, agrees. He believes Alphabet presents one of the most compelling risk-reward profiles among the large-cap tech companies. "There is a debate around search, but increasingly with the value of YouTube, Cloud, and Waymo going higher inside the broader Alphabet, we think you're paying less and less for search at the same time that a wall of worry is rising," Sheridan told Business Insider. Investors might also be overlooking the strategic advantage Alphabet has with its Gemini AI platform, according to Sheridan: "Putting Gemini into mail, search, Chrome, Maps, YouTube — all of these avenues of distribution could be an advantage for Alphabet in an AI first-world that are being undervalued," he said. Additionally, Alphabet might have a line of defense against AI queries: commercial search, or searches where users are looking to buy products. These searches are considered the most high-value in terms of revenue and advertiser interest, according to Bank of America. Even with AI overviews, users looking to make a purchase are still likely to use commercial search to compare options and click links. "Today, we have not highlighted any risk to that commercial query share, and definitely not to commercial query monetization," Sheridan said. Evercore 's quarterly surveys haven't revealed any change in Alphabet's share of commercial search queries. In fact, Mahaney has actually seen a slight uptick in volume. "If Google can accelerate its paid click growth a bit, if they can sustain this double-digit paid search revenue growth, I think over time that will kind of wear down the existential search risk," Mahaney said.
