SYS-CON MEDIA Authors: Xenia von Wedel, Peter Silva, Glenn Rossman, Ava Smith, Elizabeth White

News Feed Item

The Zacks Analyst Blog Highlights: LinkedIn, Twitter, Constant Contact, RealPage and Rackspace Hosting

CHICAGO, Feb. 7, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the LinkedIn (NYSE:LNKD-Free Report), Twitter (NYSE:TWTR-Free Report), Constant Contact, Inc. (Nasdaq:CTCT-Free Report), RealPage, Inc. (Nasdaq:RP-Free Report) and Rackspace Hosting, Inc. (NYSE:RAX-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday's Analyst Blog:

LinkedIn Mixed, Lower Guidance Tanks Shares

After the bell Thursday, LinkedIn (NYSE:LNKD-Free Report) reported its fiscal 4th quarter and full-year numbers. And while the professional Internet media firm topped estimates on revenues, it was an earnings miss on the bottom line. LNKD shares are sinking like a stone in the after-market.

Earnings of 5 cents per share (before non-recurring items, stock-based compensation and amortization) missed the Zacks Consensus Estimate of 8 cents. Yet revenues of $447.2 million in the quarter topped the Zacks Consensus Estimate of $440 million. LinkedIn's 277 million members overall was more than analysts had expected. Talent Solutions, which make up over half the company's total business, increased 53% year over year, and Marketing Solutions and Premium Subscriptions also demonstrated healthy year over year growth.

But the guidance? That's another story.

Both for fiscal Q1 and full-year 2014, LinkedIn low-balled their estimates well below where we anticipated guidance would be. While the company estimates revenues between $455-460 million next quarter -- a steady improvement from Q4 -- guidance is lower than the Zacks Consensus Estimate by $7 million. Full-year guidance of $2.02-2.05 billion is similarly down from the Zacks estimate of $2166 million we were expecting.

So now analysts will get busy downwardly revising estimates, which will likely keep LinkedIn a Zacks Rank #5 at least a little while longer. But first, the after-market is letting LinkedIn know how it feels about revenue projections like these, and the results aren't pretty: LNKD shares are down around 10% just since the earnings announcement. In regular-day trading LinkedIn was up 4.24%; apparently investors thought the company's report was going to be a lot better received than this.

As we saw with Twitter (NYSE:TWTR-Free Report) yesterday failing to reach an expected growth target and seeing the stock get punished in late trading, so we see here today with LinkedIn not expecting to keep up its growth trajectory in the current year. Perhaps much was based on some pretty lofty expectations -- speaking of, LinkedIn's market cap is the very definition of a lofty expectation -- and cooler heads will prevail once everything is sorted out. But in the meantime, if you're linked to LinkedIn, you're probably feeling a little dragged down right now.

Nadella's Niche: 3 Cloud Choices

The elevation of Nadella and his successes with Microsoft's cloud division illustrate how crucial the segment will be going forward. Bessemer Venture Partners (BVP) launched a Cloud Index in July last year which captures the fortunes of the top 30 cloud computing companies. These companies were collectively valued at $100 billion at the time. This was a clear indication, BVP said, that leveraging the cloud to power software and data storage was a theme that would come to dominate the tech domain.

Below we present three companies operating in the cloud computing domain, each of which also have a good Zacks Rank.

Constant Contact, Inc.

Constant Contact, Inc. (Nasdaq:CTCT-Free Report) provides engagement marketing tools available on demand. These are customized for small companies, non-profit organizations and associations. Among its prominent offerings are products which can be used for social media and event marketing, email marketing as well as survey tools.

Constant Contact, Inc. holds a Zacks Rank #2 (Buy) and has expected earnings growth of 98.00%. The forward price-to-earnings Ratios (P/E) for the current financial year (F1) is relatively high at 53.70. However the price to sales ratio (P/S) is 2.9, lower than the industry average of 5.4.

RealPage, Inc.

RealPage, Inc. (Nasdaq:RP-Free Report) offers demand software solutions aimed at the housing rental sector. Among the company's products are property management systems and seven groups of valued added services which are software enabled. The company made important acquisitions last year, such as Windsor Compliance, a compliance monitoring services company.

Currently the company holds a Zacks Rank #2 (Buy) and has expected earnings growth of 32.50%. It has a P/E (F1) of 39.53. At 4.3, the company's P/S is lower than the industry average of 5.4.

Rackspace Hosting, Inc.

Our third choice is Rackspace Hosting, Inc. (NYSE:RAX-Free Report). The company has a wide range of cloud computing products. This includes public, private, dedicated and hybrid hosting. Operating across 120 countries, the company has a presence in Zurich, Hong Kong, Sydney and Amsterdam, aside from the U.S.

Besides a Zacks Rank #2 (Buy), RAX has expected earnings growth of 19.60%. It has a relatively higher P/E (F1) of 50.48. However, its P/S is 3.6, lower than the industry average of 5.4.

With major tech players increasingly focusing on the cloud, this domain may offer significant growth in the future. Operating exclusively in the cloud business, these companies may be best placed to leverage those gains and would make good additions to your portfolio.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on LNKD - FREE

Get the full Report on TWTR - FREE

Get the full Report on CTCT - FREE

Get the full Report on RP - FREE

Get the full Report on RAX - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

 

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
Software-driven innovation is becoming a primary approach to how businesses create and deliver new value to customers. A survey of 400 business and IT executives by the IBM Institute for Business Value showed businesses that are more effective at software delivery are also more profitable than their peers nearly 70 percent of the time (1). DevOps provides a way for businesses to remain competitive, applying lean and agile principles to software development to speed the delivery of software that ...
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.