Things To Watch For As Internet Earnings Season Continues This Week

Following last week’s positive report from Netflix, Inc. (NASDAQ: NFLX), several internet firms will be reporting their earnings numbers this week. Those key names include Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook Inc (NASDAQ: FB) and Alibaba Group Holding Ltd (NYSE: BABA).

The upcoming results come amid positive e-commerce data, which bodes well for leading internet firms.

“Overall, our checks suggest continuing positive online spending trends in Q4, although F/X headwinds and widespread product discounting (e-commerce) could limit upside,” Baird analyst Colin Sebastian wrote in a note.

Looking ahead, Sebastian expects outlooks from Internet firms to reflect ongoing high levels of investments reflecting multiple long-term secular growth opportunities.

Internet Roundup

Following are Wall Street’s brief take on the upcoming quarterly earnings of leading internet companies:

On other small and mid-cap firms, Sebastian expects generally positive reports from ChannelAdvisor Corp (NYSE: ECOM), Shutterfly, Inc. (NASDAQ: SFLY), Yelp Inc (NYSE: YELP) and Wayfair Inc (NYSE: W) on healthy mobile/e-commerce trends. That said, the analyst noted that margin issues could weigh a bit on Shutterfly and Wayfair.