Retailers like Walmart (WMT) and Target (TGT) are campaigning to force Amazon.com (AMZN) to pay sales taxes. While these retailers headline the effort and would certainly gain from any such decision, other large players like Costco (COST) have (relatively) flown under the radar. Could Costco see the same benefit? Costco traditionally competes with warehouse club operators like BJ's Wholesale Club (BJ) and Sam's Club, in addition to companies like Walmart, Best Buy (BBY) and Target.

Our price estimate for Costco's stock stands at $64.67, a roughly 10% discount to the stock's current market price.

Continue reading Retailers Push for Amazon Sales Tax, but Should Costco Care?

Retailers Push for Amazon Sales Tax, but Should Costco Care? originally appeared on BloggingStocks on Wed, 30 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

Facebook primarily competes with Google (GOOG), Yahoo! (YHOO), Microsoft (MSFT) and Aol (AOL) in the display and search advertising markets. Here we highlight three major revenue streams that contribute to Facebook's value.

We currently peg Facebook's intrinsic value at $45.1 billion.

Continue reading The 3 Most Important Revenue Streams for Facebook

The 3 Most Important Revenue Streams for Facebook originally appeared on BloggingStocks on Sun, 27 Mar 2011 11:20:00 EST. Please see our terms for use of feeds.

Akamai's (AKAM) most important division is its media content delivery, constituting around 34% of its stock value by our estimates. The high value attributed to this division in our analysis comes from expectations of rapid growth in Akamai's revenue per media customer. As a content delivery company providing web content to its customers, Akamai competes with other players like InterNAP Network Services (INAP), Limelight Networks (LLNW) and Level 3 (LVLT).

Our price estimate for Akamai stands at $37.11, which is roughly in line with market price.

Continue reading A Bright Outlook for Akamai's Revenue per Media Customer

A Bright Outlook for Akamai's Revenue per Media Customer originally appeared on BloggingStocks on Fri, 25 Mar 2011 14:00:00 EST. Please see our terms for use of feeds.

Shares of retail giant Best Buy (BBY) traded higher Thursday morning after the company posted better-than-expected earnings for its fourth quarter.

Going into the earnings report, analysts had been expecting to see Best Buy report earnings of $1.84 per share for the quarter. Best Buy topped estimates by posting earnings of $1.98 per share.

Continue reading Best Buy Tops Earnings Estimates but Revenues Disappoint

Best Buy Tops Earnings Estimates but Revenues Disappoint originally appeared on BloggingStocks on Thu, 24 Mar 2011 10:50:00 EST. Please see our terms for use of feeds.

Best Buy (BBY) captures one third of U.S. consumer electronics sales, according to the Wall Street Journal (subscription required). That's the good news.

But now Best Buy is losing market share. You are probably wondering why this has happened. After all since Circuit City evaporated into bankruptcy, you would think that Best Buy would be king of the hill. Not so. Other trends are developing that are eroding Best Buy's territory. Here are a few them:

Continue reading Best Buy Faces a Bleak Future

Best Buy Faces a Bleak Future originally appeared on BloggingStocks on Sun, 13 Mar 2011 14:50:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Medicis (MRX) to overweight from neutral at Piper Jaffray, to outperform from market perform at Bernstein, to outperform from sector perform at RBC Capital and to overweight from neutral at JPMorgan.
• Wellpoint (WLP) to buy from neutral at Davenport.
• Humana (HUM) to buy from hold at Jefferies.
• Frontier Oil (FTO) to equal weight from underweight and Resources Connection (RECN) to overweight from equal weight at Barclays.

Continue reading Analyst Calls: AMZN, CMCSA, FTO, HUM, MRX, PG, STX, WLP, WWW ...

Analyst Calls: AMZN, CMCSA, FTO, HUM, MRX, PG, STX, WLP, WWW ... originally appeared on BloggingStocks on Mon, 28 Feb 2011 11:30:00 EST. Please see our terms for use of feeds.

We've oft heard the saying: "We must reinvent ourselves." This is the new mantra at eBay. According to chief executive John Donahoe: "Clearly, I hope you see that we are starting to play offense."

EBay (EBAY) has long been a dominant player in the e-commerce industry. Started in 1995, it has brought together buyers and sellers in an auction format. Now, 16 years later and highly successful, the company finds a new competitor in Amazon.com (AMZN), which is grabbing market share. In the meantime, eBay has acquired Paypal, as a wholly owned subsidiary. Paypal, an online payment service, helped to propel eBay's business transactions.

Continue reading A Makeover for eBay

A Makeover for eBay originally appeared on BloggingStocks on Fri, 11 Feb 2011 12:15:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Athenahealth (ATHN), Ensco (ESV), Pride International (PDE) and Sinclair Broadcast (SBGI) to outperform from market perform at Wells Fargo.
• CIRCOR (CIR) to buy from hold at BB&T.
• Urban Outfitters (URBN) to hold from sell at Citigroup.
• Shaw Group (SHAW) to buy from neutral at UBS.
• MGM Resorts (MGM) and Boyd Gaming (BYD) to buy from neutral, as well as Intrepid Potash (IPI) to neutral from underperform, at BofA/Merrill.
• Carlisle (CSL) to buy from neutral at SunTrust.

Continue reading Analyst Calls: AFL, AMZN, EBAY, ESV, FSLR, IBM, MGM, SHAW, TGT, WMT ...

Analyst Calls: AFL, AMZN, EBAY, ESV, FSLR, IBM, MGM, SHAW, TGT, WMT ... originally appeared on BloggingStocks on Tue, 08 Feb 2011 11:30:00 EST. Please see our terms for use of feeds.

There's a new industry in the making. It's in the way we buy and read books. Electronic books, or e-books, are taking the book market by storm. Here's a mind blowing statistic. Barnes & Noble (BKS) announced that in December its e-book sales exceeded print books, as reported in MSNMoney.

The two big leaders in the e-book market are Amazon.com (AMZN) and Barnes & Noble with the Kindle and Nook readers respectively. Both companies said that e-readers are their best-selling product of all time.

Continue reading E-book Sales Expected to Quadruple

E-book Sales Expected to Quadruple originally appeared on BloggingStocks on Sun, 06 Feb 2011 09:40:00 EST. Please see our terms for use of feeds.

According to the Wall Street Journal (subscription required), Amazon.com (AMZN) is launching a bulk email sending service aimed at businesses and developers. The goal is to expand its Web server services.

Amazon already has huge servers. The new email service is a way to gain added revenue. The service is called Amazon Simple Email Service (SES). The program offers a free usage tier, after which customers pay 10 cents per thousand email messages sent.

Continue reading Amazon to Launch Bulk Email Service for Business

Amazon to Launch Bulk Email Service for Business originally appeared on BloggingStocks on Sat, 05 Feb 2011 11:40:00 EST. Please see our terms for use of feeds.

CBOE Volatility Index (VIX) rises 24% to 20.03 on antigovernment protests in Egypt.

United States Oil Fund (USO) closed up 4.3% as WTI Crude futures have traded up 4.37% to $89.38, according to Bloomberg. Traders were focused on short-term February 38 calls. February put option implied volatility of 29 is below its 26-week average of 31 according to Track Data, suggesting decreasing price movement.

Option volume leaders are Apple (AAPL), Citigroup (C), Amazon.com (AMZN) and Netflix (NFLX), according to Track Data.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: VIX Rises 24% on Antigovernment Protests in Egypt originally appeared on BloggingStocks on Sat, 29 Jan 2011 09:40:00 EST. Please see our terms for use of feeds.

Like millions of other Christmas shoppers, I ran-up a big bill on Amazon.com (AMZN). Actually, I do this throughout the year. The fact is that Amazon's selection and pricing are top-notch. Shipping is also quick.

But these things aren't cheap. On the latest quarterly report, Amazon.com showed a big increase in expenses, which put a crimp in margins. Friday morning trading, the stock was off 8% to $170.

Continue reading Amazon.com's Expensive Christmas

Amazon.com's Expensive Christmas originally appeared on BloggingStocks on Fri, 28 Jan 2011 12:00:00 EST. Please see our terms for use of feeds.

JCPenney (JCP) January 32 and February 30 puts are active with total call volume of 18K calls, 10K puts. Pershing Square reported a 16.5% stake in the company on October 8th. Overall option implied volatility of 37 is below its 26-week average of 41 according to Track Data, suggesting decreasing price movement.

Amazon (AMZN) February put option implied volatility is at 38, July is at 37; near its 26-week average of 36 into Q4 EPS on January 27, suggesting slightly larger price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: JCPenney Calls Active on Low Volatility originally appeared on BloggingStocks on Fri, 21 Jan 2011 09:30:00 EST. Please see our terms for use of feeds.

One of the top growth companies over the past couple years has been Netflix (NFLX). The company has effectively transitioned from its DVD delivery business to streaming. However, the competition is heating up, and it is getting more expensive to license content.

Actually, one of the biggest competitive threats is Amazon.com (AMZN). Thursday the company announced that it has purchased LoveFilm, which is an online video rental service that's based in Europe.

Continue reading Amazon Buys LoveFilm, the 'Netflix of Europe'

Amazon Buys LoveFilm, the 'Netflix of Europe' originally appeared on BloggingStocks on Thu, 20 Jan 2011 12:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Diamond Offshore (DO) to conviction buy from sell and Baker Hughes (BHI) to buy from neutral at Goldman.
• Frontier Communications (FTR) to outperform from market perform at Wells Fargo.
• Syntel (SYNT) to outperform from market perform at Wells Fargo, to buy from hold at Deutsche Bank and to buy from neutral at Janney Capital.
• Kulicke & Soffa (KLIC) and Fiserv (FISV) to outperform from perform at Oppenheimer.
• 3M (MMM) to neutral from underweight and Tyco (TYC) to overweight from neutral at JPMorgan.
• Collective Brands (PSS) and Nordstrom (JWN) to overweight from equal weight, as well as Foot Locker (FL) to equal weight from underweight, at Morgan Stanley.
• Amazon.com (AMZN) to buy from hold at Lazard Capital.
• Yamana Gold (AUY) to outperform from neutral at Credit Suisse.

Continue reading Analyst Calls: APC, AMZN, CME, DO, GPS, H, JCP, JWN, KSS, PM SYNT ...

Analyst Calls: APC, AMZN, CME, DO, GPS, H, JCP, JWN, KSS, PM SYNT ... originally appeared on BloggingStocks on Fri, 07 Jan 2011 11:20:00 EST. Please see our terms for use of feeds.

As the e-commerce boom continues, the shares of Amazon.com (AMZN) have been hitting new highs. The company now sports a market cap of a hefty $83 billion.

Besides strong customer service -- and tremendous efficiency -- Amazon.com has also been adept at consolidating markets. It's a big help to consumers.

Continue reading Amazon Builds an Android App Store

Amazon Builds an Android App Store originally appeared on BloggingStocks on Wed, 05 Jan 2011 12:30:00 EST. Please see our terms for use of feeds.

Monday morning, Amazon.com (AMZN) announced that the third-generation Kindle is now its best-selling product of all time, unseating former title-holder Harry Potter and the Deathly Hallows. Amazon didn't provide specific sales figures for the e-reader, but the retail giant added that more Kindle books were purchased this past Christmas Day than on any other day in history -- confirming that the gadgets are quite a popular gift.

Meanwhile, Nov. 29 -- or "Cyber Monday" -- was the peak day for holiday shopping on Amazon. More than 13.7 million items were ordered worldwide on the Monday after Thanksgiving, which translates to about 158 items per second.

Continue reading Amazon.com Boasts of Blowout Kindle Sales

Amazon.com Boasts of Blowout Kindle Sales originally appeared on BloggingStocks on Mon, 27 Dec 2010 12:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Thoratec (THOR) to buy from neutral at UBS.
• TW Telecom (TWTC) to buy from hold at Citigroup.
• TAL Education (XRS) to overweight from neutral at Piper Jaffray.
• Amedisys (AMED) to buy from hold at Deutsche Bank.

Analyst Downgrades

• Navigators (NAVG) to neutral from outperform at Macquarie.
• El Paso Electric (EE) to hold from buy at Jefferies.
• Hancock Holding (HBHC) to hold from buy at Wunderlich.
• California Water Service (CWT) and American States Water (AWR) to neutral from buy at Janney Capital.
• Mednax (MD) to hold from buy at Deutsche Bank.

Continue reading Analyst Calls: AMED, AMZN, CVC, DOLE, EL, EBAY, NWL, SBUX, THOR, UIS ...

Analyst Calls: AMED, AMZN, CVC, DOLE, EL, EBAY, NWL, SBUX, THOR, UIS ... originally appeared on BloggingStocks on Tue, 21 Dec 2010 11:20:00 EST. Please see our terms for use of feeds.

"While the past decade has been tough on investors, some stocks have stood out and managed to soar," notes growth stock specialist Stephen Leeb, adding "Indeed, both Amazon (AMZN) and Apple (AAPL) -- which are both holdings in our growth portfolio -- recently hit all-time highs."

The editor of The Complete Investor explains, "These two stocks don't say much about tech itself, which, is a slow-growth area. Rather they demonstrate the power of a franchise.

"Further, these are not just any franchises, they're ones that uniquely affect consumer productivity and enjoyment.

Continue reading Amazon (AMZN) and Apple (AAPL): Stand Out Franchises

Amazon (AMZN) and Apple (AAPL): Stand Out Franchises originally appeared on BloggingStocks on Mon, 13 Dec 2010 13:30:00 EST. Please see our terms for use of feeds.

Google's (GOOG) management philosophy is to launch quickly and then to iterate. However, in the case of its eBook project, the process has been fairly slow. But after several years, it is finally open to the virtual public.

All in all, it's a pretty good resource, with three million books from over 4,000 publishers. Roughly two-thirds of these titles are free (since they are now part of the public domain).

Continue reading Google Finally Launches Its eBooks Biz

Google Finally Launches Its eBooks Biz originally appeared on BloggingStocks on Mon, 06 Dec 2010 12:30:00 EST. Please see our terms for use of feeds.