Earnings

BroadSoft BSFT Stock News

BroadSoft Inc (NASDAQ: BSFT)

BroadSoft is having an incredible start to trading today, and for good reason!  Early this morning, before the opening bell, the company reported its earnings for the fourth quarter, as well as guidance for the first quarter of FY16. All in all, the company reported relatively positive numbers. Today, we’ll look at the report, how the market is reacting to the news, and what we can expect to see from BSFT moving forward. So, let’s get right to it!

Trade smarter and make more money with Tradespoon!

BSFT Reports Solid Earnings & Guidance

As mentioned above, BSFT reported earnings this morning absolutely blowing away expectations. Here’s what we saw from the Q4 report:

  • Earnings Per Share – In terms of earnings per share, BroadSoft did incredibly well. For the fourth quarter, analysts expected that the company would produce earnings in the amount of $0.67 per share. However, the company absolutely blew away these expectations by producing earnings in the amount of $1.04 per share.
  • Top-Line Revenue – In terms of top-line revenue, we also saw incredibly strong numbers. For the fourth quarter, analysts expected BSFT to produce revenue in the amount of $81.61 million. However, the company actually generated revenue for the quarter in the amount of $89.6 million.
  • Guidance – As if solid earnings and revenue were not enough, BSFT also released guidance for 2016, both first quarter full year. In the first quarter, analysts expect that BroadSoft will generate earnings in the amount of $0.24 per share. However, the company released guidance stating that it expects earnings to range between $0.20 and $0.32 per share in the first quarter. BSFT is also ahead on revenue guidance, expecting to generate between $70 and $74 million in the quarter, compared to the $68.7 million analysts are expecting. Finally, full year guidance is also relatively positive. Throughout the year, the company expects to generate earnings in the range between $1.90 and $2.10 per share. This is on the higher side of analyst estimates at $1.93 per share. The company is also expecting to generate revenue in the range between $332 and $340 million, beating the analyst expectations of $325.1 million.

How The Market Reacted To The News

As investors, we know that any time we see positive news with regard to a publicly traded company, we can expect to see gains in the market as a result. Not to mention, there are few factors that can cause positive movement quite like positive earnings. With that said, BroadSoft is doing incredibly well in the market early this morning as a result of investor excitement over earnings. Currently (9:39), BSFT is trading at $36.76 per share after a gain of $5.29 per share or 16.81% thus far today.

What We Can Expect From BSFT Moving Forward

Moving forward, I have a relatively positive opinion of what we can expect to see from BSFT. In the short term, the stock is likely to continue edging up on investor excitement. However, this isn’t the first time the company has produced solid earnings. In fact, in three out of the past four quarters, the company has blown away earnings expectations. With a strong team, a strong line of products, and a great plan for growth, BSFT is likely to climb from here.

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think BSFT is headed moving forward? Let us know your opinion in the comments below!

[Image Courtesy of Pixabay]

Baidu BIDU Stock News

Baidu Inc (NASDAQ: BIDU)

Baidu is having an incredible start to the trading session today, and for good reason. The company announced earnings for the fourth quarter of 2015 today, beating revenue expectations and showing strong mobile user growth. Today, we’ll talk about what we saw from the earnings report, how investors reacted to the news, and what we can expect to see from BIDU moving forward. So, let’s get right to it!

Trade smarter and make more money with Tradespoon!

BIDU Reports Solid Earnings

As expected, Baidu reported its earnings for the fourth quarter before the opening bell today. However, what wasn’t expected was the fact that the company would show strong mobile user growth. Here’s what we saw from the earnings report:

  • Top Line Revenue – In terms of top-line revenue, BIDU came in ahead of expectations. For the fourth quarter, it was expected that the company would report revenue in the amount of $2.84 billion. However, the company actually produced revenue in the amount of $2.89 billion.
  • Earnings Per Share – As far as earnings per share goes, the company didn’t do horribly, but didn’t do great either. In fact, BIDU narrowly missed analyst expectations. While analysts expected the company to produce earnings in the amount of $1.19 per share, the company actually produced earnings in the amount of $1.18 per share.
  • Users – While neither earnings nor revenue were enough to really excite investors, there was one part of the report that generated quite a bit of excitement. That part of the report was mobile user growth. Mobile is the next big thing for tech, and it’s arguable that tech companies in some ways are gauged by the amount of mobile users they have. In the case of BIDU, mobile active monthly users grew in a big way year over year. In fact, year-over-year growth in the figure was up 21%, now totaling 657 million! Also when it comes to mobile apps monthly active users, we saw year-over-year growth in the amount of 43%!

All in all, as you can see from the information above, BIDU had an incredibly positive report. Revenue beat, earnings came in just under expectations and mobile users skyrocketed. In a statement, BIDU CEO, Yanhong Li had the following to say:

2015 was a touchstone year for Baidu: we made significant progress in broadening our online marketing platform and further extending our reach into transactions services.”

How The Market Reacted To The News

As investors, we’ve learned that any time positive news is released with regard to a publicly traded company, we can expect to see growth in the value of that company’s stock. While earnings and revenue weren’t quite enough to excite investors, mobile user growth definitely was, and that excitement led to strong growth in the stock today. Currently (10:49), BIDU is trading at $173.55 per share after a gain of $15.33 per share, or 9.69%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively bullish opinion of what we can expect to see from Baidu. The reality is that the company is seeing tremendous growth in mobile users and branching into more and more industries that are likely to lead to strong profits in the long run. All in all, I believe we’re going to see strong growth from BIDU moving forward!

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think BIDU is headed and why? Let us know your opinion in the comments below!

[Image Courtesy of Wikipedia]

Herbalife HLF Stock News

Herbalife Ltd. (NYSE: HLF)

Yesterday, Herbalife declined throughout the day as investors braced for a poor earnings report. However, the earnings report for the company’s fourth quarter came in before the bell today, and proved to be much better than expected. As a result, we’re seeing massive gains on the stock in early trading today. Below, we’ll talk about what we saw from earnings, how investors reacted to the news, and what we can expect to see from HLF moving forward. So, let’s get right to it!

Trade smarter and make more money with Tradespoon!

HLF Produces Solid Earnings

As mentioned above, Herbalife produced its earnings report before the opening bell this morning, beating all expectations and exciting investors. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, HLF did incredibly well. During the quarter, analysts expected the company to produce earnings in the amount of $0.94 per share. However, the company actually produced earnings in the amount of $1.19 per share, blowing analyst expectations out of the water with a 26%+ earnings surprise!
  • Revenue – Revenue for the quarter also came in well ahead of expectations. In the fourth quarter, analysts expected HLF to produce $1.06 billion in revenue. However, the company actually generated $1.10 billion in revenue for the quarter.
  • Guidance – As if beating earnings and revenue expectations wasn’t enough to get investors excited, Herbalife also reported guidance for the first quarter as well as the entire 2016 year. For the first quarter, HLF expects to generate between $0.97 and $1.07 per share in earnings. On a full year basis, the company expects to generate earnings per share in the range between $4.05 and $4.50.

How The Market Reacted To The News

As investors, we’ve learned that any time we see positive news with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with that company. Not only that, there are few pieces of news that have the ability to move the needle quite like strong earnings. So naturally, after producing an overwhelmingly strong earnings report, HLF is currently climbing in the market in a big way. Currently (10:12), the stock is trading at $56.55 per share after a gain of $10.79 per share or 23.58% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from HLF. The reality is that investors are ultimately investing for growth and Herbalife is a great place to realize growth. The company has a strong earnings history, beating earnings expectations over the past 4 consecutive quarters. On top of strong earnings, HLF has a solid line of products, a great team, and a solid plan for growth moving forward. All in all, things are looking great for the stock and all who decide to get involved.

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think HLF is headed and why? Let us know your opinion in the comments below!

[Image Courtesy of Wikipedia]

Allergan AGN Stock News

Allergan (NYSE: AGN)

Allergan is having a strong start in the market today, and for good reason. The company recently reported earnings for the fourth quarter of 2015, beating expectations. Today, we’ll take a look at the earnings report, how the market reacted to the news, and what we can expect to see moving from AGN forward. So, let’s get right to it!

Trade smarter and make more money with Tradespoon!

AGN Produces Better Than Expected Earnings

As mentioned above, Allergan released its earnings report for the fourth quarter of 2015, as expected, early this morning. However, what the company produced with regard to earnings was well ahead of what analysts expected to see. Here’s what we saw from the AGN earnings report:

  • Revenue – In terms of revenue, AGN did well, but didn’t blow away expectations. In fact, the company hit the nail on the head. For the fourth quarter, analysts expected for the company to generate $4.2 billion in revenue. That was exactly the amount that was produced. No beat, no miss.
  • Earnings Per Share – In terms of earnings per share, AGN did far better than what we saw from revenue. The company blew away analyst expectations. When it comes to earnings, for the fourth quarter, analysts expected the company to produce earnings per share in the amount of $3.36. However, the company actually produced earnings per share in the amount of $3.41, beating expectations by $0.05.
  • Guidance – In terms of guidance for the fiscal year 2016, AGN came in below analyst expectations. The overall opinion of analysts is that the company should produce about $17.66 billion in revenue throughout the year. However, Allergan actually reported guidance stating that they expect to see revenue in the $17 billion area.

How The Market Reacted To The News

As investors, we have learned that earnings are one of the biggest drivers of movement in the market. When a company produces solid earnings, we can expect to see strong bullish movement on the stock associated with that company. Adversely, when a company produces negative earnings, we can expect to see poor movement on the stock as a result. So naturally, after beating earnings expectations, AGN is climbing in the market. Currently (9:19), Allergan is trading at $280.01 after a gain of $4.26 per share or 1.54% thus far today.

What We Can Expect From AGN Moving Forward

Moving forward, I have a relatively bullish opinion of what we can expect to see from AGN. When we talk about Allergan, we’re talking about one of the largest biopharmaceutical companies in the world. The company has a long list of products that do incredibly well in the market and is consistently working to expand their product line. With an incredibly strong earnings history, AGN has proven its ability to produce growth. Allergan has an impressive management team, strong staff, and a clear plan for growth, and since investors ultimately invest for growth, they give investors great reasons to be bullish. All in all, things look great for AGN moving forward.

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think AGN is headed moving forward? Let us know your opinion in the comments below!

[Image Courtesy of Wikipedia]

NVIDIA Corporation NVDA Stock News

NVIDIA Corporation (NASDAQ: NVDA)

NVIDIA Corporation is having an incredible start to the trading session today, and for very good reason. Yesterday, the company reported its earnings for the most recent quarter after the closing bell, beating all expectations. Today, we’ll talk about what we saw from earnings, how the market reacted to the news, and what we can expect to see from NVDA moving forward. So, let’s get right to it…

Trade smarter and make more money with Tradespoon!

NVDA Reports Solid Earnings

As mentioned above, NVIDIA reported its earnings for the fiscal fourth quarter yesterday after the closing bell. However, the earnings report was a shocker as the company blew away expectations and produced record results. Here’s what we saw:

  • Earnings Per Share – In terms of earnings per share, analysts expected for NVDA to report earnings in the amount of $0.32 per share. However, the company actually produced record earnings at $0.52 per share, absolutely blowing away analyst expectations.
  • Revenue – In terms of top-line revenue, NVDA also did incredibly well. While analysts expected the company to produce $1.31 billion in overall revenue for the quarter, the company actually produced $1.4 billion in revenue for the quarter. Not only does this figure beat expectations, it shows a 12% year-over-year growth in top line revenue, driven by sales of graphics processing units for gaming and professional visualization.

On top of beating earnings and revenue projections, the company also announced guidance for the first quarter above expectations. While analysts expect the company to generate $1.22 billion in the quarter, NVDA is expecting to generate around $1.26 billion. In a statement, Jen-Hsun Huang, co-founder and CEO of NVIDIA Corporation had the following to say:

We had another record quarter, capping a record year. Our strategy is to create specialized accelerated computing platforms for large growth markets that demand the 10x boost in performance we offer. Each platform leverages our focused investment in building the world’s most advanced GPU technology… NVIDIA is at the center of four exciting growth opportunities – PC gaming, VR, deep learning, and self-driving cars. We are especially excited about deep learning, a breaktrhough in artificial intelligence algorithms that takes advantage of our GPU’s ability to process data simultaneously.”

How The Market Reacted To The News

As investors, we know that few factors have the ability to move the market quite like earnings. After all, investors are ultimately investing for growth, and earnings give them a way to gauge growth. With that said, following the overwhelmingly positive earnings report from NVDA, the stock is climbing in a big way. Currently (9:36), the stock is trading at $30.55 per share after a gain of $2.89 per share or 10.45% so far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively bullish expectation of what we can expect to see from NVIDIA. The reality is that the company has proven its ability to grow and that demand for its products are high. So, I wouldn’t expect the growth trend to stop any time soon. However, it is important to remember that the market tends to move through a series of overreactions. Therefore, it wouldn’t be surprising to see a slight correction, bringing NVDA off of highs in the short term. Nonetheless, in the long term, I’m expecting this stock to soar!

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think NVDA is headed moving forward? Let us know your opinion in the comments below!

[Image Courtesy of Wikipedia]

Rackspace Hosting RAX Stock News

Rackspace Hosting, Inc. (NYSE: RAX)

Rackspace is having a rough day in the market today, and for good reason. After the closing bell yesterday, the company reported earnings. While earnings and revenue came in ahead of expectations, they also showed a negative trend. On top of that, guidance was off quite a bit. Today, we’ll talk about what we saw from the earnings report, how the market reacted to the news, and what we can expect to see from RAX moving forward. So, let’s get right to it…

Trade smarter and make more money with Tradespoon!

RAX Produces Solid Earnings… But There’s A Catch!

As mentioned above, RAX reported earnings for the most recent quarter yesterday after the closing bell. While there was mixed data in the earnings report, all signs seemed to be pointing toward negativity. Here’s what we saw from Rackspace on earnings:

  • Earnings Per Share – When it comes to earnings per share, the results were a bit mixed. While analysts expected RAX to produce earnings in the amount of $0.24 per share, the company actually produced earnings in the amount of $0.31 per share. While that may seem to be positive, this does suggest a decline. After all, in the same quarter one year ago, Rackspace Hosting reported earnings in the amount of $0.36 per share.
  • Revenue – Overall, revenue came in relatively positive. In the quarter, analysts expected that RAX would produce revenue in the amount of $521 million. However, the company actually produced revenue in the amount of $523 million. This also came in well ahead of the same quarter one year ago when the company reported revenue in the amount of $473 million.
  • Guidance – With mixed results on earnings and positive results on revenue, RAX really needed guidance to hold things together. However, unfortunately, that was not the case. For the first quarter of 2016, RAX expects to produce revenue in the range between $517 million and $521 million. This is well below analyst expectations for the quarter in the amount of $529 million, causing concern among investors.

How The Market Reacted To The News

As investors, we know that there are few factors that have the ability to move the market quite like earnings. While there were definitely some positive aspects in the RAX earnings report, there was also quite a bit of negative. Ultimately, it came down to guidance breaking the tie between bearish and bullish sentiments. Unfortunately, guidance was negative overall, leading to a negative sentiment on the stock and, in the end, declines in value. Currently (10:38), RAX is trading at $17.73 per share after a loss of $0.44 per share or 2.42% so far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively bearish opinion of what we can expect to see from Rackspace moving forward. The reality is that when we talk about RAX, we may be talking about the BlackBerry of online hosting. When there was little competition in the cloud, the company did incredibly well. However, now that the company has to compete with the likes of Amazon Web Services, there’s quite a bit changing for them. While I hope that I’m wrong here, I think that RAX is falling behind in the industry and that this will show when looking at earnings, revenue, and ultimately, their stock moving forward!

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think RAX is headed moving forward? Let us know your opinion in the comments below.

[Image Courtesy of Flickr]

Groupon GRPN Stock News

Groupon Inc (NASDAQ: GRPN)

Groupon is having an incredible day in the market today, and for good reason. The company has blown away expectations with regard to the fourth quarter of 2015. After reporting earnings after hours yesterday, we’ve seen steady gains on the stock. Today, we’ll talk about what we saw from the earnings report, how the market reacted to the news, and what we can expect to see from GRPN Moving forward. So, let’s get right to it…

Trade smarter and make more money with Tradespoon!

GRPN Blows Away Earnings Expectations

As mentioned above, Groupon reported its earnings for the fourth quarter of 2015 after the closing bell yesterday as expected. However, the results reported were far from what was expected. Here’s what we saw from the earnings report:

  • Earnings Per Share – In terms of earnings per share, GRPN did incredibly well. While analysts had expected the company to post absolutely $0 in earnings per share, the company posted earnings for the quarter at $0.04, showing year over year growth of 33.3%.
  • Revenue – As if earnings wasn’t enough to excite investors, GRPN also blew away expectations with regard to revenue. In terms of top-line revenue, analysts were expecting GRPN to generate $841 million. The company actually reported revenue for the fourth quarter in the amount of $917.2 million. This is solid year-over-year growth from the $750.36 million posted in the same quarter last year.
  • Active Deals – Groupon also reported great news with regard to active deals on their website. On average, the company is displaying around 350,000 active deals in North America and about 650,000 active deals globally. This includes about 70,000 coupons.

How Investors Reacted To The News

As investors, we know that there are few factors that have the ability to cause movement in the market quite like earnings, and considering the incredibly positive results from GRPN, we’re definitely seeing movement. Currently (10:35), GRPN is trading at $2.81 per share after a gain of $0.57 per share or 25.45% so far today.

What We Can Expect To See Moving Forward

Moving forward, I’m expecting to see overwhelmingly positive movement from Groupon. While this does have something to do with earnings, earnings really aren’t the entire story here. In my opinion, GRPN has created a business model that’s somewhat recession proof and will likely continue to grow regardless of economic conditions. The reality is that everyone likes to save money, and the GRPN business model allows them to do that. While in tough economic times, consumers may spend less money, they are more likely to look for deals and coupons. So, even in poor economic conditions, Groupon is likely to see incredibly strong sales. That, combined with the fact that the company has a proven history of producing solid earnings, even when analysts expect different outcomes, means that we’re looking at a great stock here. All in all, I’m expecting to see further upward movement!

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think GRPN is headed moving forward? Let us know your opinion in the comments below!

Activision Blizzard ATVI Stock News

Activision Blizzard, Inc. (NASDAQ: ATVI)

Activision Blizzard is having a rough start to the day today, and for good reason. The company reported its earnings for the fourth quarter of 2015. Unfortunately, ATVI missed expectations, creating concerns for investors. Today, we’ll talk about what we saw from earnings, how investors reacted to the news and what we can expect to see from ATVI moving forward. So, let’s get right to ti…

Trade smarter and make more money with Tradespoon!

Activision Blizzard Reports Q4 Earnings

As mentioned above, ATVI reported earnings for the fourth quarter after the closing bell yesterday. Unfortunately, both earnings and revenue came in below expectations. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, Activision Blizzard slightly missed expectations. In the quarter, analysts expected that the company would produce earnings in the amount of $0.86 per share. Unfortunately, the company only generated earnings in the amount of $0.83 per share for the quarter.
  • Revenue – Additionally, top-line revenue wasn’t any better. During the quarter, analysts expected that ATVI would produce revenue in the amount of $2.2 billion. The company actually reported revenue for the quarter in the amount of $2.12 billion. This not only misses expectations, but the figure is down about 4% year over year.
  • Q1 Guidance – Along with earnings, ATVI released guidance for the first quarter of 2016. For the quarter, the company expects to generate earnings around $0.11 per share. This came in below analyst expectations of $0.18 per share. In terms of revenue, the company expects to generate $800 million, well ahead of the $744.79 million analysts are expecting to see.

How The Market Reacted To The News

As investors, we know that there are few events that have the ability to move the needle in the market as much as earnings do. When earnings are positive, we tend to see a positive reaction and when earnings are negative, well, we see a negative reaction. That’s exactly what we’re seeing today.  Unfortunately, ATVI produced earnings and revenue below expectations. To top things off, guidance shows that first quarter earnings aren’t likely to be any better. So, investors are having a bit of a negative reaction. Currently (9:31), ATVI is trading at $26.68 per share after a loss of $1.84 per share or 6.03% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a bit of a mixed opinion with regard to what we can expect to see from ATVI. The reality is that in the short run, investors are disappointed, and we’re likely to see more declines. On top of that, poor economic activity is likely to weigh heavy on the entertainment company. However, in the long run, my opinion is a bit different. The reality is that Activision Blizzard is a great company that does have the ability to get over a hurdle or two. With incredible games and the constant creation of new games, I don’t think that ATVI will struggle for very long.

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think ATVI is headed and why? Let us know your opinion in the comments below!

Groupon Inc. (GRPN) is expected to report earnings on Thursday, February 11th. The whisper number is -$0.01, one cent behind the analysts’ estimate and showing little confidence from the WhisperNumber community. Whispers range from a low of -$0.02 to a high of $0.00. Groupon has a 38% positive surprise history (having topped the whisper in 4 of the 12 earnings reports for which we have data).

Earnings history:

– Beat whisper: 5 qtrs
– Met whisper: 3 qtrs
– Missed whisper: 5 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we analyze what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe:

GRPN216A

The strongest price movement of -8.8% comes within ten trading days when the company reports earnings that beat the whisper number, and +18.5% within thirty trading days when the company reports earnings that miss the whisper number. The overall average post earnings price move is ‘opposite’ (beat the whisper number and see weakness, miss and see strength) when the company reports earnings.

The table below indicates the most recent earnings reports and short-term price reaction:

GRPN216B

The company has reported earnings ahead of the whisper number in two of the past four quarters with a whisper number. In the comparable quarter last year the company reported earnings in-line with the whisper number. Following that report the stock realized a 5.6% gain in one trading day. Last quarter the company reported earnings four cents ahead of the whisper number. Following that report the stock realized a 9.8% loss in five trading days, before turning and seeing a 20.2% gain in thirty trading days. Overall historical data indicates the company to be (on average within thirty trading days) an ‘opposite’ price reactor when the company reports earnings.

WhisperNumber provides detailed earnings analysis and earnings trade alerts. Learn more here.

[Image courtesy of Ilgiornale.it]

Akamai Technologies AKAM STock News

Akamai Technologies, Inc. (NASDAQ: AKAM)

Akamai Technologies is having an incredible day in the market today, and for good reason. Yesterday, after the closing bell, AKAM reported its earnings for the fourth quarter, blowing away expectations with regard to both earnings and revenue. However, strong earnings and revenue aren’t the only reasons for the gains we’re seeing. In fact, AKAM made a crucial announcement that really excited investors. Today, we’ll take a look at earnings, discuss the announcement made, take a look at what we saw in the market as a result, and talk about what we can expect to see from Akamai moving forward.

Trade smarter and make more money with Tradespoon!

AKAM Produces Solid Earnings

As mentioned above, AKAM released its earnings report for the fourth quarter of 2015 after the closing bell yesterday as expected. However, the results with regard to earnings and revenue were anything but what was expected. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, AKAM was expected to generate $0.62 per share for the quarter. However, the company actually reported earnings in the amount of $0.72 per share, absolutely blowing away expectations.
  • Revenue – In terms of revenue, Akamai also did incredibly well. In the quarter, analysts expected the company to produce revenue in the amount of $568.7 million. On the earnings report, we saw that the company actually produced revenue in the amount of $579 million. Not only did this figure blow away analyst expectations, it shows an 8% year-over-year gain in revenue at AKAM.

Earnings Weren’t The Only Positive News

As if strong earnings and revenue weren’t enough to get investors excited, AKAM made yet another big announcement. The company announced that it will be launching several segment divisions. These divisions are aimed at boosting Akamai’s focus on Web and Media customers. The new segments will include sales, products, and marketing teams. The marketing teams will be separated into two separate divisions. All in all, this new focus should drive further sales and retention among Web and Media customers. In a statement, Top Leighton, the CEO at AKAM had the following to say:

Our Media and Web businesses are now at the scale where a transition to this type of customer and solutions-centric organization makes sense…”

How The Market Reacted To The News

As investors, we’ve learned that any time there is positive news released with regard to a publicly-traded company, we can expect to see positive movement in that company’s stock. In the case of AKAM, there are two big pieces of positive news. Not only did the company beat on earnings and revenue for the fourth quarter, they announced new organizational methods that are likely to send the company’s revenue up further. As a result, we’re seeing incredibly strong movement around AKAM in the market today. Currently (11:17), AKAM is trading at $48.76 per share after a gain of $9.19 per share or 23.23% so far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from AKAM. The reality is that investors invest their money for growth. With the strong earnings report, Akamai Technologies has proven its ability to generate growth. On top of earnings, the focus on better organization is likely to lead to even stronger gains in the future. However, it is important to remember that market movement tends to happen through a series of overreactions. So, it would not be a surprise if we saw a slight correction before the upward movement continued. Nonetheless, all in all, things look bullish for the outlook on AKAM.

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think AKAM is headed moving forward and why? Let us know your opinion in the comments below!

[Image Courtesy of Flickr]

Thought Leader Discussions

Gevo, Inc. GEVO Stock News

0 3784
Gevo, Inc. (NASDAQ: GEVO) Before we get into this interview, I'd like to extend a special thanks to my friend Joey who both set up the...