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Fly News Breaks for March 19, 2019
Mar 19, 2019 | 16:25 EDT
Facebook's (FB) "Checkout on Instagram" announced today focuses on large sellers, which means it is not yet a competitor of Etsy (ETSY), BTIG analyst Marvin Fong tells investors in a research note titled "In Instagram, Sellers Could Soon Have a New Sales Channel, But We See Limited Impact to Etsy." However, Instagram mentions in its blog post that in the future it will work with Shopify-type (SHOP) platforms, indicating that it intends to reach into the small-to-medium size businesses, the analyst adds. He points out that BuzzFeed even identified Etsy as a future target of Checkout by name. Fong's quick analysis, which "pessimistically" assumes Instagram can convert 10% of an Etsy seller's Instagram followers, puts the impact to Etsy's volume at around 2%. The analyst estimates about 41% of large Etsy sellers are already able to integrate with Instagram. He also found that found that ~25% of large Etsy sellers have no Instagram presence. Fong keeps a Neutral rating on Etsy.
News For ETSY;FB;SHOP From the Last 2 Days
Apr 22, 2019 | 16:06 EDT
Facebook announced that Jennifer Newstead will join the company as General Counsel, overseeing the company's global legal functions. Newstead succeeds Colin Stretch, who announced in July 2018 that he planned to leave. He will continue at Facebook through the summer to help with the transition, the company said in a statement. Newstead currently serves as the Legal Adviser to the United States Department of State, overseeing work on all domestic and international legal issues affecting the conduct of U.S. foreign policy. She was confirmed by the Senate in December 2017 and before joining the State Department was a partner in the law firm of Davis, Polk & Wardwell LLP. Facebook has also named John Pinette as Vice President of Global Communications, succeeding Caryn Marooney, who in February announced her plans to leave. Pinette most recently seved as the VP of Marketing and Communications at Vulcan, the philanthropic, technology and business organization established by Microsoft co-founder Paul Allen.
Apr 22, 2019 | 09:35 EDT
Cleveland Research analyst Chandler Converse said his checks point to Q1 revenue for Facebook in-line with management's guidance for a mid-single digit deceleration in growth, but he also noted that advertisers seem incrementally more optimistic on the adoption of Stories ads. Additionally, partners appeared to slow plans to diversify budgets away from Facebook in the near-term given better ROI trends, said the analyst, who raised his 2019 estimates and keeps a Buy rating on the stock.
Apr 22, 2019 | 08:46 EDT
Social stocks have outperformed year-to-date, up ~55% versus the Nasdaq's rally of 20%, with Snap (SNAP) being the top performer up 120% after lagging the group in 2018, Jefferies analyst Brent Thill tells investors in a research note. The analyst continues to prefer share of Facebook (FB) in social with a Buy rating and $200 price target. He sees upside in average revenue per user and operating expenditure growth. Meanwhile, Thill is "incrementally positive" on Snap's "encouraging momentum," but says the company is "not out of the woods yet." If Snap can deliver on daily active user growth in Q1 it should be a catalyst for shares, however with the stock trading at nine-times 2019, these improvements are largely priced in, Thill tells investors in a pre-earnings research note. And while the analyst remains "fundamental fans" of Twitter, he views the stock as "reasonably valued." Further, Twitter faces tough comps for international in the first half of 2019 and for the U.S. in the second half of the year, Thill points out.
Apr 22, 2019 | 08:28 EDT
The FTC is exploring whether to hold Mark Zuckerberg personally accountable for Facebook's privacy and user data lapses, The Washington Post's Tony Romm reports. The discussions about how to hold Zuckerberg accountable for Facebook's data lapses have come in the context of wide-ranging talks between the FTC and Facebook that could settle the government's probe of more than a year, according to two people familiar with the discussions. Reference Link
Apr 22, 2019 | 07:09 EDT
BMO Capital analyst Daniel Salmon raised his price target on Facebook to $190 to reflect his rolled out valuation model to 2021 estimates, saying that while there are no changes to his estimates, he expects the company's revenue deceleration to bottom in Q4 of this year and inflect higher in Q1 of next year. The analyst also believes that Facebook stock could outperform if it can execute on its Stories monetization strategy and has a positive view on its product innovation while looking for greater visibility into the company's privacy initiative.