Reports suggest that Instagram is hurting its competitors big time. With growing engagement, Instagram is set to drive FB stock higher.
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Instagram, owned by Menlo Park, California-basedFacebook Inc (NASDAQ:FB)looks set to become the next big driver for thesocial media giant. Recent reports suggest that Instagram is hurting competitors like Snapchat big time. Analysts estimate that the platform could contribute as much as $3.5 billion to Facebook’s top line numbers in 2017. And given the most recent updates on Instagram’s Monthly Active Users (MAUs) and Daily Active Users (DAUs), it’s likely that engagement on the platform is inching closer to that on the core Facebook platform, a trend that bodes well for FB stock investors. With each passing day, it seems increasingly likely that Instagram could become a huge catalyst, driving FB stock higher in the couple of years ahead.
stock marker: KB Financial Group Inc(KB)
Advisors’ Opinion:
- [By Lisa Levin]
In trading on Tuesday, financial shares tumbled 1.74 percent. Meanwhile, top losers in the sector included Federated National Holding Co (NASDAQ: FNHC), down 16 percent, and KB Financial Group, Inc. (ADR) (NYSE: KB) down 10 percent.
stock marker: Madison Square Garden Inc.(MSG)
Advisors’ Opinion:
- [By Monica Gerson]
Madison Square Garden Co (NYSE: MSG) is estimated to report a quarterly loss at $0.34 per share on revenue of $325.53 million.
Gogo Inc (NASDAQ: GOGO) is projected to report a quarterly loss at $0.42 per share on revenue of $137.58 million.
- [By Ian Wyatt, Publisher & Chief Investment Strategist, Wyatt Investment Research]
Meanwhile, Mark Boyar, of The Boyar Value Fund, recommends another household name: Madison Square Garden (MSG). He thinks the Dolan family could take the company private.
stock marker: Baker Hughes Incorporated(BHI)
Advisors’ Opinion:
- [By Matthew DiLallo]
Following a series of M&A announcements in the oilfield-services sector since the onset of the oil market downturn, French oil-field service company Technip and U.S. oilfield equipment company FMC Technologies (NYSE:FTI) hooked up in an all-stock deal valuing the combined company at $13 billion. Shareholders of each company will own 50% of the combined entity, to be named TechnipFMC, which implies a roughly $6.5 billion acquisition valuation for each entity. The transaction, which should close early next year, will “combine Technip’s innovative systems and solutions, state-of-the-art assets, engineering strengths, and project management capabilities with FMC Technologies’ leading technology, manufacturing, and service capabilities.” Further, it should save $400 million in annual costs by 2019. Moreover, it will enable the combined company to compete better against larger oil-field service rivals Baker Hughes (NYSE:BHI), Halliburton (NYSE:HAL), and Schlumberger (NYSE:SLB), which have all gained strength during the downturn either through M&A activities or cost savings initiatives.
- [By Ben Levisohn]
Evercore ISI’s James West and team are starting to feel really good about the potential of the General Electric (GE)-Baker Hughes (BHI) merger. They explain why:
- [By William Patalon III]
Since the moment it was announced, we’ve been highly bullish on the complicated-but-intriguing deal that would combine the oilfield services unit of General Electric Co. (NYSE: GE) and all of sector rival Baker Hughes Inc. (NYSE: BHI).
- [By Brian Wu]
GE recently doubled down on its oil and gas business after merging it with Baker Hughes (NYSE:BHI) and took a majority 62.5% stake in the merged entity. The merged entity is now the second-largest oil services business and will help GE take full advantage of increased oil and gas production under the new administration.
- [By Wayne Duggan]
While Loop maintains a Buy rating on all of the stocks mentioned above, Guggenheim analyst Michael LaMotte isn’t quite so bullish on the sector. Earlier this week, LaMotte downgraded the following oil services stocks from Buy to Neutral:
Baker Hughes Incorporated (NYSE: BHI)
Fairmount Santrol Holdings Inc (NYSE: FMSA)
Helmerich & Payne, Inc. (NYSE: HP)
Nabors Industries Ltd. (NYSE: NBR)
Schlumberger Limited. (NYSE: SLB)
Halliburton
Superior Energy ServicesGuggenheim also cut its 2017 oil price forecast from $55 to $48/bbl.
stock marker: Pacific Ethanol Inc.(PEIX)
Advisors’ Opinion:
- [By Lisa Levin]
Shares of Pacific Ethanol Inc (NASDAQ: PEIX) got a boost, shooting up 30 percent to $5.47 after the company reported stronger-than-expected earnings for its fourth quarter.
