- RBC Capital analyst Brad Erickson summarized the key debates heading into the Q2 internet earnings season
- While recent stories suggest fluid consumer trends, his SMB checks since last earnings suggested meaningful, proactive, downward SMB spending decisions to which these companies have exposure.
- While he thought Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms Inc’s (NASDAQ:META) headwinds were likely not as severe as Snap Inc’s (NYSE:SNAP), he expected SMB proactivity to weigh incrementally on 2H outlooks.
- For Amazon.com Inc (NASDAQ:AMZN), Prime Day’s slight outperformance highlighted a more resilient consumer, but he continues to expect 2H EBIT estimates to come down.
- For Upwork Inc (NASDAQ:UPWK) & Squarespace, Inc (NYSE:SQSP), while FY guidance likely included a cushion, he did not expect any upside to 2H guidance based on his recent checks suggesting new business formation is trending slightly worse than seasonal.
- In rank order, expectations seem lowest for SNAP (Sector Perform, $17 PT), META (Outperform, $200 PT), UPWK (Sector Perform, $21 PT), AMZN (Outperform, $144 PT), GOOGL (Outperform, $135 PT) & SQSP (Sector Perform, $22 PT).
- Price Action: SNAP shares traded higher by 7.49% at $15.21 on the last check Wednesday.
- Photo by Souvik Banerjee from Pixabay
Ethereum Hits $2,300 Following PCE Data; Optimism Emerges As Top Gainer
Bitcoin (CRYPTO: BTC) traded slightly lower, with the cryptocurrency prices trading below the key $44,000 level on Friday.
