NexOptic Technology Corp (TSXV: NXO)
You’ll Never See The World The Same Way Again
Microsoft (NASDAQ:MSFT) should have a market cap north of $2T in two years (vs. about $1.4T today), says Wells Fargo, lifting its 12-month price target to a Street high $250, or 37% above last night’s close.
How does the company get there? Wells sees Microsoft able to deliver low- to mid-teens revenue growth, led by 20% growth in Intelligent Cloud. That will be coupled with mid- to high-teens EPS and free cash flow growth driven by controlled costs and buybacks. Slap a 30x EV/FCF multiple on FCF estimates of $68.2B in FY2023 and MSFT’s market cap would be over $2T.
That would mean a price of $283 per share. Discounting back to a 12-month target leads to $250.
Shares this morning are up 1.3% to $185.18.
Online retail names are having another good day after Piper Sandler calls Wayfair (W +12.9%) cheap even after its sizzling rally.
Movers include MOGU (MOGU +16.3%), Baozun (BZUN +12.1%), Blue Apron (APRN +5.4%), Carvana (CVNA +10.3%), Overstock.com (OSTK +5.1%), Chewy (CHWY +5.3%), Etsy (ETSY +2.4%), Farfetch (FTCH +2.0%), Revolve Group (RVLV +3.9%) and eBay (EBAY +2.1%). Closely-related Peloton Interactive (PTON +6.7%) is also having a strong day, while e-commerce giant Amazon (AMZN -0.5%) is underperforming on the day but still up 33% YTD.
Magnifying the recent trend is the chart below, which shows the Amplify Online Retail ETF (NASDAQ:IBUY) smashing the return of the S&P 500 Index over the last 90 days. That’s even with online travel stocks holding back the ETF’s return a bit.
Zoom Video Communications (NASDAQ:ZM): Q1 Non-GAAP EPS of $0.20 beats by $0.10; GAAP EPS of $0.09 beats by $0.08.
Revenue of $328.17M (+169.0% Y/Y) beats by $124.64M.
Customers with more than 10 employees grew 354% Y/Y to 265,400.
Shares +6%.
Telus (TU +2.1%) has chosen Ericsson (ERIC +1.7%) and Nokia (NOK +2.6%) to build out its 5G network.
The telecom is planning to add speed, responsiveness, reliability and capacity with its upgrade, and has committed to invest C$40B over the next three years on technology to support its 5G rollout.
Telus recently averaged 4G LTE download speeds of 75 Mbps in an independent speed test.
Fairfax Financial (FRFHF +0.6%) has denied that it’s considering acquiring the remaining shares of BlackBerry (BB +6.5%), Bloomberg reports.
“Fairfax is not currently making a bid, or engaged in making a bid, for BlackBerry,” a Fairfax executive tells Bloomberg.
Fairfax currently owns 8.4% of the company.
StreetInsider yesterday reported that the two were in talks over Fairfax acquiring the shares it didn’t own, and that BlackBerry had hired bankers.
