Technology Roundup – Alibaba partnering on real estate marketing platform, Alphabet price targets raised  

Published on: July 31, 2020
Author: Amy Liu

Alibaba partnering on real estate marketing platform

Leju (NYSE:LEJU), a Chinese e-commerce platform for real estate and home furnishings, announces that real estate services company E-House will purchase a 56.19% stake in the company.

Alibaba (NYSE:BABA) will increase its stake in E-House to about 8.32% as part of a strategic collaboration.

Leju, Alibaba, and E-House will work together to build an online real estate marketing platform and digital transformation network.

Alphabet price targets raised despite macro cautions

Saying Alphabet’s (GOOG,GOOGL) Q2 results showed a “recovery in moderation,” RBC raises its price target by $200 to $1,700.

Analyst Mark Mahaney (Outperform) writes that most metrics beat consensus, but the “fundamentals were clearly weak and negatively impacted by COVID.”

Mahaney sees fundamentals stabilizing but notes Alphabet execs are cautious about H2 on macro uncertainties.

Susquehanna’s Shyam Patil raises Alphabet’s PT from $1,550 to $1,850, saying ad trends improved in the quarter but a full recovery “will only come when the economy begins performing better.”

Patil (Positive) sees tailwinds in the cloud business, expense management, and long-term digital ad growth.

Alphabet shares are down 0.6% pre-market to $1,522.50.

Amazon +5.7% as analysts lift price targets on standout Q2

Amazon (NASDAQ:AMZN) gains 5.7% in premarket trading after analysts boost their price targets on the online retail and cloud behemoth after better-than-expected Q2 results and strong Q3 guidance.

Goldman Sachs analyst Heath Terry lifts AMZN price target to a Street-high of $4,200 (vs. $3,800 prior), noting that accelerated adoption of e-commerce and cloud sets the stock up for outperformance “well beyond the current crisis.”

Suggests 38% upside potential vs. Thursday’s closing price.

Amazon’s investments in fulfillment and infrastructure helps steepen its long-term growth curve, writes Terry, who has a Buy rating on the stock.

Cowen analyst John Blackledge writes that the pandemic lockdown drove a surge in demand, led by grocery and consumables; lifts price target to $4,000 from $3,700; rates AMZN Outperform.

Morgan Stanley analyst Brian Nowak comments that AMZN “can’t invest fast enough to keep up with demand”; points to fulfillment’s standout performance, with cost per unit 30% lower than expected; raises price target to $3,750 from $3,450; rates Overweight.

All three analysts are more bullish than Quant rating of Neutral; average Wall Street analyst rating is Very Bullish (34 Very Bullish, 10 Bullish, 4 Neutral).

Nvidia nearing deal for SoftBank’s Arm – Bloomberg

Bloomberg sources say Nvidia (NASDAQ:NVDA) is in advanced talks with SoftBank (OTCPK:SFTBF,OTCPK:SFTBY) to purchase chip business Arm, and the deal could be reached in the next few weeks.

Nokia is reportedly the only company in concrete discussions with SoftBank.

Arm’s chip technology is an industry beast, appearing in products like connected appliances and Apple devices, including the tech giant’s recently announced custom silicon for Macs.

SoftBank acquired Arm for $32B in 2016.

Apple targets lifted on pandemic resilience, 5G iPhone

Analysts largely came away from Apple’s (NASDAQ:AAPL) FQ3 report surprised at the strength of the work from home tailwind.

Piper Sandler (Overweight, price target from $310 to $450) says Apple is holding up “extremely well” with the pandemic having little impact on the core business.

The firm calls the next fixcal year a “barrier year” due to the 5G iPhone launch, which Apple says will be delayed by a few weeks.

Cowen (Outperform, PT from $400 to $470) calls the print “robust” and notes that while Apple didn’t provide FQ4 guidance, iPad and Mac momentum will combine with back to school trends in the quarter.

Goldman Sachs’ bear Rod Hall shifts the target from $299 to $314, feeling caution is warranted heading into 2021.

Hall: “This is a quarter to give Apple credit where credit is due for excellent execution and performance in the midst of unprecedented difficulty.”

Apple shares are up 7.3% pre-market to $412.47 after a print that included a 4-for-1 stock split and the somewhat expected iPhone 12 delay.