Thursday’s After-Hours Market Insights: Alphabet Inc (GOOGL), Microsoft Corporation (MSFT), Wynn Resorts, Limited (WYNN)


Alphabet Inc (NASDAQ:GOOGL) shares slipped nearly 2% in after-hours trading Thursday, after the internet giant released its fourth-quarter results, posting $26.06 billion in revenue and $9.36 earnings per share, compared to consensus estimates of $25.22 billion and $9.67 per share, respectively. Gross margin was lower than consensus on higher TAC and Other COGS.

“Our growth in the fourth quarter was exceptional — with revenues up 22% year on year and 24% on a constant currency basis. This performance was led by mobile search and YouTube. We’re seeing great momentum in Google’s newer investment areas and ongoing strong progress in Other Bets,” said Ruth Porat, CFO of Alphabet.

On the ratings front, Alphabet has been the subject of a number of recent research reports. In a report issued on yesterday, Cantor analyst Youssef Squali reiterated a Buy rating on GOOGL, with a price target of $1040, which implies an upside of 21% from current levels. In addition, Deutsche Bank’s Lloyd Walmsley maintained a Buy rating on the stock and has a price target of $1090.

Microsoft Corporation (NASDAQ:MSFT) stock is trading up 1.5% in after-hours, after the software giant reported a 3.6 percent rise (year-over-year) in fiscal second-quarter profit, bolstered by rising customer sign-ups for Azure and Office cloud-computing services. Revenues improved 2.2% to reach $25.3 billion. In addition, the company said the recently completed $26.2 billion acquisition of professional networking site LinkedIn holds the promise of additional growth in the second half of fiscal 2017 and beyond.

“As long as cloud is growing, people are happy,” said Mark Moerdler, an analyst at Sanford C Bernstein & Co, who rates the shares outperform. “If margins are growing, people are even happier.”

Out of the 11 analysts polled by TipRanks (in the past 3 months), 10 rate Microsoft stock a Buy, while only 1 rates the stock a Hold. With a potential upside of nearly 6%, the stock’s consensus target price stands at $68.30.

Wynn Resorts, Limited (NASDAQ:WYNN) shares rose nearly 7% to $102.01 in after-hours trading, after the casino resort company released its fourth-quarter results. Helped by strength at its new Wynn Palace property in Macau, the company posted revenue of $1.3 billion, compared to analysts expectations of $1.27 billion.

According to recent research reports, Morgan Stanley analyst Thomas Allen maintained a Buy rating on WYNN, with a price target of $116, which represents a potential upside of 21% from where the stock is currently trading. In addition, Aegis’ David Bain initiated coverage with a Hold rating on the stock and has a price target of $87.

According to TipRanks, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Thomas Allen and David Bain have a yearly average loss of 4.0% and a return of 6.5% respectively. Allen has a success rate of 48% and is ranked #3829 out of 4378 analysts, while Bain has a success rate of 54% and is ranked #1110.

Overall, one research analyst has rated the stock with a Sell rating, 5 assigned a Hold rating and one has given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $84.75 which is 11% under where the stock closed today.

 

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