Shopify (SHOP:TSX) (SHOP:NYE) STA Research Reiterated Coverage

The stock price of Shopify was CAD 49.13 at the most recent close.

In a published research note STA Research reiterated its coverage of Shopify. A Buy rating and boosts the 12-month price target to $60 from $53 per share.
 

Analysis of the Shopify stock

Based on 6 analysts’ projections, the average analyst target price for Shopify stock is CAD 60.08. The typical analyst rating for Shopify stock is Buy. Based on 5 positives and 5 negative signs. Target Advisor’s stock analysis of Shopify is Neutral. The stock price of Shopify was CAD 49.13 at the most recent close. Over the previous week, +21.19% over the past month, and -75.36% over the past year, the stock price.

Matterport Stock Soars 26% on Earnings  After Record Q3 Performance

Matterport Stock Analysis:

Last Closing Price: $3.50

Consensus Rating: Buy

12-Month Price Target: $5.56

Volume: 4.67 Million

 

Friday morning, Matterport stock (MTTR:NSD) rose 28% after the digital-twin platform operator’s Q3 revenue increased 37% year-over-year, beating Wall Street’s forecast of 30% growth.

The company achieved a “record” quarter, earning record total sales of $38 million, up 37% year over year and exceeding the company’s own target range. The expansion was fueled by the strength of all four revenue streams.

Matterport Stock

Both subscription revenue and services revenue set quarterly records, with subscription revenue increasing 21% year-over-year to $19 million. At the end of the quarter, the record number of 657,000 subscribers consisted of 594,000 free users and 63,000 paying subscribers. In addition, annual recurring revenue reached a new high of $76 million.

The corporation was able to drastically lower spending from its original plans, resulting in a sequential increase in its bottom line. Adjusted net loss was $26.9M or $0.09 per diluted share, which was higher than the company’s projection range of $0.13 to $0.15 loss and a 25% increase from the second quarter.

Matterport stock (MTTR) anticipates revenue of $134M – $136M versus the consensus estimate of $132.11M, subscription revenue of $73.5M – $73.7M, and an adjusted loss per share of $0.41 – $0.43 versus the consensus estimate of -$0.40.

Matterport stock

Matterport Stock-A Record Quarter:

In conclusion, Matterport had a successful quarter. It is a huge plus that the company was able to catch up on its order backlog for its cameras, as its inability to completely meet demand for them had negatively impacted its paid subscriber count and revenue.

Some investors are optimistic that Matterport’s digital-twin technology will enable it to become a major participant in the burgeoning metaverse.

 

Read Also: Palo Alto Networks Stock (PANW:NSD) Earnings Releasing on Thursday

                     Microchip Technology Stock (MCHP:NSD) Q3-2023 Earnings Outlook

 

About Matterport Inc. (MTTR:NSD):

Matterport, Inc., a spatial data company, focuses on digitization and datafication of the built world. It offers Matterport digital twins, a 3D data platform to design, build, operate, promote, and understand spaces.

The company offers Matterport Capture, an application that enables to capture depth, data, and imagery of a space using 3D cameras, 360 cameras, and iPhones; Matterport Workshop application to customize, add additional details, and share spaces; Matterport Showcase application for audience view and explore space in its final format; and Matterport VR to experience virtual reality.

It offers solutions for real estate, photography, travel and hospitality, retail, insurance and restoration, industrial and facilities management, architecture, and engineering and construction industries. Matterport, Inc. was founded in 2011 and is headquartered in Sunnyvale, California.

Salesforce Dismisses Over 1000 Employees, with Additional Layoffs Possible

Salesforce Stock (CRM:NYE) Analysis:

Last Closing Price: $157.73

Consensus Rating: Strong Buy

12-Month Price Target: $216.86

Volume: 6.44 Million

 

The San Francisco-based software titan is likely to reduce its workforce further.

Thousands of employees will be affected by Salesforce’s workforce reduction.

On Monday, the San Francisco-based corporation laid off more than 1,000 employees, according to CNBC, which cited a source familiar with the matter.

The protocol stated that the IT giant wants to let off as many as 2500 employees. According to the report, roughly 2,000 of these employees would be terminated for “performance” difficulties, citing both an industry source and a former employee.

A source told Protocol that several hundred more employees, likely those who belong to a protected group such as those with disabilities, will be placed on a 30-day evaluation with the purpose of letting them go after the study is complete. According to the source, it is likely that workers will be laid off before the Thanksgiving holiday.

CNBC reported that senior officials at some of Salesforce’s clients have begun weighing in on purchases, resulting in extended deal cycles. “Our sales performance process promotes responsibility. Unfortunately, this can result in some employees leaving the company, and we assist them during their transition,” a Salesforce spokeswoman told CNBC.

Globally, Salesforce has approximately 78,000 employees, according to a February blog post by the company. The same month, the firm stated its intention to increase executive accountability for environmental, social, and governance (ESG) activities. To advance these efforts, the San Francisco-based corporation said that beginning this year, a part of variable compensation for senior vice presidents and above will be determined by ESG metrics.

“It’s unfortunate that Salesforce has been affected by these broader tech layoffs, which also affect Meta, Twitter, Snap, Microsoft, and IBM,” said Ben McCarthy, founder of Salesforce.

Cerebral, a provider of teletherapy and medication management, has previously said it will lay off approximately 20% of its personnel to meet patient demand and decrease growth goals. In addition, Seagate Technology has declared its intention to reduce its global workforce by 8%, or approximately 3,000 employees, citing diminishing demand and economic uncertainties.

Additionally, Beyond Meat (BYND:NSD), Warner Bros. Television Group (WBD:NSD), and DocuSign (DOCU:NSD) have announced layoffs. The Wall Street Journal also reported that Meta (META:NSD) is allowing many of its 83,553 employees a month to apply for different positions within the company.

In a similar fashion, Google (GOOGL:NSD) has warned approximately 50 employees (almost half of those employed at the company’s startup incubator Area 120) that they must find a new internal function within three months if they wish to remain employed.

According to the most recent Job Opportunities and Labor Turnover Survey, the number of job openings declined from 11.2 million in July to 10.1 million in August (JOLTS).

 

Salesforce Stock-Analyst Forecast and Price Targets:

Fundamental analysis of the salesforce stock is slightly bullish. Based on the consensus analyst rating, the stock currently has a “Strong Buy” rating with an average 12-months salesforce stock price target of $216.86 per share.

STA Research maintains a “Buy” rating on the stock with $175 target price.

Oppenheimer Holdings maintains the $200 salesforce stock price target and rates it as “Outperform”.

 

About Salesforce.com Inc. (CRM:NYE):

Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers.

The company’s service offerings include Sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and relationship intelligence, and deliver quotes, contracts, and invoices; and Service that enables companies to deliver trusted and highly personalized customer service and support at scale.

Its service offerings also comprise a flexible platform that enables companies of various sizes, locations, and industries to build business apps to bring them closer to their customers with drag-and-drop tools; an online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, a system of engagement.

The company provides its services through direct sales; and consulting firms, systems integrators, and other partners. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California.

Digital Turbine (AAPS:NSD) Hallum hammers the target in half to $30

The fundamental score of Digital Turbine is currently set with a score of 6.2 out of 10, where 0 is very bearish/negative and 10 very bullish/positive.

Digital Turbine. In a researched note on Thursday, November 1oth by Craig Hallum, illustrated that the investment firm had slashed the target on the company’s stock to $30 from $60, and held the Buy rating on the stock as unchanged.

Digital Turbine Stock Analysis:

Digital Turbine:   The stock forecast from 6 analysts covering the company’s stock, has the average analyst price target for Digital Turbine at $29.22 over the next 12 months. Digital Turbine has an average consensus analyst rating set at a Strong Buy. Stock Target Advisor’s stock analysis of Digital Turbine stock is pointed towards being Slightly Bullish , which is based on 8 good and 5 bad signals. The last closing price for Digital Turbine was $10.77Digital Turbine stock price has dropped by 19.20% over this past week, and has dropped over 25% for the past month and  has dropped a whopping  85.18% over the last year.

The latest Crowd rating for Digital Turbine is set at a Strong Buy.

 

Digital Turbine (APPS:NSD)

Through its subsidiaries, Digital Turbine runs a mobile growth platform for advertising, publishers, carriers, and device OEMs (OEMs). The business is divided into the On Device Media, In App Media ” AdColony,” and In App Media ” Fyber” parts. Its content media platform offers news, weather, sports, and other information, as well as programmatic advertising, sponsored and editorial content media, and mobile applications to a variety of publishers, carriers, OEMs, and devices. A platform that allows mobile application developers and digital publishers to monetize their content through display, native, and video advertising is also offered by the company. It enables brands, agencies, publishers, and application developers to deliver advertising to consumers on mobile devices. It conducts business throughout the world, including in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The business’s main office is in Austin, Texas. Location: 110 San Antonio Street, Austin, Texas, USA.

 

Positive Fundamentals for APPS stock:

Superior returns on risk: In the top quartile, this stock has outperformed its sector rivals on a risk-adjusted basis over the course of at least a 12-month holding period.

Excellent return on equity: The management of the company has outperformed its competitors in terms of return on equity over the last four quarters, ranking it in the top quartile.

Superior capital efficiency: In the last four quarters, firm management outperformed its counterparts in terms of return on invested capital, putting it in the top quartile.

Excellent return on assets: The management of the company has outperformed its counterparts in terms of return on assets over the last four quarters, putting it in the top quartile.

Positive cash flow: The last four quarters saw positive total cash flow for the organisation.

Positive free cash flow: The last four quarters saw the company generate positive total free cash flow.

Superior growth in earnings: In the preceding five years, this stock’s profits growth was in the top quartile for its industry.

Superior growth in revenue: Compared to its industry, this stock’s revenue growth over the previous five years has been in the top quartile.

 

Negative Fundamentals:

Excessive volatility: Over the past five years, this company’s total returns have been erratic and higher above the industry average. If you plan to invest in such a stock, be sure your risk tolerance is adequate.

Excessive in comparison to wages: The stock is trading above the sector median and at a premium to its peers in terms of price to earnings.

Overpriced based on cash flow: On a price to cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.

Extremely over leveraged: In terms of debt to equity, the company is heavily leveraged and in the bottom half of its sector rivals. Check the news, though, and study the sector and management remarks. This can be high at times since the business is attempting to grow quickly.

Expensive in relation to free cash flow: On a price to free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.

The fundamental score of Digital Turbine is currently set with a score of 6.2 out of 10, where 0 is very bearish/negative and 10 very bullish/positive.

 

Snowflake Stock (SNOW) is a Strong Buy as cloud stocks get hammered

Snowflake stock is currently rated with a fundamental score of 3.3 out of 10, where 0 is very bad and 10 is very good.

Analysis of the Snowflake Stock

According to 32 expert projections, the average target price for Snowflake stock over the next 12 months is USD 202. The average analyst rating for Snowflake is a Strong Buy.  Based on 3 good signs and 7 negative signals, Stock Target Advisor’s personal stock analysis of Snowflake is somewhat bearish (Slightly Bearish). The stock price of Snowflake was $150.47 at the most recent close. The stock’s price for Snowflake has fluctuated by -11.02% over the previous week, -12.78% over the previous month, and -57.39% over the previous year.  The average Crowd target for the stock is $297 per share, with a consensus Crowd rating of a Strong Buy.

As snowflake’s stock was reeling from sympathy pains from Crowdstrike’s earnings that underwhelmed investors, Snowflake’s stock was maintained at Zacks Research with a Buy rating.  STA Research issued a research note, and upgraded the stock to a Strong Buy rating, from a Buy, citing the stock is entering extreme oversold continues, as news emerge that the company is gaining significantly on it’s competitors, possibly signifying another solid quarter to be released in September.  Analyst’s believe that the cloud stock’s over reaction today, was caused more by Short Sellers pushing to close positions, than analysts and investors worrying about fundamentals.

Snowflake Bio. (SNOW:NYE)

A cloud-based data platform is offered both domestically and abroad by Snowflake Inc. Data Cloud, a feature of the company’s platform, enables users to combine their data into a single source of truth to get actionable business insights, create data-driven applications, and share data. Various sized enterprises across a range of industries use its platform. In April 2019, the business changed its name from Snowflake Computing, Inc. to Snowflake Inc. Incorporated in 2012, Snowflake Inc. is situated in Bozeman, Montana.

 

News:

Snowflake stock fell on Friday’s trading,as the stock fell on CrowdStrike’s earnings that failed to excite investors, and all cloud stocks suffered as a result.

Datadog’s strong earnings  wasn’t enough to allay broader worries about the concern of higher interest rates and weaker growth in the software business. The entire SaaS industry experienced a steep sell-off on Friday as a result of a number of other SaaS businesses reporting reduced forward growth estimates.

Atlassian  and Twilio also both released poor earnings reports in the enterprise software space. Twilio reduced its long-term growth target from 30 percent to 15-25 percent, and Atlassian slashed its fiscal 2023 guidance. Cloudflare, the company who is provider of cybersecurity software, topped expectations in terms of revenue and losses per share and increased its guidance, but it wasn’t enough to ease investor concerns over macro conditions.

Therefore, despite Datadog having a strong quarter and improving guidance yesterday, Snowflake and Datadog all fell in a sympathy trade with Twilio and Atlassian, while CrowdStrike is dropping in sympathy with Cloudflare.

Federal Reserve head, Jay Powell voiced concern on Wednesday that inflation was still running too high and that interest rates could have to be revised upward, which put pressure on these stocks, which fundamental doesn’t really have a direct causation, as it’s just really about investor sentiment.

Growth stocks that tend to have little to no profit suffer from increased interest rates because they devalue cash flows that are projected further into the future.  The Snowflake stock is currently trading at a 25 times sales multiple, Datadog at a 16 times sales multiple, and CrowdStrike at a 16 times sales multiple, these companies are still not inexpensive by conventional financial standards.

 

Positive Fundamentals for Snowflake Stock:

High market capitalization:

This organisation is among the top quartile and is one of the biggest in its industry. These businesses are typically more reliable.

Low Financial Volatility 

For a hold duration of at least 12 months, the stock’s yearly returns have been stable and constant when compared to peers in its industry, and they are in the top quartile. Although stability is desirable, it can also restrict returns.

Healthy cash flow

The last four quarters saw positive total cash flow for the organisation.

 

Negative Fundamentals for SNOW:

Subpar risk-adjusted returns.

In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming in terms of returns. Be careful as you go.

Lower than average dividend returns

In comparison to its competitors, the company’s average income yield during the past five years has been low. If you are not seeking for work, it is not an issue.

Compared to book value, it is overpriced

On a price to book value basis, the stock is selling at a premium to the median of its peer group.

Overpriced based on cash flow

On a price to cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.

Free cash flow that is negative

In the last four quarters, the company’s overall free cash flow was negative.

Low growth in earnings

Compared to its sector, this stock’s five-year median earnings growth was lower than average.

Low Growth in Revenue

Compared to its sector, this stock’s five-year median revenue growth was lower than average.

Snowflake stock is currently rated with a fundamental score of 3.3 out of 10, where 0 is very bad and 10 is very good.