Halliburton Results, Amazon's Tablet and News Corp. Imbroglio

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In today's top stories, we look at Halliburton's ( HAL ) earnings and the outlook for oil services companies that are benefiting from increased drilling demand. Amazon ( AMZN ) plans to sell an Android based tablet by this fall as well as roll out a new Kindle potentially by the end of the summer. News Corp.'s ( NWS ) phone tapping scandal has reached the halls of the British PM, David Cameron, as his friendship to former News Corp. UK CEO Rebekah Brooks falls under scrutiny and following the arrest of his former communications director, Andy Coulson, who was previously an editor at News of the World.

Halliburton Reports Solid Earnings and Outlook

Halliburton ( HAL ) announced its Q2 earnings earlier today posting strong revenue growth of over 35% year over year and 12% sequentially. The growth was primarily driven by higher pricing and utilization of its US business where activity Halliburton is benefiting from growing demand for more complicated drilling techniques to find oil and gas that is deeper and in denser rock formations. We expect this trend to continue in the US and globally. China recently announced a tender offer for companies to bid on drilling in some of China's massive shale formations. This presents another large growth opportunity for oil service companies like Halliburton, Slumberger and Baker Hughes.


We have a $57 price estimate for Halliburton , which is ~5% over its current market price.

Amazon New Announcements on the Horizon, Battle Over Taxes Continues

Amazon is in the hot seat given its battle with states over collecting sales taxes. This is an emerging source of friction for online retailers like Amazon that previously have not collected sales taxes. As states look for ways to plug fiscal deficits, many analysts see it as a matter of time before the states win this batter.

However one positive on the horizon is that its reported tablet is due out this fall and a new Kindle could be released this summer. The new tablet will run Android according to the NYT and will add to Amazon's competition with Apple.

See our analysis for Amazon.

Quiz - What is the Downside from News Corp's Woes?

The News Corp. scandal has mushroomed from a racy tabloid scandal to the halls of the British PM. How much do news publications including WSJ, Dow Jones, UK Newspaper & others contribute to News Corp.'s stock value?

  1. 47%
  2. 67%
  3. 34%
  4. 14%

See our analysis for News Corp



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: AMZN , HAL , NWS

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