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Amkor Technology, Moelis, Microsoft, Baidu and Microsoft highlighted as Zacks Bull and Bear of the Day - Press Releases

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Chicago, IL - April 02, 2015- Zacks Equity Research highlights Amkor Technology ( AMKR - Free Report ) as the Bull of the Day and Moelis & Company ( MC - Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Google Inc.(GOOGL - Free Report ), Baidu Inc. ( BIDU - Free Report ) and Microsoft ( MSFT - Free Report ).

Here is a synopsis of all five stocks:

Bull of the Day :

Amkor Technology ( AMKR - Free Report ) is one of the world's largest independent providers of semiconductor packaging and test services. This space has been particularly hot of late and a mega-deal may be in the works (more on that in a bit). Today this stock is the Bull of the Day.

Being the Bull of the Day is all about why a stock has reached the highly desired position of a Zacks Rank #1 (Strong Buy). The company posted a super strong December 2014 quarter in early February in reporting earnings of $0.38, easily topping the Zacks Consensus Estimate of $0.13. The $0.25 beat translates to a 192% positive earnings surprise and that helped push the stock higher by nearly 24% in the session following the report.

Amkor Technology not only has the strong Zack Rank, but the Industry that AMRK is currently ranked 36/265 making it the top 14% of all industries.

Amkor Technology provides outsourced semiconductor packaging and test services. The company offers turnkey packaging and test services, including semiconductor wafer bumps, wafer probes, wafer backgrinds, package design, packaging, and test and drop shipment services. The company primarily serves integrated device manufacturers, fabless semiconductor companies. Amkor Technology was founded in 1968 and is headquartered in Tempe, Arizona.

The company has a solid earnings history, as they have beaten the Zacks Consensus Estimate in 7 of the last 9 quarters. The most recent beat was rather impressive and that has really woken up investors to the industry.

That recent beat is described above, but allow me to add a critical detail. Revenue came in at $853M, 9% ahead of expectations for the biggest revenue beat since the June 2009 quarter. Revenue growth is a critical success factor that aggressive growth investors look for.

Bear of the Day :

Moelis & Company ( MC - Free Report ) might be the investment bank that few outside of Wall Street have heard of. Just about a year after its IPO, the company missed the Zacks Consensus Estimate and posted a surprising drop in revenue as well. Today, just about 2 weeks shy of the anniversary of its IPO, it is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day.

If you are not that close to the financial space, and even if you are, don't be ashamed of yourself if you have never heard of this investment bank. It is hard to compare the $1.5B market capitalization of MC to the $82B in market capitalization of Goldman Sachs... but they are a competitor.

I do recall this IPO and I will say that Chairman Ken Moelis stated that he wanted everyone in on the deal to make money... and they have. At the time of the IPO, MC was looking at selling 7.3M shares, but that was revised lower to 6.5M. The initial range for the stock was said to be $26-$29, but it ended up pricing below the range at $25. But true to the Chairman's desire, those in the deal had an early opportunity to make money as the first trade went off at $27.

Moelis & Company provides strategic and financial advisory services as it advises clients in the areas of mergers and acquisitions, recapitalizations and restructurings, and other corporate finance matters. Moelis & Company was founded in 2007 and is based in New York, New York.

The company recently posted earnings of $0.51, but that as $0.09 below the Zacks Consensus Estimate of $0.60. That 15% negative earnings surprise wasn't what investors wanted to hear as the stock sold off by a little more than 4% in the session following the release.

Additional content:

Google Rules Global Search Ads, but Baidu Makes Strides

Per recent reports by market research firm eMarketer, search giant Google Inc.(GOOGL - Free Report ) will continue to dominate the global search ad market in 2015. However, China's Internet giant Baidu Inc. ( BIDU - Free Report ) is making steady gains as more and more Chinese citizens opt for online shopping.

eMarketer predicts that total search spending in 2015 will be $81.6 billion, up from $70.2 billion and $59.2 billion generated in 2014 and 2013, respectively.

Out of this, eMarketer estimates that Google will generate $44.5 billion in search ad revenues in 2015 and hold 54.5% of the market share. Google generated $38.4 billion last year with 54.7% of market share and $32.6 billion in 2013, which constituted 55.2% of global search ad revenues.

So this year, Google's share will slide but only by a notch from 54.7% in 2014 to 54.5%, notwithstanding some solid growth in mobile search. Google's search engine is advanced, simple and adaptable, all at once. This is the main reason for its leading search market share.

Per the predictions, Baidu will occupy the second spot, seizing 8.8% of the market compared with 7.6% in 2014. It is expected to raise $7.2 billion in search ad revenues in 2015. The reports showed that Microsoft's ( MSFT - Free Report ) Bing will hold the third position with 4.2% market share.

Baidu's growth will come at the expense of Google's ban in China and a fast-growing Internet population in the country. Google has locked horns with the Chinese government in the past, which led to the blocking of the website in the country. As a result, Google's market share in the country has shrunk into non-existence.

All major players in the country are Chinese companies. Given the growing Internet population in the country, this was a big loss for Google, as a strong position in China would have helped growth rates in its search business.

eMarketer predicts that search ad spending in China will account for $14.9 billion this year, a rise of 32.8% from 2014. Moreover, this will be 18.2% of all search spending worldwide.

Search advertising revenues majorly depend on quantity, that is, the more users hit a company's search engine, the more they'll be presented with ads around those search results. Google's search ban hasn't deterred the company, which is taking steps to re-enter the market through Google Play initiatives. Although this business has lower margins than the traditional one, it will help the company diversify beyond search.

Google holds a Zacks Rank #4 (Sell).

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AMKOR TECH INC (AMKR): Free Stock Analysis Report

MOELIS & CO (MC): Free Stock Analysis Report

GOOGLE INC-CL A (GOOGL): Get Free Report

BAIDU INC (BIDU): Free Stock Analysis Report

MICROSOFT CORP (MSFT): Get Free Report

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


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

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