Today's Must Read
Robust Content Aids Netflix (NFLX) Amid Stiff Competition
5G Chipset Resiliency Aids Qualcomm (QCOM) Amid High Costs
Monday, June 14, 2021
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Mastercard (MA), Netflix (NFLX), and QUALCOMM (QCOM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Mastercard have outperformed the Zacks Financial Transaction Services industry in the year-to-date period (+2.6% vs. +1.3%). The Zacks analyst believes that the company has benefited from several acquisitions that it executed. This has also helped it expand its addressable markets, drive new revenue streams and strengthen core product solutions.
The pandemic has accelerated the use of electronic forms of payment and has also led to greater adoption of digital and contactless solutions. This provides an opportunity for the company’s business to expedite the shift to digital forms of payment. However, steep costs might stress its margins. Its cross-border volumes will also remain suppressed due to COVID-led restrictions on travel and entertainment.
Netflix’s shares have lost -6% over the last six months against the Zacks Broadcast Radio and Television industry’s gain of +10.5%. The Zacks analyst, however, believes that Netflix is dominating the streaming space, on the back of heavy investments in the production and distribution of localized, foreign-language content.
Also, the launch of low-priced mobile plans is likely to expand Netflix’s subscriber base in Asia Pacific. However, weak content slate and delayed production due to the pandemic is expected to hurt Netflix’s prospects in the second quarter of 2021. Further, rising competition from Apple, Amazon, HBO Max, Disney+ and Peacock is a major headwind.
Shares of QUALCOMM have gained +4.5% in the past three months against the Zacks Wireless Equipment industry’s gain of +2.8%. The Zacks analyst believes that Qualcomm is benefiting from robust demand for smartphones globally and its ability to increase the scale of non-handset revenues.
With more than 700 5G designs, it is well positioned to gain from solid 5G traction with greater long-term visibility. Also, the $1.4 billion NUVIA buyout is likely to boost Qualcomm’s position in the global 5G chipset arena. However, stiff competition from low-cost chip manufacturers remains a concern. Its margins have also declined due to high research and development expenses.
Other noteworthy reports we are featuring today include Target (TGT), Uber Technologies (UBER) and Altria Group (MO).
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>