Internet stocks aren’t dominating the Tech Leaders list as they might have in years past. But three online content plays have strong earnings growth, behind them and up ahead.
Facebook (FB) profit soared 83% to 77 cents a share in Q1, topping views by 15 cents, for its best gain in seven quarters. Revenue grew 52% to $5.26 billion, also well ahead of forecasts. The social network fired on all cylinders, with a 16% increase in daily active users, 15% higher monthly active users, and a 21% jump in mobile monthly active users. Mobile advertising revenue made up 82% of total ad sales, up from 73% in the year-earlier quarter.
Analysts expect solid EPS gains to continue in Q2 and Q3 at 62% and 53%, respectively. The stock is still in buy range from a 117.09 cup-with-handle buy point it gapped past April 28 on its earnings report. With the market uptrend still under pressure, Facebook hasn’t been able to gain much upside traction but has held nearly all its gains.
WebMD Health (WBMD) has posted 33% or higher quarterly earnings growth for the past three years. Analysts expect the pace to slow to a perfectly respectable 25% in Q2 and to 38% in Q3. WebMD’s 96 Composite Rating is second-best in the Internet content group, behind Facebook’s 98.
The stock is extended from a 58.35 buy point cleared in March, but it is in buy range from a pullback to the 10-week moving average. Shares have rallied more than 30% so far this year, far outperforming the Nasdaq composite.
Weibo (WB) (87 Composite) reported its first full-year profit, covering 2015, with consensus estimates targeting a 59% jump this year and 67% the next. The Chinese microblogging service’s Q1 EPS surged by triple digits, although it was just 7 cents from a year-earlier profit of a penny a share. Analysts expect an 80% increase in Q2 and a 60% gain in Q3.
Shares are extended from a 19.20 cup-with-handle buy point which they blew past on April 6. Those who haven’t yet locked in gains could consider doing so, given the market uncertainty.