The Zacks Analyst Blog Highlights:Facebook, Google, Intel, Yahoo and Moody

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Oct 22, 2013, 09:30 ET

CHICAGO, Oct. 22, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Facebook (Nasdaq:FB-Free Report), Google (Nasdaq:GOOG-Free Report), Intel (Nasdaq:INTC-Free Report), Yahoo (Nasdaq:YHOO-Free Report) and Moody's Corp. (NYSE:MCO-Free Report).

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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

Technology Stock Roundup: GOOG, FB Join Forces

Earnings season kicked off last week, which ended with a bang as Facebook (Nasdaq:FB-Free Report) and Google (Nasdaq:GOOG-Free Report) decided to join forces.

Facebook and Google Join Forces

Facebook has agreed to let Google sell its ad inventory. The agreement will provide Google valuable insight into its business, including where the dollars come from and how much the inventory sells for, thereby strengthening its position in the online advertising market.

Facebook launched its FBX ad exchange last year and has kept Google out of it so far. Google's entry will eliminate several smaller players, but Facebook stands to gain. With more advertisers vying for its space, Facebook is likely to see bid rates go up, which will add to its revenues. Higher rates will be an added positive for Google, which will collect a fee on sales.

Google Quiets Critics, Shares Soar

Google didn't do anything spectacular last quarter, but both investors and analysts were surprised by the 26% increase in its paid clicks. Of course, there was the mitigating factor of an 8% decline in prices, but this did not appear to affect its margins.

Internet usage is increasingly moving to mobile devices where rates are lower. This is likely the reason for weak pricing. Google is more than making up with paid clicks.

It certainly looks like Enhanced Campaigns had something to do with the results (Google transitioned all its ad clients to the platform in July). But the company did not shed any light on this except to say that it was directionally the right way to go for Google.

Motorola revenue grew double-digits sequentially, but the business remained a drag despite the Moto X launch (not really unexpected). Google intends to increase spending on marketing and distribution.

Intel Beats, Broadwell Delayed

Intel (Nasdaq:INTC-Free Report) managed to beat expectations in the last quarter. Guidance could have been better, but was most probably impacted by a slower start to its mobile strategy. Still, management assured that Intel had 50 designs, so there should be some positive impact from that.

The other disappointment was with respect to the Broadwell pushout, where Intel saw some yield issues in the last quarter. Management stated that the problem was resolved and Broadwell would be available next quarter.

Intel really needs to display mobile market strength, because its core PC business is likely to continue shrinking and its server business will get increasingly competitive. Increased competition notwithstanding, the Data Center segment did very well in the last quarter.

Yahoo Rides Alibaba Strength

Yahoo's (Nasdaq:YHOO-Free Report) core business showed some positive trends, with search ads up 21% in the last quarter and display ads seeing positive growth for the first time in nine quarters. Prices declined in both categories.

However, earnings were better than expected due to Alibaba's contribution and a lower share count. Yahoo also managed to lower the amount of Alibaba shares to be offloaded during the IPO, which should enable it to benefit from subsequent appreciation in share prices.

The company also scores strongly with the credit rating agencies. In September, Moody's Investors Service, a wing of Moody's Corp. (NYSE:MCO-Free Report) affirmed the insurance financial strength (IFS) ratings of ACE Seguradora S.A. (ACE Seguradora), a subsidiary of ACE Limited, at Baa1.

ACE Limited is scheduled to release its third quarter 2013 results on Oct 22, 2013. The Zacks Consensus Estimate for the third quarter of 2013 is currently $2.20 per share, representing a 9.68% improvement year-over- year.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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