Trefis Top 5 – May 27 Insights (LNKD, VZ, APC, NVDA, SFLY)
On this pre-Memorial Day Friday, we take stock of two of everyone’s favorite Internet stocks LinkedIn (NYSE:LNKD) and Facebook, and we note that Facebook’s ad business is around 30x more valuable than LinkedIn’s. We look at Verizon‘s (NYSE:VZ) announced plans to shift from its unlimited data plan to a shared family plan which left some investors scratching their heads. We analyze Anadarko’s (NYSE:APC) two most important value drivers and inspect four sources of value for Nvidia (NASDAQ:NVDA). Finally, we recently launched coverage of Shutterfly (NASDAQ:SFLY) with a near $66 price estimate.
Facebook’s Ad Business 30x More Valuable than LinkedIn’s
LinkedIn (NYSE:LNKD) and Facebook are two of the best known names for online social and professional networking. We estimate that the online advertisement business accounts for about 28% of our LinkedIn valuation estimate of $3.2 billion while it accounts for 60% of our Facebook valuation of close to $45 billion. This implies that Facebook’s online advertising business is about 30X more valuable than LinkedIn’s. This also implies that Facebook’s revenue stream looks a lot more like Google‘s (NASDAQ:GOOG), which earns around 75% of our near $190 billion valuation from advertising — or about 7x the size of Facebook’s ad business.
- Can LinkedIn’s New Salary Benchmark Tool Drive Premium Memberships?
- LinkedIn Reports Solid Q3 Earnings; Microsoft Merger On Track
- What To Expect From LinkedIn’s Q3 Earnings
- LinkedIn’s Next Move To Increase Its User Base In India
- Why Is LinkedIn Focusing On India?
- Here’s How LinkedIn Can Benefit From Expanding Pro-Finder?
Verizon to Shift from Unlimited to Shared Plans
At a recent Reuters Global Technology Summit, Verizon (NYSE:VZ) mentioned that it plans to move away from its $30 unlimited data plan during the summer and will instead put family shared data plans into play. [1] Its competitor AT&T (NYSE:T) is already on tiered data plans and it will be interesting to see if Sprint (NYSE:S) continues with its own. So why would Verizon move away from unlimited data plans?
How Much Oil and Gas Contribute to Anadarko’s Stock
Anadarko Petroleum Corporation (NYSE:APC) is among the largest independent oil and gas exploration and production companies in the world and competes with Exxon Mobil (NYSE:XOM), BP (NYSE:BP), ConocoPhillips (NYSE:COP) and Chevron (NYSE:CVX). Below we look at the two most valuable business divisions for Anadarko which have significant impact on its stock price and our $75.32 price estimate.
The 4 Sources of Value for Nvidia’s Stock
Nvidia (NASDAQ:NVDA) has been making moves to establish a greater stronghold in the computing and graphics market. With its push into PC CPUs, Nvidia looks to take Intel (NASDAQ:INTC) and AMD (NYSE:AMD) head on, on their own turf. And the company is also taking on the mobile computing market. With the launch of the world’s first dual core mobile processor and recent acquisition of Icera, Nvidia is challenging players like Qualcomm (NASDAQ:QCOM) and Texas Instruments (NYSE:TXN).
Shutterfly Coverage Launch: $65.88 Trefis Price Estimate
Shutterfly (NASDAQ:SFLY) provides online services that allow customers to upload, share, print and store pictures with easy to use web-design services. The company also provides printing services and other print-on-demand services for commercial and retail clients. It derives revenue from three primary sources: personalized products and services, printing digital photos and commercial printing services.
Notes:- Verizon to swap unlimited data plans for tiers, shared family plans, ars technica, May 21 2011 [↩]