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The Zacks Analyst Blog Highlights: Apple, Yahoo, Microsoft, Amazon and Alibaba

For Immediate Release

Chicago, IL – October 28, 2014 – 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 Apple (AAPL-Free Report), Yahoo (YHOO-Free Report), Microsoft (MSFT-Free Report), Amazon (AMZN-Free Report) and Alibaba (BABA-Free Report).

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

Tech earnings were in full swing last week with Apple (AAPL-Free Report), Yahoo (YHOO-Free Report), Microsoft (MSFT-Free Report) and Amazon (AMZN-Free Report) reporting numbers.

Earnings Highlights

Apple: Apple posted strong fourth-quarter results, beating the Zacks Consensus Estimate. The company saw strength in iPhones and Macs with iPad and iPod declining as expected. The reporting structure is being changed, so competitors have less information about its new products (such as Watch). The company also provided very strong guidance, as its most successful product lines (especially the large-screen iPhones) are ready for the holiday shopping season.

Yahoo: Yahoo also topped our expectations as the core business looked up, supported by good cost control. The company now appears to have a refocused display business, strengthening search business and is also reporting growing success on the mobile platform.

The balance sheet also looks good with all the Alibaba (BABA-Free Report) cash on it. Although a chunk will be paid as taxes, management has committed to returning half the rest. They started making good on that promise in the last quarter, buying back a large number of shares.

Microsoft: Microsoft delivered on its cloud-first mobile-first strategy, beating the Zacks Consensus Estimate. Cloud was clearly a major driver for the business, growing 128% from last year. Management stated that the business is on track to do $4.4 billion in revenue this year. There will be a near term negative impact of transitioning to a cloud model because at least some of it will be at the expense of traditional Office licenses. But this is a near-term phenomenon only and growth in Azure, Office 365 and Dynamic CRM is extremely important because they will position this company for the future.

Microsoft also took most of the Nokia-related restructuring charges in the last quarter. The lower headcount and product rationalization in this business is having a near-term impact on results. But the benefits of focusing on fast-growing segments that play to its strengths are positive for long-term growth.

Amazon: Amazon’s story remains much the same, with results going bad to worse as investments continue regardless. The company has also not abandoned its policy of undercutting everyone on price, which doesn’t help either revenue or profits. Amazon’s problems stem from its determination to maintain share in many very fast-growing markets each of which has a growing number of new players.

The breadth of markets assumes greater significance when sales are online or products are digital because there are related technology costs as well. To acquire the infrastructure, expertise and inventory/content to do the business on such a big scale would be a challenge for anyone. Amazon could have helped itself by going slow on the discounts. Instead it’s become something of a trend-setter. Failing that, it’s time management came out and started talking about its future plans.

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

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