Quick Takes: Palo Alto, Alphabet, Meta & More

Vladimr Putin’s latest mobilization caused the oil price to spike yesterday morning. Somewhat predictably, energy stocks opened higher, - but then very quickly reversed course, along with the price of crude, when it emerged that US inventories increased by 1.1 million barrels from a week earlier. Exxon (NYSE: XOM), Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY) all closed lower on the day.

Palo Alto Networks' (NASDAQ: PANW) Stock Split Makes Sense when you look at the the Current Shareholder Base

Palo Alto Networks (NASDAQ: PANW) will be conducting a 3-for-1 stock split after the market closes on Tuesday 13th September. On Wednesday, shareholders will receive two additional shares for each share they hold at the close on Tuesday. With a pre-split share price of ~$570, shares should be trading at ~$190 after the split. The number of shares outstanding will increase from ~99.4 million to ~299 million.

Alphabet (NASDAQ:GOOGL): The Valuation looks Attractive, but Upside may be Capped until Growth Returns

Alphabet (NASDAQ:GOOGL) is a high quality company with significant competitive advantages, a very strong balance sheet and diverse revenue streams. It’s also trading on a price multiple that is low relative to its peers and to its own trading history. The valuation suggests the market is skeptical that growth is going to return anytime soon.

Foot Locker (NYSE: FL): Long Term Potential, but Sentiment May Weigh on Stock Price in the Medium Term

Foot Locker’s (NYSE: FL) share price surged as much as 24% on Friday after the company released its second-quarter results. While revenue was in-line with consensus estimates, EPS were 25% higher than expected. In addition, the company announced the appointment of Mary Dillon as CEO. At least five analysts have already raised their price targets, and the valuation appears reasonable at first glance.

Amazon’s (NASDAQ:AMZN) Earnings Volatility Likely to Continue’s (NASDAQ:AMZN) second-quarter results last week were mixed, with a revenue beat and an EPS miss. Nevertheless, the results and guidance were clearly better than the market expected as the stock price closed 16.7% higher the following day. While the stock does appear to be reasonably valued, there are also several reasons to expect ongoing earnings volatility.