We are moving from neutral on growth vs. value to all-in on value effective today. We are sticking with mid cap. As a result, for clients using Northlake’s thematic models, we have sold all client positions in the Russell 1000 Growth (IWF) and reinvested the proceeds into the Russell 1000 Value (IWD). There will be […]
Facebook (FB) reported a strong beat on 4Q20 sales and earnings, topping expectations for the third consecutive quarter. Guidance for 2021 was unchanged from the initial outlook provided last quarter. FB continues to caution investors about a potential headwind in 2021 from changes to Apple’s data privacy policy and warned that 2H21 faces difficult comparisons […]
There are no changes to Northlake’s favored themes for December. We remain neutral on growth versus value and continue to favor mid caps. As a result, current client positions following the models in the Russell 1000 Growth (IWF), the Russell 1000 Value (IWD), and the S&P 400 Mid Cap (MDY) will be held for at […]
Facebook continues to perform well despite the economic impact of the pandemic and negative publicity surrounding privacy and political issues. Ad revenue grew 22% during 3Q20, powering a better than expected earnings report. This is the second consecutive quarter that Facebook had better than expected advertising growth, supporting the idea that it is a COVID […]
Facebook (FB) reported a stronger than expected 2Q20 driven by large increases in engagement across its family of properties. Social apps like Facebook and Instagram have seen a huge boost in usage during the pandemic as people stuck at home looked for social interaction. Higher engagement led to more ads being delivered, which overcame a […]
Facebook (FB) reported 1Q20 sales slightly better than recently reduced expectations, and earnings in line with lowered estimates. Sales and earnings estimates fell roughly 6% and 11% respectively throughout March as analysts grappled with quantifying the challenges FB faced from the COVID crisis. Advertisers pulled back sharply in the final three weeks of March, but […]
Facebook (FB) delivered 4Q19 sales and earnings above consensus estimates, and reiterated guidance for 2020. The stock traded lower, reflecting an appetite for a larger upside surprise. Since last quarter, FB climbed midway into Northlake’s $200-$250 target range based on reaching 20x-25x $10+ EPS this year or next. After the earnings selloff, FB is back […]
Facebook (FB) reported 3Q19 sales slightly ahead of expectations with stronger earnings driven by disciplined expense growth. Guidance commentary was mostly positive with a warning of a pronounced revenue deceleration in 4Q19 due to difficult comparisons to the prior year being offset by an encouraging outlook for 2020. Northlake sees FB heading toward a positive […]
Facebook (FB) reported largely inline results in 2Q19 reinforcing that the company has weathered the storm surrounding the privacy issues that have plagued the stock since mid-2018. Revenue growth has decelerated and expenses are higher as management has signaled. However, in both cases the actual results have been better than expected from an investor perspective. […]
After a tough stretch beginning with last August’s shocking guidance reduction, Facebook (FB) appears mostly out of the woods as far as the bear case goes. User growth at the core Facebook app has held up well in the U.S. and Europe despite the near constant controversies related to privacy. More importantly, advertisers appear to […]
Office
20 N 3rd Street
Bayfield, WI 54814
Mail
PO Box 1165
Bayfield, WI 54814
tim@northlakecapital.com
847-226-9713
