5 Hot Stocks: Rift Divides Amazon and eBay, Caterpillar Falls Shy, and Under Armour May Have Peaked
Amazon (NASDAQ:AMZN): A bill being put together in the Senate is forming a divide in the online retail marketplace, and pitting retail giant Amazon against powerhouse eBay (NASDAQ:EBAY) on different sides of the debate. The bill proposes a sales tax that would be imposed on online retailers with more than $1 million in annual sales for certain out-of-state sales. Amazon supports the bill, while eBay is set against it.
Caterpillar (NYSE:CAT): The construction equipment giant made a valiant effort in the first quarter, but fell up short in its earnings and revenue. Earnings of $1.31 missed estimates by $0.07; revenue of $13.2 billion fell $600 million shy of projections, and also represents a 17 percent decrease year-over-year. The firm also adjusted its outlook, from $60-$68 billion to $57-$61 billion, and announced that it would be resuming its stock repurchases.
Barricks Gold (NYSE:ABX): Citing a slump in gold prices and a large debt burden, Barricks Gold will reportedly be putting three of its Australia-based mines up for sale, and has asked UBS and Bank of America’s Merrill Lynch (NYSE:BAC) to oversee the process. Zijin Mining and Shandong Gold, both of China, are seen as potential suitors for the stakes.
Under Armour (NYSE:UA): Despite posting strong quarterly results, a downgrade from Buy to Neutral courtesy of Buckingham sent Under Armour’s shares skidding. Analyst John Zolidis said that more risk-prone investors should reduce their exposure to the company, while long-term investors may maintain their positions, and noted that he does not see potential for “very large beats” to consensus estimates.