The European Union is reportedly on the verge of launching an investigation into the acquisition. Microsoft apparently has not deigned to offer any concessions to EU regulators during a preliminary review of the deal that is set to close next Tuesday.
Of 23 brokerages covering the stock, 11 have Buy or Strong Buy ratings. The other 14 have Hold ratings. At a recent share price of around $72.00, the upside potential based on Microsoft’s offer of $95 is 31.9%.
Analysts have forecast third-quarter revenue of $1.71 billion, which would be up 4.4% sequentially but 9.0% lower year over year. Adjusted EPS are forecast at $0.50, up 5.6% sequentially and down 44.0% year over year. For the full 2022 fiscal year, consensus estimates call for EPS of $2.78, down 25.4%, on sales of $7.99 billion, down 4.4%.
Activision stock trades at 25.9 times expected 2022 EPS, 19.1 times estimated 2023 earnings of $3.77 and 17.8 times estimated 2024 earnings of $4.03. The stock’s 52-week trading range is $56.40 to $86.90, and the company pays an annual dividend of $0.47 (yield of 0.65%). Total shareholder return for the past year was 6%.
Lyft
Ride-hailing operator Lyft Inc. (NASDAQ: LYFT) got a lift of more than 10% after rival Uber issued strong guidance for the current quarter earlier this week. The gain was pared to around 3.5% by the end of the day, however. On Thursday, the company announced that it would fire about 13% of its total workforce of around 5,000 employees, citing an increased risk of recession and rising insurance costs. Shares have fallen by nearly 9.5% in the past three days.
The 43 analysts covering the stock come down on Lyft’s side, with 24 having a Buy or Strong Buy rating and another 18 rating the shares at Hold. At a share price of around $13.70, the upside potential based on a median price target of $25.00 is 82.5%. At the high target of $65.00, the upside potential is nearly 375%.
Third-quarter revenue is forecast at $1.06 billion, up 7.2% sequentially and by 22.6% year over year. The company is expected to report EPS of $0.08, down nearly 41% sequentially and up three cents year over year. For the full 2022 fiscal year, analysts anticipate EPS of $0.41, solidly better than last year’s loss per share of $0.25, on sales of $4.08 billion, up 27.3%.
Lyft stock trades at 33.2 times expected 2022 EPS, 13.2 times estimated 2023 EPS of $1.03 and 8.4 times estimated 2024 earnings of $1.63 per share. The stock’s 52-week range is $10.82 to $57.68. Lyft does not pay a dividend. Total shareholder return for the past 12 months was negative 72.1%.
Originally published at 24/7 Wall St.
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