Needham Takes Ax to Tech Companies with Large European Exposure

Perhaps they were cut out of the last FB investment banking deal? Needham is out with a research note praising domestic tech, while deriding those with exposure to filthy Europeans.

Estimates are coming, the fuck, lower for FB, NFLX and AAPL.

Via Briefing.com

Needham notes for their Internet names, Brexit adds risk and uncertainty to their rev growth rates, profit projections & valuation multiples. For firm’s media names, they recommend cos that have a larger portion of their rev from US demand and denominated in US dollars (ie, CBS, SNI, FOXA). These should outperform companies with large exposure to European demand fundamentals and currency translation risk as the US dollar strengthens (ie, DISCA, VIAB, NLSN, SCOR). FB — rev ests fall owing to European demand slowing OR currency translation issues, this has a heightened negative impact on FB’s valuation. NFLX — as profit ests fall owing to European demand slowing OR currency translation issues, this has a heightened negative impact on co’s valuation. AAPL — earnings impact is negative as new phones sold are the primary driver of the share price and the Europeans may push off their iPhone upgrades by 12 months if the UK and/or the EU go into recession.