213.44 +0.80 (0.38%)
Pre-Market: 8:50AM EDT
|Bid||211.86 x 1200|
|Ask||213.15 x 800|
|Day's Range||211.60 - 213.65|
|52 Week Range||142.00 - 233.47|
|Beta (3Y Monthly)||1.08|
|PE Ratio (TTM)||18.06|
|Forward Dividend & Yield||3.08 (1.46%)|
|1y Target Est||N/A|
German banking fintech N26 is making a big push for the U.S. market, announcing a nationwide rollout in the U.S. Thursday after a two-month beta program the company called successful.
It's back-to-school season, and that means there are plenty of deals available on today's hottest tech.
Market investors should take a long view – as Warren Buffett likes to say, if you can’t see yourself holding onto a stock for 10 years, you shouldn’t even hold it for 10 minutes. But the long view for investors in their 30s is not the same as for those in their 50s. So, what should younger market players look for in a stock?For them, the game revolves around stability, reliability, and returns. Younger investors should look for stocks that they can use to park their money, watch it grow through share appreciation, and quietly reinvest a dividend quarter after quarter. Here we’ll look at three stocks that fit this bill. Apple, Inc. (AAPL)Apple is the only tech company we’re looking at today. Its days as a shoe-string start-up in the home computer industry are long gone, and it has reinvented itself time and again over the past 40 years, but Apple’s allure for investors isn’t just the ongoing excitement of shiny new devices. Apple also offers a long history of stability (this company isn’t going anywhere), a more recent history of strong share gains (the stock has been gaining steadily since 2006), and reliable dividend to reinvest (at 1.45%, the yield is modest, but the annual payout is over $3 per share).The company’s difficulties in the past 12 months are well-known. The US-China trade tensions and the general maturation of the smartphone replacement cycle have cut into iPhone sales, while the Mac, iPad, Wearables, and Services sectors have not yet fully ramped up to compensate for iPhone’s lower revenues. Still, Apple sees a light at the end of that tunnel.In its most recent quarterly report, revenues and EPS both beat the forecasts. Mac, iPad, and Wearables each brought in more than $5 billion, and Services’ revenue of $11.46 billion was an all-time record. That last is important, because Apple has based its forward strategy on new services to monetize the 900-million strong global iPhone customer base.Going forward, this fall will see new iPhone models with new sensors and upgraded cameras, along with the launch the Apple TV+. Expect the new phone in September, but don’t expect them to bring anything spectacular to the table – early indications are, they will be incremental upgrades in line with the slowing replacement cycle. Apple TV+, however, will be competing with Netflix, Amazon, Disney, and Comcast, and will have to clear a higher bar than ‘incremental upgrade.’ With pricing estimated at $9.99 per month, it will be competitive but at the upper end of the range. Industry watchers expect that Apple may bring in as many as 100 million Apple TV+ users in the next 5 to 7 years.Top Wall Street analysts agree that Apple is poised to recover from its recent setbacks and volatility. Krish Sankar, 4-star analyst from Cowen, lists four drivers for the stock in coming months: “Apple TV+ will be competitive with the 3 big incumbents; forecast of 12 million to 21 million TV+ subscribers in FY20/21; up to 40 original programs under development for TV+, as much as $2.8 billion in content spending in the next 2 years; and, TV+ to drive incremental EPS of 20 to 25 cents per share for 10 million subscribers in FY 20/21.” In short, Sankar sees the new TV streaming service with a leading role in revenue generation. His price target of $250 suggests a 17% upside for AAPL shares.5-star analyst Timothy Arcuri, of UBS, agrees, seeing plenty of room for growth in Apple. However, Arcuri believes that the Wearables segment will be the main growth engine. He notes, “Wearables grew nearly 50% in the most recent quarter, contributing materially more Y/Y growth than the services segment for the first time in company history.” He adds that the “Wearables business is under-appreciated and is what's moving the needle for overall growth.” Arcuri’s $235 target on AAPL implies an upside of 10%.APPL shares have a Moderate Buy rating from the analyst consensus, based on 16 buys, 11 holds, and 1 sell. The stock’s $224 average price target gives it a 5.7% potential upside from the current share price of $212. Walmart, Inc. (WMT)Everyone knows Walmart as the place for cheap groceries and household goods, and to make fun of low-end shoppers. What’s less visible, however, is that Walmart stock has been a steady gainer since the late 1980s. The discount superstore can rely on size to insulate it from most market disruptions. It is the world’s largest retailer, largest private employer, and largest private company, with annual revenues easily topping $500 billion.Walmart is reliably solid. It is also proving itself surprisingly adaptable, a trait that huge corporations sometimes find difficult. The growth of e-commerce in the last decade has made clear that Amazon.com (AMZN) is Walmart’s main competitor, and Walmart has responded with moves into the online retail space. The retailer is not recasting itself as an e-tailer; rather, Walmart is leveraging its existing logistical network and store locations to complement online sales. For example, Walmart can’t offer the same fast delivery as Amazon Prime – but it can offer in-store pickup for online orders. And since, by some estimates, 90% of the US population lives with 10 miles of a Walmart store, that’s a convenient option – and Walmart’s online sales have been improving in recent quarters.As a return investment, WMT does deliver. It’s up 20% year-to-date, and the company is consistent and reliable at paying its 1.89% dividend. While the dividend yield sounds low, it’s actually in line with the S&P 500 average, and the share price is high enough that the annual payout is $2.12. It’s a nice bonus to pocket or reinvest.Walmart’s strong and reliable performance has brought it fans from Wall Street. Guggenheim analyst Robert Drbul rates WMT a Buy and says, “We were encouraged by the 1H momentum… U.S. comps were +2.8% (vs. our +2.5% est.) with broad-based strength. The comp included gains in both traffic (+0.6%) and ticket (+2.2%). Traffic accelerated on a two-year basis.” He raised his price target 8%, to $125, implying an upside of 11%.KeyBanc’s Edward Yruma notes, “Walmart is active in markdowns and investing in price… yet gross margins are still better than expected. The company sees continued strength in private brands and operational discipline at the executive level.” He puts a $128 price target on WMT, with an upside of 14%.Walmart’s Moderate Buy consensus rating comes from 13 buys and 6 holds. Shares sell for $112, and the $120 average price target suggests a 7% upside. Waste Connections (WCN)Garbage collectors don’t get the same hip reputation as the tech companies, but as far as investing goes, the big waste collection companies are top-grade. Their greatest advantage, of course, is that modern society is messy, so the clean-up companies will never want for business or customers. Waste Connections fits that bill. It is the third largest garbage collection company in North America.In its Q2 earnings, released at the end of July, WCN reported revenue of $1.37 billion and EPS of 69 cents per share. EPS beat the forecast by 6%, while revenues were in line with expectation. This was the third time in the last four quarters that WCN had beaten the EPS estimates. The earnings stayed good when measured year-over-year. Q2 2018 showed EPS of 65 cents on $1.24 billion in revenues, so the gains are clear.Like Apple and Walmart, and based on its steady earnings, WCN brings in strong returns. The company has been beating the market averages. WCN shares are up 24% year-to-date, against a Dow Jones gain of 12% and an S&P 500 gain of 16%. The dividend is modest, in fact, the lowest of the three stocks in this review at just 0.69%. But it is reliable – the company makes sure to pay it out regularly and has raised the payout steadily over the last 8 years. The current payment is 64 cents per share annualized.Wall Street’s analysts like this stock. BMO Capital’s Devin Dodge sees it continuing to outperform the market and gives WCN a $105 price target, and RBC Capital’s Derek Spronck takes a similar stance with a $100 target. Writing from Raymond James, 5-star analyst Patrick Brown raised his price target to $106 and called the stock a Strong Buy.Brown is in line with the analyst consensus here. WCN has a Strong Buy based on 3 buys and 1 hold, and an average price target of $103. Shares are trading for $92, so that target suggests a 12% upside.Disclosure: This author is long on AAPL.
Apple believes the next big thing in tech is augmented reality. Tim Cook, chief executive, says the ability to superimpose virtual images on the real world is a “profound” innovation that soon we will not be able to live without. , Snapchat selfies or virtual Ikea furniture — most people still fail to understand what AR really means.
On Wednesday, the Dow Jones Index's outperformance was mainly due to an increase in two of its high-weighted stocks—Boeing (BA) and Apple (AAPL).
(Bloomberg Opinion) -- On both sides of the political aisle, U.S. leaders are becoming more interested in industrial policy -- government efforts to promote the growth of certain sectors of the economy. The idea has figured prominently in Senator Elizabeth Warren’s policy proposals, blueprints for a Green New Deal and conferences on the future of conservatism. Even the International Monetary Fund, long a bastion of economic orthodoxy, recently put out a paper entitled “The Return of the Policy That Shall Not Be Named: Principles of Industrial Policy.”This is good. But because the idea was relegated for decades to the margins of economic thinking, debates about industrial policy can still degenerate into declarations that government “can’t pick winners,” or vague references to the success of East Asian economies. To help foster a more productive conversation, here are some books and papers to get people thinking about industrial policy.No. 1. “Concrete Economics: The Hamilton Approach to Economic Growth and Policy,” by Stephen S. Cohen and Brad DeLong.This short, readable book is less about how to do industrial policy, and more about why to do it. Giving a variety of examples from U.S. history, Cohen and DeLong argue that supporting specific sectors and making specific promises is essential to gaining popular legitimacy and support for an economic policy program. People can only get behind a plan, they argue, if they have some concrete idea of how it’s going to improve their lives. Simply leaving economic development to the whims of the market, they say, will merely result in a bloated financial sector and popular disillusionment.No. 2. “Industrial Policy for the Twenty-First Century,” by Dani RodrikIn this paper, Rodrik, a Harvard University economist, offers a theory of why industrial policy works as a development strategy for poor countries. Instead of picking winning industries, Rodrik argues, successful countries subsidize exports, in order to figure out what they’re good at making. World markets act as a discovery tool, rewarding successful industries and punishing unproductive ones, and helping each country find its most efficient place in the global trading system.No. 3. “How Asia Works,” by Joe StudwellIf you want to read about the recent history of successful industrial policies, this is the place to start. Drawing on a variety of sources, Studwell presents a unified vision of an East Asian development model that made Japan, South Korea and Taiwan rich, and is now helping to propel China’s economy. Some elements of the model -- for example, redistributing farmland from landlords to tenant farmers -- are only applicable to poor countries. But Studwell’s idea of “export discipline” -- pushing companies to enter world markets and forcing the liquidation of those that fail -- could conceivably be used in rich countries as well.No. 4. “The Park Chung Hee Era: The Transformation of South Korea,” edited by Byung-Kook Kim and Ezra VogelThis collection of essays details the astonishing 16-year rule of South Korean military dictator Park Chung-hee, a period of time when real per capita income almost quadrupled. Though Park was a repressive tyrant, his economic policies brought the country out of poverty faster than any in history. Park’s approach, which included hefty amounts of state planning, large government-supported conglomerates, targeting of strategic industries and export promotion, is perhaps the purest example of modern industrial policy at work.No. 5. “Can Japan Compete?”, by Michael Porter, Hirotaka Takeuchi and Mariko SakakibaraWritten in 2000, this book offers a cautionary tale of how industrial policy can go awry, especially in developed countries. Business professors Porter, Takeuchi and Sakakibara show how Japan’s fabled Ministry of International Trade and Industry, which famously helped propel the country to the forefront of industries like auto manufacturing and machine tools, faltered in the 1980s and 1990s. In newer industries like electronics, old approaches failed, Japan lost competitiveness, and MITI’s reputation soured.No. 6. “The Entrepreneurial State: Debunking Public vs. Private Sector Myths,” by Mariana MazzucatoIn this forceful book, which has been influential in the U.K., economist Mazzucato argues that most major technological breakthroughs have a significant amount of state backing. She shows that private companies such as Apple, though venerated for their innovation, actually harvest the fruits of a far-reaching process of government-supported research and development. Mazzucato argues that popular theories about the superiority of the private sector over government are misguided, and that only the public sector can bear the expense and shoulder the risk of big long-term projects.No. 7. “Jump-Starting America: How Breakthrough Science Can Revive Economic Growth and the American Dream,” by Jonathan Gruber and Simon JohnsonEconomists Gruber and Johnson don’t just theorize about the value of industrial policy -- they lay out a concrete plan. Drawing on the lessons of World War II and the Space Race, they propose a $100 billion annual increase in research and development spending in the U.S. Cognizant of the problem of economic activity concentrating in a handful of big-city technology hubs, they propose building large new research parks in economically languishing areas with lots of local talent and good quality of life. Each hub would focus on a promising area of scientific discovery, with the government putting in research funding and commercialization assistance, and extracting a return via public land ownership. It’s a bold plan, and a good one.No. 8. “Our Towns: A 100,000-Mile Journey into the Heart of America,” by James and Deborah FallowsFlying around the U.S. in a small airplane, the two veteran writers chronicle the stories of towns that have revived themselves after the triple shock of Rust Belt decline, Chinese competition and the Great Recession. By observing the common elements, they try to extract general lessons about the kinds of local industrial policies that cities can adopt to revive themselves. The prescriptions include a revitalized downtown, strong technical education, focus on a specific industry or set of industries, and -- most importantly -- close cooperation between local government, businesses, universities and nonprofits.This reading list provides an introduction to the best modern thinking on the topic of industrial policy, but there is plenty more to read. Although the topic is understudied, there are a number of economics papers that examine individual cases of the success or failure of industrial policy, or offer theories about how it can work. There are also a number of other authors writing popular books in the area. But this reading list should provide a launching pad for anyone interested in this important and suddenly popular topic.To contact the author of this story: Noah Smith at firstname.lastname@example.orgTo contact the editor responsible for this story: James Greiff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Noah Smith is a Bloomberg Opinion columnist. He was an assistant professor of finance at Stony Brook University, and he blogs at Noahpinion.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Three years ago this month, Hollywood executive Peter Chernin and AT&T Inc. CEO Randall Stephenson shared a dinner on Martha’s Vineyard. Stephenson is still waiting for his dessert to arrive. It was the meal that sparked the idea for Stephenson, a practically lifelong member of the staid telephone industry, to enter the TV and film business by acquiring Time Warner, a then-$60 billion giant of the media world. After Stephenson struck the deal, he told Bloomberg News that it was Chernin who “first got me to appreciate the library that this company owns.” That library includes HBO, with hits like “Game of Thrones” and “Succession;” the Warner Bros. studio, which that year had an almost 17% share of the box office; and the rights to “Friends,” a sitcom that hasn’t aired fresh episodes in more than 15 years but has taken on new life as the Holy Grail of the streaming-TV market.In June of last year, 601 days after the companies agreed to merge, Time Warner officially became part of the Dallas-based wireless-phone carrier, defeating an attempt by the U.S. Justice Department to block the transaction. AT&T’s WarnerMedia division, as the Time Warner assets are now called, is seen as one of the biggest threats to Netflix Inc., though it doesn’t yet have a competing product to show for it. In fact, little more has come out of the WarnerMedia acquisition so far than reports of culture clashes, differing visions and high-profile personnel exits.According to the New York Post this week, some HBO staffers have been put off by the brusque management style of their new WarnerMedia boss John Stankey, a longtime AT&T executive. The Dallas-based C-suite is putting pressure on its Hollywood employees to ramp up HBO’s production slate as they coalesce around building a new streaming app named HBO Max, the strategy for which is still nebulous and seems to keep changing. They have a deadline to unveil the product to investors on Oct. 29. Later in the year, HBO Max will officially join the alphabet soup of video services already offered by AT&T:The subscription on-demand product sounds akin to Walt Disney Co.’s Disney+ and Apple Inc.’s Apple TV+, which are both launching within the next three months and gunning for Netflix Inc.’s subscriber base. They’re spending billions of dollars on content to fill out their apps with HBO-quality content. In theory, AT&T is sitting on a set of assets best suited to draw a wide streaming audience, with HBO’s high-quality programming, plus news, sports, comedy, cartoons and popular films. But merger integration issues and AT&T’s lack of experience in the content business pose major challenges.The price could also turn off subscribers. HBO Max is expected to charge a few dollars more than the stand-alone HBO Now app, which at $15 a month is higher than Netflix’s $13 monthly fee and more than double the $7 that Disney+ will charge. In fact, bundling Disney+, Hulu and ESPN+ will be just $13. The irony is that while Stephenson tries to transform AT&T into a media conglomerate, the wireless business that’s effectively been overshadowed by the merger is improving. It's the healthiest area of the company. Wireless accounted for 37% of AT&T’s revenue in the last 12 months, but it was nearly 50% of Ebitda, according to data compiled by Bloomberg. That cash flow is helping AT&T contend with a heavy debt load, which stood at $194 billion as of June. Wireless network performance has gotten better as new spectrum has been deployed, boosting AT&T’s image as the carriers transition to 5G service. Based on scoring by various outlets that track wireless connections, AT&T was able to crown itself America’s “fastest, best and most reliable network,” which are useful bragging rights for TV ads as the industry battles for customers. More important, AT&T is saving money through a public-private contract it won to build FirstNet, a network for first responders. Put simply, while AT&T’s workers climb towers to set up FirstNet, they’re also prepping its airwaves for 5G.These improvements haven’t yet reduced churn, or the rate at which customers are leaving AT&T, but that could be next should the wireless business stay on track. And if T-Mobile US Inc.’s takeover of Sprint Corp. overcomes state opposition (16 attorneys general have sued to block the deal), there will be one less msgcompetitor for AT&T and a chance to raise prices.AT&T’s DirecTV satellite business continues to shrink, with the company losing 946,000 video subscribers in the second quarter, including DirecTV Now customers who canceled in the wake of price hikes. That streaming service was recently renamed AT&T TV Now as the company moves away from the fading DirecTV brand. It also introduced a new service this week in certain markets called AT&T TV, which is a similar live-TV and on-demand app with various package options, but also involves using a streaming box where users can access other services they may subscribe to, such as Netflix. It became clear this week that AT&T TV and HBO Max together are at the center of Stephenson’s vision for the new AT&T.The idea must have seemed so sweet three years ago. But peering into the kitchen, it’s all still a bit hectic. He'll have to keep waiting for that dessert.To contact the author of this story: Tara Lachapelle at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering deals, Berkshire Hathaway Inc., media and telecommunications. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Apple Inc. is readying a clutch of new hardware for the coming weeks and months, including “Pro” iPhones, upgrades to iPads and its largest laptop in years.The Cupertino, California-based technology giant is planning to announce three new iPhones at an event next month, according to people familiar with the situation. The handsets will likely go on sale in September, contributing to fiscal fourth-quarter sales. But the real test will come in the crucial holiday season. That’s when the company is banking on a combination of new hardware, software and services to drive revenue higher, following a huge miss at the end of last year. Also coming in 2019: refreshed versions of the iPad Pro with upgraded cameras and faster chips, an entry-level iPad with a larger screen, new versions of the Apple Watch, and the first revamp to the MacBook Pro laptop in three years, the people said. Updates to key audio accessories, including AirPods and the HomePod speaker, are in the works, too, these people added. They asked not to be identified discussing private plans. An Apple spokeswoman declined to comment. Beyond these unannounced products, Apple is gearing up to launch a refreshed Mac Pro and its accompanying monitor, iPhone, iPad, Apple TV, Mac, and Apple Watch software updates, as well as its Apple TV+ video and Apple Arcade gaming subscription services.Here’s what to expect:iPhone:Apple is planning to launch three new iPhones, as it has done each year since 2017: “Pro” iPhone models to succeed the iPhone XS and iPhone XS Max as well as a successor to the iPhone XR. The main feature of the Pro iPhones will be a new camera system on the back with a third sensor for capturing ultra-wide-angle photos and videos. The extra camera will let users zoom out and capture a larger field of view. The sensors will capture three images simultaneously and use new artificial intelligence software to automatically correct the combined photo if, for example, a person is accidentally cut out of one of the shots. The new system will also take higher resolution pictures rivaling some traditional cameras. Photos taken in very low-light environments will improve, too. The high-end handsets will have significantly upgraded video recording capabilities, getting them closer to professional video cameras. Apple has developed a feature that allow users to retouch, apply effects, alter colors, reframe and crop video as it is being recorded live on the device. Another notable new feature: A reverse wireless charging system so that a user can power-up the latest AirPods in the optional wireless-charging case by leaving it on the back of the new Pro phones. This is similar to a capability that Samsung Electronics Co. rolled out for its Galaxy handsets earlier this year. The high-end iPhones will look nearly identical to the current models from the front and feature the same size screens, but at least some colors on the back will have a matte finish versus the existing glossy look. The new models should hold up better when they’re dropped due to new shatter-resistance technology. The phones will include a new multi-angle Face ID sensor that captures a wider field of view so that users can unlock the handsets more easily – even when the devices are flat on a table. Apple has dramatically enhanced water resistance for the new models, which could allow them to be submerged under water far longer than the 30-minute rating on the current iPhones. The new models will have updated OLED screens that lack the pressure-sensitive 3D Touch technology. Apple is replacing this with Haptic Touch, which essentially mirrors 3D Touch’s functionality with a long press, as it did with the iPhone XR last year. The iPhone XR’s successor will gain a second back camera for optical zoom, the ability to zoom in further without degrading quality, and enhanced portrait mode. Apple is also adding a new green version. All of the new iPhones will have faster A13 processors. There’s a new component in the chip, known internally as the “AMX” or “matrix” co-processor, to handle some math-heavy tasks, so the main chip doesn’t have to. That may help with computer vision and augmented reality, which Apple is pushing a core feature of its mobile devices. None of the new models will include 5G, but next year’s will. They’ll also have rear-facing 3-D cameras that will boost augmented reality capabilities. iPad:After launching new mid-tier iPad Air and iPad mini models earlier this year, Apple is planning to refresh the iPad Pro and its low-end iPad for schools. The 11-inch and 12.9-inch iPad Pros will get similar upgrades to the iPhones, gaining upgraded cameras and faster processors. Otherwise, the new iPads will look like the current versions. The low-end iPad’s screen will be 10.2-inches. That means Apple will likely no longer sell a new model with a 9.7-inch display, discontinuing the original display size after using it for nearly a decade. Apple Watch, AirPods, and HomePod:After revamping the Apple Watch last year with a new design and bigger screens, this year’s changes will be more muted, focusing on the watchOS 6 software update, and new case finishes. References to new ceramic and titanium models have been found in an early version of iOS 13, Apple’s latest mobile operating system. Apple is working on new AirPods that are likely to be more expensive than the current $159 model. New features will include water resistance and noise cancellation with a launch planned by next year. Apple introduced a new version of the entry-level AirPods in March with hands-free Siri support and longer battery life. Apple is also working on a cheaper HomePod for as early as next year. The current $300 model hasn’t sold very well. The new model is likely to have two tweeters (a type of loudspeaker), down from seven in the current HomePod. Mac: Apple is planning a revamped MacBook Pro with a screen over 16-inches diagonally. The bezels on the new laptop will be slimmer so the overall size of the laptop will be close to the current 15-inch models. The new laptop would mark Apple’s largest since the 17-inch MacBook Pro was discontinued in 2012. It’s part of an effort by Apple to retain and woo professional computer users. Apple is also launching the previously announced Mac Pro and 32-inch XDR Pro Display later this year. To contact the authors of this story: Mark Gurman in Los Angeles at firstname.lastname@example.orgDebby Wu in Taipei at email@example.comTo contact the editor responsible for this story: Alistair Barr at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - U.S. futures were slightly down on Thursday as investors waited for more details on Fed policy at the central bank's three-day gathering in Jackson Hole, Wyoming.
Most people don’t care if their credit card gets a scratch or a scuff, as long as they can still buy things with it. But the sleek new titanium Apple Card may change that.
It's August 2019, and we are on the eve of a streaming TV gold rush that will forever change the global entertainment landscape.To be sure, the linear to internet TV shift has been playing out for the past decade. But, from essentially 2010 to 2019, there have really only been three viable streaming TV services -- Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN) Prime Video, and Hulu -- all of which cost a very cheap ~$10 per month.As such, contrary to what the headlines will lead you to believe, cord-cutters have been the exception. Most households in the U.S. have a Netflix subscription. Most households also still pay for cable TV. In other words, the consumption shift from linear to internet TV in the 2010's has been defined largely by consumers bundling pay TV packages and streaming services together -- not by wholesale cord-cutting.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's about to change in 2020. A plethora of new streaming TV services are going to launch in late 2019 and 2020. Most of these streaming TV services project to be really good. Pretty much all of them will feature exclusive content.The introduction of these new services will truly kick-start the cord-cutting trend. By 2025, I don't think many households in the U.S. will be paying for cable TV. Instead, I think most households will bundle together several streaming packages at a cost that's similar to what they paid for cable, but with a lot more content and enhanced convenience. Deloitte agrees, saying that as early by the end of 2020, 20% of adults in developed economies will be paying for 10 digital media subscription services. * 10 Marijuana Stocks That Could See 100% Gains, If Not More What's the investment implication here? Buy streaming TV stocks. The streaming TV gold rush that will play out in the 2020's will create a rising tide that will lift most boats in this segment. Streaming TV Stocks to Buy: Netflix (NFLX)Source: Riccosta / Shutterstock.com Streaming Service(s): NetflixIndustry pioneer and leader Netflix is widely seen as a big loser with the oncoming onslaught of competitive streaming TV services from the rest of the media industry.But, this fear seems overstated to me. Netflix will be just fine. As mentioned earlier, the norm by 2025 will be multiple streaming TV subscriptions per household. Probably somewhere around four to five. An over-the-top complete TV package like YouTube TV or AT&T TV will likely be one of them, since consumers still have huge demand for live TV. That leaves three to four open spots. So, when all is said and done, all Netflix needs to be is a top three to four streaming service.Netflix will inevitably be that. The core value prop of Netflix is the original content. Original content streaming hours as a percent of total streaming hours on Netflix has risen from 14% in January 2017, to 24% in October 2017 to 37% in October 2018. Bears will say that the bulk of viewing hours are still allocated for licensed content. I'd argue that the trend implies that by the time Netflix loses its licensed content (2020/21), the percent of viewing hours dedicated to original content will be north of 50%.Thus, contrary to what the bears will have you believe, the original content strategy is working here. Netflix subscribers are watching more and more Netflix originals, and they are liking them, too (a hefty portion of Netflix originals score really well on IMDb). This strategy will continue to work for the foreseeable future. Netflix has huge data and resource advantages. They have more viewership data than anyone else in this space, and they also spend more money on content than anyone else.Net net, Netflix will be just fine in the wake of intensified streaming TV competition. The platform will continue to add subs at a record rate during the streaming TV gold rush of the early 2020's, and NFLX stock will march higher. Disney (DIS)Source: ilikeyellow / Shutterstock.com Streaming Service(s): Disney+ (launching November 2019), ESPN+ and HuluPerhaps the one company that investors and consumers are most excited about with regards to its streaming TV market entry is global media giant Disney (NYSE:DIS).Streaming TV isn't brand new for Disney. The company launched EPSN+, a streaming extension of ESPN, in 2018. The company has also long held a stake in streaming platform Hulu, and now owns the entire service. But, those two services pale in comparison to the forthcoming launch of Disney's branded streaming service and true competitor to Netflix -- Disney+.Disney+ will do really well. As stated in the Netflix segment, all Disney+ has to be is a top three to four streaming service to be successful at scale. That means all Disney+ needs is to have a top three to four content library in the streaming TV world. The platform will inevitably have that, given that Disney owns a treasure chest of content dating back several decades and that the company consistently dominates the box office every single year.Further, Disney is offering a package that bundles Disney+, ESPN+ and Hulu together. That package should do very well, because it checks off every entertainment type -- great movies with Disney+, live sports with ESPN+ and great shows with Hulu. * 11 Stocks Under $10 to Buy Now Net net, Disney's streaming TV push over the next several years will yield hugely positive results, led by Disney+ turning into one of the biggest streaming TV services in the world. As this happens, DIS stock will naturally rally as cord-cutting headwinds become old news and as profits start marching higher with a consistently robust pace. Apple (AAPL)Source: Shutterstock Streaming Service(s): Apple TV+ (launching November 2019)Another company which both investors and consumers are excited about with regards to its streaming TV market entry in late 2019 is Apple (NASDAQ:AAPL).The big story at Apple is pretty simple. Over a decade ago, the genius known as Steve Jobs came up with the iPhone. That small gadget changed the world. Ever since, Apple has sold a ton of iPhones to a ton of consumers everywhere and Apple's revenues, profits and market cap have exploded higher.But, the hardware growth narrative has largely run its course. That is, pretty much everyone who wants a smartphone, already has a smartphone. Thus, Apple is looking for alternative revenue streams to sustain growth in the absence of robust hardware growth.The biggest of these alternative revenue streams? Software. Specifically, because Apple has sold so many iPhones over the past decade-plus, the company has a huge opportunity to monetize the world's largest hardware install base through various subscription software services like a streaming music service, a curated news service, a cloud storage service so on and so forth.The most promising of these services? A streaming TV service dubbed Apple TV+, which is set to launch in November 2019.The big question marks for Apple TV+ revolve around content. Apple hasn't ever produced TV shows or movies before. But, the company has a ton of cash it can spend to attract top talent, and top talent usually makes strong content that consumers are willing to pay for.Thus, given Apple's huge resources, Apple TV+ does project as a top three to four streaming TV service at scale, meaning that Apple TV+ could be set to add tens of millions of subs over the next few years. If so, that software revenue growth bump will provide a lift to AAPL stock. AT&T (T)Source: Lester Balajadia / Shutterstock.com Streaming Service(s): AT&T TV, DirectTV Now and HBO Max (Spring 2020)The dark horse in the streaming TV gold rush is telecom and media giant AT&T (NYSE:T). But, because AT&T's streaming TV potential is presently so understated, I actually think AT&T stock could be one of the biggest winners in the streaming TV gold rush of the early 2020's.The idea here is simple. AT&T -- much like Disney -- has struggled with cord-cutting for the past several years. Those headwinds have kept a lid on AT&T stock. Also much like Disney, AT&T is attempting to remedy those headwinds with a forthcoming big push into the streaming TV arena. AT&T is set to launch both AT&T TV (an over-the-top TV package that is basically cable, but cheaper and in the streaming format) and HBO Max (an HBO-focused streaming service with additional WarnerMedia content) soon.Unlike Disney stock, though, AT&T stock has not benefited from a major uptick over the past few quarters in anticipation of this streaming TV push. This disconnect is an opportunity.Both AT&T TV and HBO Max will be huge. As more streaming services rush to the forefront, consumers will increasingly look to cut the cord. But, they will still want to watch live TV. AT&T TV will allow them to do that, at a fraction of the cost of cable. Thus, AT&T TV will become the de-facto live TV replacement in the streaming world.At the same time, HBO Max is equipped with enough content firepower from HBO and WarnerMedia to compete pound-for-pound with industry heavyweights Netflix, Amazon and Disney. * 7 Stocks the Insiders Are Buying on Sale In total, then, AT&T's streaming TV push over the next few years could be tremendously successfully. Tremendous success on the streaming TV front isn't priced into dirt-cheap AT&T stock today. As such, the potential upside in AT&T stock from the streaming TV gold rush is quite compelling. Roku (ROKU)Source: jejim / Shutterstock.com Streaming Service(s): All of them.When it comes to the streaming TV gold rush, perhaps the best way to play the trend is to buy shares of streaming device maker and service aggregator Roku (NASDAQ:ROKU).Plain and simple -- Roku is becoming the cable box of the streaming TV world. That is, the streaming TV world in 2025 will look a lot like the linear TV world of 2015. There will be a whole bunch of streaming services (which are basically just different "channels"). There will also be a ton of consumers trying to access those streaming services. Thus, there will be an increasing need for someone to step in and act like a cable box -- connecting all that demand to all the supply in seamless manner.Roku does that. They also do it better than anyone else for several reasons. First, they are content neutral, so every service can be accessed without friction and bias. Second, they have the most intuitive UI, which consumers broadly understand and love. Third, they dominate the smart TV market, with one out of every three smart TVs in the U.S. last quarter being a Roku TV. Fourth, their separate set-boxes are dirt cheap.Given these factors, Roku is not just the cable box of the streaming TV world today. But, they project to remain the cable box of the streaming TV world for a lot longer, too. As such, this platform will grow with the entire streaming TV industry for the next several years. All that growth will inevitably push ROKU stock higher in the long run.As of this writing, Luke Lango was long NFLX, AMZN, DIS, T and ROKU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post 5 Streaming Stocks to Buy for the TV Streaming Gold Rush appeared first on InvestorPlace.
Apple’s (AAPL) iPhone has seen its average selling price spike since it launched the iPhone X two years ago due to the higher costs of its OLED screens.
(Bloomberg Opinion) -- For 47 years, the Business Roundtable has lobbied on behalf of corporate America. Much of that time, it maintained a fiction(1) -- that the sole purpose of a corporation was to maximize profits on behalf of shareholders. This philosophy has been under assault for several years now, and this week the Business Roundtable announced it wants to put it to rest.In a widely circulated memo, the 200-member organization reversed itself, writing that "shareholder primacy” is no longer the sole purpose of a corporation. Instead, corporations must include a commitment to “all stakeholders,” which includes customers, employees, suppliers and local communities.Some kudos are in order for JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, and chairman of the Business Roundtable, for driving these changes. He has been discussing the need for a more inclusive form of capitalism, both in public speeches and in his letters to shareholders, for some time.But turning this aircraft carrier around won’t be easy, in large part because of the group's own history. Indeed, the Roundtable has spent most of the past four decades advocating against the interests of those exact stakeholders. To cite some of the more notable examples:\-- It fought the rise of labor unions and pro-union legislation;\-- Helped to defeat antitrust bills;\-- Prevented the formation of the Consumer Protection Agency;\-- Opposed corporate governance changes to make boards of directors and CEOs more accountable to stockholders;\-- Fought proper accounting of stock options given as compensation to executives and insiders;\-- Opposed increases in the national minimum wage (it now favors increases);\-- Lobbied to prevent restrictions on executive compensation;\-- Fought legislation that would create cleaner energy and address climate change;\-- Pushed for corporate income-tax cuts;\-- Supported anti-consumer Supreme Court decisions, including the fiction that corporations are legal people, and that campaign donations equal speech. The Roundtable might respond that this is all in the past. Let’s hope so. But the organization has an even greater challenge: Scan the list of 181 signatories to the recent memo and it's a Who’s Who of corporate behavior that has burdened and disadvantaged the very stakeholders they will now champion.Consider a few of the signatories:\-- Amazon.com Inc. and Apple Inc.: Two of the most valuable companies in the world are famously effective at using various tax dodges to avoid paying their fair share. I can recall when the Internal Revenue Service went after maneuvers that serve no valid business purpose other than tax avoidance. Consider that what isn't paid in tax by those who avoid them must be made up for by those who do -- mostly average Americans who also happen to be customers of these companies.The share of federal tax revenue paid by corporations has dropped by two-thirds in the past seven decades -- from 32% in 1952 to 10% in 2013; and corporate income tax as a share of gross domestic product has fallen from about 6% in 1946 to about 1.5% today.\-- Visa Inc., Mastercard Inc. and American Express Co.: Show good faith -- working with card-issuing banks as needed -- by simplifying the incomprehensible small print in the cardholder agreement and spell out in clear language the terms and penalties for late payment. Second, do the same for mandatory arbitration clauses that take away the right of customers to seek redress in public courts.\-- Ameriprise Financial Inc., Morgan Stanley and Principal Financial Group Inc: The brokers and insurers on the list have been zealous opponents of the fiduciary rule. Instead, they prefer a less stringent rule that allows them to sell products that are better for them than for their customers. Until those firms -- and Citigroup Inc. and JPMorgan are in this group -- embrace a higher duty of care, their gestures toward stakeholders are hollow. Oh, and they should drop the requirement that customers agree to mandatory arbitration clauses as one of the conditions for opening a brokerage account.\-- Coca Cola Co. and PepsiCo Inc.: For years these companies have been helping the American public achieve record levels of diabetes and obesity by selling health-damaging sugary drinks. They should acknowledge and warn customers of the consequences of consuming too much of their products, and accept the same kinds of taxes and health warnings now affixed to cigarettes.\-- Deere & Co.: The maker of farm machinery has led the fight against customers, insisting that they not make repairs to the equipment they own, and denying them access to parts and instructions. Repairs can only be made by Deere service technicians in what has come to be known as a “repair monopoly.” Apple, by the way, does the same thing.\-- Walmart Inc. and McDonald's Corp.: Both were steadfast opponents of increases in minimum wages for years. Although both now offer higher minimum pay, it was only after a tightening labor market forced them to increase wages. But this wasn't a case of corporate altruism -- their stores were messy and employees were sullen, and pay increases were part of plans to keep ill-treated customers from defecting. (McDonald's is not a signatory to the Roundtable memo).For the Roundtable commitment to be meaningful, the signatories are going to have to alter their behavior in ways large and small, and maybe even in ways that aren't always optimal for maximizing short-term profits. Still, we should be encouraged. But the proof will be in the follow through and the actual actions of the Roundtable members.(Corrects to clarify section on credit-card companies to indicate the role of banks in setting terms for customers. )(1) In “The Shareholder Value Myth,” Lynn Stout explained how the entire theory is based on a misreading of a 1919 court case -- Dodge vs. Ford – at the time, both privately held, non-public companies.To contact the author of this story: Barry Ritholtz at email@example.comTo contact the editor responsible for this story: James Greiff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Summertime is downtime for a lot of occupations - and politics is no exception. That's true of Capitol Hill, where Congress has adjourned for their August recess. And it's true of state governments, too, where "prime time" is usually spring (when the annual legislative session is typically held).But that's not to say there are no new developments. For example…right now, a movement is quietly gathering steam in one southeastern state, and it's not getting much attention in the usual media outlets. But it's building a surprising trend: Florida could be on the verge of legalizing marijuana.More often, when Florida makes the national news, it's one of those bizarre stories involving a Florida man or woman, a gator attack, or maybe some kind of altercation at a Publix grocery store.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut this month, the Florida headlines show some positive momentum for pro-legalization advocates. And none other than Rolling Stone magazine had a big feature on it this week. * 10 Marijuana Stocks to Ride High on the Farm Bill Now, like every state, Florida also has its anti-legalization advocates.Back in the 1930s, when one Florida man committed a gruesome murder and the Tampa police scapegoated "marihuana cigarettes" for it, the case was used to push marijuana prohibition nationwide.More recently, when voters were about to vote on a medical-marijuana ballot initiative in 2016, the Florida Sheriff's Association lobbied against it. The billionaire founder and CEO of Las Vegas Sands (NYSE:LVS), Sheldon Adelson, also blocked previous medical-marijuana initiatives. Governor Ron DeSantis has been hesitant to back legalization as well.But that may be starting to change. Florida has come a long way, thanks to advocates like Ricky Williams, former running back of the Miami Dolphins, who used marijuana to manage pain and still speaks at Florida cannabis conferences.Medical marijuana was approved by Florida voters in 2016 -- with 71% of the vote! -- and in March, DeSantis signed a bill allowing patients to purchase smokable marijuana for their medical needs. The younger guard, such as U.S. Rep. Matt Gaetz, tend to lean pro-legalization. And the state of Florida's only Democratic official, Agricultural Commissioner Nikki Fried, got there on a pro-legalization platform.Now, Floridians may be considering full legalization on the 2020 ballot. A group called Regulate Florida have a potential pro-legalization referendum ready for judicial review… all they need now is the signatures.Make It Legal Florida is the newest cannabis lobby group to hit the scene. On August 1, they registered as a political action committee (PAC) with Florida's election bureaucrats, and named Nick Hansen as their chair. Hansen's resume includes stints as a staffer in the Florida legislature, and new Southeast Director of Government Affairs for the California cannabis retailer MedMen (OTCMKTS:MMNFF).I'm no big fan of MedMen. Its fundamentals are bleak, with the company operating at a loss far greater than its cash and equivalents. Even worse, its former CFO alleged insider enrichment without proper disclosure.But I think MedMen is right to see opportunity in Florida -- the company is about to open 11 more stores there -- and it's definitely not alone in that. Already, with only partial legalization, Florida is on track to control 10% of the U.S. legal cannabis market by 2025. According to Leafly's 2019 Cannabis Jobs Report, Florida men and women are leading the pack -- with 9,068 cannabis jobs added in 2018, and another 9,050 expected this year!Most importantly… Florida is a major U.S. state, and would be a big "domino" to fall, paving the way to full, federal legalization. Marijuana Legalization: My "Domino Theory" of Cannabis InvestingDuring the Cold War struggle between communism and capitalism, the term "domino theory" entered the American consciousness. As the theory goes, if one small country was allowed to fall to the communists, it was sure to tap the next "domino"… which would tap the next one… and so on.While the Cold War is long over, the term "domino theory" lives on to this day. Any situation where seemingly small catalysts pave the way for larger events earns the label.In the legal marijuana business, every few months, another domino falls in the direction of widespread marijuana legalization -- and huge gains for us as investors. Thanks to the sea change in how people view marijuana, legalization all over the world is an unstoppable trend… and one of our "core" long-term themes at Investment Opportunities.In January, I was about to head to the Benzinga Cannabis Capital Conference when I first recommended MTech Acquisition to subscribers. After spending time with their top executives at the conference, I knew it was an even better opportunity than I originally thought.By June, MTech had merged with a tech company called MJ Freeway to become Akerna (NASDAQ:KERN) -- and at Investment Opportunities, the new shares earned us a 153% profit… then a 546% profit! Not bad for less than five months held.And today, I see a few OTHER big opportunities out there now. Why I Like Penny Pot Stocks Ahead of Full LegalizationPenny stocks often get a bad rap. But they are actually critical to the global marketplace. The world needs tiny companies -- just as much as bigger ones. They're the job creators. The innovators. And they're the places to look for the biggest gains once marijuana legalization occurs.As an investor, if you're looking for the next Netflix (NASDAQ:NFLX) or Apple (NASDAQ:AAPL), this is where you'll find it.You just want to be VERY choosy about which ones you buy.I use strict guidelines to pick penny stocks -- and I tell you all about them in this presentation.When I used my five-step evaluation process on the marijuana market, I identified four stocks that are worth buying now.During my presentation, you'll have the opportunity to secure a free copy of America's Top 4 Marijuana Moonshot Stocks… I'll even give you a fifth bonus name just for fun.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Marijuana Legalization: The Next "Domino" May Be About to Fall appeared first on InvestorPlace.
Huawei’s Chairmen and Founder Ren Zhengfei said that the company is facing a “life or death crisis” as pressure from U.S. tariffs continues. Huawei expects no relief from the U.S. suctions but is confident the company will not be crushed. Yahoo Finance’s Dan Roberts, Kristin Myers and Heidi Chung discuss.
Aug.21 -- Cathie Wood, Ark Investment Management chief executive officer, discusses the impact of the trade war on Apple Inc. with Bloomberg's Emily Chang on "Bloomberg Technology."