|Day's Range||3.8000 - 4.5500|
Markets are in the green due to optimism for upcoming earnings and a pause in the U.S.-China trade conflict. Yahoo Finance’s Jen Rogers and Heidi Chung discuss with Thornburg Investment Management’s Head of Investments Ben Kirby on how if the economy is late cycle, what this means for earnings and the Fed’s next meeting.
When Microsoft Corp. stopped supporting its Windows XP operating system, the rush to replace aging machines that relied on the older software led to a huge boost to the company’s earnings. For that reason, investors have likely been looking forward to the end of Windows 7 — which arrives in January — for years.
Netflix Inc. is planning to raise another $2 billion in debt as it moves to raise the financing needed for new content as the battle for streaming customers heats up with a slate of new offerings on tap.
Austrian sensor maker AMS , still has its sights on German lighting firm Osram but is aiming to seal a cooperation agreement before remounting its bid for an all-out takeover, CEO Alexander Everke said on Tuesday. AMS now aims to launch a new bid at the same price of 41 euros a share, valuing Osram at 4.6 billion euros ($5.1 billion), but with a lower acceptance rate of 55%. CEO Olaf Berlien would have preferred to be taken over by private equity groups as they had planned to keep Osram as a standalone company.
Netflix Inc. is mobilizing ahead of the launch of two big new competitors in November with an armory of 59 new offerings next month, including the arrival of 43 original programs.
Unfortunately, many advocates of total market funds don’t realize they aren’t fundamentally different from S&P 500 funds. As you probably know, the S&P 500 is made up of 500 of the largest publicly traded companies in the United States. Sure, there are 500 stocks in the index, and that should provide quite a bit of diversification.
(Bloomberg) -- Google lured billions of consumers to its digital services by offering copious free cloud storage. That’s beginning to change.The Alphabet Inc. unit has whittled down some free storage offers in recent months, while prodding more users toward a new paid cloud subscription called Google One. That’s happening as the amount of data people stash online continues to soar.When people hit those caps, they realize they have little choice but to start paying, or risk losing access to emails, photos and personal documents. The cost isn’t excessive for most consumers, but at the scale Google operates, this could generate billions of dollars in extra revenue each year for the company. Google didn’t respond to an email seeking comment.A big driver of the shift is Gmail. Google shook up the email business when Gmail launched in 2004 with much more free storage than rivals were providing at the time. It boosted the storage cap every couple of years, but in 2013 it stopped. People’s in-boxes kept filling up. And now that some of Google’s other free storage offers are shrinking, consumers are beginning to get nasty surprises.“I was merrily using the account and one day I noticed I hadn’t received any email since the day before,” said Rod Adams, a nuclear energy analyst and retired naval officer. After using Gmail since 2006, he’d finally hit his 15 GB cap and Google had cut him off. Switching away from Gmail wasn’t an easy option because many of his social and business contacts reach him that way.“I just said ‘OK, been free for a long time, now I’m paying,’” Adams said.Other Gmail users aren’t so happy about the changes. “I am unreasonably sad about using almost all of my free google storage. Felt infinite. Please don’t make me pay! I need U gmail googledocs!,” one person tweeted in September.Some people have tweeted panicked messages to Google in recent months as warnings about their storage limits hit.One self-described tech enthusiast said he’s opened multiple Gmail accounts to avoid bumping up on Google’s storage limits.Google has also ended or limited other promotions recently that gave people free cloud storage and helped them avoid Gmail crises. New buyers of Chromebook laptops used to get 100 GB at no charge for two years. In May 2019 that was cut to one year.Google’s Pixel smartphone, originally launched in 2016, came with free, unlimited photo storage via the company’s Photos service. The latest Pixel 4 handset that came out in October still has free photo storage, but the images are compressed now, reducing the quality.More than 11,500 people in a week signed an online petition to bring back the full, free Pixel photos deal. Evgeny Rezunenko, the petition organizer, called Google’s change a “hypocritical and cash grabbing move.”“Let us remind Google that part of the reason of people choosing Pixel phones over other manufacturers sporting a similar hefty price tag was indeed this service,” he wrote.Smartphones dramatically increased the number of photos people take -- one estimate put the total for 2017 at 1.2 trillion. Those images quickly fill up storage space on handsets, so tech companies, including Apple Inc., Amazon.com Inc. and Google, offered cloud storage as an alternative. Now those online memories are piling up, some of these companies are charging users to keep them.Apple has been doing this for several years, building its iCloud storage service into a lucrative recurring revenue stream. When iPhone users get notifications that their devices are full and they should either delete photos and other files or pay more for cloud storage, people often choose the cloud option.In May, Google unveiled Google One, a replacement for its Drive cloud storage service. There’s a free 15 GB tier -- enough room for about 5,000 photos, depending on the resolution. Then it costs $1.99 a month for 100 GB and up from there. This includes several types of files previously stashed in Google Drive, plus Gmail emails and photos and videos. The company ended its Chromebook two-year 100 GB free storage offer around the same time, while the Pixel free photo storage deal ended in October with the release of the Pixel 4.Gmail, Drive and Google Photos have more than 1 billion users each. As the company whittles away free storage offers and prompts more people to pay, that creates a potentially huge new revenue stream for the company. If 10% of Gmail users sign up for the new $1.99 a month Google One subscription, that would generate almost $2.4 billion a year in annual, recurring sales for the company.Adams, the Gmail user, is one of the people contributing to this growing Google business. $1.99 a month is a relatively small price to pay to avoid losing his main point of digital contact with the world.“It’s worked this long,” Adams said. “I didn’t want to bother changing the address.”To contact the reporter on this story: Gerrit De Vynck in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Alistair Barr, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Unfortunately, many advocates of total market funds don’t realize they aren’t fundamentally different from S&P 500 (SPX) funds. As you probably know, the S&P 500 is made up of 500 of the largest publicly traded companies in the United States.
Austrian sensor maker AMS hopes to agree a cooperation agreement with Germany's Osram before it launches a new takeover offer for the much bigger lighting group, its Chief Executive said on Tuesday. AMS, which failed with a first attempt this month, plans to launch a new bid for Osram at the same price of 41 euros a share but at a lower acceptance rate of 55% to form a global leader in sensors and lights. Chief Executive Alexander Everke confirmed at an investor call that recent discussions with Osram management, which initially opposed AMS's plan, have been constructive.
Austria's AMS, which is launching a new takeover offer for Germany's Osram, said on Tuesday it expected strong demand from Apple and other smartphone makers for its sensors to extend into the fourth quarter. AMS's key revenue source is optical sensors. Its main customer is Apple, which uses the Austrian group's 3D facial recognition technology in its latest iPhones and accounts for around 40% of group revenue according to analyst estimates.
Apple supplier AMS beat expectations with a 41% jump in third-quarter revenue on Tuesday and forecast further strong demand for its optical sensors from smartphone makers as it takes aim at a takeover of German lighting maker Osram . "AMS delivered even stronger results than expected and the outlook for the fourth-quarter also confirms the very solid business momentum not just with Apple but also the Android ecosystem," Vontobel analysts said in a note to clients. AMS's main revenue source is optical sensors and Apple, its top customer, uses the Austrian firm's 3D facial recognition technology in its latest iPhones.
(Bloomberg) -- A top-performing global technology fund manager has raised bets on Samsung Electronics Co., making the stock the number one holding in his portfolio, ahead of Apple Inc. or Alphabet Inc.Hyunho Sohn, portfolio manager at FIL Investment Management whose Fidelity Global Technology fund runs about $4.8 billion of assets, said he has been adding positions in the world’s largest memory-chip maker since late 2018. He interpreted the sharp plunge in Samsung’s share price toward the end of that year as an opportunity, and he believes in the long-term growth of the tech giant.“If you ask me why I bought the stock, while the chip cycle was experiencing a downturn, I’d say I have faith in its fundamentals from a long-term perspective,” Sohn said in a telephone interview from London. “Samsung is a typical example of my strategy, which is buying an undervalued stock that the market participants hate temporarily.”Read about Bloomberg Intelligence’s take on the global chip sector hereHis fund, which holds about 60 global technology stocks, has beaten 98% of its peers with an annualized return of about 20% over the past five years, according to Bloomberg-compiled data. The fund’s top five holdings also include Alphabet, Apple, Intel Corp., and Microsoft Corp.The potential growth in demand for memory chips is apparent in the growing needs of cloud storage and service providers alongside the artificial intelligence industry that needs data storage, he said, adding he is also watching the development of 5G networks, which may drive demand for memory chips. Compared with global tech stocks, valuations of Samsung are “still attractive,” he added.Read more: Samsung’s Stock Is Signaling a Bottom for the Global Chip MarketAlthough Samsung’s forward price-to-earnings ratio of 12.6 times is not cheap compared with its historical average, it still lags Micron Technology Inc.’s 14.7 times and Taiwan Semiconductor Manufacturing Company’s 18.6. On forward price-to-book terms, Samsung is trading at 1.2 times, lower than almost all of its peers.Shares of Samsung have risen about 30% this year as overseas investors bought net 4.3 trillion won ($3.6 billion) of shares, the most sought-after stock on Korea’s KOSPI benchmark this year.Read more: TSMC’s $15 Billion Splurge Galvanizes Hope of 5G-Led ReboundTo be sure, it’s not all rosy for the memory chip sector. Micron, the third-largest player in the industry, released disappointing sales forecasts last month. And Samsung’s third-quarter preliminary earnings guidance announced earlier this month is less than half of its operating profits a year earlier. Chip prices have also been mixed. Contract prices for 32-gigabyte DRAM server modules fell 13.8% in the third quarter from the previous three-month period, while those for 128-gigabit MLC NAND flash memory chips rose 12.3%, according to inSpectrum Tech Inc.“I know we don’t see clear signs of recovery in the memory chip industry yet,” Sohn said. “But for me, based on valuations, long-term growth potential, and balance sheet metrics like free cash flow, Samsung is a stock that I am comfortable with having large positions in. I still see an upside for the stock.”(Adds Sohn’s comment on 5G in paragraph after the first chart)To contact the reporter on this story: Heejin Kim in Seoul at firstname.lastname@example.orgTo contact the editors responsible for this story: Lianting Tu at email@example.com, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
There are certain characteristics and reasonings behind stocks that are suitable for investors to buy – and hold – throughout the life of their portfolios.
(Bloomberg) -- Adobe Inc. has picked Illustrator as the next major application it will put on Apple Inc.’s iPad, the latest effort to create a version of the software maker’s top desktop products for mobile devices, according to people familiar with the matter.The San Jose, California-based company will preview Illustrator for iPad at its Max conference in November before launching it in 2020, according to the people, who weren’t authorized to speak publicly about the decision. Illustrator, which designers rely on for digital drawing and creating graphics, would follow in the footsteps of Photoshop, which is scheduled to be available on the iPad later this year. Illustrator is one of Adobe’s most popular apps in its Creative Cloud software suite and would mirror many of the features from the desktop version when running on the iPad.“We have nothing new to share at this time,” an Adobe spokeswoman said when asked about the company’s plans.Adobe has recently launched a slew of other iPad apps, including Fresco and Premiere Rush, that don’t have as many features as the upcoming Photoshop and Illustrator apps. Still, early testers of Photoshop for the iPad have criticized it for lacking some key elements of the version for personal computers, Bloomberg News reported last week.The new apps underscore Apple’s effort to position the iPad as a computer replacement and Adobe’s need to deliver software to consumers on whatever devices they use. Adobe, founded in 1982, is revamping major apps for mobile devices to maintain a leading position in creative software amid waning consumer enthusiasm for PCs. Adobe’s mission is twofold -- to satisfy the professionals who rely on its software for photo-editing and illustration, and to capture casual users. The strategy may boost sales growth for the company’s Creative Cloud unit, which has slowed over the last year.Adobe’s plan to place the iPad at the center of its cross-platform strategy is another signal the software maker and the Cupertino, California-based hardware giant are long past a once-contentious relationship. Although Apple had been an investor in Adobe, Steve Jobs in 2010 criticized Adobe’s Flash player for video and games on the internet, saying it hurt device battery life, privacy and security. In recent years, Adobe has been a fixture at Apple product announcements, continuously being used as an example of software that takes advantage of new Apple devices.To contact the reporters on this story: Mark Gurman in San Francisco at firstname.lastname@example.org;Nico Grant in San Francisco at email@example.comTo contact the editors responsible for this story: Tom Giles at firstname.lastname@example.org, Andrew Pollack, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Larry Hite is a long-time successful hedge-fund manager who doesn’t believe he — or really anyone — can predict what the stock market (and other markets) will do next, or which seemingly successful companies will suddenly crash. Hite expounded on his approach to investing in his new book, “The Rule: How I Beat the Odds in the Markets and in Life―and How You Can Too.” He discussed his investment style, a current trade and some of his best and worst trades in an email interview with MarketWatch. Answer: I’m interested in stocks that went from selling software to subscription models.
Netflix (ticker: NFLX) said it plans to issue junk-rated bonds denominated in dollars and euros. Disney-plus is priced at just $6.99 a month compared with the $8.99 Netflix charges for its basic plan, and will include its entire library of films and TV shows, including the Marvel and Star Wars franchises. Disney will pull some of its existing content from Netflix once licensing agreements expire, including “Friends” and “The Office,” which have proved popular with a millennial audience.