|Day's Range||18.93 - 19.30|
(Bloomberg) -- TikTok, the viral short video app run by Chinese upstart ByteDance Inc., saw global user-downloads fall for the first time since its inception two years ago, new data from Sensor Tower shows.The app amassed an estimated 177 million first-time users across the Apple App Store and Google Play for the third quarter ended September. That represents a 4% decline from a year ago. It’s the first time the hit app saw new installs drop on a quarterly basis, the mobile data provider said. In total, TikTok has been installed by around 564 million users so far this year and has been installed 1.45 billion times since launching.TikTok has evolved to become a global phenomenon known for lighthearted content -- including lip syncing and dancing -- uploaded by teenage users from Boston to Bangalore. It’s also one of the few examples of a Chinese social media platform that has achieved global success. Beijing-based ByteDance is the world’s largest startups with a valuation of $75 billion according to CB Insights.ByteDance is spending hundreds of millions of dollars to advertise TikTok on Facebook and Instagram, essentially buying users away from its biggest rivals. But the company may have to rethink that strategy after Facebook Chief Executive Mark Zuckerberg called out the Chinese app over privacy and freedom of speech concerns.Zuckerberg’s remarks came after TikTok drew criticism for its alleged censorship of politically sensitive content such as videos of pro-democracy protests in Hong Kong to appease Beijing. TikTok has denied those allegations. It announced last week it has formed a team that includes two former U.S. lawmakers to review its content moderation policy.A ByteDance spokeswoman said TikTok doesn’t comment on third-party numbers.“With any app growth, there will come a time when it plateaus, especially since TikTok had grown so much,” said Alvin Foo, managing director of Reprise Digital, a Shanghai-based online marketing agency under the Interpublic Group of Cos Inc. “They should worry more about monetization and evolving.”(Updates with comment from ByteDance in penultimate graph.)To contact the reporters on this story: Zheping Huang in Hong Kong at firstname.lastname@example.org;Shelly Banjo in Hong Kong at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Microsoft Corp.’s sales and profit got a boost from demand for Azure cloud-computing programs and internet-based versions of Office productivity software, lifting results above analysts’ expectations.Profit in the first quarter, which ended Sept. 30, rose to $10.7 billion, or $1.38 a share, compared with the $1.24 per-share average estimate of analysts polled by Bloomberg. Revenue rose 14% to $33.1 billion, the Redmond, Washington-based company said Wednesday in a statement, better than the $32.2 billion average prediction.Chief Executive Officer Satya Nadella has spent the past five years building up Microsoft’s cloud business, which lets customers avoid having to buy and run their own hardware and applications. Revenue from Azure cloud services rose 59% in the recent period, slowing from a 64% gain in the previous period and 73% for the quarter before that. As that growth decelerates, the company is working to improve margins and rack up a steady stream of large deals for Azure, which competes with Amazon.com Inc.’s web-services division. Sales of the subscription-based Office 365 for corporate customers, Microsoft’s other major cloud business, jumped 25%.“They’ve made the migration from core enterprise software to this cloud focus,” said Daniel Morgan, senior portfolio manager at Synovus Trust Co. “You look at cloud, at expanding margins, at the corporate move to Windows 10, and at least the PC market was better than expected in the quarter.”Microsoft shares were little changed in extended trading following the report, after closing at $137.24 in regular New York trading. The stock gained 3.8% in the quarter, while the Standard & Poor’s 500 Index rose 1.2%.The company’s shares have jumped this year on optimism about the cloud business. The stock is also being helped by some investors’ belief that Microsoft is a safer bet as U.S. and European regulators sharpen their scrutiny of other large technology firms, including Google, Amazon and Facebook Inc. Microsoft’s market capitalization rose above $1 trillion briefly in April and returned to that level in June. Apple Inc. overtook Microsoft as the most valuable publicly traded U.S. company earlier this month.In the latest period, Microsoft said commercial cloud revenue rose 36% to $11.6 billion. Margins widened by 4 points to 66%, “driven by material improvement in Azure gross margin,” the company said in a slide deck posted on its website. Microsoft doesn’t break out Azure revenue separately or comment on whether that business is profitable.Commercial cloud profitability will continue to improve in the coming quarter and the current fiscal year, Microsoft Chief Financial Officer Amy Hood said in an interview. Still, over time, as the lower-margin Azure becomes a larger piece of that business, “you will see more pressure on that number,” she said.The company will keep spending to construct data centers to keep up with strong customer interest in Azure, she said. “With the type of demand signal we have, we will continue to build.”Hood told analysts on a conference call that the company expects another strong quarter in the period that ends Dec. 31. Here are her forecasts:Intelligent Cloud sales, made up of Azure and server software, will be as much as $11.45 billion, Hood said, above the $11.2 billion estimate compiled by Bloomberg. Productivity unit sales, mainly Office software, will range from $11.3 billion to $11.5 billion, in line with estimates of $11.4 billion. Sales from More Personal Computing, including Windows, Surface and gaming revenue, will fall short of the $13.4 billion Bloomberg estimate and will range between $12.6 billion and $13 billion, Hood said.Keith Weiss, an analyst at Morgan Stanley, expects commercial cloud sales of $48 billion for the 12 months that end June 30, rising to $79 billion in fiscal 2022. He also expects continued improvement in margins as increasing use of Microsoft’s cloud data centers allows the company to run the services more efficiently.“They’re doing a good job with the move to the cloud,” Synovus’s Morgan said. “Of all the old smokestack tech companies -- you look at IBM, you look at Oracle -- of all those companies, Microsoft is the one that has done a really good job.”Sales of Windows to PC makers rose 9%. Surface revenue declined 4%, in part because the company introduced new models for the holiday season after the end of the first quarter. LinkedIn revenue grew 25% and gaming revenue fell 7%.Microsoft still gets more than 15% of its sales from Windows, and that business remains heavily dependent on the cycle of companies replacing PCs. In the September quarter, global shipments of personal computers increased 1.1%, Gartner said earlier this month, fueled by businesses upgrading to the latest Windows operating system. Microsoft is ending support for Windows 7, which was released in 2009, in January, meaning companies need to upgrade to Windows 10 if they want to continue to receive updates and service on their systems.The older software’s expiration is also helping boost sales of the company’s Microsoft 365 bundle, which includes Windows and Office cloud software such as Word, Excel and Teams, Microsoft’s rival to Slack Technologies Inc.’s product.(Updates with forecast in 10th paragraph. An earlier version of this story corrected the day of the week in the second paragraph.)To contact the reporter on this story: Dina Bass in Seattle at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Indian smartphone market will grow exponentially in the future and Apple is now in a much better position to benefit from this growth. Continue reading...
AVIA, a digital healthcare consulting company, raised a new round funding from a dozen health systems across the U.S. to help traditional healthcare organizations face competition from the likes of Amazon and Apple.
U.S. stocks closed higher Wednesday, with the major indexes managing to shake off weakness from corporate quarterly results from the country's biggest names. The Dow Jones Industrial Average closed up 45 points, or 0.2%, at 26,834, buoyed by gains in Merck & Co. and Apple Inc. , which finished at a fresh record high, helping the index to overcome declines in components Nike Inc. and Home Depot . The S&P 500 index advanced 8.53 points, or 0.3%, to reach 3,005, while the Nasdaq Composite Index finished 16 points, or 0.2%, higher at 8,120. All closing levels are on a preliminary basis. Gains for the broader markets came despite the indexes jumping in and out of negative territory for most of the session. Reports from Boeing, which came in weaker than expected, were initially feared to weigh mightily on the Dow and broader market, however, after the aerospace giant indicated it still expects its 737 MAX jet to return to service by the end of the year, benchmarks drifted higher. Boeing Co. shares finished up 1%. Another Dow component Caterpillar also missed both earnings and revenue estimates and cut its full-year 2019 earnings outlook but managed to finish the day up 1.2%.
Investment bank Morgan Stanley raised its price target on buy-rated Apple stock, saying the upcoming Apple TV+ subscription video-on-demand offering will be a services revenue driver.
Key indexes slipped back into the red after giving up earlier gains, as Nike weighed on the Dow Jones Industrial Average but Apple hit a new high.
Optimism about Apple Inc.’s new streaming service has Morgan Stanley feeling increasingly bullish about the company’s prospects.
Few things can cause people to pull money out of the stock market than what seems like irrational actions that actually make sense.
The road for Netflix is getting rockier by the day. As it prepares for the imminent streaming wars, it's been caught off guard by a new development.
Apple (AAPL) could be experiencing a much-needed turnaround or improvement in shipments for iPhone devices, according to UBS analysis. The good news tied to the Asian supply-chain might have been missed, as a couple investment banks downgraded Apple stock this past week (New Street Research and HSBC). While some of the comments relating to Apple’s demise pertain to the aging installed base, and diminished growth in first-time iPhone buyers, the Chinese narrative is expected to improve based on more recent supply chain channel checks.The stock has remained sideways/flat for the past couple days despite running all the way up to $200 per share. Some of the momentum was tied to service revenue and the launch of new services, but another major reason has been the recovery in equity prices in general, which Apple has been a beneficiary of. But, a third potential catalyst is a recovery in Chinese iPhone shipments, which could play out over the course of 2019 until we have an updated slate of iPhone’s to work with in September.UBS Analysis, Timothy Arcuri mentioned that March Chinese iPhone shipments have improved from what were already dismal results in the region:> Analysis of monthly government smartphone sell-through data from China suggests the annual rate of decline for Apple iPhones improved slightly in March (down 61% YoY vs ~68% in the prior three months). Sequential MoM growth of 67% in March was higher than ~40% a year ago based on our estimates since prior year data by operating system was unavailable. Apple likely benefitted from overall China smartphone market improving (down 4% YoY vs double-digit declines in 8 of the prior 9 months and sequential improvement of 93% was higher than 60% a year ago) as well as its price actions being effective. Overall, the data is slightly positive because iPhone is a top issue for investors and the sentiment appears to be neutral.Initial read-through from the Chinese market suggests a meaningful improvement in monthly comparisons from March versus February and January. Assuming, March shipment inflection continues the financial outlook from Apple might improve when they announce earnings on April 30th, 2019. Apple blamed the poor performance from its iPhone unit due to a decline in shipments from the China region.It’s worth noting that the smartphone market in China had pulled-back in general by double-digits or 10%, according to IDC in 2018. So, the softness in iPhone results weren’t isolated to just Apple, but other smartphone OEMs as well. IDC also reported that global smartphone shipments declined by 4.1% in 2018 globally, so the shipment narrative has been weak for all smartphone OEMs including Apple, and the semiconductor companies that supply parts to mobile devices.The sentiment has weakened to new lows for Apple with most having a neutral bias according to a UBS Survey:> The sentiment on Apple is neutral with 47% indicating "neutral" and roughly similar percentages for "bullish" at 28% and "bearish" at 23%. The sentiment is down from October when nearly 70% were indicating "bullish" or "very bullish" sentiment. The neutral stance is in line with the data from UBS Quantitative Research team showing AAPL as one of the biggest global underweights among active investors. It could suggest further upside potential if iPhone performs in line to better.Bottom LineInvestors have already diminished their expectations tied to iPhone units/shipment figures, which sets-up investors for a potential beat on financial results tied to a recovery in the second half of 2019. Smartphone weakness might not continue for much longer, and with prior-year shipments so weak to begin with a modest recovery could swing some bullish momentum back into the stock, especially if financial outlook from Apple surprises by a couple percentage points due to a shipment recovery in China. Also, with every other smartphone OEM exposed to the same weakness in smartphone shipments, Apple does remain best-in-class, and could weather this storm more effectively than what investors or current consensus expectations imply. More recent articles from Smarter Analyst: * Wall Street’s 1 Analyst Firm Sees Over 40% Upside for These 3 "Strong Buy" Stocks * Canopy Growth (CGC): Questionable European Push * Morgan Stanley: 2 European Stocks to Overthrow the US Market Dominance * 3 Stocks That Are Screaming Buys Right Now
A partial US-China trade deal has helped lift the market sentiment, but some of the more contentious issues between the two countries remain unresolved.
Wall Street was supported by gains in Apple and Boeing shares on Wednesday, though weak earnings from Caterpillar and Texas Instruments raised concerns of an impact from the U.S.-China trade war on global growth. Apple Inc shares rose 1.1% after Morgan Stanley said the iPhone maker's soon-to-be-launched video streaming service, Apple TV+, could boost its services revenue.
Investors assuming Apple Inc. (NASDAQ: AAPL ) won't make money on its soon-to-be-launched streaming video business are mistaken, according to Morgan Stanley. The Analyst Katy Huberty maintained an Overweight ...
(DIS) CEO Bob Iger pushed back forcefully at criticism from acclaimed Hollywood directors Martin Scorsese and Francis Ford Coppola about Marvel Studios’ superhero movies, saying it was disrespectful to the people who work on successful films that audiences enjoy. Scorsese, known for movies such as Goodfellas and Raging Bull, had said earlier this month the productions were more like “theme parks” than cinema. “They want to bitch about movies, it’s certainly their right,” Iger added, saying he’d gladly put those directors’ movies up against features directed for Marvel by Taika Waititi and Ryan Coogler.
Shares of Apple Inc. rallied 1.1% toward a record high Wednesday, to stretch the technology giant's lead as the largest U.S. company by market capitalization, after Morgan Stanley's Huberty boosted her price target by 17%, enough to make her the most bullish analyst on Wall Street. Huberty raised her price target to $289, which is 19% above current levels, from $247. Her target is now the highest among the 42 analysts surveyed by FactSet, putting her just above Raymond James' Chris Caso's previous Street high of $280. Apple's market cap has increased to $1.096 trillion, while second-place Microsoft Corp.'s stock slipped 0.1% to lower its market cap to $1.048 trillion. Huberty said she disagrees with the rest of the Street in thinking Apple is earnings a new, more capital intensive market with a low probability of generating a positive return for shareholders. She believes Apple's soon-to-launch Apple TV+ streaming video service will boost the company's services revenue growth by two percentage points and add 1 percentage point to earnings per share. The stock has soared 53.7% year to date, while Microsoft shares have climbed 34.2% and the Dow Jones Industrial Average has gained 15.2%.
The streaming landscape is set to change in the next few months as new services join the field. How will the advertising game change? Yahoo Finance’s Brian Sozzi and Alexis Christoforous discuss with Screenvision CEO John Partilla.
Casper Klynge is the world’s first foreign ambassador to the technology industry. Appointed by Denmark in 2017 after the country decided Big Tech had too much unchecked power, Klynge was sent to Silicon Valley, where he lives, but has direct reports in Beijing and Copenhagen. Klynge sat down with Yahoo Finance's Melody Hahm for an exclusive interview to discuss the state of tech around the world.