|Day's Range||137.20 - 149.90|
FAANG stocks are making a direct impact on real estate demand, says Hessam Nadji, CEO of Marcus & Millichap, buying up office space and warehouses.
The unemployment rate is at the lowest it has been in decades, but over the next decade employers are likely to face pressure from an aging workforce that could lead to a shortage of qualified employees. Yahoo Finance's Myles Udland, Sibile Marcellus, Melody Hahm, and Brian Cheung break down the details.
The Federal Trade Commission has reportedly reached a settlement with Google over YouTube violating federal privacy laws for kids. Google is expected to pay a multi-million dollar fine, though the exact amount isn’t yet clear. The settlement comes as the FTC launches a new review of children's privacy laws that could have a major impact on a lot of big tech names.
The federal trade commission has reportedly reached a settlement with Google over YouTube violating federal privacy laws for kids. Google is expected to pay a multi-million dollar fine, though the exact amount isn’t yet clear. And it comes as the FTC launches a new review of those children's privacy laws that could have a major impact on a lot of big tech names. Josh Golin, executive director of the Campaign for a Commercial-Free Childhood, joins Yahoo Finance's Alexis Christoforus and Brian Sozzi to break it all down.
(Bloomberg) -- The U.S. and China are moving closer to their first face-to-face trade negotiations in months, with a meeting between tech chief executives and President Donald Trump on Monday marking another step toward easing a ban on sales to China’s Huawei Technologies Co.The White House invited many of the U.S.’s biggest technology companies to discuss economic issues including a possible resumption of sales to Huawei. Trump and senior administration officials met with CEOs from Alphabet Inc.’s Google, Broadcom Inc., Cisco Systems Inc., Intel Corp., Micron Technology Inc., Western Digital Corp. and Qualcomm Inc., according to White House spokesman Judd Deere.“The CEOs expressed strong support of the president’s policies, including national security restrictions on United States telecom equipment purchases and sales to Huawei,” Deere said. “They requested timely licensing decisions from the Department of Commerce, and the President agreed.”The meeting between government officials and U.S. technology leaders may assuage Chinese concern that one of its largest technology companies is under existential threat from a blacklisting. But lawmakers and others in the administration who oppose any relief for Huawei could stymie any tentative progress in resolving a trade dispute between the world’s two largest economies.Negotiating MissionChinese state media on Monday hailed signs of progress on Huawei as part of what it called efforts to display “sincerity and goodwill’’ by both sides. Any easing of restrictions on Huawei is expected to be met with a resumption of Chinese purchases of U.S. soybeans and other agricultural commodities.The moves, which followed a meeting between Trump and China’s Xi Jinping in Japan late last month, are meant to clear the way for a trip to China by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin as soon as next week.Such a trip would mark the first high-level negotiating mission to China since talks broke down in May.Business PerspectiveNational Economic Council director Larry Kudlow and Mnuchin led the meeting, which also included Commerce Secretary Wilbur Ross. Lighthizer attended as well, according to people familiar with the gathering. It was called to inject a business perspective into a debate that has often been driven by an intelligence and national security community eager to see an outright ban on Huawei, one of the people said.Xiaomeng Lu, international policy manager and head of the China practice at Access Partnership, said the meeting is an opportunity for U.S. companies to demonstrate how resuming sales to Huawei’s consumer business can help American corporations innovate better and outperform the Chinese telecoms giant in the long run.Trump will very likely face backlash from Congress if he chooses to allow shipments to the Chinese telecoms giant, especially after the Washington Post Monday reported that the company helped build North Korea’s 3G network in a potential violation of U.S. export control laws.Legislative Push BackMany U.S. lawmakers, including hawks in Trump’s own party, are opposed to the president’s approach on the issue and have made the case for a complete decoupling of supply chains that would cut off Huawei from American components.“At every turn, we learn more and more about what a malign actor Huawei is,” Senators Tom Cotton and Chris Van Hollen said in a statement following the Washington Post report. The revelation underscores Huawei’s serial violations of U.S. law, they added, saying it’s crucial Congress pass legislation they’ve sponsored.A spokesman for the Commerce Department, which oversaw the blacklisting of Huawei in May, declined to comment.Semiconductor TechnologyMost of those invited are suppliers of technology to Huawei, one of the biggest makers of smartphones and computer-network equipment. The chipmakers in particular have said that a blanket ban on doing business with the Chinese company may do more harm than good to U.S. national security.Many of the components they supply to Huawei can be easily obtained from companies elsewhere and jeopardizing their access to their biggest market risks cutting them off from revenue that’s vital to investing in their ability to maintain the U.S.’s lead in semiconductors, they’ve argued.Intel said in an emailed statement after the meeting that the company appreciated the opportunity to share its “perspective on economic issues, including how the current trade situation with China impacts the critical US semiconductor industry."Micron CEO Sanjay Mehrotra said the company appreciated the opportunity to meet and stressed that "open and fair trade are essential to ongoing U.S. technology leadership."Chinese companies, meanwhile, have begun asking U.S. exporters about buying agricultural products and also applied for exemptions from China’s retaliatory tariffs on the goods, state-run Xinhua News Agency reported Sunday.The Chinese government met Friday with domestic soybean buyers about a plan to purchase more U.S. supplies, according to people familiar with the situation. That could include waiving China’s retaliatory tariffs, but details have not been decided yet, the people said.Face-to-FaceWith China’s top leadership likely to be out of Beijing from early August for their annual seaside conclave, people close to the talks say there is a narrow window for face-to-face meeting in the coming two weeks. Mnuchin, Lighthizer and their Chinese counterparts talked by phone last week for the second time since the two nations’ presidents met.Separate to the possible agricultural purchases, China announced Saturday new measures to further open up the nation’s financial sector to foreign investors. Foreign companies will be able to take a stake in or control entities including wealth management units of commercial lenders, pension fund managers and currency brokers.The changes weren’t announced as directly related to the trade talks with the U.S., but American criticism of China’s protection of various domestic markets is a core issue in the ongoing trade tensions.(Updates with Micron statement in 17th paragraph.)\--With assistance from Miao Han, Justin Sink, Laura Litvan and Mark Milian.To contact the reporters on this story: Shawn Donnan in Washington at email@example.com;Jenny Leonard in Washington at firstname.lastname@example.org;Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Margaret Collins at firstname.lastname@example.org, Alister BullFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The S&P 500 climbed toward a record high on Monday, supported by expectations of lower interest rates, while investors awaited quarterly earnings from marquee companies Facebook, Alphabet and Amazon later this week. Facebook Inc rallied 2.0% ahead of its report due out after the bell on Wednesday, while Amazon.com Inc and Google-parent Alphabet Inc were each up more than 0.7% ahead of their reports on Thursday. Investors' reactions to the reports of these top-tier growth companies could affect broader market sentiment, with the S&P 500 about 1% below its July 15 record high close.
President Trump has previously suggested that banning American companies from making sales to Huawei could become a bargaining chip in his trade war with China, despite calling the company “very dangerous” for national security.
The so-called FANG stocks take centre stage on Wall Street this week, with Amazon , Alphabet and Facebook set to report as the S&P 500 approaches a record high. The group of high-growth stocks that supercharged the S&P 500's decade-long rally in recent years has had mixed results in 2019, with Facebook and Amazon dramatically outperforming the broader market, while Netflix and Google-owner Alphabet have lagged.
The so-called FANG stocks take center stage on Wall Street this week, with Amazon, Alphabet and Facebook set to report as the S&P 500 approaches a record high. The group of high-growth stocks that supercharged the S&P 500's decade-long rally in recent years has had mixed results in 2019, with Facebook and Amazon dramatically outperforming the broader market, while Netflix and Google-owner Alphabet have lagged.
Shares of Alphabet Inc. are up slightly to $1,136 Monday after two market research notes said they expect continued strong sales from its search business as well as potential revenue from Maps, Waymo and Life Sciences. Credit Suisse analyst Stephen Ju, in a note Monday, maintained an outperform rating on Alphabet stock with a price target of $1,400. Wedbush Securities analyst Michael Pachter anticipates revenue of $38.24 billion and non-GAAP earnings of $12.92 a share when Alphabet reports second-quarter results on Thursday. Analysts surveyed by FactSet expect earnings of $11.10 a share on revenue of $38.155 billion.
Facebook (NASDAQ:FB), the social media and digital advertising titan, is scheduled to report Q2 earnings on July 24 after market close. Despite the volatility in broader markets, FB stock has released relatively strong earnings in recent quarters.Source: Shutterstock As a result, year-to-date, the FB share price is up about 50%. Meanwhile, over the past year, there has been a shift in the global political environment, whereby more countries are calling for tougher regulation of the technology giants, including Facebook. Therefore, long-term investors are wondering as to what they should expect from FB stock's fundamental metrics. Now that the earnings season is upon us, let us look at what may be ahead for the stock. What to Look for in FB Stock's Q2 Earnings?As the owner of the largest social network in the world, Facebook's current ecosystem, includes Facebook mobile and desktop, Instagram, WhatsApp and Messenger.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhen Facebook stock releases earnings on Wednesday, Wall Street will pay attention to several metrics and issues.Revenue: Facebook stock's digital advertising business is the main revenue generator and the social network has a lucrative business model. In 2018, Facebook reported $22.112 billion in net income on $55.838 billion in revenue.In Q1, revenue came in slightly better than expected and increased 26% year-over-year (YoY). Investors will want to see positive evidence on how 2019 is likely to shape up for the social media giant. * 10 High-Flying, Overvalued Stocks in Danger of Crashing Facebook and Google's parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) have a combined share of the U.S. digital ad market duopoly that stands well over 50%.Daily active users (DAUs): FB stock's most recent DAU number is approximately 20% of the global population. In Q1, DAU rose 8% YoY and 3% sequentially. In other words, Facebook is a clear winner in the social media space.Facebook users are not only individuals, but also institutions, businesses of all sizes and organizations, including workplaces, community centers, schools and even places of worship. If the company reports any significant slowing of user growth or platform engagement, then Wall Street may raise its eyebrows.Ad impression growth: In Q1, the number came in strong showing 32% YoY growth. Ads on Instagram stories and feed as well as Facebook newsfeed were the main drivers.In other words, through the data collected on its platforms, Facebook can allow for a specific target to be reached via focused demographics, interest and a number of other criteria. Rich and reliable data, which FB has plenty, is at the center of digital advertising.Price per ad: Last quarter, despite the impressive growth in ad impression, Wall Street was rather concerned that the average price per ad declined 4% YoY. Ideally, the company should not monetize stories or feeds at lower rates.Profit margins: If investors see any sign of weakening profit margins, then they are likely to become concerned. Analysts have been noting that FB's rising costs have been pressuring margins lower over time. If the quarterly results show that FB's costs have unexpectedly risen, then, the stock price may take a hit.In short, on Wednesday afternoon, Wall Street is set to find out whether Facebook can continue its positive fundamental and price momentum in the second half of the year. Where Is Facebook Stock Price Now?In April, following Q1 results, Facebook stock initially gapped up about 6% the next day to reach an intraday high of $198.48. However, that price became the immediate high for the next several weeks and the stock price declined to see an intraday low of $160.84 on June 4.Then came the broader market rally in which Facebook also participated. On July 14, FB shares hit $205.47, an intraday high for 2019.As we start the new week, FB stock is hovering around $199. If you are an investor who follows technical charts, you will note that the $200-level has become a resistance area.Our readers may also be interested to know that on July 25, 2018, FB shares saw an all-time high at $218.62. Then, after market close the same day, FB released Q2 2018 earnings, which Wall Street was not happy with, and the next morning Facebook stock gapped down to open at $174.89.It is not quite possible to know which way the stock will move on Thursday morning following the earnings report on Wednesday. Yet long-term investors would like to see FB stock close the gap from a year ago by moving to and staying over $218.62.Riding on the momentum from an exceptionally strong earnings report, FB stock could easily reach a new all-time high price. However, considering how much the stock is up so far in 2019, investors would probably not hesitate to penalize the company if the quarterly report does not meet the rather high expectations. The Bottom Line on FBFacebook stock has a strong story and the company has a clean balance sheet with no debt; thus, it remains a long-term growth play on a fundamental basis. Going forward, Facebook is likely to successfully leverage its network for further sales and earnings growth. I also expect the group to make concentrated investments in privacy and security measures to alleviate regulatory and investor concerns.Management has a good history of delivering better than expected quarterly results. And I am inclined to think the results will once again come in strong. However, there will likely be increased stock price volatility in the near-term, especially after the earnings report, that current and potential FB stock investors should anticipate.If you aren't already long Facebook stock, you may want to remain on the sidelines until the earnings report as near-term trading is likely to be choppy. * 7 Cloud Computing Stocks to Buy for 2019 If you already own Facebook shares, then you may want to stay the course and ride out any short-term volatility.Alternatively, those investors who have benefited from Facebook stock's 2019 gains may want to take some of the paper profits as we look ahead to the next earnings report.Or they may consider hedging their positions. As for hedging strategies, covered calls or put spreads with Aug. 16 expiry could be appropriate as straight put purchases are likely to be expensive due to heightened volatility.The options for expiration on Aug. 16 are implying that the stock is likely to move by about 8-10% in either direction from the $200 strike price in the short-term following its results. In other words, a covered call hedge would enable investors to both profit from any potential up move and give some protection in case the stock falls following the earnings result.The two important points to remember are that the trend is an investor's friend and that FB is a volatile stock.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Will Facebook Earnings Be Enough to Impress FB Stock Investors This Time? appeared first on InvestorPlace.
Amid all the talk of antitrust, government regulation and cryptocurrency plans, it might be nice for Big Tech just to focus on earnings this week — unless they are bad, of course.
President Trump eased the Huawei ban on June 28. Since then, investors have been closely monitoring how US officials implement the policy change.
This is the second high-profile age discrimination lawsuit that the Alphabet Inc.-owned search engine has faced — the first was in 2004 and was settled out of court.
The bullish investing thesis on Nvidia (NASDAQ:NVDA), the current leader in GPUs, is pretty clear. GPUs work better than CPUs for artificial intelligence applications and as a result, the chip maker -- and NVDA stock -- seem well positioned in a market with what is essentially huge growth potential. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsDue to its exposure to AI, NVDA stock will benefit from numerous secular growth trends in autonomous driving, big data, medical diagnostics, and more that could help lift sales and profits rise over time. The bearish thesis is also clear. Due to the importance of artificial intelligence, Nvidia will have a lot of competition in the future and the company might not keep its leading position for very long. To get a leg up and save money, big tech companies with immense resources such as Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), and Facebook (NASDAQ:FB) are each developing their own specialized AI chips. Innovative companies like Tesla (NASDAQ:TSLA) aren't too far behind, with Musk's company having unveiled an AI chip that can help make Tesla more autonomous this year. Long term, China also wants to eventually make its own version of Nvidia. * 10 Stocks to Sell for an Economic Slowdown To keep its leading market share and meet bullish expectations, Nvidia will need to innovate and make better products than anyone else. Due to the uncertainty of how those products will be received, Nvidia stock has been subject to sentiment shifts. As a result of the shifts, the NVDA stock price has fallen from its late 2018 highs but is still up 23% year to date. Given the rally in 2019, is the stock a good buy now? Wall Street is Bullish on NVDAIn terms of Wall Street analysts opinions, Nvidia is pretty attractive. Analyst Harsh Kumar of Piper Jaffray has a $200 target price based on encouraging results from his research into gaming trends and gamer demand. According to Kumar's survey of gamers, more than 70% of respondents said they would either maintain or increase GPU spending patterns. Analysts at Cascend Securities have a $190 price target, noting that Nvidia is holding onto its market share despite Advanced Micro Devices' (NASDAQ:AMD) strong Navi AMD GPU release. What Some on the Sidelines SeekMeanwhile on the sidelines, many chartists will say that the Nvidia stock price needs to close above the 200-day exponential moving average of around $174.64 with a meaningful catalyst to be attractive. So far Nvidia shares have consolidated below the 200-day mark since last October and the consolidation has caused the exponential average to act as resistance. * 7 Stocks Top Investors Are Buying Now Many traders don't play consolidations because a stock could take a very long time to consolidate. Because time is money, some traders wait until the stock has broken out with some sort of meaningful positive catalyst before buying. Even though they pay a higher price, it is in their mind safer due to momentum. In terms of catalysts, one to look for is AMD's earnings report on July 24. If conference call commentary indicates strong demand for GPUs in general, Nvidia could potentially benefit as it is currently the leader and its shares could head higher. If commentary indicates that AMD is gaining market share at the expense of Nvidia, shares could head lower. Another potential catalyst is any news of the trade war ending. If the trade war ends, the semiconductor sector could surge higher due to stronger sentiment and NVDA stock could rise with it. Lastly, Nvidia's earnings report next month could be a potential catalyst if the company beats expectations. Bottom Line on Nvidia StockNvidia stock has considerable long-term upside if management executes and the company keeps making industry leading semiconductor chips for AI applications. In the near term, I believe some money on the sidelines could move into NVDA stock if it closes above the 200-day exponential moving average with a meaningful positive catalyst event. As of this writing, Jay Yao did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Already a 2019 Gainer, Nvidia Stock Could Skyrocket if This Happens appeared first on InvestorPlace.
Facebook, Amazon and Google report earnings in late July. What more could an investor ask for? Here are three key facts.
Congress, with some goading from their competitors, appears eager to apply antitrust enforcement to Facebook (FB) , Apple (AAPL) , Google (GOOG)(GOOGL) and (AMZN) (FAGA). This would be a terrible misuse of the law for market-dominance problems that emerging technologies will resolve and for privacy and security issues where bigness contributes little. To put one complaint aside — the increasing size of American tech companies has not caused stagnant wages.