|Day's Range||6.70 - 6.70|
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.
Here's what to watch when the social media, e-commerce, and search engine titans report their Q2 earnings starting on Wednesday.
A Facebook-style social network was launched in Vietnam on Tuesday, following calls by the Communist-ruled government for domestic tech companies to create alternatives to U.S. tech giants Facebook and Google. Gapo, a mobile app that lets users create personal profiles and share posts to a Facebook style "news feed", has received 500 billion dong ($21.55 million) in funding from tech corporation G-Group, its chief executive, Ha Trung Kien, said. "Vietnamese users and enterprises are relying too much on Facebook as there are not so many social networks for them to choose from," Kien said, adding that Gapo plans to reach 3 million users in 2019 and 20 million by January 2021.
As the parent company of Google nears its fiscal second quarter results on July 25, the chorus of disapproval over its evasive reporting policy has risen on Wall Street.
(Bloomberg) -- Facebook Inc. and Amazon.com Inc. set records for lobbying in the second quarter as Washington ramped up scrutiny of big technology companies, while Google’s spending dipped as it continued to reshuffle its influence operations.The world’s largest social media site spent more than $4.1 million on lobbying, the most among big internet platforms, an increase from its previous high in the same period a year earlier.Facebook disclosed lobbying around blockchain, the technology that underlies cryptocurrencies. The company has been trying to win support for its Libra cryptocurrency, which drew skepticism from President Donald Trump, congressional Democrats and Federal Reserve Chairman Jerome Powell and took a beating from lawmakers in both houses of Congress during two days of hearings last week.The company was also in the final stages of settling an investigation by the Federal Trade Commission into privacy violations in the Cambridge Analytica scandal. The FTC has voted to fine the company $5 billion and is expected to announce the final details of the settlement within days.For more: Facebook $5 Billion U.S. Privacy Settlement Approved by FTCAmazon spent more than $4 million on lobbying, topping a quarterly record in the first three months of the year, according to disclosures filed with Congress before Monday’s midnight deadline. Amazon, which runs a broad lobbying operation on a diverse range of issues, is closing in on a $10 billion cloud services contract that the Pentagon is poised to award to a single bidder next month.Last week, Trump criticized Amazon as the perceived front-runner for the contract, saying companies such as Oracle Corp. and Microsoft Corp. had complained that the process was unfair. Oracle has led a sustained lobbying campaign against the department’s plans to award the project, known as Joint Enterprise Defense Infrastructure, or JEDI, to a single bidder.In June, Amazon hired Jeff Miller, who bundled $1 million for Trump’s 2016 campaign, to lobby for its cloud computing division on issues related to “cyber security and technology services,” the filings show.On July 18, Trump said he would look “very seriously” at the bid.Oracle spent almost $1.7 million during the quarter, when it said it lobbied on issues including cloud and government IT procurement. It also lobbied the White House and the office of Vice President Mike Pence, the disclosures show. Microsoft Corp., which is the last remaining cloud provider that’s vying with Amazon for the contract, spent $2.7 million in the quarter, while International Business Machines Corp., which was eliminated as a competitor along with Oracle in April, spent $1.6 million, including lobbying on JEDI, the filings show.Antitrust ScrutinyThe big internet companies are coming under growing antitrust pressure as the U.S. moves toward investigating whether their conduct squelches competition. The Justice Department and the FTC, which share antitrust jurisdiction, have carved up responsibility for oversight, with the FTC taking responsibility for Facebook and Amazon and the department’s antitrust division claiming Alphabet Inc.’s Google and Apple Inc.Facebook and Amazon also underwent a series of hearings by a House committee conducting a broad antitrust investigation of technology companies, drawing ire from lawmakers during the latest hearing earlier this month.Google ended its relationships with at least 17 lobbyists at six outside lobbying firms as global policy chief, Karan Bhatia, reorganizes the search engine’s approach. Google’s second-quarter spending dipped to $3.1 million, a decrease of about half what it spent in the same period a year earlier, the filings showed.Among the top-level exits were Robert Raben of the Raben Group, who served as assistant attorney general of the Justice Department under former President Bill Clinton. It also ended its relationship with Tom Ingram, a former staff director of the Senate Republican Conference. Susan Molinari, the company’s longtime Washington director and a former Republican member of Congress, moved to an advisory position at the end of 2018.Apple, which is grappling with stepped-up antitrust scrutiny as well as concerns about trade, disclosed spending of $1.8 million in the second quarter, up slightly from $1.7 million a year earlier.Trade LobbyingTrump’s threats to impose additional tariffs on imports from China and Mexico during the quarter, as well as a push to ratify a replacement for the North American Free Trade Agreement, contributed to an increase in trade lobbying by some associations.The Consumer Technology Association, whose members include Apple, Amazon and Facebook, reported spending almost $1.8 million during the second quarter -- up from almost $1.5 million a year earlier and from $1.4 million in the first quarter -- in part because of the tariff threats, spokeswoman Bronwyn Flores said.The group reported lobbying Congress, the Office of the U.S. Trade Representative, the Commerce Department and the White House on matters including the U.S.-Mexico-Canada Agreement, or USMCA, the China tariffs and duties Trump imposed last year on imports of steel and aluminum.“Over the past year, anti-tariff lobbying has become an increasing focus for our government affairs practice,” Michael Petricone, the group’s senior vice president for government and regulatory affairs, said in a statement. “In addition, this quarter CTA’s marketing and communications team executed a comprehensive media campaign to complement our efforts.”The National Retail Federation, which is helping lead a coalition of trade groups opposed to Trump’s tariffs, showed almost almost $2 million in lobbying spending in the second quarter, up from $1.5 million in the first three months. Trade represented a significant portion of the increase besides health care, taxes and other issues, the group said.Trump threatened tariffs on an additional $300 billion in Chinese imports in May in response to what he said was Beijing reneging on agreed provisions in a sweeping trade deal the two nations are negotiating. The U.S. has already slapped duties on $250 billion in Chinese goods.Trump put the new tariffs on hold after meeting with Chinese President Xi Jinping in June in Japan -- but not until after executives at hundreds of U.S. companies and trade groups testified at public hearings in Washington, most opposing the duties.The president also threatened duties on imports from Mexico if that country didn’t do more to stem the flow of migrants to the U.S., prompting an outcry from businesses and trade groups. Trump ultimately relented.Proponents of ratifying the United States-Mexico-Canada Agreement to replace Nafta had hoped to have Congress approve the deal by its August recess, but discussions continue between the administration and congressional Democrats on concerns about provisions regarding pharmaceuticals, the environment, labor and overall enforcement of the pact.\--With assistance from Bill Allison.To contact the reporters on this story: Ben Brody in Washington at firstname.lastname@example.org;Mark Niquette in Columbus at email@example.comTo contact the editors responsible for this story: Sara Forden at firstname.lastname@example.org, Mark Niquette, John HarneyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Alphabet's stock has lagged behind other FAANGs this year, thanks in part to weaker-than-expected revenue growth last quarter and its lack of clarity in explaining why.
(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.