|Day's Range||83.80 - 86.18|
It was a big day in Washington for the top names in Tech. Yahoo Finance Tech Editor Dan Howley joined 'The Final Round' to discuss.
Facebook defending its crypto plans on Capital Hill amid concerns regarding regulation. Yahoo Finance's Seana Smith and Jess Smith and Applico CEO & Portfolio Manager of WisdomTree ‘PLAT’ ETF Alex Moazed discuss.
Google fired back saying the company does not work with the Chinese military. Yahoo Finance's Zack Guzman & Heidi Chung discuss with Okta co-founder & COO Frederic Kerrest.
One of the leaders of a mass walkout last year in protest of Google's handlingof sexual misconduct cases has left the company, Bloomberg reports
Meredith Whittaker, founder of Google’s Open Research Group and one of theleaders of last year’s employee walkouts, is leaving the company
If you run a hotel, airline, or online travel agency, and you thought you needed to buy advertisements in Google search or Google Trips, then guess again — it's probably not as essential as you have long believed because consumers begin their travel searches with "specialist competitors." That's the conclusion travel executives might erroneously make […]The post Google to Congress: We're Not a Travel Monopoly appeared first on Skift.
Finance officials from the Group of Seven rich democracies will weigh risks from new digital currencies and debate how to tax tech companies like Google and Amazon when they meet at a chateau north of Paris starting Wednesday.
Tech’s day of reckoning Tuesday on Capitol Hill started with skepticism about Facebook Inc.’s proposed digital currency, and ended with a spirited debate over charges of anti-conservative bias on Alphabet Inc.’s Google search. In between, the industry’s big four took some body blows from both political parties.
(Bloomberg) -- Meredith Whittaker, who helped lead employee protests at Google over the search giant’s military work, artificial intelligence and policies, is leaving the company.In a blog, she warned that the internet giant’s AI software and huge computing resources are helping it expand in unsettling ways."Google, in the conventional pursuit of quarterly earnings, is gaining significant and largely unchecked power to impact our world (including in profoundly dangerous ways, such as accelerating the extraction of fossil fuels and the deployment of surveillance technology)," she wrote in a blog on Tuesday. "How this vast power is used — who benefits and who bears the risk — is one of the most urgent social and political (and yes, technical) questions of our time."Whittaker helped spark a broader uprising among workers at some of the world’s largest technology companies, including Alphabet Inc.’s Google, Microsoft Corp. and Amazon.com Inc. They are concerned these corporations are gaining too much power through AI-powered, machine-based decision making that has flaws and little or no accountability.Over the past year, some staff at Google erupted in protest, prompting the company to drop a Pentagon AI contract and a censored search project in China. Whittaker, who led Google’s Open Research group, was one of the most outspoken voices. She was one of six women who organized massive walkouts after reports that Google paid handsome sums to executives accused of sexual harassment.Other Google protesters were saddened by Whittaker’s resignation, but hopeful that their attempts to hold large tech companies accountable will continue."Our movement has moved into a new phase," said Irene Knapp, a senior software engineer at Google. "Those of us who remain at the company have been focused on disseminating knowledge and teaching our organizing skills to new people. I am sure that Meredith would not be leaving if she didn’t know that she’s accomplished that, and I know that I very much feel she has. We’re set up for the long haul."While at Google, Whittaker also served with AI Now, a research institute at New York University that she co-founded. The group often criticizes businesses and government agencies for using AI systems, like facial recognition, in policing and surveillance. Whittaker also publicly denounced some Google decisions, including the appointment of Kay Coles James, a conservative think tank leader, to an AI ethics board. Google soon nixed the board."People in the AI field who know the limitations of this tech, and the shaky foundation on which these grand claims are perched, need to speak up, loudly. The consequences of this kind of BS marketing are deadly (if profitable for a few)," Whittaker wrote on Twitter on Sunday.In April, about six months after the big employee walkout, Whittaker and another protest leader, Claire Stapleton, said the company was retaliating against them for their role in the activity. In an email to colleagues, Whittaker said her Google manager told her to "abandon [her] work on AI ethics" and blocked a request to transfer internally. At the time, Google denied it retaliated against Whittaker.To contact the reporters on this story: Mark Bergen in San Francisco at email@example.com;Joshua Brustein 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.
Tech’s grilling on Capitol Hill intensified Tuesday afternoon when a House Judiciary Committee took aim at four of its biggest players, whom chairman Rep. David Cicilline, D-R.I., called “powerful online gate keepers.”
President Donald Trump on Tuesday turned up fresh pressure on China over trade with the U.S., as he vowed to “take a look” into allegations that Google’s work with Beijing is treasonous.
A wave of quarterly reports from Netflix and other top-tier, high-growth companies starting on Wednesday will test Wall Street's willingness to extend a recent really driven by expectations of lower interest rates. Facebook , Amazon and Google-owner Alphabet , all part of the so-called FANG group of widely held stocks, have jumped over 5% so far in July, with investors increasingly willing to bet on the volatile names thanks to expectations the Federal Reserve will cut rates later this month by as much as half a percentage point to support economic growth. The FANG companies, combined with investor favorites Apple and Microsoft , account for about 17% of the S&P 500's $26 trillion market capitalisation, making reaction to their quarterly results key to Wall Street sentiment.
A wave of quarterly reports from Netflix and other top-tier, high-growth companies starting on Wednesday will test Wall Street's willingness to extend a recent really driven by expectations of lower interest rates. Facebook , Amazon and Google-owner Alphabet , all part of the so-called FANG group of widely held stocks, have jumped over 5% so far in July, with investors increasingly willing to bet on the volatile names thanks to expectations the Federal Reserve will cut rates later this month by as much as half a percentage point to support economic growth. The FANG companies, combined with investor favorites Apple and Microsoft , account for about 17% of the S&P 500's $26 trillion market capitalization, making reaction to their quarterly results key to Wall Street sentiment.
From the Google witch hunt to the demonizing of Facebook's Libra dial it back now before all of this gets way too out of control.
Google will host digital skills workshops and one-on-one coaching this week in Northern Kentucky as part of a nationwide initiative to kickstart economic opportunity.
Finally, some good news for AT&T (NYSE:T) shareholders: T stock hit a seven-year low late last year, but it has rallied since. In fact, the AT&T stock price reached a 52-week high last week before a modest pullback.Source: Shutterstock However, I'm not buying the rally. I've long been a skeptic toward AT&T, and I see little reason to change. The merger between Sprint (NYSE:S) and T-Mobile (NASDAQ:TMUS) could provide some competitive help. But Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Dish Network (NASDAQ:DISH) reportedly are entering the market. Plus, AT&T continues to lose share to T-Mobile and Verizon Communications (NYSE:VZ).Admittedly, a 6% dividend is nice. But AT&T also has some $200 billion in debt. We've seen low-growth, high-debt dividend stocks like Anheuser-Busch InBev (NYSE:BUD) and Kraft Heinz (NASDAQ:KHC) cut their payouts in recent years. AT&T's dividend looks safe for now. But if the cellular business stumbles and DirecTV continues to decline, that may change.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe wild card here is WarnerMedia, built through last year's $85 billion acquisition of Time Warner. WarnerMedia not only adds potential growth, particularly in its HBO and Warner Bros. Entertainment divisions, it gives AT&T control of both content and distribution. That's something media companies increasingly have sought of late. * 7 Dependable Dividend Stocks to Buy But for the AT&T stock price to move higher, the acquisition needs to be a success, and WarnerMedia must grow. The announcement of that unit's plans for a new streaming service casts early doubt on those hopes. The Pricing Problem for HBO MaxWarnerMedia's new service will be called HBO Max, and that alone shows the problem here. WarnerMedia charges $15 per month for HBO Now, the unit's streaming service. The new service will include HBO, along with content from its Turner networks, Warner Bros. studio, and other properties like Looney Tunes.WarnerMedia naturally wants to price its new service in a way that captures the value of the non-HBO properties. But it has a problem. The standard plan from Netflix (NASDAQ:NFLX) costs $13. Disney (NYSE:DIS) is launching Disney+ in November for $6.99 a month.Thus, HBO Max probably is pricing between $15 and $18, according to reports (AT&T hasn't released an official figure yet). For the approximately 35 million existing subscribers, a shift makes sense. But WarnerMedia is then getting at most just $3 per month in incremental revenue from those subscribers.That incremental revenue -- at most slightly over $1 billion a year -- isn't much. And it isn't even free. WarnerMedia is foregoing an estimated $80 million in annual licensing revenue from Netflix just to reclaim the rights to Friends. It ostensibly will compete with its own TBS and TNT networks, which will lose advertising dollars as cord-cutting accelerates. Any incremental revenue from the current HBO subscriber base and the associated profit, still seems to leave WarnerMedia cannibalizing itself.So, the service must add new subscribers. But here's the exclusive content on HBO Max at its launch next year: HBO, Friends, The Fresh Prince of Bel Air, Pretty Little Liars, and content from The CW. There are other original series and movies. But is any customer going to pay $18 for that bundle if she's already passed on HBO? How many customers will pay a premium over Disney's and Netflix's cheaper content? Probably very few. The HBO Max Problem for T StockWarnerMedia head John Stankey has said his goal is for the streaming service to reach 70 to 90 million customers. As The Motley Fool pointed out, Disney has targeted 60 million to 90 million within five years. Netflix currently has 60 million U.S. subscribers.Even with an existing HBO base of 35 million, Stankey's goal seems hugely optimistic. There's little reason right now to see HBO Max outperforming those streaming rivals simply from a content standpoint. DirecTV Now subscriber numbers already are plunging, which bodes poorly for the new service. Execution, meanwhile, has been poor from the jump.Stankey originally publicly floated a three-tier pricing structure which, as CNBC reported, had barely been discussed with other senior executives. That concept was axed later. The Hollywood Reporter detailed the confusing rollout (and the questionable logo) of the service, closing by asking, "what the h-- is HBO Max, really?" That's a question WarnerMedia hasn't yet answered less than a year from the launch. AT&T Has Yet to Address the Cord-cutting CrisisAnd a failed streaming service is a big problem for T stock. It undercuts the entire rationale for combining AT&T with DirecTV and Time Warner. It very well may lead to declining earnings overall, as the mobile business stays sideways, profitable landline revenues continue to fall, and DirecTV and Turner both suffer from cord cutting. Without streaming driving growth, AT&T simply looks like a group of challenged business. Even worse, the company carries a debt load that is literally historic in its size.Particularly with the AT&T stock price back at the highs, investors are betting on some sort of success in streaming. Right now, I don't think that success is on the way. And I believe that, once again, T stock will give back its gains.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Streaming Already Looks Like a Problem for AT&T Stock appeared first on InvestorPlace.
An enormous shift is coming in the stock market …Source: Shutterstock I am not talking about a crisis or a bear market -- though the market's December drop does play a role in it.The shift I'm talking about will bankrupt many investors who've made gobs of money during this historic bull market over the past 10 years … and make millionaires out of a totally different type of investor.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhether you are one of those millionaires will depend entirely on your understanding of history. Anyone with a passing knowledge of stock market history should already know all about the massive shift I'm about to describe …I'm talking about a shift in the balance of power between two huge investment forces …This idea first appeared in a little-known book published in 1924. That's the year an investment adviser named Edgar Lawrence Smith published a terse little volume called "Common Stocks as Long Term Investments." The book laid out the research Smith had done on the historical performance of stocks and bonds.Originally, Smith thought he was sitting down to write a pamphlet on the superiority of bonds as long-term investments. He examined decades of stock and bond price data, from 1837 through 1922.To his great surprise, Smith found that stocks had been the better long-term investment …Today, this seems like a no-brainer. But back then, it was a tectonic shift in the widespread belief of the day. As Smith wrote …Common stocks are, in general, regarded as a medium for Speculation -- not for Long Term Investment. Bonds, on the other hand, are generally held to be the best medium for Long Term Investment -- free from the hazards of Speculation.Smith compared several baskets of more or less randomly chosen stocks versus high-grade bonds. The result was always the same: Stocks outperformed bonds.He realized that earnings reinvested in the business -- rather than being paid out in dividends -- caused stock prices to go up over the long term.Over the long term, Smith concluded, investors could count on a well-diversified portfolio of stocks to generate substantial capital gains and dividend income superior to the highest-grade bonds. He wrote …In the selection of securities for investment, we must consider more than the expected income yield upon the amount invested, and may quite properly weigh the probability of principal enhancement over a term of years without departing from the most conservative viewpoint.The idea of growth in principal as conservative was radical. But by 1929, Smith's book was a bestseller, and "growth investing" was hot, with shoe-shiners and hairdressers trading stock tips and playing the stock market on margin, despite Smith warning investors to avoid "the extreme misfortune" of investing at a market peak.When the crash of 1929 came, it wiped out thousands of investors, leading the world into the Great Depression …At the depths of the Depression, another analyst published a radical new view of investing that would change the world forever.Investor and teacher Benjamin Graham, aided by his partner David Dodd, published "Security Analysis", a 725-page, all-encompassing guide to analyzing bonds, preferred stocks, and common stocks the likes of which had never been published before (or since).Graham called Smith's book, which totals 140 pages, a "small and rather sketchy volume." He made the case that Smith's book caused investors to focus too much on extrapolating the trend of earnings growth into the future.Graham said the traditional approach to investing, which focused on "past records and tangible facts, became outworn and was discarded" in the 1920s as Smith's ideas gained popularity. "The past was important only in so far as it showed the direction in which the future could expected to move," Graham said. That's the classic mistake of all growth investing: the belief that trees will grow to the sky.In Graham's view, "The Common stocks-as-long-term-investments Doctrine," a clear reference to Smith, was based on three ideas …1\. "The value of a common stock depends on what it can earn in the future." 2\. "Good common stocks will prove sound and profitable investment." 3\. "Good common stocks are those which have shown a rising trend of earnings."Graham and Dodd immediately pointed out the two weaknesses in these assumptions. They "abolished the fundamental distinction between investment and speculation [and] they ignored the price of a stock in determining whether it was a desirable purchase."Graham was showing the world the flaws of growth investing, and advocated replacing it with sensible principles which today are known as "value investing."Later, I'll show you that over the long term, value trumps growth. But there's a subtler point here …Longtime readers of my work know the market tends to shift the balance of power back and forth between growth and value every several years. Growth has outperformed since 2009, and it looks like value is getting ready to take the lead for the next five to 10 years.This is perhaps the single most exciting moment of my entire career as a value investor and equity analyst. Value has under-performed growth for 10 years, and we are likely within several months of a major blow-off top of the longest bull run in stock market history.There's something else you ought to know about value investing …You need to start doing it BEFORE the bull market ends.Investing legend Warren Buffett gave a speech in 1984 called, "The Superinvestors of Graham-and-Doddsville." It chronicles the record of investors who worked for and learned from Graham.One was Walter Schloss, who never went to college, but took a night course from Graham. Schloss made roughly 21% a year over a period of more than 28 years, when the S&P 500 gained just 8.4% per year. During that time, the S&P 500's worst performance was in 1974, when it fell 26.6%. It was a brutal year for the market, but Schloss was down a mere 6.2% that year.Buffett also mentioned value-investing firm Tweedy, Browne. It made 20% a year over a period of nearly 16 years, when the S&P 500 returned just 7% a year. Tweedy, Browne gained 1.5% in 1974 (the year the broad market fell 26.6%).Buffett related the records of five more "Graham-and-Doddsville" value investors. Not all of them outperformed in 1974, but they all trounced the overall market by a wide margin over periods of more than a decade.A more recent study by Bank of America Merrill Lynch looked at the 90 years between 1926 to 2016 and used another value/growth data set by economists Eugene Fama and Kenneth French. The cheapest stocks made 17% per year, while the most expensive growth stocks made just 12.8% per year -- a huge difference when compounded over the long term.The data on growth versus value during bad times is mixed …As The Wall Street Journal reported last July …In bear markets before 1970, for example, the 50% of stocks nearest the growth end of the spectrum outperformed the 50% at the value end by an annualized average of 3.8 percentage points. In the bear markets of the subsequent four decades, however, it was just the opposite, with value beating growth by an annualized average of 10.7 percentage points. The current decade appears to be reverting to the pre-1970 pattern, with value lagging behind growth in both the 2011 and 2015-16 bear markets.Again … I believe we're on the cusp of a huge shift back to the outperformance of value during the next bear market. It's worth pointing out that value beat growth by an astounding 32% annualized from the dot-com top in early 2000 to the bottom in October 2002. The current mania smells a lot like that period to me, even if it is just one data point.If you want to avoid the carnage of the next few years, become a value investor right now.If you want to maximize the performance of your capital over your lifetime, become a value investor right now.If you want to take less risk, sleep better, and make more money in stocks, become a value investor right now.Value investing is hands down the best way to make a fortune in the stock market …It's how I recommend investing the overwhelming majority of your portfolio.History suggests that value investing is about to shine brighter than it has in nearly two decades. It has never under-performed growth investing for this long … So, it's like a giant rubber band that has been stretched further than ever before.Given the recent struggles of market darlings Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOGL), and other growth stocks lately, the rubber band looks like it has been released and is starting to snap back in a big way.The market is telling you that a much bigger shift between growth and value is likely in the next few years …Value investing naturally prepares you for bad times by discouraging you from buying what's popular and expensive. It encourages patience and discipline -- exactly what's been lacking in the market for most of the past decade. You can't predict bear markets, but you can prepare for them by being a value investor.My chief research officer Mike Barrett and I have that kind of discipline. In our Extreme Value advisory, we recommended just two stocks in 2015 as we warned investors most stocks were just too risky. It turned into the worst year for stocks since 2008.We found alcohol titan Constellation Brands (NYSE:STZ) in 2011 and rode it to a 631% gain -- one of the highest-returning recommendations in Stansberry Research history, all from a stodgy, ignored booze company.Recently, we've found great value in a handful of different industries …In the past several months, we've recommended a pipeline company, an old chemical company, and two shipping companies -- classic Graham-and-Dodd value stocks.We waited more than a year to recommend one stock until it finally got cheap enough for our liking. We recommended shares last August and soared up 32%. We think it'll double over the next few years.And with gold cheap relative to stocks, we continue to recommend investing in the two best businesses in the global mining space, bar none. One owns royalties on a diversified group of mines.The other owns a royalty-like income stream on millions of ounces of gold, silver, platinum, and palladium above the ground.You won't find two better business models in the gold mining space. And you won't find better downside protection, bigger (realistic) upside, or better management teams. Both are trading at cheap cyclical lows and ready to roar over the next five to 10 years. I believe the shift to value will send them up 10 to 20 times current levels as they continue to pay rising dividend streams.I can't predict the future and I have yet to meet anyone who could. But I've closely studied the past and the present, and as I've said before, I know two things for sure: where we stand and what to do about it.Extreme Value isn't for everyone. But if you have the discipline and desire to exploit a huge, long-term advantage in the stock market over the next five to 10 years, it might be for you.You can hear more about my No. 1 gold idea, right here.Dan Ferris is the editor of Extreme Value, a monthly investment advisory that focuses on some of the safest and yet most profitable stocks in the market: great businesses trading at steep discounts. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post The Best Way to Make a Fortune in the Stock Market appeared first on InvestorPlace.
Leaders from Apple, Facebook, Google and Amazon all took turns publicly defending their companies during an antitrust hearing on Capitol Hill. They said their platforms all rely on a vibrant social ecosystem that encourages competition, but lawmakers voiced concerns about the growing power of big tech companies. CNET senior producer Dan Patterson joined "Red and Blue" with more.