|Day's Range||107.10 - 110.01|
Dow Jones futures surged, signaled strong gains for the coronavirus stock market rally. Apple, Tesla and AMD are near buy points.
Latvia aims to become one of the first countries to launch a smartphone app using a new toolkit created by U.S. tech giants Apple and Alphabet's Google to help trace coronavirus infections. Early success of tracing apps in countries like Singapore and Australia has been patchy because Apple's iPhone does not support their approach to using Bluetooth short-range radio as a proxy for measuring the risk of infection. Latvia's Apturi Covid (Stop Covid) app is, by contrast, based on technology launched last week by Apple and Google, whose iOS and Android operating systems run 99% of the world's smartphones.
Contact tracing is a way of life in Wuhan, as well as other regions in China. It isn’t clear if America will adopt a similar infection mitigation strategy.
(Bloomberg) -- Silicon Valley’s main data-protection watchdog in Europe came under attack from one of the region’s leading privacy advocates for taking too long to wrap up probes into Facebook Inc. and its Instagram and WhatsApp units.Max Schrems’s group Noyb in an open letter on Monday called on European Union authorities to “take action” against the Irish Data Protection Commission, which has yet to issue any significant fines exactly two years after strict EU rules empowered the regulator to levy hefty penalties for serious privacy violations.The letter comes just days after the Irish authority said it’s edging closer to delivering its first major sanctions under the EU’s General Data Protection Regulation after finalizing a draft decision in a probe concerning Twitter Inc. and completing a further procedural step in a separate probe concerning WhatsApp.“With about 10,000 complaints in two years and no fines at all against private actors, it is obvious that Ireland does not effectively implement EU law,” Schrems’s group said in the letter.Schrems also accused the regulator of “secret cooperation” with Facebook during 10 meetings before the GDPR took effect -- putting the Irish authority in a situation where it is now “structurally biased because it is essentially reviewing its own legal advice to Facebook on how to bypass” rules on getting user consent.“There were no ‘secret meetings’ held between the DPC and Facebook,” Graham Doyle, deputy commissioner at the data protection commission, said in an email. “We regularly engage and meet with companies from all sectors as part of our regulatory enforcement and supervision functions” just as other EU data regulators do.GDPR empowered regulators to levy penalties of as much as 4% of a company’s annual revenue for the most serious violations. The biggest fine to date was a 50 million-euro ($54.5 million) penalty for Google by France’s watchdog CNIL.(Updates with response from Irish authority in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- ByteDance Ltd.’s millennial sensation TikTok and its Chinese twin app Douyin ranked top in the world among mobile apps for April revenue, according to Sensor Tower data that excludes games and advertising.Focusing narrowly on in-app purchases, TikTok and Douyin’s numbers for the month showed a tenfold increase to $78 million, propelling them ahead of more established names like YouTube, Tinder and Netflix, which rely more on existing subscriptions.The Chinese market, served by Douyin, contributed 86.6% of the app income, followed by the U.S. with 8.2%. In either version of the video-streaming app filled with dance videos and memes, users can purchase virtual currency to spend on supporting their favorite creators.Like many social media platforms, ByteDance is testing the waters of online commerce, even while it continues to rely on advertising as its main source of income. Emarketer expects that more than 75 million US social-network users aged 14 and older will make at least one purchase from a social channel in 2020, up 17.3% from 2019.In 2020’s first quarter, TikTok and Douyin generated 315 million downloads globally, up from 187 million a year earlier, said Sensor Tower, noting the positive influence of Covid-19 on the video-sharing apps’ popularity.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Five years ago, Baidu Inc. founder and Chairman Robin Li sat down with Bloomberg News to explain how foreign investors were getting it wrong.Listed on the Nasdaq a decade earlier, shares of the Chinese search-engine provider had taken a beating over the prior year, and Li’s chief complaint was that Americans just didn’t appreciate the coming changes in its business. The trend in China was toward services like delivery and ride-hailing, as well as bookings for restaurants, beauty salons and doctors. This online-to-offline economy would eclipse search revenue, he predicted.Now, it seems that Li has lost patience. Baidu is looking into the possibility of delisting its shares from the Nasdaq and moving to an exchange closer to home, Reuters reported Friday, citing three people familiar with the matter. Baidu thinks it’s undervalued, according to the report.The backdrop to these discussions is rising hostility to U.S. investments in Chinese assets amid worsening relations between the two countries. The U.S. Senate passed a bill last week that would force companies to delist unless they can prove they’re not under the control of a foreign government.That sounds like a good excuse for Baidu to look for the exit. The reality is that investors lost patience with its management years ago. It was inevitable that the company would seek one day to list elsewhere, as Alibaba Group Holding Ltd. has already done. Baidu’s U.S.-traded stock fell 15% between that September 2015 interview and the end of last year, before the pandemic hit. Over the same period, Alibaba climbed 248%.Li’s problem is that his company failed to grasp the transformation he was talking up half a decade ago. While Alibaba and Tencent Holdings Ltd. have successfully moved into new areas like payments and physical retail, and upstarts like Meituan Dianping and Pinduoduo Inc. now dominate delivery and social-commerce, Baidu has barely changed.Its core business still centers on advertising and accounts for 73% of revenue, which climbed just 2% last year. Investments into new realms like artificial intelligence and autonomous driving have yet to bear fruit. Its other major sales contributor, iQiyi Inc., a video-streaming platform that listed separately on Nasdaq in March 2018, continues to lose money.Around the time that Li complained foreign investors weren’t getting it, some of his contemporaries decided to move home where they felt Chinese investors had a better understanding and would reward them with higher valuations. Internet security company Qihoo 360 Technology Co. was taken private by a consortium that included Citic Group for $9.3 billion in December 2015. It relisted in Shanghai in 2018 via the purchase of elevator maker SJEC Corp., and now trades under the name 360 Security Technology Inc. Chinese investors have soured on 360 Security, pushing the company’s market value down by more than a third since February. There’s a warning for Li. Investors in China won’t assign a higher valuation to a returning company unless it has a convincing growth story to tell. Baidu was a pioneer when it listed on Nasdaq in 2005, paving the way for dozens of Chinese internet stocks to follow. Touted as the Google of China, it symbolized the potential of the sector for American investors. Those days are long gone: Baidu has been eclipsed as China’s technology darling by fasting-growing companies such as Alibaba and Tencent.The problem for Li isn’t that investors don’t understand his business. It may be that they understand it too well. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Sometimes large weekly gains can be deceiving. When the S&P 500 remains between the two moving averages for at least 20 days, there’s a 72% chance that the next move is down.
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]
If you rebuild the workplace after COVID-19, will the workers ever come back? In Silicon Valley, the answer from many tech companies is that many won’t, and maybe that is a good thing.
(Bloomberg) -- Twitter Inc. and Facebook Inc.’s WhatsApp are in the firing line as Europe’s leading privacy watchdog for U.S. tech giants edges closer to delivering its first major sanctions under the region’s tough data-protection rules.The Irish Data Protection Commission said on May 22 that it finalized a draft decision linked to a data breach at Twitter and has asked its peers across the European Union for their sign-off.The regulator said it’s also completed a draft decision in a probe of WhatsApp’s transparency around data sharing. The Facebook service will be asked to give its comments on any proposed sanctions before EU counterparts can weigh in.The Irish authority’s probes have been piling up since the bloc’s tough General Data Protection Regulation took effect in May 2018 -- but with no final decisions to date. The regulator is the lead data protection authority for some of the biggest U.S. tech companies, including Twitter, Facebook, Google and Apple Inc.GDPR empowered regulators to levy penalties of as much as 4% of a company’s annual revenue for the most serious violations. The biggest fine to date was a 50 million-euro ($54.5 million) penalty for Google by France’s watchdog CNIL.The Irish regulator said it has also made progress in a number of its other pending cases, including an investigation into obligations of Facebook’s local unit “to establish a lawful basis for personal data processing,” adding that this “inquiry is now in the decision-making phase.”Twitter and WhatsApp representatives declined to comment on the Irish probes.While sanctions in the two cases wouldn’t be the first under the new GDPR rules, they will be the first to test the cooperation between all 27 EU data authorities. Due to the EU-wide effects of the alleged violations in the two cases, the Irish regulator has to share its draft decisions with other regulators, allowing them to weigh in and either approve or object to its findings.(Updates with company response in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Such is the new world of tech conferences in the age of COVID-19. They’ve gone all-digital, like Build and GTC Digital, and may never be the same. Absent a vaccine, the days of thousands of people herded into hotel ballrooms and convention centers like cattle, sharing cabs and eating in cramped quarters, are gone.
Today we'll look at Alphabet Inc. (NASDAQ:GOOG.L) and reflect on its potential as an investment. To be precise, we'll...
Amazon has a big-budget game, another in the works, and a secretive cloud gaming service in the making. All of that could prove to be a problem for the industry's old guard.
(Bloomberg Opinion) -- Almost three weeks ago, the American retailer J. Crew Group Inc. filed for bankruptcy after it fell out of fashion. But there’s one item from the once-feted store that shoppers just can’t get enough of: masks. The most recent batch of nonmedical face coverings in its signature fabrics — plain blue shirting and blue-and-white stripes — has sold out on its British website.Upmarket, stylish face coverings could provide a bit of a boost in a coronavirus-strewn landscape, where luxury goods sales are expected to drop as much as 35% this year, according to Bain & Co. estimates. To give some idea of the pent-up demand, fashion search platform Lyst said searches for masks are up 1,600% over the past month, compared with a year earlier. That’s sparked a huge debate in the luxury industry as to whether to cash in. After all, if we’re going to have to wear masks anyway, why not make them chic?It may be tempting. At the height of the crisis, many fashion houses — including LVMH’s Louis Vuitton and Christian Dior; Kering SA’s Gucci; Prada SpA; Burberry Group Plc; and Ralph Lauren Inc. — repurposed some production facilities to make personal protective equipment for donation to medical workers on the front lines. Burberry is poised to take delivery of a special mask-making machine at its mill in Keighley, Yorkshire. But the items will be for donation, not for sale in its shops. And they certainly won’t be made out of its iconic red, white, black and tan check.While the brands have gained the requisite skills, there are considerable risks associated with turning masks into fashion statements. So far, the bling behemoths are wisely keeping a respectable social distance.If luxury goods companies were to make masks for profit, not only would they need to look stylish, but they would probably have to boast some health effectiveness, too. And they’d have to be expensive to fit with any luxury brand’s high-end prices. For example, a Louis Vuitton monogrammed mink-fur sleep mask — perfect for catching some shuteye on that first-class flight — costs 700 pounds ($859).The danger is that luxury groups would be seen as profiteering from a health-care emergency. What’s more, according to consultants at McKinsey & Co., consumers shift to more subtle “silent luxury,” rather than in-your-face bling, after a large-scale crisis with a heavy emotional toll. What is perceived as unethical behavior — or simply ugly consumerism — could turn off customers, especially younger shoppers who are particularly conscious of brands’ social values.One way to get around this would be to give a percentage of the profits to good causes, or to donate one mask for every one sold. J. Crew has donated 75,000 single-use masks to Montefiore Health System hospitals in New York.Even if the pitfalls around profiteering are surmounted, there are other perils. Luxury is about feeling good. Brands must weigh whether they want to be associated with a pandemic and its huge human and economic toll. And although masks can have replaceable filters that extend their use, it’s unlikely people will hold onto them for long. Being disposable is anathema to luxury goods, from Hermes handbags to Cartier watches, for which heritage is crucial.That doesn’t mean face coverings won’t work for some brands. For example, Off-White, the streetwear label from DJ and designer Virgil Abloh, who is also the artistic director for Louis Vuitton’s menswear, has been producing masks for some time. Off-White’s $95 arrow-logo face mask was the most in-demand men’s fashion item in the first quarter, according to the Lyst index, which measures clothing and accessories searches on its own site, Google and other social media.Streetwear masks, along with heavy boots and multi-pocket coats, are part of an apocalyptic look that began to emerge before Covid-19. Serving to partly conceal one’s identity and repel other urban hazards like pollution, masks are a good fit with younger, edgier brands, such as the aptly named Anti Social Social Club. That’s not the case for traditional luxury.Consequently, the big fashion houses would be better off focusing their attention on items that can be accessorized with masks, or adapting products to changing needs. Luxury resale site Vestiaire Collective saw a 45% increase in orders for scarves, including Hermes’s classic silks, in the last week of March, compared with the previous seven days, and demand has remained elevated. Brands could experiment with supersized sun visors to ensure social distancing or extended collars that could double as face coverings.As the world emerges from the pandemic, and things become less emotionally charged, consumers may give luxury brands more permission to sell them protective clothing. For now, any move to do so will likely be a one-off to grab attention on the catwalk or Instagram. The pop star Billie Eilish, for one, donned a Gucci custom double-G-emblazoned mask for the Grammy Awards in January. While Gucci’s decision not to commercialize the product means passing up millions of euros of sales, it’s the right call. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Dropbox has been overlooked as investors rushed to stay-at-home tech stocks. Why the early cloud player deserves a fresh look.
After plunging 34% from its all-time high as fears rose over the Covid-19 outbreak, Google stock has clawed back. It may soon face antitrust litigation as battles with Amazon, Facebook intensify.
Amid a global pandemic, the sports memorabilia market has "increased exponentially."
This is an early test of a very ambitious project that aims to build entirely new games and real-world simulation engines in the long run.
Netflix shares are overvalued at current levels, one Wall Street analyst argues.
Canada will ramp up COVID-19 testing and contact tracing as it gradually lifts restrictions and is working closely with Apple Inc and Alphabet Inc's Google on a mobile phone app to help, the prime minister said on Friday. In his daily news conference, Prime Minister Justin Trudeau said the federal government was already helping Ontario, the most populous province, with contact tracing and was open to do the same for the other 12 provinces and territories. Businesses and citizens "need to know that we have a coordinated approach to gradually reopen that is rooted in science, evidence and the ability to rapidly detect and control any future outbreaks," Trudeau said.
There have been whispers — mostly uninformed — that because private equity firm Silver Lake recently invested $1.2 billion in Expedia Group and $1 billion in Airbnb that the two rivals might have a merger in their future plans. Newly appointed Expedia Group CEO Peter Kern, who has private equity experience of his own as […]
Artificial intelligence is bound to change the future of the world. By fiscal year 2025, the artificial intelligence market size is expected to be $390.9 billion. However, this number does not tell the whole story. By FY2030, the projected growth of global GDP as a result of artificial intelligence is expected to be $15.7 trillion. This projection bodes well for AI stocks.Clearly, this is a game changing technology for the world. The impact of AI will be felt across industries. As an example, AI-powered autonomous vehicles have the potential to reduce road accidents. Similarly, AI can prevent 86% of cyber-attacks.Further, as research article from Harvard Business Review suggests, AI-driven companies can outstrip traditional firms in the long-term. This makes the adoption of AI a necessity across industries.InvestorPlace - Stock Market News, Stock Advice & Trading TipsConsidering the potential for growth, there are several companies in the race to grab market share.My focus is on the following three AI stocks that can make significant inroads in AI in the coming years. These companies are likely to be long-term value creators as business from AI grows. Furthermore, these companies will shape a better and safer world through their AI-driven innovation.The following companies are on my investment radar: * 7 Excellent Penny Stocks Ready to Roar * Nvidia Corporation (NASDAQ:NVDA) * Baidu (NASDAQ:BIDU) * Alphabet (NASDAQ:GOOGL) Nvidia (NVDA)Source: Hairem / Shutterstock.com The first on this list of AI stocks to buy is Nvidia. Even as NVDA stock trades at 52-week highs, its worth considering with the company making significant inroads into AI. In particular, I am bullish on Nvidia's focus on autonomous cars and the healthcare industry.Nvidia has already partnered with the likes of Audi, Mercedes-Benz, Toyota, Volvo and Volkswagen for autonomous vehicles. Besides the revenue upside that is likely from these partnerships, autonomous vehicles are expected to "reduce accidents, improve the productivity of trucking and taxi services, and enable new mobility services."In the healthcare segment, Nvidia is making big progress. As an example, Nvidia is already providing researchers with AI that can detect and study infected patients through chest CT scan data. Further, Nvidia also made advances in the medical imaging industry for early detection, diagnosis, and treatment of disease.From a valuation perspective, NVDA stock is trading at a price-to-earnings-ratio of 46.99. However, the company's earnings growth is likely to remain robust, justifying premium valuations. I therefore expect the stock to continue trending higher. Baidu (BIDU)Source: StreetVJ / Shutterstock.com The Senate passed a bill that could delist Chinese companies from the U.S. stock exchange. This created some jitters for Chinese-listed stocks. However, I believe that Baidu is among the quality AI stocks from China and can pass the stringent compliance.Specific to AI, Baidu has been increasing investments in the segment, which promises to be a potential value creator for the company. Talking about the focus on AI, Baidu has filed 5,712 AI-related patents as of October 2019.In the autonomous vehicle segment, the company has already deployed more than 100 vehicles in 17 cities in China. Baidu has also been using AI to help health organizations cope with the novel coronavirus pandemic. * 10 Cheap Stocks to Buy Under $10 From a financial perspective, Baidu reported cash and equivalents of $20.7 billion as of March 2020. This gives the company ample financial flexibility to pursue investments and innovation related to AI. I believe that the company is well positioned to accelerate top-line growth in the coming years. This makes BIDU stock attractive, coupled with the fact that the stock currently trades at a P/E ratio of just 15.3. Alphabet (GOOGL, GOOG)Source: rvlsoft / Shutterstock.com After a sharp downside during the coronavirus-triggered market meltdown, GOOGL stock has been trending higher. I expect this upside will remain as the company has multiple growth triggers.AI is one of the areas where Alphabet has been trying to make significant inroads. Since FY2009, the company has acquired 30 AI start-ups for a total consideration of $4 billion. With ample financial flexibility, Alphabet is well positioned to pursue further inorganic growth.In terms of developments in the AI business, Google Health, DeepMind, and Moorfields Eye Hospital have partnered to use AI to predict sight-threatening eye conditions. Similarly, Google AI is helping in forecasting earthquake aftershock locations with AI-assisted science.These are just few examples of how AI promises to make the world a better place. With innovation-driven companies like Alphabet, the possibilities are endless. According to Sundar Pichai, CEO of Google and Alphabet "AI has great potential in reforming the world - from climate to healthcare."The word is that the world will no longer be the same after the coronavirus pandemic. One of the technologies that can bring a disruptive change for better is artificial intelligence. As AI grows, AI stocks and their respective companies will be significant value creators.Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock-specific articles with a focus on the technology, energy and commodities sector. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 3 AI Stocks Making the World a Better Place appeared first on InvestorPlace.
The Zacks Analyst Blog Highlights: Alphabet, Apple, Facebook, Netflix and Amazon.com