GOOG - Alphabet Inc.
1,194.50 -3.95 (-0.33%)
After hours: 5:58PM EDT
| Previous Close | 1,177.60 |
| Open | 1,190.09 |
| Bid | 1,191.11 x 900 |
| Ask | 1,197.99 x 1200 |
| Day's Range | 1,190.09 - 1,206.99 |
| 52 Week Range | 970.11 - 1,289.27 |
| Volume | 1,018,636 |
| Avg. Volume | 1,526,730 |
| Market Cap | 831.57B |
| Beta (3Y Monthly) | 0.96 |
| PE Ratio (TTM) | 24.19 |
| EPS (TTM) | 49.53 |
| Earnings Date | N/A |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 1,389.00 |
- Yahoo Finance Video
Google, Facebook, Amazon testify against French digital tax
Big tech companies are in the spotlight today as companies like Google, Amazon, and Facebook testify in a U.S. government hearing against the French digital tax. Yahoo Finance's Zack Guzman, and Jessica Smith discuss.
- Yahoo Finance
Amazon, Google, Facebook testify against France’s digital sales tax
Amazon, Facebook and Google told the United States Trade Representative's office how France's digital services tax could hurt their businesses at a hearing on Monday.
- Investor's Business Daily
Dow Jones Futures: States Plan Big Tech Antitrust Probe Of Apple, Facebook, Amazon, Google; Baidu Leads Big Earnings Movers
Stock futures: About a dozen states reportedly plan a Big Tech antitrust probe, likely ensnaring Apple, Facebook, Amazon and Google. Baidu, spinoff iQiyi and Fabrinet moved on earnings.
- Motley Fool
3 Reasons Why Spotify Is Becoming a Great Investment
Life as a public company has so far been a rocky one for the audio streaming platform. Since directly listing on the NYSE in April 2018 at $165.90 a share, the stock has had its ups and downs, and is now sitting more than 10% below its opening price.
- Bloomberg
Google, Facebook Unite With Trump to Protest French Tech Tax
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The relationship between President Donald Trump and the largest U.S. technology companies has often been frosty but a common opponent -- France’s plan to tax U.S. tech giants -- will bring the two sides together, at least temporarily.Alphabet Inc.’s Google, Facebook Inc. and Amazon.com Inc. all testified in Washington on Monday in support of the Trump administration’s efforts to potentially punish France for enacting a 3% tax on global tech companies with at least 750 million euros ($832 million) in global revenue and digital sales of 25 million euros in France.France’s digital tax “is a sharp departure from long-established tax rules and uniquely targets a subset of businesses,” Nicholas Bramble, trade policy counsel at Google, said at the U.S. Trade Representative’s Office hearing in Washington on Monday. “French government officials have emphasized repeatedly that the” tax is intended to target foreign technology companies.How ‘Digital Tax’ Plans in Europe Hit U.S. Tech: QuickTakeThe U.S. is probing France’s new tax, which French President Emmanuel Macron signed into law last month, using a tool that could be a precursor to new tariffs or other trade restrictions. U.S. Trade Representative Robert Lighthizer could take action as soon as Aug. 26 when a comment period on the issue closes.‘Radical Left’The effort to crack down on France has created common ground for Trump -- who has called Google and Facebook “on the side of the Radical Left Democrats” and accused Amazon of avoiding taxes -- and technology companies that are both worried foreign governments are looking to use American corporations as a way to collect additional tax revenue.While Amazon has increased its profit margins, even so the French digital tax could eat into profitability, said Peter Hiltz, the online retailer’s director of international tax and policy planning.If another country -- such as Spain -- were to enact a tax similar to France, that tax could compound, he said. If a French buyer were to buy a product from a Spanish seller, that transaction would be taxed by both countries, he said.The U.S. is looking to use France as an example to deter other countries from targeting American technology firms for tax dollars. The U.K., New Zealand, Spain and Italy are among countries considering their own digital taxes, a move that U.S. officials say could lead to companies being taxed multiple times on the same profits.Trump has threatened to tax French wine or other goods in response to the digital tax. Trump said he was considering a 100% tariff on French wine at a fund-raiser last week, though it’s unclear if he was being serious.He also tweeted last month “we will announce a substantial reciprocal action on Macron’s foolishness shortly!” The so-called 301 investigation, which looks into unfair trade practices, is the same tool Trump used to slap tariffs on China over alleged intellectual-property theft.The U.S. says countries considering their own version of a digital tax should focus on ongoing global talks with 130 countries on how to tax tech companies. Any future pact would likely create a whole new set of rules governing which countries have the right to tax the companies, which corporate profits are taxable, and how to resolve the inevitable disputes that would arise. A deal could be reached as soon as next year.Opposition to France’s tax is a rare area of bipartisan agreement in Congress. In a letter to Treasury Secretary Steven Mnuchin in June, Senators Chuck Grassley, an Iowa Republican, and Ron Wyden, an Oregon Democrat, urged the U.S. to look at “all available tools under U.S. law to address such targeted and discriminatory taxation.”The lawmakers included a suggestion to use a section of the tax code that would double the rate of U.S. taxes on French citizens and companies in the U.S.(Updates with Amazon representatives comments starting in the sixth paragrah.)To contact the reporter on this story: Laura Davison in Washington at ldavison4@bloomberg.netTo contact the editors responsible for this story: Joe Sobczyk at jsobczyk@bloomberg.net, Sarah McGregor, Robert JamesonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- InvestorPlace
Baidu Stock Looks Risky Ahead of Earnings
Chinese internet search giant Baidu (NASDAQ:BIDU) is set to report second-quarter numbers after today's bell and I'm not too optimistic on BIDU stock ahead of the print.Source: StreetVJ / Shutterstock.com From a high-level perspective, it does appear that China's economy is rebounding. Economic data coming out of China has meaningfully improved over the past several months. Meanwhile, Chinese tech heavyweights Alibaba (NYSE:BABA), JD.Com (NASDAQ:JD) and Tencent (OTCMKTS:TCEHY) all recently reported strong quarterly numbers.But two of those three companies -- JD and Tencent -- said on their earnings calls that the ad market in China remains incredibly challenging. Tencent's ad business actually slowed this quarter. Baidu gets most of its revenue from its ad business. As such, with the broad read from recent reports being that China's ad business remains under tremendous pressure, the chance of Baidu reporting favorable numbers is not great.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's why I'm avoiding BIDU stock this earnings season. This stock is in a big secular decline because its numbers have consistently disappointed investors. Those numbers will likely continue to disappoint for the foreseeable future. Thus, while Baidu stock is pretty cheap, it's still too risky to try and catch this falling knife.The big implication here? Stay until away until there's reason to come back. Baidu's Numbers Likely Won't Be GoodThe big reason to avoid BIDU stock ahead of the Q2 print is because it looks like the numbers won't be that good. * 7 Safe Dividend Stocks for Investors to Buy Right Now Baidu has a lot of moving parts. But, at its core, this is the Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) of China. As such, Baidu is an advertising business. Specifically, this is a search advertising business. But, the whole digital ad market in China -- and specifically the search ad market -- is dramatically slowing, mostly because it's oversaturated and because the entire economy is slowing.In these slowing markets, Baidu is also losing share. This share erosion has two drivers. One, alternative ad formats are more compelling (like in-feed and social). Two, Baidu is staring at elevated competition in the search game.Net net, Baidu is losing share in a slowing market. This has caused core revenue growth rates to slow from 50%-plus a few years ago, to under 20% last quarter. At the same time, Baidu is aggressively investing in alternative growth arenas to re-stimulate growth. This big spend is killing margins. Slowing growth plus falling margins equals tumbling profits. That's exactly what's happening. BIDU stock's earnings per share is expected to be cut in half this year.It does not appear that the Q2 print will have anything in it that will change the course of this downbeat narrative. JD said in its recent conference call that the China ad market remains under great pressure. Tencent had a similar tone in its conference call, citing a challenging digital ad macro environment as the reason why their digital ad business slowed from 25% growth in Q1 to 16% growth in Q2.If JD and Tencent -- two companies whose ad businesses have been relatively strong -- struggled this past quarter on the ad front, then it's pretty likely that Baidu -- a company whose ad business has been in free-fall -- struggled too. Continued bad numbers from Baidu won't be enough to shake BIDU stock out of its multi-quarter downtrend. Baidu Stock Is Cheap -- But the Worst May Not Be OverZooming out, Baidu stock is unequivocally very cheap in the big picture.Revenue growth trends are falling flat this year. But they will probably improve over the next several years as Baidu adapts its ad business to be more relevant in China's double-digit growth ad market. Thus, Baidu should be able to start stabilizing market share over the next several years, which should lead to renewed and consistent double-digit revenue growth. Revenue growth consistency will allow the company to pull back on big growth-related investments, so margins should improve too.Realistically, Baidu could grow revenues at a roughly 10% rate from 2019 into 2025, while adjusted operating margins could bounce back to 20% (where they were in 2018). Those assumptions make $15 in EPS seem doable for Baidu by 2025. Based on a market average 16-forward multiple, that implies a 2024 price target for BIDU stock of $240. Discounted back by 10% per year, that equates to a 2019 price target of roughly $150.That's more than 50% higher than where Baidu stock trades today. Thus, BIDU stock is undervalued.But, it will remain undervalued until investors have reason to believe that Baidu will stabilize its share in China's slowing digital ad market. That won't happen this quarter. As such, for the foreseeable future, BIDU stock will likely remain undervalued. Bottom Line on BIDU StockAt some point, Baidu stock will stage a huge, rip-your-face-off rally. But not today. That rally won't happen until Baidu proves that it can stabilize share in the slowing China digital ad market, and thereby, stabilize margins and profits. Baidu won't prove that this quarter. Until it does, it's best to stay away from this falling knife.As of this writing, Luke Lango was long BABA, JD and GOOG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Baidu Stock Looks Risky Ahead of Earnings appeared first on InvestorPlace.
- TheStreet.com
[video]State Attorneys General May Launch Big Tech Probe: Report
State attorneys general are discussing launching their own antitrust probe of big technology firms such as Facebook and Alphabet's Google unit, according to a published report Monday. The formal effort could get underway as early as September, The Wall Street Journal reported, citing unnamed sources.
- Bloomberg
U.S. to Ease Huawei Sanctions for Another 90 Days, Ross Says
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The U.S. will extend for another 90 days a limited set of exemptions that had protected rural networks and other U.S. customers from a ban on doing business with China’s Huawei Technologies Co., Commerce Secretary Wilbur Ross said Monday.Some telecom companies in the U.S. are “dependent” on Huawei, and so a 90-day reprieve was deemed appropriate, Ross said in an interview with Fox Business’s Maria Bartiromo. Still, the U.S. also added more than 40 Huawei affiliates to a trade blacklist.“We’re giving them a little more time to wean themselves off,” he added. Ross said the next deadline will be around Nov. 19. He added that Commerce decided to place 46 more Huawei subsidiaries on its entity list.The announcement doesn’t address the wider national-security concerns about Huawei and answer the bigger question of whether U.S. chip companies and other major suppliers will be allowed to sell parts to China.Huawei said in a statement that the temporary relief “does not change the fact that Huawei has been treated unjustly. Today’s decision won’t have a substantial impact on Huawei’s business either way.” The move to add more of Huawei’s affiliates to the so-called Entity List “at this particular time, is politically motivated and has nothing to do with national security,” the company said.QuickTake: How Huawei Became a Target for GovernmentsPresident Donald Trump over the weekend indicated the U.S. was “doing very well with China, and talking” but also suggested he wasn’t ready to sign a trade deal.U.S. stocks rallied Monday after the Trump administration signaled progress on trade negotiations and Ross announced the extension. Huawei, China’s largest technology company by sales, has been at the heart of worsening tensions and been called a bargaining chip in thorny trade negotiations between Washington and Beijing. Trump had said he anticipated talking with Chinese President Xi Jinping “very soon” and the Huawei move may sweeten the tone of those discussions.Huawei, for its part, has been trying to carry on operations in face of U.S. sanctions on the sale of the vital technology. The company this month announced its in-house HarmonyOS, an open-source operating system that could one day serve as a replacement for Google Inc.’s Android if its access to that software is curtailed.Without Android or the numerous American silicon, technology and consultancy suppliers that Huawei does business with, many of its most promising product lines would either cease their rapid growth or be thwarted entirely.Rural AreasThe U.S. Commerce Department previously granted a three-month temporary license to Huawei’s U.S. customers shortly after the Trump administration blacklisted the Chinese company. That allowed telecom carriers in rural areas to continue using Huawei equipment and Google to provide only key Android security updates to Huawei phones.The latest extension came after Trump met in July with the chief executives of key Huawei suppliers from Alphabet Inc.’s Google and Broadcom Inc. to Intel Corp. and Qualcomm Inc. to discuss economic issues including a possible resumption of sales to Huawei. U.S. companies argued that Huawei will turn to non-American suppliers if sanctions persisted, hurting the U.S. in the long run. But trade talks with Beijing ground to a halt and China refused to resume purchases of American agricultural products.National SecurityThe announcement Monday came one day after Trump suggested that Huawei was unlikely to receive another extension, pushing back against news reports about an expected reprieve.“At this moment, it looks much more like we’re not going to do business,” Trump told reporters on Sunday in New Jersey. “I don’t want to do business at all, because it is a national security threat.”The president tied trade negotiations with the ongoing situation in Hong Kong, saying that a deal between the U.S. and China would be harder if there’s a violent conclusion to protests there because of concerns raised by U.S. lawmakers.Earlier this month, the trade war between the two countries intensified as the U.S. announced a next round of 10% tariffs on Chinese imports between Sept. 1 and Dec. 15. China responded with a boycott of American farm products and allowed its currency to weaken, signaling that this can help cushion the tariff blow.(Updates with Huawei reaction in fifth paragraph.)\--With assistance from Gao Yuan and Kasia Klimasinska.To contact the reporters on this story: Vlad Savov in Tokyo at vsavov5@bloomberg.net;Jordan Fabian in New York at jfabian6@bloomberg.net;Shawn Donnan in Washington at sdonnan@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, Elizabeth Wasserman, Sarah McGregorFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Barrons.com
Internet Stocks Will Get Hit Hard During a Recession. These Companies Could Hold Up Best.
During the last recession, the Nasdaq Composite dropped 55% from the its highs to its lows. Wall Street is now handicapping how internet stocks might fare in the next downturn.
- Benzinga
LiDAR Company Velodyne Sues Chinese Firms For Patent Infringement
LiDAR — light detection and ranging scanning — is a form of remote sensing technology that sends out laser pulses, which bounce off objects in front of it, helping the instrument to measure the size and distance of objects for creating a three-dimensional model of the environment. Within the autonomous driving circle, the use of LiDAR has been a topic of debate.
- InvestorPlace
Nvidia Stock Will Survive the Chip Recession
Recessions in the semiconductor industry hearken back to the days before computing. They're inventory recessions. Supply exceeds demand, so production slows while supply is worked off. Once inventory comes back into balance, prices rise and supply resumes.Source: Hairem / Shutterstock.com The latest results from Nvidia (NASDAQ:NVDA) indicate the latest chip recession, which began a year ago, is already easing. Net income of $552 million, 90 cents per share was down by half from what it was then. But revenue of $2.58 billion was up 16% from the previous quarter.This put some wind back beneath the wings of the stock. It shot up $10 per share almost immediately. With the stock market roaring back, Nvidia opened Aug. 19 up another $5, at $164.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Smart Money BuyingBut the smart money was already in. So was I. I picked up 100 shares for my retirement account in May, so after a bumpy ride (it has since been as low as $132) I'm in the money. * 7 Safe Dividend Stocks for Investors to Buy Right Now I have also recommended the shares twice since the start of July. First I recommended it for those who look good in leather jackets, like Nvidia CEO Jensen Huang. More recently I have counseled patience, calling it an essential long-term holding.Over the next 5-10 years the future for Nvidia looks so bright you need to wear shades.Nvidia is the leader in computer graphics as even Microsoft (NASDAQ:MSFT) acknowledged in using it for its video game Minecraft. NVDA's only cloud rival in data center graphics is Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), so cloud companies that want to keep up almost have to buy its silicon.The same technology that makes computer games pretty and brings in the Bitcoin is essential to delivering artificial intelligence from clouds. Even if Advanced Micro Devices (NASDAQ:AMD) increases its share of an Nvidia market, Nvidia will prosper.The data center business will be further fortified by the pending acquisition of Mellanox (NASDAQ:MLNX), whose internal communications fabric gives Nvidia a more complete solution for cloud builders. Nvidia has already announced a "cloud in a box" to bring new applications to the network edge, to factories and office buildings. What AI Means for NvidiaWith Nvidia, artificial intelligence means computers can respond easily to natural language requests, making more applications self-service. In his conference call after the earnings announcement Huang said over 4,000 AI startups are now working with his company. Graphics chips are getting better at recognizing objects, bringing self-driving cars, trucks and buses closer.The point is that AI isn't just a cloud thing. It's also an edge thing. Building intelligence into factories and cities, not just for maintenance but for regular operations, will be the next leg in demand. Chips for those applications are about to be released.As a demonstration of what is possible, Nvidia is delivering Jetson Nano, a small-scale development kit with both hardware and software. These kits are available online for as little as $100 and by 2025, machine learning will be a $40 billion market. The Bottom Line on NVDA StockEven if there's a general recession ahead, technology is the first industry out of it. Office jobs that disappeared in the 2001 recession did not come back. Neither did the sales jobs that disappeared in the 2008 recession. It's hard to tell which jobs will disappear this time, but at minimum there will be fewer operators standing by.When automation becomes a survival strategy, Nvidia will be a good stock to be in. Since the bottom of the last recession NVDA stock is up 1,200%. More good times are ahead.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in NVDA and MSFT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Nvidia Stock Will Survive the Chip Recession appeared first on InvestorPlace.
- Market Realist
Is Huawei a Threat to Google’s Advertising Business?
Huawei plans to launch its own mapping service as soon as this October. But Huawei’s Map Kit will initially not be a consumer mapping service.
- American City Business Journals
YouTube seeks 'strategic partner managers' amid content crackdown, accusations of censorship
Each new partner manager will be tasked with handling relationships with either conservative or progressive political publishers.
- American City Business Journals
Report: Privacy issues prompt Google to shut down a service for wireless carriers
Google's Mobile Network Insights service, which was launched in March 2017 and provided free to carriers, used aggregated data from devices that ran Google’s Android operating system.
- InvestorPlace
3 Reasons to Buy IBM Stock on the Dip
Until a couple weeks ago, IBM (NYSE:IBM) stock was on a solid bull run. But with the plunge in the markets, IBM stock price got hit, going from $150 to $133.76.Source: Shutterstock Despite the recent decline, International Business Machines stock is still up a respectable 18% for the year. Keep in mind that - for the past five years - the return of IBM stock has averaged -3%!Now the company certainly has its issues. Especially in the software sector, a large amount of IBM's revenues still come from legacy technologies,. The result is that the company continues to be a laggard in the cloud business, compared to its competitors like Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG). Consequently, during the past four quarters, IBM's top line fell.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet I still think IBM stock offers investors an opportunity now. IBM stock looks well-positioned to benefit from a major transformation of the company's business. * 7 Great Small-Cap Stocks to Buy The Red Hat DealIBM's $34 billion acquisition of Red Hat is definitely risky. But I think the deal was worthwhile. Red Hat is a pioneer of the open-source software model, which has become a critical part of enterprise IT. This no-fee approach facilitates more ongoing innovation from an ecosystem of coders, as well as easier adoption.Through the years, Red Hat has built a robust platform that helps companies manage hybrid environments, including traditional, on-premise software and cloud applications. As more companies seek to more fully exploit the digital transformation, this approach is becoming quite attractive. And the opportunity for IBM is still in the early stages. The company believes that a typical enterprise is only about 20% through the transition to the cloud.IBM also brings key advantages. After all, the company offers significant opportunities for cross-selling into its massive customer base. It also has sophisticated global IT infrastructure. The AI Power of IBM StockDuring the past five years or so, AI has become a fast-growing part of the tech world. This has been due to the convergence of factors like: the proliferation of big data, the innovation of deep learning models, the speed of GPUs (graphic processing units) and the growth of IoT (Internet-of-Things).IBM has actually been in the AI game for decades. It was back in the 1980s that it created Deep Blue, which went on to beat the world champion of chess, Garry Kasparov. Then in 2014. IBM launched Watson, which beat the two all-time champions of Jeopardy!Yet Watson definitely does much more than play games. The platform has become a powerhouse for AI, with more than 20,000 client engagements across 20 industries.IBM's consulting division also benefits from the increased popularity of AI. After all, there is often a need for extensive data integration, planning of AI models and deployment. An example of this is IBM's engagement with ADP (NYSE:ADP), which worked with IBM to create a digital agent that handles as much as 20% of the company's chat traffic. The IBM Stock Price Is CheapToday it's tough to find a low-valuation tech play, especially one in hot markets like cutting-edge AI. But IBM stock is - by any definition - a value opportunity right now. Consider that the forward price-earnings multiple of IBM stock is a mere ten.And IBM has one of the highest dividend yields in tech: a juicy 4.84%. Note that it has raised its dividend for 24 consecutive years.In the meantime, the company continues to crank out the cash flows to support the payout. During the past 12 months, it generated $16.1 billion of cash.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Reasons to Buy IBM Stock on the Dip appeared first on InvestorPlace.
- Bloomberg
Semiconductor Startup Shows Off the World’s Biggest Processor
(Bloomberg) -- In the semiconductor industry, bigger is not usually better. For 60 years, chip companies have strived to make the brains of computers as tiny as possible.Startup Cerebras Systems will turn this maxim on its head on Monday when it unveils a processor measuring roughly 8 inches by 8 inches. That’s at least 50 times larger than similar chips available today.The logic behind going big is simple, according to founder Andrew Feldman. Artificial intelligence software requires huge amounts of information to improve, so processors need to be as fast as possible to crunch all this data -- even if that means the components get really chunky.The company’s Wafer Scale Engine chip is large because it has 1.2 trillion transistors, 400,000 computing cores and 18 gigabytes of memory. (A typical PC processor will have about 2 billion transistors, four to six cores and a fraction of the memory).“Every square millimeter is optimized for this work,” Feldman said. “AI work is growing like crazy. Our customers are in pain.” The biggest limitation of current AI systems is that it takes too long to train software, he added.Feldman has experience and industry backing that’s essential to tackling an engineering problem of this magnitude, he said. He co-founded server maker SeaMicro Inc. and sold it to chipmaker Advanced Micro Devices Inc. for more than $300 million in 2012. Cerebras has raised over $100 million from Silicon Valley investors including Benchmark, Andy Bechtolsheim and Sam Altman. Feldman has a team of 174 engineers and Taiwan Semiconductor Manufacturing Co. -- Apple Inc.’s chipmaker of choice -- is manufacturing the massive Cerebras processor.Cerebras won’t sell the chips because it’s so difficult to connect and cool such a huge piece of silicon. Instead, the product will offered as part of a new server that will be installed in data centers. The company said it has test systems working at several large potential customers and will start shipping the machines commercially in October.The AI chip market includes Nvidia Corp., Intel Corp. and U.K. startup Graphcore Ltd. Google has been so keen to speed up AI progress that the internet giant developed its own special chips called Tensor Processing Units.Nvidia was the last company to successfully bring new semiconductor technology into servers, the machines that run data centers that Google, Facebook Inc. and others use to run internet services. Nvidia now gets almost $3 billion a year in revenue from the business, which took years and thousands of engineers to build, according to Chief Executive Officer Jensen Huang.“It takes a long time to be successful in data center,” he said in an interview last week.To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Alistair Barr, Mark MilianFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- InvestorPlace
Do You Buy Amazon Stock Here or on a Deeper Dip?
Amazon's (NASDAQ:AMZN) valuation used to be a pretty big talking point. "It doesn't make any money!" "The P/E multiple is in the thousands!" How many times did we hear about that? Too much. Making matters worse for the bears, Amazon has gone on to become one of the largest companies in the world.It's forced many of those investors to finally acknowledge that AMZN stock is instead a buy, although there are different opinions on when to do it.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Dip-Buying on Amazon StockMany years ago, I was skeptical of AMZN stock because of these valuation concerns. In hindsight it's easy to laugh about it. But at the time, it was defying all historic valuation metrics.Those fears kept me from buying aggressively, which was a mistake looking back on it. However, its momentum and strong price action kept me from ever shorting the e-commerce giant. Further, it's one of my favorite deep-dip stocks to buy on big corrections. * 10 Cheap Dividend Stocks to Load Up On When we see huge stock market corrections, we tend to get larger-than-average pullbacks in AMZN too. Click to EnlargeIn early 2014 and 2016, AMZN stock took a roughly 30% fall. In the fourth quarter of 2018, shares fell almost 40% from peak to trough. Not many investors will snag the bottom but being cognizant of these types of corrections is important.More mild corrections (15%-plus losses) happen in between the big ones. So, while it may be tempting to buy a few AMZN shares when the stock is rallying and analysts are slapping $2,500 price targets on it, bigger dips are investors' real friend.Right now, Amazon stock is 14% off the recent highs. It's also into a key level of support, as you'll see below in a moment. Should it correct back down to $1,400, a major support level in 2018, it will be 31% off its highs.The bottom line? When the stock market is in irrational sell-off mode, keep Amazon stock on watch. Down 30% or more doesn't come around often, but it's a good time to nibble when it does. Trading AMZN StockAt $1,770, Amazon stock has a number of support levels just below current prices. The prior Q4 highs and the recent lows from earlier this month are nearby. There's also the 38.2% retracement and the 200-day moving average. Finally, there's uptrend support for 2019 (blue line). Click to EnlargeIf all of these levels give way, the 50% retracement near $1,675 is in play, with the 61.8% retracement near $1,600 below that. In between -- at $1,628 -- AMZN will be 20% off its recent high. At $1,424, the Amazon stock price will be 30% off the recent high and just above key support. Bottom Line on AmazonAmazon now commands an $875 billion market capitalization, although at one point it was north of $1 billion.Just look at the continued onslaught we're seeing in traditional retail. Department stores like Macy's (NYSE:M) are getting crushed, while J.C. Penney (NYSE:JCP) is on the brink. There are some that are not only surviving but thriving, such as Home Depot (NYSE:HD) and Costco (NASDAQ:COST). But for the most part, it's quite clear e-commerce is the present and the future.That bodes well for names like Amazon and Shopify (NASDAQ:SHOP). But Amazon's business goes much further than that.It's got one of the largest cloud businesses in the country, outmuscling names like Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Its digital advertising space has quickly grown into a behemoth in its own right.Put simply, AMZN is a tech giant with a sprawling reach across the digital world. It may not be cheap -- although it's cheaper than its historical comparisons -- but it's one of those names you buy on deep pullbacks. They may only come around once in a while, but those are the times to pounce.Amazon is forecast to grow revenue about 20% this year to roughly $280 billion and almost 19% in the following year. Now profitable, AMZN stock features strong earnings and robust cash flow. It's a name to own if you get it on a deep enough correction.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long GOOGL and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Do You Buy Amazon Stock Here or on a Deeper Dip? appeared first on InvestorPlace.
- Benzinga
This Day In Market History: The Google IPO
Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened? On this day 15 years ago, Google held its initial public offering. Where The Market Was ...
- CBS News Videos
Wired: 3 years of misery inside Google after Trump's election
Google's reputation as one of Silicon Valley's friendliest tech companies began to shatter following President Trump's election. Wired magazine's Senior Writer Nitasha Tiku joins "CBSN AM" to discuss her September cover story, which gives an insight into the last three years of Google. She spoke to 47 current and former Google employees about several key events, including leaked emails and a bid for artificial intelligence.
