|Bid||1,236.51 x 900|
|Ask||1,240.59 x 800|
|Day's Range||1,227.01 - 1,240.88|
|52 Week Range||970.11 - 1,289.27|
|Beta (3Y Monthly)||0.94|
|PE Ratio (TTM)||25.02|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||1,389.00|
Wall Street's eyes next week will be focused on Washington. Federal Reserve policy makers are expected to cut interest rates by a quarter percentage point after their meeting ends on Wednesday. That'll be the second rate cut since 2008. Fed Chair Jerome Powell finds himself in a tight spot. The U.S.-China trade war and a global slowdown have begun to pinch business spending and manufacturing output, but on the other hand, American consumers continue to spend, wages are rising, and employers keep adding jobs. Also on Wednesday: grilling in store for Google, Facebook, and Twitter. Executives from the tech giants testify before a Senate panel about removing violent content from online platforms. The hearing comes as Congress grows increasingly concerned about the use of social media by people committing mass shootings and other violent acts. Over on Wall Street, investors have begun rotating away from momentum-driven growth stocks like Google's parent Alphabet and towards beaten-down value stocks.
Congress is ramping up the pressure on big tech, demanding a trove of documents from Facebook, Amazon, Alphabet and Apple as part of an anti-trust probe. House lawmakers on Friday sent letters asking the four companies to turn over internal emails from CEOs Tim Cook, Jeff Bezos, Mark Zuckerberg and Larry Page - related to acquisitions. Also requested: information from the executives on market share, their competitors and documents from other investigations. SOUNDBITE (ENGLISH) LOUISIANA ATTORNEY GENERAL JEFFREY LAND, SAYING: "We are here because there is an absolutely existential threat in our virtual marketplace." The letters come days after 50 attorneys general representing U.S states and territories banned together to officially launch a probe into whether search giant Google is abusing power as a monopoly. Apple and Facebook did not immediately respond to a request for comment, while Amazon did not immediately comment. Google pointed to a blog post issued this week that said its services "create choice for consumers."
Is there a job out there that gives you a six-figure income, high job satisfaction and has enough job openings to make it a real possibility? The “Glassdoor Job Score” is determined by weighing three factors equally: Earning potential (median annual base salary), overall job satisfaction rating and number of job openings.
Google has agreed to make a one-time settlement of over $945 million euros to the French ministry. The ministry accused Google of evading taxes.
(Bloomberg) -- Stanford University received a $50,000 donation from a foundation funded by deceased sex offender Jeffrey Epstein, a spokesman said Friday.The donation came in 2004, two years before allegations involving Epstein’s sexual conduct with young girls started making news. The gift went to the university’s physics department. “The funds were expended shortly thereafter and we have no record of any other gifts to the university from him or his foundations,” a Stanford University spokesman said in an email. News of the donation emerges as educational institutions are coming to grips with their relationship with the disgraced financier, who committed suicide last month in a Manhattan jail while awaiting trial on sex trafficking and conspiracy charges. Epstein, who was 66, cultivated relationships with scientists and technologists, holding conferences and attending events with leading thinkers such as the late cosmologist Stephen Hawking and LinkedIn co-founder Reid Hoffman. Last month, Stanford was among institutions that told BuzzFeed that they had searched financial records and couldn’t find evidence of an Epstein donation. A Stanford spokesman said BuzzFeed had requested information about gifts after 2006, when Epstein was charged for the first time. The school said it also told the reporter of the 2004 donation.On Thursday, Harvard University President Lawrence Bacow said the university was reviewing millions of dollars in Epstein donations, all of which came before his 2008 guilty plea in Florida. Also on Thursday, Massachusetts Institute of Technology President Rafael Reif said he signed a 2012 thank-you letter to Epstein for a donation, but has no memory of it. MIT launched its own review into Epstein donations last month.Joi Ito, the director of the MIT Media Lab, resigned from his post on Sept. 7 after the New Yorker reported that the Media Lab’s ties to Epstein ran deeper than Ito had disclosed. In August, Reif said MIT had received $800,000 from Epstein-linked foundations. In early September Ito said he had also received $1.2 million from Epstein for outside investment funds he controlled. In an email to Axios on Thursday, Hoffman said he last interacted with Epstein in 2015, and that all his few interactions came at the request of Ito, with the goal of fundraising for the Media Lab. Hoffman said Ito had told him that MIT had vetted Epstein.“By agreeing to participate in any fundraising activity where Epstein was present, I helped to repair his reputation and perpetuate injustice,” Hoffman told Axios. “For this, I am deeply regretful.”Since Epstein’s arrest in July, many technology figures have rushed to distance themselves from the financier. Stanford, in the heart of Silicon Valley, has become the breeding ground for tech titans from Hewlett-Packard to Google. This year, it was caught up in a bribery scandal alleging rich parents could pay a middleman for admission to a handful of elite schools. Federal prosecutors alleged that a now-fired sailing coach accepted donations for the sailing program in exchange for smoothing the application process for some students.Epstein’s COUQ Foundation Inc. made the donation to Stanford. The same charity gave to a wide variety of causes, including the Clinton Foundation, the Martha Graham Dance Company and the Save Darfur Coalition, according to filings.To contact the author of this story: Sarah McBride in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Anne VanderMey at email@example.com, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Apple is launching a streaming service in November, making it a direct competitor to Disney’s service that is set to launch the same month.
The House sent separate letters to Apple, Alphabet, Amazon.com, and Facebook seeking information related to an investigation of competitive issues in digital markets.
The OneFifteen addiction treatment center coming online in Dayton hit another milestone today as a topping out ceremony was held for the first residential treatment facility. However the first patients likely won't be treated until October — a delay from the original date of end of June.
This week has been rough for big tech companies. On Monday, 50 states and territories announced that they're launching an antitrust investigation into Google.
I listened to Leon Cooperman’s talk at an event hosted by the New York Alternative Investment Roundtable. There were a few members of the media present at the event and they decided that the most interesting part of Cooperman’s talk was his comments regarding the private equity industry. “I think it’s a scam personally” Cooperman […]
Despite positive rhetoric from the top, the economy may be headed for troubled waters. For one thing, the benchmark indices have not demonstrated much conviction. Further, individual names have taken some ugly dives, scaring off investors from the usual stocks to buy.Unfortunately, the situation may not improve in the nearer term. While President Trump has always spouted the message of winning against China, the actual data suggests otherwise. According to Moody's Analytics, the trade war has cost the U.S. approximately 300,000 jobs. Based on present trends, the firm estimates that the job loss tally will reach 450,000 by year's end.Another factor that has stymied stocks to buy is the political situation. Currently, we're in one of the most divisive eras in American history. With a high-stakes election coming up next year, Trump can't afford to look weak to his core voting base. Thus, the trade war might continue for at least another year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut in the midst of this turmoil, investors have an opportunity to go contrarian with recession-resistant services stocks to buy. Although consumers are generally incentivized to curtail spending in a downturn, some service providers are simply indelible. Others help clients save money, which is a necessity in troubled times. * 10 Stocks to Sell in Market-Cursed September So without any more delays, here are my picks for recession-resistant services stocks to buy: Alphabet (GOOG, GOOGL)Source: Castleski / Shutterstock.com At first glance, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) doesn't appear an intuitive candidate for recession-resistant services stocks to buy. With its technology-centric business, and one that is increasingly geared toward the cloud, GOOGL stock would seem more vulnerable to volatility under a recession.However, what changes the calculus for GOOGL stock is YouTube. As we all know, recessions are generally unhelpful for discretionary retail names: people simply will shut down unnecessary spending. And in some ways, that applies to services stocks as well. However, Alphabet via YouTube provides a wealth of free information (amid all the other junk).I'll use a personal example. I'm not the most technically inclined for household maintenance work. However, with YouTube, I've been able to take care of several basic jobs, allowing me to save hundreds. In a recession, I think this example will be amplified tenfold, making GOOGL stock one of the surprisingly good services stocks to buy. AutoZone (AZO)Source: Robert Gregory Griffeth / Shutterstock.com You don't have to do deep research to understand that auto sales decline sharply in a recession. But if you want the proof, here it is: according to the Federal Reserve's economic research arm, the retail automotive sector was one of the hardest hit segments of the economy during the 2008 financial crisis and the subsequent Great Recession.That's bad news for automakers. However, it might spell at least a stable revenue channel for AutoZone (NYSE:AZO) and AZO stock.Part of the allure of buying a new car is the associated benefits. For instance, many dealerships offer complementary services like oil changes for the first few years of ownership (or lease). But in a recession, such offers won't be enough to overcome consumer fears. That plays into the hands of AZO stock and related services stocks to buy. * 7 Discount Retail Stocks to Buy for a Recession Not only does AutoZone provide an extensive array of parts, their customer service team can help direct you accordingly. Combined with the do-it-yourself information available at YouTube, AZO stock appears a compelling contrarian buy in a recession. O'Reilly Automotive (ORLY)Source: Jonathan Weiss / Shutterstock.com One of the difficult aspects about figuring out which services stocks to buy for a recession is the underlying assumption: nobody truly knows what's going to happen next. With the markets still relatively elevated, it seems a recovery is possible in the nearer term. But for those who think that, I'd still recommend looking into O'Reilly Automotive (NASDAQ:ORLY) and ORLY stock.While benchmark indices still have their foot in the bull market, the automotive sector is decidedly bearish. Earlier this summer, automotive journal Jalopnik noted that car sales have slipped to a "recession-level decline." As I mentioned earlier, this is bad news for most automakers. However, it suits ORLY stock perfectly.Aside from offering a warehouse of parts, O'Reilly also provides several free services. These include critical functions, such as battery testing and "check engine light" testing. While complementary, these offers facilitate upselling for parts and specialized services. That's a big plus for ORLY stock as investors seek out viable opportunities in a distressed environment. H&R Block (HRB)Source: Ken Wolter / Shutterstock.com Among recession-resistant services stocks to buy, H&R Block (NYSE:HRB) is probably the least intuitive play. That assessment has only been exacerbated by the recent sharp decline in HRB stock. With the drop, shares have essentially gone flat for over the last three years. Certainly, this is not a great way to make an introduction.I'll freely admit that HRB stock has substantial risks. If you have a conservative portfolio, you may want to seek other services stocks. That said, if we fall into a recession, H&R Block's core business becomes all the more valuable.Yes, you can do your taxes yourself, which saves frontline costs. However, in the long run, you're better off with credentialed accounting advice. That applies even more so with small business owners and those with complex tax situations. * 10 Battered Tech Stocks to Buy Now Indeed, in these latter categories, people can save money in the long haul. With accountants guiding you to perfectly legal deductions, clients can maximize their financials and have peace of mind. Those are all valuable attributes that underline HRB stock. Aflac (AFL)Source: Ken Wolter / Shutterstock.com Supplemental insurance provider Aflac (NYSE:AFL) hasn't enjoyed the best performance over the past few months. Since the middle of July, AFL stock is down nearly double digits. With some of the recessionary fears impacting trading behavior, the equity may unfortunately be choppy over the nearer term.But in the broader picture, I think the realities of an economic downturn may inspire people to consider Aflac's services. While traditional insurance programs may cover the basics, there are always potential gaps that might not be covered. In these situations, Aflac provides a valuable service, making AFL stock one of the more critical stocks to buy.On a more personal note, I interviewed James Wright, an aircraft mechanic who suffered debilitating osteoarthritis. Wright was out of work for 20 months while he concentrated on rehabilitation. Through his dedicated commitment, as well as assistance from employment network Allsup Employment Services, he was back on his feet.Certainly, Wright is one of the lucky ones. But his story is a reminder that our health is not guaranteed. However, companies like Aflac can provide peace of mind, which is a tremendous boost for AFL stock. Carriage Services (CSV)Source: Shutterstock This is an icky topic, but death is simply a part of life, ironically enough. While it's also not dinner table conversation, investments like Carriage Services (NYSE:CSV) benefit from a guaranteed bullish narrative: we have lots of people in the U.S. and they're all going to die. As one of the biggest funeral services providers, Carriage Services and CSV stock have lucrative growth opportunities.Furthermore, now might be a great time to consider CSV as one of your top recession-resistant stocks to buy. I say this because of demographic realities. Following World War II, the U.S. experienced a surge in population size. Called the baby boom, the demographic belonging to this group peaked in 1999 at nearly 80 million. * 7 Discount Retail Stocks to Buy for a Recession Despite many who passed, there are many more waiting to knock on St. Peter's gate. In other words, CSV stock should have ample opportunities for upside. Service Corporation International (SCI)Source: Shutterstock The same arguments for CSV can be made for other funeral services stocks such as Service Corporation International (NYSE:SCI). There are certain industries where the demand does not decrease when the economy is hurting. Unfortunately, making arrangements for deceased loved ones is one of those industries.SCI states that its brands "provide families with a full range of choices, from the simplest funeral arrangements to elegant ceremonies requiring intricate planning and unique features or events." That means that while simpler services may become more popular out of necessity in a major downturn, SCI can still provide those services. CVS Health (CVS)Source: Shutterstock Prior to its rally that started in early August, CVS Health (NYSE:CVS) was contrary to its name not looking healthy. At one point, CVS stock was down nearly 20% for the year. And part of the reason was the competition. With disruptive names like Amazon (NASDAQ:AMZN) or Walmart (NYSE:WMT) attempting to take more of the healthcare pie, CVS stock has historically absorbed serious pain.Fortunately, that appears to be changing. Since the beginning of August, CVS stock is up nearly 15%, completely altering the implications behind its chart. Against January's opening price, shares are just above break even. By itself, that's nothing to write home about. But considering where it was, investors will gladly take what they can. * 7 Recent IPO Stocks That Are Melting Down But a little more patience might be in order, especially if we hit a recession. Even in a downturn, people can't avoid everyday frustrations, such as getting sick. Thus, CVS enjoys secular demand, which is why you should consider it among relevant stocks to buy. Trupanion (TRUP)Source: Shutterstock If you still have a bad taste in your mouth about the funeral services stocks to buy, don't worry: these last two names will put a smile on your face.I'm going to start this duo of stocks to buy with Trupanion (NASDAQ:TRUP), a medical insurance provider for your pets. Specifically, Trupanion insures dogs and cats, but seeing as how these are the most popular pet species, this fits well for TRUP stock.Of course, we all know how expensive medical insurance for humans is. With insuring pets, it might seem overkill. However, our pets are often a huge part of our lives. Plus, an acute issue can cost thousands of dollars. In a recession, it might make sense to insure whatever you can, thus lifting the case for TRUP stock. IDEXX Laboratories (IDXX)Source: Shutterstock IDEXX Laboratories (NASDAQ:IDXX) specializes in medical diagnostic equipment for pets. Up until a recent decline, business has been good for IDXX stock. Even with the drop in market value, shares are up nearly 47%.And against a longer-term framework, you might want to consider adding IDXX to your list of potential stocks to buy. For one thing, Americans love their furry friends. According to the American Pet Products Association, nearly 70% of U.S. households own a pet. Moreover, millennials will spend more on their pets' healthcare than on their own health-related needs. * 10 Battered Tech Stocks to Buy Now Yes, that sounds crazy, but it also underlines the bullish narrative for IDXX stock. Plus, our four-legged family members offer us humans a number of therapeutic benefits. These factors will especially be important if we incur an economic downturn.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 10 Recession-Resistant Services Stocks to Buy appeared first on InvestorPlace.
Over the past decade, Wall Street has witnessed the meteoric rise of Amazon (NASDAQ:AMZN). With a market cap of about $910 billion, AMZN stock is now one of the largest publicly listed companies. In the U.S. as well as in many other countries, it is the dominant online retailer. In recent years, Amazon has also expanded into other growth areas such as cloud computing where it has already become a leader.Source: Jonathan Weiss / Shutterstock.com However, since early July, long-term AMZN shareholders have been somewhat concerned with the stock's price action. On July 11, Amazon stock hit an 52-week high of $2035.80. On Aug. 26, it saw a recent low of $1743.51. Currently the Amazon stock price is hovering around $1850.Now many investors are wondering if this quarter AMZN stock goes and stays over $2000, a price that has become an important resistance level.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Discount Retail Stocks to Buy for a Recession Until its next earnings report on Oct. 24, I expect AMZN to stay range-bound, possibly between $1750 and $1900. In other words, Amazon stock would need to show strong Q3 financial numbers that would act as catalyst to push the stock over $2,000 again. Here is why. Amazon Stock's Unimpressive Q2 EarningsIn July, when Amazon reported earnings for its second fiscal quarter of 2019 , it missed on the bottom line as it warned profits would disappoint in Q3, too. Amazon stock's EPS in the quarter was $5.22, compared to the forecast EPS of $5.56.The retail giant beat analysts' average revenue estimate by a small amount. Its Q2 revenue came at $63.4 billion. Wall Street was looking for $62.5 billion. In Q2 2018, Amazon had posted $52.9 billion in sales.Amazon stock's revenue comes from five main segments: * Retail Products (about 65% of its revenues) * Retail Third-Party Sellers (about 12% of its revenues) * Amazon Web Services, or AWS (about 15% of its revenues) * Subscriptions such as Amazon Prime (about 5% of its revenues) * Other, such as credit card agreements and advertising (about 3% of its revenues)During the quarter, Amazon's U.S. sales increased by 17% to $35.8 billion. The group's international sales grew by 9% to $16.2 billion.Amazon stock's AWS segment is the growth driver operating at high margins. The group especially uses the cash generated from AWS to fund the growth in other segments.Wall Street noted that Subscriptions, which mainly constitute Amazon Prime members, were up 37% to $4.7 billion.Investors noted that the group's renewed investments into the company are paying off as sales increased. However, this sales growth is coming at the expense of lower profit margins.Since the release of the quarterly results, investors have decreased growth expectations for the coming months, as partly reflected by the sharp drop in the AMZN stock price. Wall Street Needs to See Revenue Growth in AMZN StockNot only has Amazon stock changed the world of e-commerce, but the company has been disrupting how consumer shop overall. Yet, these earnings results show that the revenue growth of Amazon's online store, third-party sellers, and subscriptions has been decelerating.Furthermore, AWS, or Amazon's cloud business, reported its slowest growth rate in several years. Its AWS revenue hit $8.4 billion. However, the consensus estimate was for $8.5 billion. In Q2 2018, the unit revenue had been $6.1 billion. Investors were especially concerned that the growth in AWS is not offsetting the top-line declines of other segments.Over the past few years, revenue and operating profits of AWS have grown extremely quickly. However, its mouth-watering operating margins have also attracted serious competition from other tech giants.Microsoft's (NASDAQ:MSFT) Azure, Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google Cloud, and Alibaba's (NYSE:BABA) cloud operations have become important competitors.Going forward, Amazon expects its investments to increase, another factor that will negatively affect its bottom line and potentially Amazon stock in the near future. The company is expected to invest heavily in its advertising business, Prime Video, international growth, shipping, and logistics.When the company releases Q3 earnings in late October, analysts will be paying attention to the various growth metrics that Amazon reports. Management gave Q3 net sales guidance to be between $66-$70 billion. This guidance would mean a growth of between 17% and 24% compared with third-quarter 2018.To me, earnings results in the past few quarters show that AMZN stock is becoming increasingly dependent on AWS for revenue growth. Therefore, in Q3 I would be interested to see the metrics for each segment. Is It Time to Buy Amazon Stock Now?If you are wondering whether you should buy Amazon stock right now, the answer depends on your evaluation of Amazon's fundamentals and on your investing time horizon.In the coming weeks, I expect AMZN stock to trade in a range between $1,750 and $1,900. If Amazon stock stays above the $1,820 level, it is likely to test $1,900 and above soon.Year-to-date AMZN share price is up over 21%. If you already own AMZN stock, you might want to hold onto your shares. However, within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss about 3%-5% below the current price point, especially if you want to protect your paper profits.AMZN is a is a high beta stock at 1.55. The stock market has a beta of 1.0. Therefore Amazon stock's beta measures its volatility in relation to the market. In other words, in general, AMZN stock rises more than the market in bullish conditions and decreases more when markets are falling. Short-term traders should exercise caution if they want to participate in Amazon stock's wide daily swings.Patient investors who continue to believe in AMZN may see any price dip towards or below the $1,750 level as an opportunity to go long AMZN stock and ride out its daily volatility.Amazon stock will need to stabilize and build a base again before it can deliver a long-term, sustained rally that would take the shares over $2,000. The Bottom Line on AMZN StockWhen Amazon next reports its Q3 results in October, investors will scrutinize the company's fundamentals. If the results show that the company's growth has slowed further, investors may decide that Amazon is now a maturing company. As a result, they may think that the current valuation of Amazon stock is excessive.Nonetheless, it is important to remember that a mega-company with fundamentals as robust as Amazon's could withstand several months of uncertainty. And, eventually, AMZN's management will make decisions that will move the company forward.On Sep. 25, Amazon will be holding its next hardware event. Wall Street would be looking to see what Alexa-enabled products may be introduced in the coming months.Management also continues to invest heavily in original video content development and online streaming services. I'd also continue to observe that space for its potential effect on AMZN stock revenue.In two to three years, I expect AMZN stock investors to be rewarded handsomely. Eventually, fundamental catalysts will drive Amazon stock higher, and the stock price will rise above $2,000 again.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post New Highs for AMZN Stock Will Come After Growth Challenges End appeared first on InvestorPlace.
(Bloomberg) -- Music videos can’t pay their way to the top of YouTube’s charts anymore.The online video giant said it will no longer count views from paid advertisements in its one-day record tallies, ending a controversial music-industry practice -- and diminishing a sales stream for YouTube.The unit of Alphabet Inc.’s Google has touted its role as a promotional channel for pop-music stardom. Many artists and record labels would pay to run debut songs as YouTube ads, boosting viewership and the odds of topping the site’s closely watched charts. YouTube executives began rethinking its record tallies recently, Bloomberg News reported earlier.Indian rapper Badshah seemed to break YouTube’s one-day record in July, netting more than 75 million views with his hit “Paagal,” but the site didn’t give him the official honor. Badshah acknowledged paying for ads to promote the clip.In a blog post on Friday, YouTube said it was adjusting its policy to “provide more transparency to the industry” and be more consistent with the companies, such as Nielsen, whose popularity tallies determine the royalties record labels and artists receive. YouTube said it wouldn’t retroactively change past record holders.\--With assistance from Lucas Shaw.To contact the reporter on this story: Mark Bergen in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, John J. Edwards III, Lisa WolfsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- A House panel conducting a broad antitrust investigation of the technology sector is demanding that companies turn over a trove of internal records about their business practices as it ramps up scrutiny of the industry.Rhode Island Democrat David Cicilline, who is leading the House antitrust subcommittee’s inquiry into large internet companies, said it is sending letters Friday to Google parent Alphabet Inc., Amazon.com Inc., Facebook Inc. and Apple Inc. asking for detailed information about acquisitions, business practices, executive communications, previous probes and lawsuits.The letters, which were addressed to the top executives of each company, mark the most aggressive demands by the House panel since June, when it began a bipartisan investigation into whether large tech platforms are harming competition.“We made it clear when we launched this bipartisan investigation that we plan to get all the facts we need to diagnose the problems in the digital marketplace,” Cicilline said in a statement. “Today’s document requests are an important milestone in this investigation as we work to obtain the information that our members need to make this determination.”The letters were also signed by the top Republican on the subcommittee, Jim Sensenbrenner of Wisconsin, as well as the top Democrat and the top Republican on the House Judiciary Committee, of which the antitrust panel is a part.The requests come as the technology giants find themselves swamped by antitrust inquiries by the federal government as well as state attorneys general, which announced probes of Google and Facebook this week.The lawmakers also requested executive communications about prior government probes and lawsuits and said they would not recognize attorney-client privilege as a reason for the companies to refuse to provide requested records.The panel asked Facebook about its purchases of the WhatsApp chat platform and the Instagram photo app, which were both approved by federal antitrust regulators. They asked to see communications from Chief Executive Officer Mark Zuckerberg, Chief Operating Officer Sheryl Sandberg, former general counsel Colin Stretch and policy chief Kevin Martin.The committee wants to know whether Google is shutting out rivals on its platforms or imposing restrictions that could harm competition. It asked for discussions by executives about whether non-Google companies with competing ad technology can participate in Google ad auctions or place ads on YouTube. The lawmakers also asked for discussions about any agreements between Android and smartphone manufacturers that give Google exclusive rights to collect data from devices.The lawmakers asked about 24 Google products and services, including its mobile operating system Android, Gmail, the Google Play store, YouTube and its mapping service Waze. The letter seeks information on executives’ discussions of major acquisitions including ad technology company DoubleClick, YouTube and Android.Asked about the request, Google pointed to a Sept. 6 blog post by top lawyer Kent Walker, who said the company’s “services help people, create more choice, and support thousands of jobs and small businesses across the United States.”The other companies didn’t immediately respond to requests for comment.The panel asked for details about 12 of Apple’s products and services, including its App Store, Apple Watch, iPhone, Mac and Siri. It wants to see communications to and from Apple Chief Executive Officer Tim Cook and 13 other executives about policies and decisions involving the company’s App Store, such as the algorithm that determines the search ranking of apps and whether to allow other app stores on the iPhone. They also requested records about Apple’s offer to replace ailing iPhone batteries.The lawmakers’ request to Amazon focuses on the company’s online marketplace, including how it handles proprietary data of third-party sellers on its platform and how its product search algorithm works. They demand answers about Amazon’s 2018 deal to sell new Apple devices on its website, which has also attracted questions from the Federal Trade Commission.The lawmakers seek information about acquisitions by Amazon, including audio book company Audible, upscale grocery store chain Whole Foods, and pharmacy delivery company PillPack.The antitrust panel has already held a hearing on the effect of digital platforms such as Google and Facebook on the news industry, as well as a session on innovation and entrepreneurship in July that featured appearances by executives from Google, Facebook, Apple and Amazon.(Updates with Google response in 11th paragraph)\--With assistance from David McLaughlin.To contact the reporters on this story: Naomi Nix in Washington at firstname.lastname@example.org;Ben Brody in Washington, D.C. at email@example.comTo contact the editors responsible for this story: Sara Forden at firstname.lastname@example.org, Mark Niquette, Kathleen HunterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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A U.S. House of Representatives panel on Friday demanded internal emails, detailed financial information and other company records from top executives of Amazon.com Inc., Facebook Inc, Apple Inc, and Alphabet Inc's Google, widening the antitrust probe of Big Tech. The letters seek by Oct. 14 internal emails over the last decade from Apple CEO Tim Cook, Amazon CEO Jeff Bezos, Facebook CEO Mark Zuckerberg and Alphabet CEO Larry Page, among others, about acquisitions.
September 13 was China's Mid-Autumn Festival. Some investors may be expressing gratitude for the recent trade war decisions made by Jinping and Trump.
One of the world's largest technology companies, iPhone maker Apple (NASDAQ:AAPL), just had its biggest day of the year. Recently, the company unveiled a suite of new products and services for the rest of this year and the next. In response to this product launch event, Apple stock has soared to fresh 2019 highs.Source: Shutterstock That must mean the new iPhone is going to sell well, right? After all, for the past decade, as go Apple's iPhone sales, so goes Apple stock. Despite the iPhone 11 Flopping, AAPL Is Moving HigherBut that's no longer the case today. Instead, most analysts, insiders, and investors think that the iPhone 11 will be a flop. That's mostly because the smartphone critically lacks 5G capability whereas many other new smartphones do have this new tech.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIndeed, early responses to the iPhone 11 have been tepid. The only iPhone news I saw trending on Twitter (NYSE:TWTR) the night of the reveal is how the new phone is triggering people with trypophobia. According to Wikipedia, is an "aversion to the sight of irregular patterns or clusters of small holes, or bumps." That's not exactly a bullish read on forthcoming iPhone 11 sales. * 10 Battered Tech Stocks to Buy Now In other words, AAPL stock is soaring to 2019 highs in spite of the fact that most people think the iPhone 11 will be a bust. How is that possible?One word: services.Apple's Services business has been the talk of the town for several years now. Broadly, Apple is no longer hyper-focused on growing its ecosystem of hardware users. Instead, the company is focused on deeply engaging and monetizing that ecosystem through subscription-style software services. The launch event showed that these services are on the up and up, with Apple TV+ and Apple Arcade set to launch soon at compelling price points.And that was enough to get investors to buy AAPL stock. But will this rally continue? I think so. Here's why: Services Are on the Up and UpApple's Services business is on the up and up. That's hugely important for AAPL stock, because it is the key to big profit growth in the long run.Here are the numbers: Apple's Product business has grown revenues at a choppy 2% rate over the past three years, is down about 6% so far in 2019. It currently runs at 33% and produces shrinking gross margins.Apple's Services business, meanwhile, has grown revenues at a steady 20%-plus pace over the past three years. It's up about 15% so far in 2019, and runs at 63% and is expanding gross margins.To be sure, the Products business is far bigger today. It accounts for about 80% of overall revenues. But the Services business is clearly the big growth driver here.Fortunately, that Services business is on the up and up. By the end of 2020, Apple will have a streaming TV service (Apple TV+), a video game streaming service (Apple Arcade), a music streaming service (Apple Music), and a news subscription service (Apple News+). It will also still own the App Store and iCloud.Here's the big picture: Apple's Services business will continue to grow at a double-digit pace for a lot longer. That will push Apple's overall margin profile higher in the long run, because the Services business runs at nearly double the margins as the Products business.Thus, so long as the Services growth trajectory remains on track, Apple will reasonably project as a steady revenue and profit grower in the long run. Apple Stock Has RunwayThe big bear argument against Apple stock is that it trades at 19-times forward earnings. That is both significantly above the historically average multiple for AAPL stock, and a decade high valuation for the stock.The response to the bearish argument? This isn't the Apple stock of 2015. It's the Apple stock of 2019, with the big difference being the Services business.Come 2025, there's a reasonable chance for Apple's Services business to account for about a third of overall revenues. Thus, by that time, Apple will be two parts stable growth, low margin hardware business, and one part hyper-growth, high margin software business.That former characteristic wasn't there back in 2015. Back then, this was 100% a stable growth, low margin hardware business. As such, it makes sense that during this big Services push, Apple stock is being re-rated higher, to account for bigger growth and a more attractive and sustainable margin profile.Indeed, relative to other large capitalization software growth stocks of this ilk, Apple stock is still pretty cheap. Facebook (NASDAQ:FB), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) all trade well north of 20-times forward earnings. I'm not saying Apple stock should be as richly valued as those stocks. It shouldn't. Facebook, Microsoft, and Alphabet are all growing more quickly.But I am saying that at 19-times forward earnings, AAPL stock isn't overvalued. Instead, the valuation seems fair. A fair valuation coupled with healthy fundamentals is a combination which should keep the stock on a winning path. Bottom Line on AAPL StockI don't love Apple stock here. But I do think it can head higher. So long as the outlook in the Services business remains robust -- which it does today -- then AAPL stock should benefit from a dual tailwind of upward estimates revisions and multiple expansion.As of this writing, Luke Lango was long FB and GOOG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Apple Stock Is Supported by Robust Services Growth appeared first on InvestorPlace.
Is now the time to invest in Nvidia (NASDAQ:NVDA)? Nvidia stock has been on a bit of a run this month, up 12% since September 3. NVDA has gained an impressive 38% so far in 2019 -- yet remains far from the $281 highs it hit last October.Source: Hairem / Shutterstock.com The majority of analysts have it as a buy. However, despite their bullish attitude, at its current $184 level, there is little upside to buying now, when those same analysts have an average 12-month price target for NVDA of $189.27.Should you buy Nvidia stock at this point? Does it have the potential to continue growing, or has NVDA pretty much run out of steam?InvestorPlace - Stock Market News, Stock Advice & Trading Tips AI Is a Future Nvidia Stock CatalystThere is much to be said about NVDA's long term potential when it comes to AI. The company has been investing heavily in this area, looking to machine learning and autonomous vehicles as future growth areas. InvestorPlace's Chris Lau has a good read on how AI and self-driving car tech could pay off for Nvidia stock in the long term. * 10 Battered Tech Stocks to Buy Now But I want to focus on gaming because that is the area that is going to hold Nvidia back over the next year. Nvidia Missed the Gaming Console Ramp-UpMicrosoft (NASDAQ:MSFT) and Sony (NYSE:SNE) are releasing next-generation Xbox and Playstation game consoles in 2020. That is going to kick off a huge upgrade cycle, but it won't benefit NVDA. Advanced Micro Devices (NASDAQ:AMD) will be powering both of those consoles.The Nintendo Switch uses custom Nvidia silicon, but with the Switch still mid-cycle in its lifespan, an all-new version isn't expected any time soon. Nvidia stock is not going to see the sort of upside from Switch sales that it did when Nintendo's console first launched.Nvidia is also left in the cold on the most prominent experiment in video game streaming. Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google is launching its Stadia cloud game streaming service in November. Stadia is a double-blow against Nvidia.Subscribers will be able to play AAA PC video game titles on a wide range of devices without the need for a powerful gaming PC equipped with a graphics card. Instead, cloud data centers will do the heaving lifting, with custom AMD GPUs delivering 4K graphics at 60 fps (with 8k and 120 fps on the horizon).If Google's Stadia is a success, AMD will get orders for more of those custom GPUs. Nvidia will likely see the demand for graphics cards to power gaming PCs take a hit. Putting Together the Pieces for Nvidia StockIf you look at the two factors spiked out here, the somewhat puzzling analyst positions make sense. Why would do many analysts have NVDA rated as a Buy, yet have 12-month price target that has only around 3% upside? The next year doesn't have a lot of revenue growth potential for Nvidia. It's largely missing out on the next-generation game console cycle, it's missing out on the biggest cloud gaming initiative, and it could see its graphics card sales take a hit should cloud gaming take off.At the same time, its investment in AI and autonomous driving technology is seen as likely to pay off in a big way, but that payday is further in the future. Putting all the pieces together, it seems probable that NVDA stock is approaching a ceiling. Buying now, you are unlikely to see major gains over the next year. But if you intend to hold onto it -- with AI ramping up and autonomous cars inching closer to mainstream -- that NVDA investment will pay off in the long term. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post Keep Nvidia Stock If You Have It, Just Don't Jump in Now appeared first on InvestorPlace.
Big tech is at a crossroads in Washington D.C. as lawmakers in the House of Representative are seeking a trove of records in an antitrust probe, according to reports in the Washington Post and Wall Street Journal. Amazon , Apple , Facebook and Alphabet are all under the microscope as leaders of both parties in the House Judiciary Committee have requested private communications from top executives and other detailed information about their individual internal operations.
Investing.com -- The House Judiciary Committee has asked Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) for a broad swathe of documents related to various business issues, ramping up its antitrust scrutiny of the Internet giants.
Technology start-ups spent $44bn on advertising and cloud computing from Facebook, Google and Amazon last year, according to new estimates that underline the growing economic clout of venture capital-backed businesses. Research by the hedge fund Bridgewater found that spending by private tech start-ups made up about 10 per cent of the revenue of tech giants and accounted for more than 0.4 per cent of global economic activity.
(Bloomberg) -- China’s Uber-for-trucks startup Full Truck Alliance said it’s weighing an initial public offering after breaking even from May, defying a sector-wide downturn.The company, which is backed by SoftBank Group Corp. and Tencent Holdings Ltd., said its improved financial performance dovetailed with its decision not to follow through on a plan to raise as much as $1 billion in a private round, Chief Financial Officer Richard Zhang said during an interview with Bloomberg TV.“We broke even both in the accounting and cash flow sense,” said Zhang. “I don’t want to commit to a timetable here, but eventually we probably want to go for an IPO.” The company also hasn’t decided whether it will need to do a pre-IPO round, Zhang added.Despite dominating the truck-sharing sector in China, Full Truck Alliance is now confronted with the same challenges that on-demand businesses world-wide face -- proving its business model can lead to sustainable revenue and profit growth.Much also depends on conditions in the market. Bets on a once red-hot Chinese technology sector are cooling alongside waning economic growth. In July, investments made by venture capital and private equity firms dropped 60% to 407 cases, while the amount plummeted around 78% to 32.8 billion yuan ($4.6 billion), according to research consultant Zero2IPO. Investors in the sector have also been spooked by WeWork’s IPO setback.Formed by a merger between China’s two largest truck-sharing platforms -- Huochebang and Yunmanman-- the company has attracted backers including Sequoia and Alphabet Inc.’s CapitalG. It was said to be planning to raise as much as $1 billion at a valuation of about $9 billion, Bloomberg reported late last year. Zhang confirmed the company didn’t complete that round, adding that Full Truck Alliance’s valuation stood at $6.4 billion post-money after it raised funds in April 2018.By creating a marketplace that connects millions of mostly independent truckers, the company makes money by charging a fee when brokering transactions, and from servicing drivers by selling top-up toll cards and directing them to service stations.The company is also expanding into automotive technology and is now the largest external investor in autonomous trucking startup Plus.AI. The Cupertino-based company co-founded by David Liu formed a joint-venture with China’s state-backed heavy truck manufacturer FAW Jiefang, introducing their first commercial product (a Level-2 semi-autonomous truck) earlier this month.Plus.AI is currently in talks with new investors for funding, Liu said during the interview.To contact the reporters on this story: Lulu Yilun Chen in Hong Kong at email@example.com;Yvonne Man in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.