6.22 -0.04 (-0.64%)
After hours: 7:42PM EDT
|Bid||6.10 x 900|
|Ask||6.30 x 21500|
|Day's Range||6.25 - 6.34|
|52 Week Range||4.00 - 7.60|
|Beta (3Y Monthly)||0.66|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 6, 2019 - May 10, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||6.25|
Insta360, a Chinese company that sells cameras able to film 360-degree video, said on Wednesday it had raised $30 million in funding. Chief Executive JK Liu told CNBC the company would go public in 2020 in China. The funds will be used, according to Liu, for research and development into artificial intelligence products and will go toward opening branded physical stores in the U.S., the U.K., Germany, Japan and across major cities in China.
The Shenzhen-based maker of 360-degree cameras and virtual reality devices has raised $30 million from investors including Everest Venture Capital, MG Holdings and Huajin Capital, founder Liu Jingkang said. Longer term, the startup is pondering a listing but hasn’t made a final decision on venue, which could include China’s upcoming technology board or the existing Growth Enterprises Board in Shenzhen, the founder said.
[Editor's note: This story was previously published in November 2018. It has since been updated and republished.] When Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) started to give the public a glimpse of its developments in self-driving cars, the idea seemed out of this world. Alphabet's unit, Waymo, which stands for new way forward in mobility, is leading the way when it comes to the self-driving car trend.But since the search-engine giant derives much of its revenue from advertising, some investors might be more interested in stocks to invest in that are closer to being pure-plays in the space.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Stocks That May Be Hurt by This Year's Big IPOs With that said, here are five stocks to buy that will play a key role in the future of self-driving cars. Some are similar to Alphabet, as not every stock on this list is a "pure" autonomous vehicle play, but each will undoubtedly be at the forefront of this rapidly growing trend in the months and years ahead. Tesla (TSLA)The first name on this list of stocks to invest in the trend of self-driving cars, Tesla (NASDAQ:TSLA), is one of the purest plays in the space. After all, TSLA's development in autonomous driving is as impressive as the lead it has in the electronic vehicle market.On Nov. 27, the company's CEO, Elon Musk, took to the wheel when the company announced Version 9 software updates. The most notable feature was Navigate on Autopilot.Navigate on Autopilot builds on the original Autopilot but does more: the car now suggests lane changes and, with driver supervision, it makes the lane changes. It also navigates highway interchanges and takes on-ramp/off-ramps as well as exits the highway.This technology is powered by a neural network, so the more data it gets, the better the code becomes and the less buggy Navigate on Autopilot gets.Tesla clearly offers the most advanced driver assist system on the market and the software will only get better as the company pushes out over the air (OTA) upgrades.TSLA stock does not come cheap: shares trade for 30 times analysts' consensus 2019 profit estimate. Debt-to-equity is 219 times, but the market's confidence in Elon Musk should not hinder a money raise, should Tesla need it. Ambarella (AMBA)Ambarella (NASDAQ:AMBA), whose past growth rates came from supplying camera chip technology to GoPro (NASDAQ:GPRO), reinvented itself by developing computer vision (CV1, CV2) chips for the ADAS market. However, the transition to the market of self-driving cars has not been without hiccups. In 2018, Ambarella's overall revenue dropped meaningfully year-over-year, and it's expected to do the same this year.The firm needs to spend its efforts on computer vision applications in the IP security, automotive and robotics AI markets. In the OEM automotive market, customers want a flexible solution that adds value. Since legacy automotive chips are vastly inferior -- unable to meet processing performance requirements, consuming more power than the desired limits and exceeding thermal constraints for camera -- Ambarella may have a moat.Ambarella's front-camera ADAS solution is a leading Tier 1 chip that it just introduced.in late January. In the Level 2 to Level 5 autonomous vehicle categories, the company offers a flexible open perception platform. * 15 Stocks That May Be Hurt by This Year's Big IPOs Nvidia (NVDA)When investors look at the stock charts for Nvidia (NASDAQ:NVDA), the first thing they'll notice is the drop in the NVDA stock price from over $280 down to around $170 as of Friday afternoon. The company's main business, GPUs for PCs, has weakened.Looking beyond the PC GPU market, Nvidia's strength in automotive suggests this company is poised to grow along with the self-driving car trend. In 2018,the company's revenue from automotive hit record levels.Autonomous vehicle production and development engagement are growing. Nvidia's next-generation AI-based cockpit infotainment systems should assure its growth rates hold in the automotive space.At GTC Europe, Nvidia announced that Volvo would include Nvidia's Drive AGX Xavier solution early in the 2020's. The solution will deliver on Level 2+ assisted driving. This is made possible by the integration of 360-degree surround perception and a driver monitoring system. General Motors (GM)Looking within the automotive sector, General Motors' (NYSE:GM) mass layoff announcement on Nov. 26 changed the strategic direction of the company.Even though traditional auto parts suppliers will suffer, as will GM staff getting let go, development for GM's self-driving car unit will probably accelerate. GM's Orion, Michigan plant will manufacture autonomous vehicles once they are mass-produced. The plant is a natural location for self-driving car production because it already manufactures electric vehicles.GM is making a big commitment to the self-driving trend. Between May 2018 and October 2018, GM and its self-driving car unit, Cruise, attracted $5 billion in investments. This amount pushed GM ahead of Alphabet's Waymo, Uber and Lyft. * 15 Stocks That May Be Hurt by This Year's Big IPOs GM's restructuring could distract the company from its self-driving car development. Glitches in the driverless cars could also delay the company from releasing it on the market. But if management recognizes the resources it needs to push the technology's development, GM has a chance of succeeding in the ADAS space. Aptiv (APTV)Aptiv PLC (NYSE:APTV) has earned a number of customer awards that recognized the firm's innovations in advanced safety, electrification and connectivity.It won a business award for its six highly scalable Level 2+ ADAS systems with a major North American OEM. The auto parts supplier is pivoting its business toward software, compute and integration solutions. This transition is playing out because Aptiv is booking new business.Aptiv, through its Mobility and Services Group, makes automated driving software. Its development in high-speed central compute platforms give the company a competitive edge. This fits nicely with its goal of having more automated and connected vehicle content.Given APTV's forward price-earnings ratio of 13.5, markets appear to have ignored this firm's growth potential in self-driving cars.If investors look beyond the macro challenges for APTV stock and put a valuation on the technology portion of the business, Aptiv is undervalued.As of this writing, Chris Lau did not own shares in any of the aforementioned securities, but was considering buying Aptiv in the next 72 hours. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy Today * 7 ETFs to Buy to Ride the Longevity Economy * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% Compare Brokers The post The 5 Best Stocks to Invest in Self-Driving Cars appeared first on InvestorPlace.
The history of GoPro (NASDAQ:GPRO) stock has become one of excitement, but it is not the kind of activity that a GoPro action camera can capture. Competition from device makers took GoPro stock from almost $100 per share into penny stock status.The release of a new action camera and a move to profitability have helped to take GPRO back above $6 per share. While a continued recovery for GoPro remains possible, investors will find it difficult to profit from GoPro stock under either of the two most likely scenarios for a rebound.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSmartphones initially could not replicate the quality and functionality of an action camera. For this reason, GoPro enjoyed initial success. However, as smartphones improved over time, consumers lost interest in standalone cameras, and GoPro's sales numbers dropped. Consequently, GoPro stock fell from a high of over $98 per share in 2014 to a low of $4 per share in a timespan of just over four years. * 15 Stocks Sitting on Huge Piles of Cash Today, GoPro stands as an $875 million company competing with the biggest names in tech. Despite this disadvantage, they have managed to turn profitable and produce what many see as the best action camera available. However, this leaves only two likely outcomes for GPRO, and both will make it difficult for investors to profit from GPRO stock. Is GPRO the Next Garmin?One option involves a hope that GPRO will become the Garmin (NASDAQ:GRMN) of the action camera space. In many respects, GoPro has followed in Garmin's footsteps. Garmin saw its stock plunge after the features of its GPS device found their way into smartphones.To stay in business, Garmin turned to niche GPS products. Often used for sporting purposes, these devices did not attract the interest of smartphone companies. In time, this turned GRMN stock around. Now, GoPro has begun to pursue a similar strategy.Those who see GPRO as the next Garmin have a reason for hope. In the action camera market, the new Hero7 stands out above its rivals. Moreover, the company's moves into video editing and content creation have also attracted attention. The Buyout CaseOn the financial front, the recent turn to profitability also appears impressive. Profits take the forward price-to-earnings (PE) ratio to about 20. Over the next five years, Wall Street forecast average profit increases of 10% per year for the next five years. Some might buy GoPro stock on these metrics alone.However, these multiples also open up the possibility of a different scenario--a buyout. Current valuations price the stock at a level where a firm such as Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) or Xiaomi (OTCMKTS:XIACF) could purchase the company.Products such as GoPro cameras tend to fare better with an ecosystem to facilitate device functionality and the sharing of media. All three of these companies can provide such an ecosystem. Risks for GoPro StockStill, despite these scenarios, the future for GPRO remains uncertain, and buying GoPro in hopes of either situation panning out is a questionable strategy.For one, the company's attempts to stay relevant have not always led to successes. For example, the company tried to add action cameras to drones, but the idea failed to take off. Such failures reduce the likelihood that GoPro stock will see a recovery like the one Garmin experienced.Moreover, buying a company in hopes of a buyout remains a tricky situation. Sure, they could announce a buyout tomorrow. However, prospective buyers could also hold out for more stock price declines in hopes that they could buy at a lowered price. Given that possibility, a further drop in the stock price is not out of the question. The Bottom LineWhile I expect GoPro products will stay on the market for the foreseeable future, it may not necessarily lead to a surge in GPRO. Given the benefits of an ecosystem, I see a buyout as the more likely scenario to occur.The more technology improves, the greater the need for product research funding and the need for an ecosystem. Although GoPro retains a product edge for now, larger and better-funded peers could catch up or surpass them in time.Garmin continues to deal with this issue as mega-cap competitors take an increasing interest in their product niches. For this reason, one has to assume the competitive threat would remain for GoPro as well. A buyout eliminates that worry. It would also provide funding for product improvements and an ecosystem for camera output.In either case, action photography enthusiasts will continue to benefit from GoPro products. Just don't expect that to pay off for holders of GPRO stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post There Isn't a Lot of Hope Left for People Investing in GoPro Stock appeared first on InvestorPlace.
You might assume that because I'm a Sony (NYSE:SNE) guy, I've never had any love for GoPro (NASDAQ:GPRO). For the record, I prefer GoPro's line of action-cameras; they practically invented the category. What I don't like is GPRO stock. Look at its price chart and you'll quickly see why.Source: Shutterstock This is why I pounded GoPro stock every chance I had. Despite fathering the action-camera segment, competitors quickly entered the arena. At first, that didn't bother management because it levered a strong brand. However, GPRO demonstrated its vulnerabilities when it couldn't gain traction with other businesses, such as drones. * 7 Best Fidelity Funds for 2019 But, last year, I had a small change of heart. After years of devastation in the markets, I felt that GPRO stock possibly had hit rock-bottom. As the adage states, the only direction from there is up. Therefore, I gave it a shot as one of 20 small-capitalization stocks with outsized potential.Of course, I had other arguments besides commonly heard anecdotes. Management significantly cut its workforce, which, on paper, boosts earnings. Additionally, the organization whittled down its business expenses and even research and development.InvestorPlace - Stock Market News, Stock Advice & Trading TipsJust as importantly, the camera-maker generated solid revenues across its price channels. In particular, I was impressed that it did so without any of the products cannibalizing each other.If you've been following the news on GPRO stock, you might think I made a fortuitous decision. Early last month, GoPro's CEO Nick Woodman predicted a return to profitability in 2019. Sounding like self-help guru Tony Robbins, Woodman proclaimed "GoPro's brand has never been stronger, our products never better."As Woodman is going to bat for his company, GoPro stock is up nearly 47% year-to-date. Is the worst finally over? It's Time to Go Away From GoPro StockLet me just share one more anecdote before I get into the facts. Personally, I'm considering buying multiple, top-of-the-line GPRO cameras. To get the in-car footage I'm seeking, Woodman is correct: nothing beats the GoPro brand or the products.From that sentiment alone, GPRO stock possibly appeals to speculators. Every time we watch YouTube videos, most of the sensational shots owe their existence to GoPro. Clearly, the company bridged the gap between professional media studios and talented, but underfunded amateurs.But, as I promised, let's now look at the facts. Back in 2014, The Verge reported that half of YouTube's viewership stats originate from smartphones and tablets. A few years later, the inevitable happened: smartphones have radically changed the way people "shoot and watch video."In other words, viewers appreciate the flashy stunts and outdoor footage that you can only get from action cameras. However, this is a niche category. Instead, social media and video-sharing platforms mostly focus on run-of-the-mill, mundane footage. The distinguishing factor is the content, not necessarily the footage.That segues into another problem for GoPro stock: competition. Early on, the company had to worry about copycats and low-priced rivals. Now, they face perhaps an untenable challenge from the likes of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).That's because smartphone manufacturers have integrated groundbreaking technologies into their products. I'm able to take incredible video with my iPhone X that was simply impossible for many older digital-SLR cameras. Nowadays, it's just redundant to have separate devices that only take photos and video.Plus, with reasonably-priced smartphone gimbals like the DJI Osmo, an action-camera is irrelevant for most consumers. The End of the Road for GPRO stockIf you take a look at the long-term revenue trend for GPRO stock, you'll notice sales have tilted negatively since late 2014/early 2015. Inevitably, the company laid off its workers and cut costs, even critical ones.But what this also shows is the death throes of an electronics firm suffering from commoditization. Stable action footage is no longer unique, and it can be actualized through relatively cheap mechanisms.Don't get me wrong: action-cameras have demand. Even point-and-shoot cameras apparently find millions of homes every year. But this niche demand is filled by big companies that win on combined volume with other profitable products. * 10 Top Pot Stocks 2019 Has to Offer GoPro is different. It's a small fish trying to win largely on a fringe product that is neither unique nor broadly relevant.I gave GPRO stock a chance because I thought it might surprise me. It did temporarily, but recent figures aren't good enough to overcome steep fundamental obstacles. The smart play here is to simply stay away.As of this writing, Josh Enomoto is long SNE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks Already Rewarding Shareholders In 2019 * The 10 Best-Performing ETFs This Year * 7 Stocks That Should Be Worried About a Data Dividend Compare Brokers The post GPRO Stock Suffers a Relevancy Problem appeared first on InvestorPlace.
Intelligent, high-definition cameras will power the next generation of vehicles, surveillance and logistics systems. The growth of the surveillance and flamboyance state fueled triple-digit earnings gains. Ambarella's innovative video compression was best in class.
In the investing world, the problem with fad stocks is that they come and go. That happened so many times, on many occasions, and with the same results in the end. Fitbit (NYSE:FIT) stock dominated the wearables market when fitness tracking became a hot trend.Source: Shutterstock Same with GoPro (NASDAQ:GPRO), with its action cameras. 3D printing had a nice run. Of all the fads that faded in recent times, Fitbit still has a chance to revive itself.So, did the company show evidence of that in its last quarter?InvestorPlace - Stock Market News, Stock Advice & Trading Tips 2018 Highlights for FitbitIn 2018, Fitbit generated $1.51 billion in revenue but lost 20 cents a share (non-GAAP). For a company trying to still set trends in wearables, its ASP (average selling price) did not support that view. ASP rose just 4% to $105 per device. Gross margin (also non-GAAP) fell 250 basis points, to 40.9%. The company benefited from emphasizing more on smartwatches, though selling end of life devices at a discount was still a drag. * 5 Airline Stocks In Serious Trouble Costs related to warranty and customer support fell, which is a good sign that product quality improved. Back when Fitbit was hot and its stock was flying high, word of mouth spread that the wearables were of low quality and would break just after the warranty period. That customers needed less support in Q4 is a positive sign.In the fourth quarter, Fitbit earned 14 cents a share (non-GAAP) on revenue of $571 million. ASP for the quarter fell 2% to $100. Unfortunately, gross margin fell 550 basis points to 38.7%. The sharp drop might explain the shareholder disappointment of the results that sent the stock from $7 down to around $6. Product Mix With More SmartwatchIn 2018, Fitbit grew smartwatch revenue to 44% of total sales, up from 8% the previous year. This fundamental shift is needed for its survival. Apple (NASDAQ: AAPL) Watch is already in its fourth iteration. Samsung continues to offer smartwatches at a wide range of sophistication. Older Samsung smartwatches are priced close to that of Fitbit smartwatches. Yet Fitbit still gets to claim the title of being the No. 2 smartwatch company in the U.S. (slide 6).In the fitness tracking space, Fitbit's Charge 3 will continue to grow in sales, as consumers demand only health and fitness tracking. Costs Under Control for FIT StockGross margin falling year-on-year despite Fitbit cutting expenses by 12% to $701.7 million in the year. It owes the lower operating expenses to disciplined spending in marketing, lower reliance on promotions, and lower POP spend. R&D cost cuts were the least within the Opex, down just 4%. By comparison, sales and marketing costs fell 17% while General and Administrative fell 12%.Fitbit has an opportunity to rekindle its former growth levels. It is starting to monetize its active user community, sees wearable macro trends improving, and will benefit from smartwatch adoption rates. Its penetration in corporate will have a positive impact on the overall results.Corporations and health insurers benefit if workers wear Fitbits. Corporations are subsidizing the devices, which will drive Fitbit sales in 2019. By stabilizing operating costs, Fitbit is at an inflection point where revenue growth outpaces costs. In the next quarter, look for gross margin trending back towards 40%. Management expects it will get to that level in the full year 2019. Fashion StatementFitbits come in a number of sizes and shapes. Many customers prefer the slim tracker over the watch design. And while cheaper slim models lower the ASP, the software is the same. As Fitbit cross-sells high-margin premium software, called Fitbit Coach, profits will go up. Fitbit also has the opportunity of refining its advertising to target those who enjoy high-intensity activities. Fitbit Coach would offer what they need. ValuationSource: https://simplywall.stBased on its future cash flow, FIT stock trades close to its fair value. That valuation target could go up if the company grows sales this year. It has a good chance of doing so, especially after refreshing its product line and putting more attention on the smartwatch.Watch for Fitbit stock to hold the $5.50-$6 support line (Based on the 50- and 200-day moving average). If it does not fall below that, consider accumulating the stock on the dip and before the next earnings report.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 * 7 Dividend Stocks Already Rewarding Shareholders In 2019 * The 10 Best-Performing ETFs This Year * 7 Stocks That Should Be Worried About a Data Dividend Compare Brokers The post Reasons to Buy Fitbit Stock If It Dips appeared first on InvestorPlace.
CNBC spent the day skiing with GoPro founder and CEO Nick Woodman at Big Sky, Montana to learn about the company's struggles and successes, and to hear what is next for the action camera maker.
CNBC spent the day skiing with GoPro founder and CEO Nick Woodman at Big Sky, Montana to learn about the company's struggles and successes, and to hear what is next for the action camera maker.
CEO, Chairman of the Board of Gopro Inc (NASDAQ:GPRO) Nicholas Woodman sold 1,400,000 shares of GPRO on 03/01/2019 at an average price of $5.94 a share.
As Uber and Lyft roll closer to launching their IPOs, both ride-sharing behemoths are planning to give some of their drivers a free cut of the action.
GoPro's new limited-edition HERO7 Black camera in Dusk White, available around the world beginning March 3. This is the first time GoPro has released a special colorway of its flagship camera, which means you get all the goodness of the award-winning HERO7 Black while earning bonus points for limited-edition style. GoPro changed the game for in-camera video stabilization with its HERO7 Black standout feature, HyperSmooth. HERO7 Black packs a serious punch with additional video and photo modes including TimeWarp Video, which transforms longer activities into sped-up, magic-carpet-ride adventures, and SuperPhoto, which analyzes a scene to automatically capture the best photos.
How Hewlett Packard Enterprise Fared in the First Quarter(Continued from Prior Part)Hewlett Packard Enterprises beats estimates Hewlett Packard Enterprises (HPE) has managed to beat analysts’ earnings estimates for the past six quarters. Earnings
GoPro Inc NASDAQ/NGS:GPROView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is moderate and declining Bearish sentimentShort interest | PositiveShort interest is moderate for GPRO with between 5 and 10% of shares outstanding currently on loan. However, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on February 21. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding GPRO totaled $2.82 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Roku (NASDAQ:ROKU) was once heralded as a streaming company following in the footsteps of Netflix (NASDAQ:NFLX) and pioneering a new era of streaming advertising. But during the late 2018 market selloff, investors forgot all about that growth narrative, and Roku stock dropped from nearly $80 to below $30 in just two months.Source: Roku That drop was a buying opportunity. Roku pre-announced fourth-quarter streaming numbers in early January. That announcement reminded investors that this is a growth company. Roku stock bounced back. Now, it sits at $54, and has essentially doubled in roughly two months. Earnings are due after the bell on Thursday, 2/21. The numbers should be good (the pre-announcement was strong). The guide should be good, too, given positive trends in the streaming market. But, there is significant uncertainty when it comes to how Roku stock will react to those earnings.On one hand, you have a growth stock that is just getting its groove back, has a long ways to go before eclipsing all time highs, and could rally towards those all time highs on good numbers. On the other hand, you have a stock that has doubled in two months, is in technically overbought territory, and could be due for a natural pullback on even good numbers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Healthy Dividend Stocks to Buy for Extra Stability Which one will win out? No one really knows. As such, the near term outlook for Roku stock is uncertain.But, the long term outlook here remains robust. In the big picture, this is a company rapidly transforming into the cable box of streaming, a position which warrants Roku stock heading significantly higher in the long run. As such, long term investors would be wise to hold through what will be a volatile earnings report, and buy on any material weakness. Earnings Provide Significant VolatilityEarnings reports always inject a significant amount of volatility into Roku stock. The company always tops estimates on both the top and bottom lines. But, some times the stock rallies in a big way. Other times, it drops in a big way.That is simply the nature of an early-stage, high-growth, still-small, freshly public company like Roku. There's a lot of noise in the first few earnings reports for such companies because investors are trying to see if the company really is a long-term winner. Any clues that they are lead to a big rally. Any clues that they aren't lead to a big drop.Roku stock is no different. Right now, investors are trying to figure out just how big Roku can become in the streaming market. We all know the streaming market will be large. We also all know that they are a lot of competitors in this market. Roku is leading the charge on the streaming service aggregation ecosystem front. This has been the case for a while. But, investors are concerned that without much of a moat, bigger competition can come along and steal Roku's share rather easily.As such, investors are desperately seeking for clues as to whether Roku will become a Netflix-like success, or a GoPro (NASDAQ:GPRO)-like flop.Right now, the success story is taking hold over the flop story. The pre-announced Q4 engagement and streaming numbers were very strong. Active accounts rose 40% year-over-year. Streaming hours rose by nearly 70%. Ever since that report, investors have bid up Roku stock on the assumption that those strong engagement numbers will lead to strong financial numbers, and a healthy first quarter guide.That may very well happen. But if history tells us anything, it's that big rallies in stocks like Roku stock are usually followed by natural pullbacks on even good news. As such, while Q4 numbers will be good, there is a significant amount of uncertainty regarding how Roku stock will react to those numbers in the near term. The Long-Term Outlook for ROKU Stock is HealthyIn the big picture, the near-term reaction to Q4 earnings is largely irrelevant. That's because the trends remain in place for this company to ultimately become the cable box of the streaming world one day, and in so doing, turn into a $10 billion-plus company.In a nutshell, the big-picture bull thesis on Roku stock is as follows. Every customer is pivoting to streaming due to enhanced convenience and lower cost. Every company is pivoting to streaming, too. That means both demand and supply in the streaming market are simultaneously growing and becoming increasingly diverse, further implying that it will become harder for consumers to discover suppliers, and for suppliers to reach consumers. As this trend plays out over the next several years, there will be a huge need for someone to aggregate all that streaming supply, organize it, curate it, and deliver it to consumers in a frictionless manner so as optimize consumer discovery and supplier reach (think the cable box for streaming).That someone is Roku. Sure, there are multiple players in this market. But, Roku is the head-and-shoulders leader in both streaming devices, and smart TVs. That's big, since network effects are now in play. The more consumers have a Roku device or Roku smart TV, the more Roku becomes the norm for accessing streaming services. The more it becomes the norm, the more consumers will flock to it. Further, the more consumers flock to Roku, the more Roku becomes indispensable to streaming service suppliers in this market since the Roku ecosystem has increasingly wide and irreplaceable reach. * The 10 Best Cheap Stocks to Buy Right Now Putting it all together, it looks like Roku is a long-term winner in the making. As such, with a market cap of just $5 billion today versus a $150 billion-plus market cap over at Netflix, Roku stock should head significantly higher in a long-term window. But, the stock has doubled over the past two months in anticipation of strong Q4 numbers. As such, buyers here should proceed with caution.As of this writing, Luke Lango was long ROKU and NFLX. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post Roku Stock Is a Long-Term Winner Sprinting Into Earnings appeared first on InvestorPlace.
NEW YORK, Feb. 20, 2019 -- In new independent research reports released early this morning, Market Source Research released its latest key findings for all current investors,.
Cisco Stock Up 3.92% after Upbeat Q2 Earnings(Continued from Prior Part)Cisco’s earnings performance Cisco Systems (CSCO) posted better-than-expected earnings in the second quarter of fiscal 2019 on February 13 after the market bell. Second-quarter
Cisco Stock Up 3.92% after Upbeat Q2 EarningsCisco’s stock price movement Cisco Systems (CSCO) stock increased 3.92% in after-hours trading on February 13 after the tech giant reported upbeat results for the second quarter of fiscal 2019, which
Audio tech maker Sonos, Inc. (NASDAQ:SONO) is having a hard time reversing the strong downtrend in its stock price. And if the CFO retirement and the second-quarter warning weigh any more on its stock, its market capitalization may fall below the $1 billion level. Despite the premium speaker supplier differentiating itself from other brands, cheaper smart speakers from Alphabet (NASDAQ:GOOGL) or Amazon.com (NASDAQ:AMZN) might prolong the glut of Sonos speakers on the market. Investors are looking for bullish reasons to hold SONO stock?Sonos continues to develop consumer interest in its brand. First quarter results showed it can drive sustainable, profitable growth. Revenue grew 6% over last year to $496 million while EBITDA came in at $87 million, up 34%. It now has eight million homes using the speaker product. Each share of SONO stock earned 55 cents diluted, up from 26 cents last year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe balance sheet is healthy because the firm ended the quarter with $307.4 million in cash, compared to $31.4 billion in long-term debt. * Buy These 5 Stocks to Play the Megatrend of the Century New product launches helped drive revenue in the period. It recently launched Sonos Beam, lifting home theater revenue by 42% Y/Y. With that strong initial pace, investors should expect this segment of the market lifting overall results for the full year. Unfortunately, European consumers haven't yet embraced voice assistant products, with the smart speaker still in its infancy but management it's only a matter of time. Sonos also restrained itself from spending more on sales and marketing. But with a bigger ad budget for the region, Q2 results may not come in as weak as management guided. Disappointing ForecastsA reduced sell-through in Q1 raised Sonos' channel inventory enough to cause management to warn on Q2 results. A delayed production schedule with IKEA, pushed into Q3 instead of Q2, is putting pressure on EBITDA growth for the full year. Sonos forecasts revenue growing 10-12% and in the range of $1.25 billion-$1.275 billion. Adjusted EBITDA growth will be in the range of 20-27%.Investors turned sour on SONO stock because the seasonal Q1 strength, helped by the holiday period, follows with a typically slower period. Then, add in the uncertainties for European customers not yet ready to buy a Sonos product, the retirement of CFO Michael Giannetto, and the revised IKEA product launch. It might seem as if these issues appear temporary but management did not rule out a slowdown in some channels in the U.S. continuing into the current second quarter. New Product IntrosIn addition to the new products introduced last quarter, Sonos could add more speakers and headphones to its product catalog to drive slowing sales. Management has a less risky plan. On the quarterly conference call, they said it could apply its expertise in wireless by further developing cloud connectivity and services. If it were to enter new markets like earphones, it would have to bring some feature that differentiated SONO from the competition. * 10 Best Dividend Stocks to Buy for the Next 10 Months Shareholders should welcome this approach. Too often, companies run with new product introductions only to end up with higher costs and with products that are low margin because they do not add anything new to the mix. Fitbit (NYSE:FIT) and GoPro (NASDAQ:GPRO) are just two examples. Fitbit is now competing with smartwatches while GoPro's video camera competes with the smartphone video capture and video cameras themselves. Valuation on SONO Stock is ToughThere's thin coverage on Wall Street on Sonos stock. The four analysts watching SONO have a $16.50 average price target (links to Tipranks), implying more than 50% upside. Realistically, arriving at a fair value on Sonos' value is tricky because the company has not been a public company for very long. Its revenue potential is difficult to forecast because the company is still in a growth phase.Newly listed stocks are inherently risky and Sonos is no exception. If you try out its product you will know how much better the sound quality is over competitors. Plus, the company does not overcharge for its product. As an investment, though, Sonos stock is still a "show me" play. Fortunately, management is not panicking over the near-term inventory issues and slowing demand. It has the right attitude of delivering a superior product that stands out over the competition. And it is embracing home assistance on the speaker and a quality sound experience. That is a winning attitude that could pay off for Sonos investors.Disclosure: 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 * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post Why Buying Sonos After the Dip Is Not a Leap of Faith By Any Measure appeared first on InvestorPlace.
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