116.47 +0.02 (0.02%)
After hours: 5:33PM EDT
|Bid||116.52 x 3200|
|Ask||116.30 x 800|
|Day's Range||115.66 - 116.87|
|52 Week Range||91.11 - 120.40|
|Beta (3Y Monthly)||1.19|
|PE Ratio (TTM)||11.91|
|Earnings Date||Oct 15, 2019|
|Forward Dividend & Yield||3.60 (3.10%)|
|1y Target Est||119.58|
The New York-based megabank has filed its latest branch application, this time targeting one of Nashville's most affluent neighborhoods.
JPMorgan will lead things off for the banks Tuesday and Bank of America will follow up on Wednesday before the open. JPMorgan is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells JPM?
BofA's (BAC) Q3 earnings are expected to reflect disappointing trading activities, lower interest rates, weak lending scenario and muted investment banking performance.
“The greatest and biggest deal ever made for our Great Patriot Farmers in the history of our Country,” as President Trump described it, triggered a broad rally in U.S. stocks on Friday. The Dow and S&P closed off session highs, and buyers are looking wary to start the week.
New enhancements make it easier for advisors to search, filter and select target date funds NEW YORK , Oct. 14, 2019 /PRNewswire/ -- J.P. Morgan Asset Management today announced enhancements to Target ...
What are the poorest cities in America in 2019? The United States is popular for its opulence and the unimaginable success of its people. Around seven out of the ten richest people in the world are American. These people live in metropolitan areas with the best performing economies in the world. Nonetheless, this is not the […]
The Q3 earnings season will most likely have been dismal for U.S. banks due to the impact of soft loan growth and decline in interest rates, along with muted trading and investment banking activities.
Major US banks will announce their third-quarter earnings on Tuesday. Lower interest rates and more competition could impact their net interest margin.
S&P 500 earnings are forecast to come in 4.3% lower than a year ago. But there’s more to the story behind that headline number.
Citigroup, JPMorgan Chase and Wells Fargo reporting third-quarter results on Tuesday, giving investors important data points on the state of the economy.
(Bloomberg) -- Private equity firm Thoma Bravo agreed to buy Sophos Group Plc for $3.8 billion, taking the British cybersecurity firm private in the biggest takeover of a U.K. technology firm this year.Thoma Bravo will pay $7.40 a share in cash, or 583 pence per share, representing a premium of 37.1% to its last closing price, the buyout firm said in a statement Monday. Shares jumped as much as 38% in London on Monday and traded at 576 pence at 10:34 a.m.The deal would be among the largest take-privates in the U.K. technology industry in recent years and marks the latest firm snapped up by a foreign buyer. Both semiconductor designer ARM and Imagination Technologies -- once flagship U.K.-listed companies -- have been bought by foreign investors.A weak U.K. pound has also fed into foreign buyers targeting local companies. Cross-border deals for U.K. companies jumped 66% in the third quarter compared to the same period in 2018, according to data compiled by Bloomberg.Thoma Bravo made an initial non-binding proposal in June 2019, Sophos Chief Executive Officer Kris Hagerman said in an interview after the announcement. Sophos hasn’t received any other offers, and the Thoma Bravo bid is the one that’s been presented and the one that the board is recommending to shareholders, he said.“We’ve been impressed with both their knowledge of the space and their experience with software and in cyber security,” Hagerman said. “That track record and that experience and that judgment of how do you partner with management teams” is a “compelling fit,” he said.Hagerman said the company is likely to continue with a similar strategy under their new ownership.Sophos also posted details on its financial performance for the first half of the year on Monday, and expects to report 9% constant currency billings growth for the six months to the end of September. In January, Sophos had blamed a challenging prior-year comparable for a “subdued” performance, causing the Abingdon, England-based company’s stock to sink to its lowest level in almost two years.The firm provides IT security to a range of clients as small as dentists and neighborhood stores. Its products are aimed at mid-market businesses with as many as 5,000 employees, but customers also include smaller companies that need to protect against cyberattacks.Thoma Bravo, which specializes in technology deals, bought Sophos’s rival Barracuda Networks Inc., in late 2017 in a deal valued at$1.6 billion.JPMorgan Chase & Co., Lazard Ltd. and UBS Group AG advised Sophos while Goldman Sachs Group Inc. worked for the bidder.(Adds CEO comments starting in the fourth paragraph.)To contact the reporters on this story: Giles Turner in London at firstname.lastname@example.org;Kit Rees in London at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Amy Thomson, Dinesh NairFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The huge and growing financial sector in China makes it a tempting target for U.S.-based firms eager to expand their global footprints.
(Bloomberg) -- WeWork is considering a bailout that will hand control of the co-working giant to SoftBank Group Corp., according to a person familiar with the matter, one of two main options to rescue the once high-flying startup.The Japanese investment powerhouse controlled by billionaire Masayoshi Son is convinced it can turn around the cash-strapped American company with the right financial controls in place, the person said, asking not to be identified talking about internal deliberations. WeWork’s board and backers however are also weighing another option: JPMorgan Chase & Co. is leading discussions about a $5 billion debt package, Bloomberg has reported.Either rescue package would ease a cash crunch that could leave the office-sharing company short of funds as soon as next month. The office-sharing startup had been headed toward one of the year’s most hotly anticipated IPOs before prospective investors balked at certain financial metrics and flawed governance, turning the American giant into a cautionary tale of private market exuberance and costing the company’s top executive his job.The fast-growing, money-losing startup had been counting on a stock listing -- and a $6 billion loan contingent on a successful IPO -- to meet its cash needs.Son, SoftBank Risk Too Much With WeWork Takeover: Tim CulpanRead more: WeWork Is in Talks for $5 Billion Debt Package With LendersThe Wall Street Journal first reported that SoftBank may be discussing a deal to gain control of WeWork. Representatives for the Japanese company weren’t immediately available for comment Monday, a national holiday.SoftBank is already WeWork’s biggest shareholder but the proposed deal would shore up its control of the startup, the person said, declining to elaborate on when a decision on the competing offers might be reached. The Japanese company is in advanced talks to acquire more shares at a significantly lower valuation than the $47 billion WeWork sported in January, two people familiar with those discussions said last week. The New York Times has reported that members of the board would meet Monday to decide on which bailout to select.If the board opts for the SoftBank deal, the Japanese company will be taking on a troubled enterprise at a time it’s struggling to convince the market about its longer-term investment vision. It’s also busy wooing potential investors for a successor to its record-breaking Vision Fund.Read more: SoftBank’s Son Is ‘Embarrassed’ By Record, Impatient to ImproveSon is going through a rocky stretch after repositioning his company from a telecommunications operator into an investment conglomerate, with stakes in scores of startups around the world. He built a personal fortune of about $14 billion with spectacularly successful bets on companies such as Alibaba Group Holding Ltd. But SoftBank’s shares are down about 30% from their peak this year as investors, unnerved by WeWork and Uber Technologies Inc.‘s disappointing debut, grow skittish about startup valuations. In an interview with the Nikkei Business magazine, Son said he is unhappy with how far short his accomplishments to date have fallen of his goals.WeWork and Uber may be losing money now, but they will be substantially profitable in 10 years’ time, Son said in that interview. But at a private retreat for portfolio companies late last month, he had a different message: get profitable soon. At the gathering, held at the five-star Langham resort in Pasadena, California, Son also stressed the importance of good governance. Just days later, SoftBank led the ouster of WeWork’s controversial co-founder Adam Neumann.“WeWork has retained a major Wall Street financial institution to arrange a financing,” a representative for the U.S. company said in a statement on Sunday. “Approximately 60 financing sources have signed confidentiality agreements and are meeting with the company’s management and its bankers over the course of this past week and this coming week.”(Updates with details of SoftBank investments from the sixth paragraph)To contact the reporters on this story: Gillian Tan in New York at email@example.com;Michelle F. Davis in New York at firstname.lastname@example.org;Davide Scigliuzzo in New York at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, ;Tom Giles at email@example.com, Edwin Chan, Virginia Van NattaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Masayoshi Son could be on track for the biggest triumph of his career. Or the biggest failure. His decision to jump in and save a drowning unicorn, WeWork, goes against the precepts of the SoftBank Vision Fund that he founded, and could cause reputational damage worth more than the billions of dollars in this one deal.SoftBank Group Corp. may get control of the troubled office-rental startup as part of a financing package that could relieve a looming cash crunch, Bloomberg News reported. Directors of The We Co. may soon choose one of two options: a SoftBank takeover, or a debt package led by JPMorgan Chase & Co.Actually running one of the fund’s portfolio companies would be a grave step for a man entrusted to manage $100 billion of investors’ capital. Such a move goes beyond doubling-down on a flailing investment in a single company and would saddle Son’s team with a task the fund wasn’t set up to tackle. That puts at risk not just shareholder money, but the status of the Vision Fund and its mastermind, Son himself.WeWork was one of the world’s hottest companies before its IPO prospectus revealed it was burning cash and had a complicated shareholding structure that overly favored its founder and chairman, Adam Neumann. Public investors balked, forcing the company to shelve a planned listing. That brought its valuation crashing down, to as little as $15 billion from $47 billion.In late September, there was talk that SoftBank would give WeWork more cash in return for a reduced price at which it acquires stock. That deal would have made sense, allowing Son and his investors to enjoy a wider upside from an eventual exit, or at the very least narrow any downside from a worsening valuation.Having sunk as much as $10 billion in WeWork, it’s understandable that Son and his team want to do all they can to save it.Engineering the exit of Neumann, as SoftBank successfully did, is not tantamount to re-engineering the company and its troubled business model. This is likely the beginning of an ugly cleanup, as my colleague Shira Ovide wrote. But that doesn’t mean SoftBank should be the one to do the dirty work.It’s normal for a startup's investors to offer advice, make introductions, or even force change. It’s highly unusual for a venture capital vehicle to then become the parent company, tasking itself with being the turnaround merchant. That’s the realm of private equity and takes a different skill set. It also takes a lot of time and management resources.Son’s desire to be a savior may be strong. His 2012 takeover of U.S. telecommunications company Sprint Corp. is one of the most notable examples. But Vision Fund investors may also take it as a warning: Sprint remains unprofitable. It has also taken up a lot of management time as SoftBank executives worked to find a buyer — Sprint now plans to merge with T-Mobile USA — and then regulators to allow the deal to go through.As big as WeWork is, that investment is just 10% of the Vision Fund. Yet VC investing returns aren’t measured in percentage points, but multiples. The Vision Fund should be able to write off WeWork in its entirety and still post solid profits. It also means that expending an inordinate amount of time, and reputation, on one investee is not in the best interests of the Vision Fund’s other 82 portfolio companies, nor its investors.Of course, there may be another strategy: Keep WeWork on life-support just long enough to raise the second Vision Fund. Plans for this sequel already look shaky. Would-be backers seem to be having second thoughts and SoftBank is reported to have leaned on its own employees to take out loans to fund personal investments. The WeWork debacle isn’t making the Vision Fund 2 an easy sell.The reputations of Son and the Vision Fund needn't be made or broken by one deal. Sure, a successful turnaround could do wonders. But it seems more likely that negative headlines will keep coming for years and gradually erode Son and SoftBank’s mystique. This hill isn't worth dying on.To contact the author of this story: Tim Culpan at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Earnings season for banks begins Oct. 15, when J.P. Morgan Chase, Citigroup and Wells Fargo are scheduled to announce their Q3 results. However one CIO says earnings are not the focus in the market.
(Bloomberg Opinion) -- However frothy valuations currently seem to be, optimists can always argue they’re justified by strong earnings. In the past four years, S&P 500 operating earnings per share have grown by nearly 40%.Those numbers, however, may be as airy as the asset prices they support. The U.S. government’s national income and product accounts -- which cover a broader number of businesses than the S&P, use tax returns and adjust for certain accounting practices -- suggest that corporate profits actually peaked in 2014 and have been stagnant since. The national accounts also show significant downward revisions to corporate profit margins over the previous five years. While one would expect some discrepancies between that data and S&P numbers, which are based on Generally Accepted Accounting Principles (GAAP), the gulf is too wide to be ignored.What’s going on? In many cases, accounting choices appear to be distorting results. In early 2019, General Electric Co. reported GAAP losses of $2.43 per share; under adjusted figures it earned $0.65 per share. Tesla Inc. reported full-year GAAP losses of $5.72 per share but “non-GAAP” losses were only $1.33 per share. Over 95% of S&P 500 companies regularly use at least one non-GAAP measure, up about 50% over the last 20 years.One question is how companies choose to recognize income. In the case of long-term, multi-year contracts, such as construction projects, reported revenue can be based on a formula: a portion of the total contract amount, calculated as costs incurred in the relevant period as a percentage of total forecast costs. Understating estimated final costs allows margins to be increased and greater revenue to be recognized up front. Following the collapse of Carillion PLC, the firm was found to be aggressive in recording income which was sensitive to small changes in assumptions. Given the trend to converting sales of products (such as software) into long-term service contracts, these risks are only going to grow. Companies can understate expenses. Many tech companies use non-GAAP accounting to strip out the cost of employee stock options, for instance, thereby showing higher earnings. WeWork sought to redefine traditional earnings before interest, tax, depreciation and amortization as something called “community-based EBITDA.” The new measure conveniently excluded normal operating expenses such as marketing, general and administrative expenses, development and design costs.Spending may be treated as an asset, to be written off in the future rather than when expended. A recent JPMorgan Chase and Co. research report found software intangible assets (the amount spent but not yet expensed) averaged up to 15% of adjusted costs for a sample of European banks. The idea is to better match expenses to the period over which they are expected to benefit the business. But the practice may overstate current earnings.Related-party transactions can distort a company’s true financial position. Saudi Arabia slashed the tax rate on large oil companies to 50% from 85%, even though the government depends on the profits of Saudi Arabian Oil Co. for 80% of its revenues. Aramco will still pay most of its profits to the state, but as dividends rather than tax. That means reported profits will be higher, potentially increasing the company’s valuation ahead of a highly anticipated initial public offering. Complex structures can mask liabilities. Tesla, for instance, faces potential payments related to its SolarCity business. Before being bought by Tesla in 2016, SolarCity regularly sold future cash flows to outside investors in exchange for upfront cash. Tesla assumed these obligations and has continued the practice. The obligations now reportedly total over $1.3 billion.To reduce unfunded pension liabilities, some companies have borrowed at low available interest rates to inject money into the funds. That’s fine as long as fund returns -- generally assumed to be around 6% to 8% -- are higher than the cost of borrowing. If returns come in lower, however, the companies in question will have to raise their contributions, affecting future earnings.New business models often disregard potential costs. If Lyft Inc. and Uber Technologies Inc. drivers are reclassified as employees as proposed in California, then hidden employment costs would need to be recognized, perhaps retrospectively. Newly listed fitness company Peloton Interactive Inc. faces a $300 million lawsuit from music publishers who claim the company used their songs in workouts without paying licensing fees.Finally, stated asset values can be misleading. Goodwill, the difference between acquisition price and the fair value of actual assets acquired, now averages above 50% of acquisition price. Goodwill values are notoriously uncertain. In 2018, GE unexpectedly wrote off $23.2 billion of goodwill arising from its acquisition of Alstom SA.The problem is compounded by private markets, where funding rounds can establish questionable valuations. Recent investments into WeWork valued the company at over $40 billion, more than three times the projected pricing of its abandoned IPO. A recent proposal to get Saudi businesses to make anchor investments in Aramco ahead of its IPO could also inflate its valuation.“Fake” financials, as some would call them, undermine markets. With a correction looking increasingly likely, investors need to start working with regulators and standard setters now to close accounting loopholes, while scrutinizing underlying data more closely. Otherwise, the more creatively companies are allowed to manage their financial position for short-term gain, the bigger the bill is going to be.(Corrects definition of goodwill in twelfth paragraph.)To contact the author of this story: Satyajit Das at firstname.lastname@example.orgTo contact the editor responsible for this story: Nisid Hajari at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Satyajit Das is a former banker and the author, most recently, of "A Banquet of Consequences."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The coming week’s docket of economic reports and earnings releases comes just following the Trump administration’s announcement of a partial trade deal with China late last week.