|Day's Range||89.07 - 89.96|
Berkshire Hathaway has been a major market laggard in one of the greatest bull markets, leading a longtime fan of Warren Buffett to dump his holdings.
(Bloomberg) -- Elizabeth Warren pledged Tuesday to forgo any high-dollar fundraising events if she becomes the Democratic nominee, a move that would make her the first general-election candidate to do so and could be a high-stakes gamble against a cash-rich incumbent and a well-funded GOP apparatus.But Warren would still accept high-dollar contributions from most people who choose to write her a check without getting special access or seeing her in person. She also vowed to refuse to accept “any contributions over $200 from executives at big tech companies, big banks, private equity firms, or hedge funds.”Warren’s pledge also wouldn’t stop the party or super-PACs from raising vast amounts of money on her behalf. But it may stop wealthy donors from cutting big checks if they believe it won’t help them get access to the nominee.“When I’m the Democratic nominee for president, I’m not going to change a thing in how I run my campaign: No PACs. No federal lobbyists. No special access or call time with rich donors or big dollar fundraisers to underwrite my campaign,” Warren said in a statement released by her campaign.Still, some Democrats fear it would put the party at a huge fundraising disadvantage against President Donald Trump, who’s raking in vast sums of money from big donors by his own campaign and by super-PACs that support him.Rufus Gifford, the finance director for former President Barack Obama’s 2012 campaign, has said Warren’s earlier suggestions to avoid high-dollar events was “a colossally stupid decision” that would cost Democrats not only in the presidential contest but also in down-ballot races.But it also reflects her populist pitch to be a different kind of candidate who isn’t corrupted by special interest money, and so far she has proven adept at generating small-dollar contributions that are envied by her party rivals.A Warren campaign aide said the decision to accept no more than $200 from executives and big tech or financial firms was “retroactive” and any contributions above $200 from those people would be returned.The aide also said that big tech companies under this guideline will include Alphabet Inc., which is Google’s parent company; Amazon.com Inc., Apple Inc., Facebook Inc., Microsoft Corp., Lyft Inc. and Uber Technologies Inc.Nominees traditionally complain about the amount of time needed to raise money in a campaign and call for changes in financing presidential races, but then say they can’t “unilaterally disarm” against a well-funded opponent.Warren’s bet is that her pitch will propel her campaign in the Democratic contest -- where she’s tied with Joe Biden for the top spot -- and mobilize many of the estimated 100 million eligible voters who didn’t turn out in the 2016 election. Biden spends a significant amount of time raising money from traditional donor bases.It’s unclear how Warren’s pledge would apply to the Democratic National Committee, which can accept contributions from individuals of as much as $355,000 for various accounts, including $35,500 per donor that can be used to influence the election.And it wouldn’t apply to outside groups like super-PACs, which under federal law cannot coordinate their activities with campaigns. In 2016, Priorities USA had more than 30 individual donors who contributed more than $1 million.Obama barred contributions from registered lobbyists and corporate PACs. The DNC was outraised by its Republican counterpart in 2012 by almost $100 million, yet Obama, a popular incumbent, won overwhelmingly against rival Mitt Romney in the election. The party lifted the bans in 2016, and the DNC raised $354 million compared to $343 million for the Republican National Committee.Warren often highlights her approach to fundraising on the campaign trail, reassuring prospective voters that her campaign is fueled by them, not big dollar donors.“I don’t spend my time at fundraisers for bazilionaires and corporate executives,” Warren said during a town hall in Austin, Texas, last month. “I just don’t do it.”When asked whether her grassroots fundraising model could leave her without enough money to go against Trump in the general election, Warren was adamant that a flurry of contributions between $5 and $25 would be enough. Trump and the RNC raised $125 million in the first quarter, more than all of the major Democrats combined.“If you think it’s going to be all about scooping up a bunch of money from rich people, and then buying a bunch of TV ads, and that’s how it is someone’s gonna win, then, yeah, it looks like Trump’s doing a lot here,” Warren said recently in San Diego. “I just don’t think that’s how democracy works anymore. And I sure don’t think that’s how it’s going to work in 2020. I think it’s going to be about getting out and building a grassroots movement.”In his battle against Hillary Clinton in 2016, Bernie Sanders relied primarily on small-dollar donors to raise $235.4 million through the end of May 2016, nearly matching the $238.2 million she raised over the same period.But Clinton also had joint fundraising committees that raised millions for the Democratic National Committee and state parties.Trump is using the same arrangements to build a huge financial advantage over his rivals. His campaign and the RNC, plus a pair of joint fundraising committees that raise money for each, have taken more than $300 million through this year, according to Federal Election Commission reports and totals announced by Trump’s re-election effort.Warren has raised $60.2 million in the same period, including about $10 million she transferred from her Senate campaign.(Updates with Warren aide saying big tech donation policy was retroactive in eighth, ninth paragraphs.)To contact the reporters on this story: Sahil Kapur in Washington at firstname.lastname@example.org;Bill Allison in Washington at email@example.com;Misyrlena Egkolfopoulou in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Wendy Benjaminson at email@example.com, Max BerleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Microsoft’s 40% rally this year has been driven in no small measure by investor enthusiasm for the company’s Azure cloud business, which skewed to larger enterprises than its rivals and should be the least vulnerable to any macro-related slowdown, an analyst says.
The best tech stocks to buy and watch aren't hard to find, as long as you know you're fishing in the right pond. That means targeting top stocks showing resilience and holding near highs.
Shopify has been a huge winner in 2019. Earnings are booming and the company plans to compete more with Amazon. But with software stocks under pressure, is SHOP stock a buy now?
CRM stock has lagged software group peers as investors digest a number of big industry acquisitions, such as Tableau. Could digital transformation growth drive a Salesforce stock rally?
Facebook (FB) is not deterred by notable digital payment companies disassociating themselves from Libra. Advancing efforts on Libra brings other major blockchain players under the spotlight.
QQQ is one of the world's most-popular ETFs — as it instantly gives you a piece of companies building the future. Does it belong in your portfolio?
Amazon.com Inc's cloud computing arm is making an aggressive push into one of the most sensitive technology sectors: U.S. elections. The expansion by Amazon Web Services into state and local elections has quietly gathered pace since the 2016 U.S. presidential vote. More than 40 states now use one or more of Amazon's election offerings, according to a presentation given by an Amazon executive this year and seen by Reuters.
Investing.com - Stocks pulled back slightly Monday after concerns emerged that the U.S.-China trade deal announced Friday might not be as solid as first thought.
The Justice Department has reportedly asked for more information about Google's planned acquisition of Santa Cruz-based Looker. The request comes as federal and state antitrust examinations of tech giants are ramping up.
IBM (IBM) is set to report their third quarter results after the closing bell on Tuesday, October 15th as Q3's earnings season gets underway this week.
Associate Stock Strategist Ben Rains dives into some of the latest U.S.-China trade war updates, including President Trump's optimism. We then look at three large-cap technology stocks to consider buying during Q3 earnings season. - Full-Court Finance
On the surface, Canadian e-commerce company Shopify (NYSE:SHOP) has all the appearances of being a stock to buy. High flying SHOP stock is down 19% since the end of August, after a better-than-expected earnings beat pushed the stock up 28% over the course of that month.Source: Paul McKinnon / Shutterstock.com There are signs the fall correction may be over, with SHOP stringing together several days of gains, including 1.5% to close the day on Friday.However, it's also possible that the rough patch isn't over yet. In particular, the specter that its success is breeding competition is becoming a bigger concern.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Success for SHOPShopify has been very successful in becoming the e-commerce platform of choice for small businesses. The company's software is easy to use -- and it's affordable. Shopify has effectively removed many of the barriers to becoming an online retailer, encouraging individuals and small companies to take a crack at online selling. And the company has implemented measures to grow that business further. * 7 Beverage Stocks to Buy Now This includes going head-to-head in the brick-and-mortar retail space against Square (NYSE:SQ) with its own line of payment processing hardware. In September, Shopify announced the acquisition of 6 River Systems, a company focused on robotic warehouse fulfillment solutions. The move puts Shopify in a position to expand its fulfillment network in the U.S. and Canada. It also makes it more competitive against Amazon (NASDAQ:AMZN) in delivery of purchases. With global e-commerce sales pegged at $2.9 trillion in 2018 and growing, the potential for Shopify to expand is huge. After delivering first-quarter and Q2 earnings that smashed expectations, the stage was set for SHOP stock to surge. By the time it hit $406.99 on Aug. 27, Shopify stock was up nearly 194% on the year. Success Breeds CompetitionA number of issues were involved in the correction that hit SHOP over the past month and a half. Like many companies, Shopify has been impacted by the ongoing trade war between the U.S. and China. Tariffs that make products more expensive and threaten to cut consumer spending have the potential to impact online retailers, and that means Shopify's revenue could take a hit. A $603 million secondary share offering also led to a SHOP stock drop in September. The longer-term problem is that Shopify's success has not gone unnoticed. And that means the specter of competition. We saw the first signs of that in March, when Facebook's (NASDAQ:FB) Instagram announced Checkout, an online shopping tool that lets users buy products directly from the app. On Sept. 23, Microsoft (NASDAQ:MSFT) launched Dynamics 365 Commerce, new tools that helps retailers create online product pages. That's not a direct "build your own online shopping site" like Shopify -- yet -- but it's another step in the company's rumored move toward doing so. Then there is the sleeping elephant to Shopify's mouse: Amazon. Essential Retail makes the case that Amazon doesn't duplicate what Shopify is offering to small online retailers because it currently has no need to. As successful as Shopify has been, it's no real threat to Amazon at the moment. But should Shopify begin to scale up to the point where it does eat into the e-commerce giant's sales, Amazon would come at the Canadian company "hard and fast" with a competing solution.If that happened, the results for Shopify would not be pretty. The Bottom Line on Shopify StockAfter Friday's close, SHOP stock is at $329.26, but that's still up a whopping 157% year-to-date. Given that rapid rise and the challenges the company could face in coming months, Shopify stock may not be quite the bargain that it seems. 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 * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post It Is Time to Be Cautious With Shopify Stock as Competition Heats Up appeared first on InvestorPlace.
Apple stock’s 0.33% gain today to a recent $236.98 gives the company a market value of $1.072 trillion. Microsoft stock, up 0.20% today to $139.96, has a current market value of $1.069 trillion.
Throughout 2019, the Technology sector has been flying high as the top performing sector. Heading into Q4, Technology companies and investors alike have begun to show concerns over the macro environment, and that’s arguably starting to show up in the sector’s performance. Plus, they’re paying close attention to the US-China trade front where the market tends to swing on emotions day to day, with one headline bringing us up and another taking us down.
Investing.com – Apple (NASDAQ:AAPL) is once again the world's most value company, ahead of Microsoft (NASDAQ:MSFT), as shares rose Monday.
Intel (NASDAQ:INTC) stock has had a tough time in 2019. While shares are up for the year, the stock has under performed its semiconductor peers. With the company losing CPU market share to Advanced Micro Devices (NASDAQ:AMD), it's no wonder investors have left INTC in the dust. In addition, the macroeconomic environment has not been friendly to INTC stock. Or to the chip space in general.Source: JHVEPhoto / Shutterstock.com While resumed trade talks have already resulted in "progress", investors remain skittish whether the U.S.-China trade fracas will lead to further headwinds for the chip space.But looking beyond these variables, Intel remains a solid stock to own. Selling at a low valuation, it offers value in a space dominated by speculative growth names. It pays a solid dividend, and has the cash flow to support it. While you may not see big gains from Intel, it may be a great blue chip opportunity. Let's take a closer look at Intel, and see why the stock may be a buy at today's price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Intel vs. AMDI believe the CPU wars are the most important factor when assessing Intel stock. While the trade war is a big risk, long-term AMD's purported recriminating of CPU market share threatens INTC's economic moat. Intel's dominant market share has given it pricing power and other advantages to ensure the stock remains a cash cow. But with AMD eating more of Intel's lunch, it seems that this gravy train could soon be over. * 7 Semiconductor Stocks to Buy Now But what is the truth behind the hype?It's no joke that AMD's Ryzen processors have been a game-changer. The success of this chip line has helped AMD seize more of Intel's CPU market share since 2017. AMD now has a staggering 30% market share of the CPU market. If this trend continues, AMD could reach market share it hasn't seen since the mid-2000s, when it had over 40% CPU market share.However, could this be but a short-term blip? Intel's market share losses are the result of their chip shortage. Their inability to adapt to 14-nanometre sized processor lead to supply issues. End-users simply switched from Intel to AMD.Perhaps AMD's market-share grab will taper off in the next few quarters. InvestorPlace's Ian Bezek believes so. In his Oct. 9 article, he pointed out how while AMD's market share has grown materially, it cooled off in the last quarter. However, as an aside, Bezek pointed out how Microsoft (NASDAQ:MSFT) partnering with Qualcomm (NASDAQ:QCOM) for chips in their Surface tablets highlights market share risk. Mobile chips have not been successful in the past when used in tablets. But with improvements in technology, mobile chip makers like Qualcomm now offer a compelling alternative to Intel's x86 CPUs. Despite Headwinds, INTC Stock Is UndervaluedIntel stock trades at a low valuation relative to most of its peers. INTC trades at a forward price-to-earnings (P/E) ratio of 11.6. The stock's enterprise-value-to-EBITDA (EV/EBITDA) ratio is 7.7. Here are the respective valuations of INTC's key competitors:AMD: Forward P/E of 27.8, EV/EBITDA of 64.7Broadcom (NASDAQ:AVGO): Forward P/E of 12, EV/EBITDA of 14Qualcomm: Forward P/E of 18.3, EV/EBITDA of 8.4Nvidia (NASDAQ:NVDA): Forward P/E of 26, EV/EBITDA of 40Texas Instruments (NASDAQ:TXN): Forward P/E of 5.9, EV/EBITDA of 3.1One thing to keep in mind is Intel's lack of long-term revenue growth. Analyst consensus estimates revenue will only grow from $69.4 billion in 2019 to $70.9 billion in 2020. Clearly, INTC stock is no growth play. But Intel stock more than makes up for in terms of return of capital to shareholders.INTC stock currently pays a 2.42% yield. While not the highest yielding blue-chip, it is otherwise a solid dividend. With a payout ratio of just 35.92%, there's plenty of room to grow this in coming years. The average 5-year growth rate for the dividend has been 5.92%. * 10 Tech Stocks to Buy Now for 2025 Along with dividends, Intel has bought back a lot of stock. For the first half of 2019, they repurchased $5.6 billion worth of shares alone. These buybacks are accretive to Intel shareholders, as they improve earnings-per-share over the long-term. Bottom Line: Intel Is a Solid Long-Term InvestmentThere's not much of a "play" with INTC stock. The company's main appeal is their cash-generating status and relatively low valuation. Key risks like competition and China may already be priced into shares. But if both of these issues accelerate, it does threaten the bull case for Intel stock.So what's the call? Are you looking for a solid dividend payer? Consider Intel stock. Are you looking for a contrarian chip play? Perhaps look elsewhere. Whether or not INTC maintains its moat, it is unlikely the company will see monumental revenue growth. Other chip names may offer this proposition.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Why Intel Stock Will Weather the Trade War Storm appeared first on InvestorPlace.
International Business Machines (NYSE:IBM) is depending on its hybrid cloud strategy to boost its slowing growth. IBM needs to gain traction in the hybrid cloud market with its recent Red Hat acquisition. If it succeeds, IBM stock will do well over the next year.Source: JHVEPhoto / Shutterstock.com Companies use hybrid or multi-cloud services that Red Hat offers to manage their software across different cloud services and their own data centers. IBM is counting on Red Hat to give it clout in competition against Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT)Companies use separate cloud services to put their data to work. These services sort, group and analyze it quickly and securely. For example, Red Hat's software helps companies put older software applications in data centers and in various cloud services.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Beverage Stocks to Buy Now IBM's strategy to turn around its software revenue is hanging on this, according to the Wall Street Journal. One analyst quoted by the Journal called the Red Hat deal a "bet-the-company move" by CEO Ginni Rometty. This is because none of her other acquisitions in the past seven years have amounted to anything great. Upcoming Earnings Will Highlight Red Hat's BenefitsOn Oct. 16, IBM will report its third-quarter earnings. This will be the first full quarter of having Red Hat as a separate subsidiary. This will be important as it will begin to show how Red Hat will add to IBM's overall growth plans.Red Hat has been growing its revenues at a much faster growth rate than IBM. Its three-year revenue growth rate is 20% against 1.5% for IBM.The upside for IBM and Red Hat in the hybrid market is huge. IBM claims this is a $1.2 trillion opportunity. For example, by 2023, 50% of businesses will have moved to the "write once, run anywhere" multi-cloud environment. This is up from 10% of businesses having that ability now.IBM's cloud revenue as of Q2 was $19.5 billion for the past 12 months. This represents just 25.5% of its total revenue during that period. Red Hat is expected to add $500 million to IBM's free cash flow by 2020 and $1 billion by 2021. As of Q2 IBM had made $12.2 billion in free cash flow over the last 12 months. So that means even if Red Hat contributed $1 billion this year, the increase in free cash flow would be 8.1%. IBM Stock Is Beaten Down Compared to its PeersIn June 2019 a UBS analyst upgraded IBM to a "buy" rating and lifted his target to $180 per share. He believes that IBM's revenues will turn around as it focuses on higher-margin businesses like cloud computing, analytics and security.IBM stock is trading for just 11 times forward earnings. This seems too cheap for a company that now has a chance to turn its earnings and cash flow around with its Red Hat acquisition.Moreover, with the 4.5% dividend yield, investor receives a nice return while waiting for IBM stock to rise. This is significantly higher than the average 1.9% dividend yield of the S&P 500. Value Investing and Ignoring the MarketTwo famous value investors were interviewed recently in an article in the Harvard Business Review titled "Value Investing, Human Behavior -- and Why You Should Ignore the Market." In the article the investors were asked why some companies appear to be selling for significant discounts to their intrinsic value. One of the investors, Charles Brandes, had a great answer:"…If you do a deep analysis of a company that is in trouble, sometimes you can see that the problem is not going to last forever. For example, Volkswagen during its emission crisis, and BP during the oil-spill debacle. These were horrible, but temporary, situations for really good companies -- and that can provide an opportunity to buy them below their actual value."I believe that is the situation here with IBM stock at these prices. You can see that the Red Hat is going to act as a catalyst for the company to reach its true earnings potential over the coming years. IBM Stock Has a Good Chance of Paying Off for Value InvestorsIBM stock has discounted a lot of bad news. It seems none of the benefits of the Red Hat acquisition have been incorporated into its valuation. This seems like a good entry point for value investors.They need to be willing to wait for the Red Hat acquisition to start adding value for IBM. But it seems the wait will be worth it in the long run.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. The Guide focuses on high total yield value stocks, which includes both dividend and buyback yields. In addition, subscribers a two-week free trial. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Hybrid Cloud Strategy Will Help International Business Machines Stock appeared first on InvestorPlace.
Shares of Apple Inc. rose 0.6% in morning trading Monday, enough for the technology giant to reclaim the No. 1 spot on the list of largest U.S. companies by market capitalization. Based on most recent filings disclosing shares outstanding, Apple's market cap was now at $1.074 trillion, while Microsoft Corp.'s stock slipped less than 0.1% to lower the software giant's market cap to $1.066 trillion. That puts Apple on track to close at No. 1 for the first time since April 17. Apple and Microsoft remain well above third-place Amazom.com Inc. , currently valued at $853.1 billion, and above fourth-place Google-parent Alphabet Inc. at $848.2 billion. Apple's stock has run up 16.9% over the past three months and Microsoft shares have tacked on 0.5%, while the Dow Jones Industrial Average has slipped 1.9%.