136.41 -0.91 (-0.66%)
Pre-Market: 6:50AM EDT
|Bid||136.10 x 2200|
|Ask||136.34 x 1300|
|Day's Range||136.57 - 138.06|
|52 Week Range||93.96 - 141.68|
|Beta (3Y Monthly)||0.97|
|PE Ratio (TTM)||27.14|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||1.84 (1.34%)|
|1y Target Est||154.72|
Bottom line: virtual currency has gone mainstream. In fact, virtual currency transactions are a hot-button issue with the IRS, and you can understand why. Coinbase claims it has now has over 30 million accounts.
Ariel Investments’ Rupal J. Bhansali explains how to prosper by betting against the crowd. A smart wager on Microsoft, a hard look at France
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?
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 […]
In terms of pricing, Apple’s seventh-generation iPad is a reasonable proposition compared to its predecessor. Now let’s see how it fares against its peers.
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.
Slack Technologies Inc (NYSE: WORK ) boasts a best-in-class product, but the competitive environment will likely limit Slack's pricing power and expansion opportunities, according to Mizuho. The Analyst ...
Microsoft Corp President and Chief Legal Officer Brad Smith said on Friday that U.S. tech companies will change how they moderate online platforms in response to new laws from foreign governments, regardless of whether U.S. lawmakers take action. In an interview with Reuters Editor-in-Chief Stephen J. Adler at a Reuters Newsmaker event in New York, Smith said that other countries such as New Zealand were passing laws in the wake of events like the mass murder in Christchurch earlier this year. "The laws around the world are going to change, and because technology is so global, American companies will adopt a new approach even if the United States Congress does nothing," he said.
Shares of Apple Inc. dropped 1.1% in morning trading, enough to pull the technology behemoth's market capitalization back below the trillion-dollar threshold. Apple closed with a market cap above $1 trillion the past two sessions--at $1.013 trillion on Wednesday and at $1.008 trillion on Thursday--the first back-to-back closes above the trillion-dollar threshold since Nov. 1. Apple's stock has to close at or above $221.28 to maintain the $1 trillion market cap level. It is currently at $996.9 billion, below first-place Microsoft Corp. at $1.050 trillion. Microsoft's market cap has been above $1 trillion every day since June 7. The recent gains comes in the wake of Apple's iPhone launch event on Tuesday, with pre-orders for the new iPhone 11 now available. Apple's stock has climbed 13.6% over the past three months and Microsoft shares have tacked on 3.9%, while the Dow Jones Industrial Average has gained 4.4%.
Microsoft Corp President and Chief Legal Officer Brad Smith said on Friday that technology companies are likely to change how they moderate online platforms in response to new laws from foreign governments, regardless of whether U.S. lawmakers act to change a U.S. law that has allowed social media platforms to flourish. Smith said that Section 230 of the U.S. Communications Decency Act, which says that tech companies cannot be sued for what users of their online platforms say, was a needed law in the late 1990s when it first passed but that technology companies are now more mature and should have a "new level of responsibility" for what is said on their sites. "The laws around the world are going to change, and because technology is so global, American companies will adopt a new approach even if the United States Congress does nothing," Smith said, during an interview with Reuters Editor-in-Chief Stephen J. Adler in New York.
Late last year as Apple, Amazon, and Microsoft were trading the top spot for world’s most valuable company, I wrote about why Microsoft was the best positioned to solidify its position as No. 1. While these numbers are closer than they have been in the past three months, there is no question that Microsoft is better positioned to remain on top. Apple’s latest product launch serves as a strong testimonial to why this is the case and why Microsoft looks like the better long-term bet for investors.
Microsoft Corp President and Chief Legal Officer Brad Smith said Friday that the company has turned down government requests for facial recognition software in cases where it fears misuse and will never sell the technology for surveillance. "We won't sell facial recognition services for the purposes of mass surveillance anywhere in the world," Smith said, during an interview with Reuters Editor-in-Chief Stephen J. Adler in New York. Microsoft has called for stronger regulation of facial recognition technology, which has been used in China to track ethnic minorities.
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.
(Bloomberg Opinion) -- There's a difference between leveraged buyouts and venture capital: debt. It's a distinction one European private equity firm seems to want investors to overlook. They shouldn’t let their eagerness to jump on the tech bandwagon blind them to it.London-based private equity firm Permira Holdings LLP is preparing an initial public offering of TeamViewer AG. The deal may value the German software maker at as much as 5.5 billion euros ($6.1 billion). That’s more than 17 times 2019 billings. ServiceNow Inc., a similar enterprise cloud software firm in the U.S., trades at a mere 12.5 times forward billings.That lofty valuation isn’t necessarily a problem in and of itself. Investors may well fall over themselves to get a piece of what is, after all, a rarity in Europe: a fast-growing tech company that generates cash and operating profit.But they shouldn’t ignore the warning signs. All the roughly 2 billion euros of net proceeds from the IPO are going to Permira, which will also keep a 58% stake. In all, the firm could end up sitting on a return of almost 13 times its original investment.Then look at TeamViewer’s debt. Include the cost of servicing its borrowings, and the operating profit it posted last year turns into a net loss. After the IPO, the company’s balance sheet will be still laden with debt. TeamViewer expects net debt to fall to 3.1 times cash Ebitda by the end of this year, but that’s well above the level of its tech peers, which typically target lower debt ratios because they don’t have many fixed assets to fall back on should things go awry. In fact, TeamViewer had negative net assets at the end of June. That alone is cause for caution.Potential shareholders will need to have absolute faith that the company can continue to grow and avoid major bear-traps. On one hand, TeamViewer is shifting to a subscription-based business model, which should give it a more predictable recurring revenue stream. But it has also warned that larger U.S. competitors like Microsoft Corp. might try and muscle in on its territory. That could make it hard to continue the 35% annual growth in billings it posted this year.Then there’s the risk of cyberattack. TeamViewer’s key offering is software to monitor computers and equipment remotely, which makes just one major hack a big operational risk. Indeed, the prospectus confirms that in 2016 the company was the target of an attack on its IT infrastructure. The firm detected the activity – but only disclosed it in May when Der Spiegel revealed what it said was a breach by Chinese hackers.This IPO isn’t just a missed opportunity to improve TeamViewer’s balance sheet. Cloud software companies can be inherently volatile, as my colleague Shira Ovide pointed out last week, so it makes even less sense to include debt in this combustible mix. That investors are prepared to overlook all this is testament to the dearth of publicly traded technology companies in Europe. They have next to no choice. To contact the author of this story: Alex Webb at firstname.lastname@example.orgTo contact the editor responsible for this story: Edward Evans at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
REDMOND, Wash., and BURBANK, Calif., Sept. 13, 2019 /PRNewswire/ -- Microsoft Corp. and The Walt Disney Studios today announced a five-year innovation partnership to pilot new ways to create, produce and distribute content on the Microsoft Azure cloud platform.
Investing.com - The Dow is set to pass its intraday record high on Friday and other indexes were also near record highs after upbeat trade news from China, while an upside surprise on core inflation wasn't seen as enough to stop the Federal Reserve cutting rates next week.
Apple (AAPL) is once again a $1 trillion company, joining Microsoft (MSFT), with shares up 8% in the past month. So is now the time to buy Apple stock after it showed off its new iPhone 11s and its streaming TV service, Apple TV+?