113.85 0.00 (0.00%)
After hours: 7:09PM EDT
|Bid||113.30 x 800|
|Ask||113.93 x 800|
|Day's Range||113.83 - 116.05|
|52 Week Range||77.54 - 116.52|
|Beta (3Y Monthly)||0.34|
|PE Ratio (TTM)||27.08|
|Earnings Date||Jul 30, 2019|
|Forward Dividend & Yield||2.98 (2.59%)|
|1y Target Est||109.85|
Secret Deodorant took out a full page ad in the New York Times to announce it's making a donation to The US Women's National team in an effort to help close the gender pay gap. The sizable donation will be $23,000 for each of the 23 players, which comes out to a total of $529,000.The brand will be the first US Women's National Team sponsor to publicly support the team's fight for gender pay equality
Procter & Gamble (PG) closed the most recent trading day at $113.85, moving -1.26% from the previous trading session.
(Bloomberg) -- Same-day shipping is becoming the norm for online shoppers but for smaller merchants it can be a logistical nightmare. That’s where Shopify Inc. can step in, says Ric Kostick, chief executive officer of 100% PURE.The natural skincare company ships up to 5,000 orders a day from its own warehouse in San Jose, California. That works fine for customers on the West Coast but it can take up to a week to get its bamboo blur powder and coconut shower gel to the rest of the U.S. The company contemplated setting up an East Coast warehouse but the prospect was technically daunting.“The hardest thing is programming the technology to route the packages the right way and route the orders based on what a customer orders and what inventory is available at each site. Shopify has built the technology to calculate this,” says Kostick, who co-founded 100% PURE in 2004. “This is something I’ve wanted for years.”When Shopify said last month that it was moving into the fulfillment business -- essentially charging online merchants to store and ship their products -- the shares spiked and analysts began talking about the Canadian upstart as a potential competitor to Amazon.com Inc.It’s unlikely to become a serious threat to Amazon at this point. But many analysts believe the Ottawa-based company’s decision to add logistics to its range of online services is smart because it could help keep customers loyal, fend off competition and create an additional source of revenue. The move also could potentially pry small merchants from Amazon, which is focusing more on mega brands like Procter & Gamble Co.“A merchant is doing tens of millions of dollars in revenue but their fulfillment is a complete mess and that could prevent them from being successful,” says Taylor Sicard, a former Shopify employee who now runs a company that helps merchants set up e-commerce businesses. “It is a massive opportunity for Shopify.”Founded in 2006, Shopify had a simple pitch: pay us $29 a month and we’ll give you all the tools required to start an online business. Many Shopify customers fail, but the more successful they are, the more money Shopify makes through transaction fees and higher-priced subscription tiers. Its Shopify Plus premium service, which counts Kylie Jenner, The New York Times and 100% PURE as its customers, can cost at least $2,000 per month.Investors love the model. Shopify shares have soared more than 1,800% since the company went public in May 2015, making it one of Canada’s most successful startups. The stock has been hitting records almost daily and now has a market value of C$48.73 billion ($37 billion), bigger than two the country’s oldest financial heavyweights, Manulife Financial Corp. and Canadian Imperial Bank of Commerce.But Shopify has struggled to make a profit and is poised to report a net loss of $35 million on sales of $320 million for the second quarter on Aug. 1, according to the average of analyst estimates compiled by Bloomberg.As the company matures, meanwhile, it will be harder to sustain the average 74% year-over-year revenue growth rates it has managed over the past three years. There are also concerns that Shopify relies too heavily on a few, large merchants that use its premium services. Most of the company’s customers, which amounted to over 820,000 as of June, are smaller and tend to flame out on a regular basis, creating considerable churn.That’s where the fulfillment service comes in. The company has pledged to negotiate low rates with warehouses and shipping companies, then pass those savings on to its customers. In the future, Shopify could pool shipments from different merchants together, making shipping faster and cheaper and gaining some of the same advantages Amazon gets from its centralized fulfillment network.Initial PhaseIt’s partnered with logistics firms to offer the service to merchants shipping orders of 10 to 10,000 items in seven warehouses in states including Nevada, California, and Texas in the initial phase.“Right now it is really important that we invest in the right growth opportunities for the future and not necessarily take our foot off the gas,” says Harley Finkelstein, Shopify’s chief operating officer.Many merchants prefer using Shopify because they can create a brand on their own website, rather than being subsumed into an Amazon-style marketplace. The new fulfillment service will also let them slap their brand on the shipping cartons, something some fulfillment companies don’t offer.Kostick, who also sells his products on Amazon and uses its fulfillment network says the U.S. company provides access to one of the fastest-growing distribution channels for beauty products in the U.S., but Shopify offers more control.“You can customize your own website however you want,” he says. “Basically, you’re empowered.”Jennifer Harper, who also sells sustainable cosmetics through Shopify, says she will wait until Shopify sorts out any kinks before trying the fulfillment service. Others say it could be difficult and expensive to get out of existing contracts with standalone services in the short term.Happy MerchantsShopify says it could eventually build its own warehouses. While Shopify’s finance chief, Amy Shapero, has said that the company will be able to offset the cost with fees for the new service, some analysts say revenue will be limited at first because Shopify will need to offer discounts to lure merchants.Amazon may have little to fear from Canada’s most valuable tech company at this point. Still, Shopify offers a serious alternative to the Seattle leviathan.“Amazon is all about trying to satisfy the customer,” says Anurag Rana, a senior analyst at Bloomberg Intelligence. “They do whatever they can in their power to squeeze money out of the merchants to give it to customers. Shopify is the exact opposite. They will do whatever it takes to help the merchant and maximize their profit.”(Updates with share price and market cap in seventh paragraph)To contact the reporter on this story: Simran Jagdev in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Jacqueline Thorpe at email@example.com, ;Jillian Ward at firstname.lastname@example.org, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
P&G (PG) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
(Bloomberg Opinion) -- Supply-chain finance is the secret sauce behind Citigroup Inc.’s mid-20% return on equity from transaction banking.That might sound counterintuitive, especially in Asia. The export-led region is facing the brunt of supply dislocations as the U.S.-China trade war intensifies. But the skirmish isn’t a showstopper for financing. As production moves from one country to another, transactions that need to be greased with money or credit will occur somewhere else. They won’t disappear.For evidence, take a peek at Citi’s recent quarterly results. The bank has $715 billion in deposits from institutional clients. About $166 billion of it is in Asia, up 8% from a year earlier and growing faster than consumer banking deposits. What’s more, Citi doesn’t even have to aggressively seek corporate liquidity by promising high interest rates. It just has to work with a few hundred clients – not just Western multinationals like Procter & Gamble Co., but also Asian ones such as Alibaba Group Holding Ltd. and Xiaomi Corp. – by lubricating their vast global supply chains running into tens of thousands of vendors.Imagine a detergent maker in Indonesia that gets paid by P&G 90 days after billing. The company would be tempted to accept money from Citigroup even for 120 days if doing so helps to keep its domestic bank-financing lines unencumbered. Citi doesn’t take any credit risk on this small supplier because the bank is going to be paid by P&G, which also benefits by getting an extra 30 days to settle its bills. A big chunk of the corporate cash swirling on Citi’s balance sheet is what the multinationals have in their accounts at the bank , vast sums that ensure supply chains function smoothly.In a two-part series about virtual banking – the hottest new thing in Asian finance this year – my colleague Nisha Gopalan and I concluded that corporate cash management may be a more lucrative bastion than retail for the digital warriors to storm. That’s particularly so for Wall Street banks looking beyond fickle investment-banking revenue. However, even that “more modest leap of faith,” as we described the lure of transaction banking to the likes of Goldman Sachs Group Inc., will have trouble clearing Citi’s moat. It may not be impossible for an online-only bank to operate in more than 160 countries, deal with heavy penalties in case it flouts sanctions or gets dragged into a money-laundering scandal, and over time build its own war chest of deposits. But it’s certainly going to be difficult.None of this means that traditional transaction bankers can rest easy. In the world they’re familiar with, materials move one way; money in the opposite direction. The greater the risk of interruption to the flows, the higher the premium for ensuring they don’t. This age-old landscape is changing fast. The consumption of a Netflix movie or a Spotify song is purely digital. Deloitte estimates that by 2025, more than a third of all consumption in Australia, Hong Kong, Singapore and Malaysia will be done by people born after 1980. The spending of digital native generations – Y and Z – will be light on materials.Transaction bankers can’t dig themselves into a hole and pretend they’re engaged in a pure business-to-business activity. If you want to bank Uber Technologies Inc., you have to grapple with the financing of the discount coupons on late Uber Eats deliveries.Many things in the new digital supply chain will be done more efficiently by non-banks. Deloitte cites the example of Traxpay, chosen this year by Edeka Group, a large German food retailer, to handle the working capital needs of its vendors. Platforms like Traxpay will still need banks. But the real profit lies in owning the client relationships, not in providing money. To retain their edge banks will either have to buy promising fintech firms, or build their own rival products. Both options are capital-intensive; neither is guaranteed to succeed.We’ve previously characterized transaction banking as humdrum to distinguish it from its flashier cousin of retail digital banking. But not only is supply-chain finance juicy for banks, its meat-and-potatoes wholesomeness is drawing in fintech and Wall Street investment banks. The $715 billion of cheap liquidity sitting on the balance sheet of the big daddy of transaction banking is both a temptation for challengers, and a dare. It’ll be interesting to see where those deposits are five years from now.\--With assistance from Nisha Gopalan To contact the author of this story: Andy Mukherjee at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
There's no denying 3M (NYSE:MMM) stock is, despite all of its woes, still a dividend champ. With February's increased payout now on the books, the annual payout of 3M stock has climbed for 61 consecutive years. And, with a dividend of $5.76 per share of 3M stock scheduled for 2019, there's tons of wiggle room for 3M, since analysts, on average, are calling for full-year earnings of $9.40 per share.Source: Shutterstock But even with 3M stock price beaten down to near $173 and MMM stock yielding 3.26%, the shares aren't appealing. This company's got problems, and its China headwind may be the least of them. * 8 Stocks to Buy That Are Growing Faster Than Amazon The foremost challenge facing 3M stock may be its ultra-diversified business model itself, followed closely by waning loyalty towards its brand.InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Symptom of a Bigger IllnessThis coming Thursday, 3M will reveal its second-quarter results. For better or worse, the bar for its Q2 results is set low. After 3M lowered its full-year profit outlook when it released its weaker-than expected Q1 results, analysts, on average, are only calling for Q2 income of $2.06 per share of 3M stock. The company reported EPS of $2.59 in the same quarter a year earlier.China received the lion's share of the blame for the Q1 EPS miss. Though 3M's year-over-year sales fell by higher percentages in Europe, Middle East and Africa, China is a much bigger market than they are. The Q1 revenue of 3M's Asia-Pacific unit fell 7.4% YoY.That decline, however, wasn't offset by its North American revenue., as its U.S. sales inched up a paltry 0.1%. Perhaps worse, its total organic sales volume fell somewhat dramatically.That's an indirect sign that 3M may not command the same kind of pricing power it enjoyed just a few years ago.That certainly jives with data indicating that consumers and corporations aren't as loyal to particular brands as they used to be. They don't have to be. The advent of the internet has given rise to transparency. With equivalent alternatives now readily available at lower prices, buyers of all ilks are choosing options besides 3M.More than that, though, 3M is arguably ill-equipped to restore the kind of brand loyalty that can meaningfully improve its pricing power and sales volume. Conglomerates Are BrokenThere was a time when conglomerates worked. Dissimilar organizations under the same umbrella could at least share shipping costs, while similar products could be cross-promoted. Think Procter & Gamble (NYSE:PG) selling detergent to the same customers who usually buy its paper towels.Once again though, the advent of the internet has largely negated that edge. Anyone can start a business and reach P&G's customers all over the world. Indeed, smaller outfits like Dollar Shave Club have capitalized on doing one thing incredibly well: utilizing clever marketing to chip away at dominant names in the business like Gillette and Schick.Noteworthy is the fact that Dollar Shave, along with similarly small startups like Harry, have been acquired by big conglomerates. Equally noteworthy is the fact that the conglomerates that acquired them have largely left them alone.That, in turn, has lead some owners of 3M stock to wonder if the company's office-supply arm would be better served by operating on its own.As for 3M's more industrial-oriented product lines, rival brands haven't been the problem as much as size and saturation. A lack of focus, however, could still be a key liability for 3M.That's certainly been the case for General Electric (NYSE:GE).For decades it successfully managed to operate businesses ranging from light bulbs to locomotives to life sciences. It could do so because the world moved slowly, and competition wasn't everywhere. With China now fully industrialized, digitalized and capitalized, though, speed matters. Saturated markets matter. The large amount of manpower needed to manage such complex enterprise now gets in the way. There's a reason GE is now selling assets. The Bottom Line on 3M StockNone of this means that 3M can't move past its hurdles, restore pricing power and optimize its conglomerate in a way few other companies are even willing to try anymore. Anything's possible.Even before it's fully addressed its more philosophical challenges, though, it's making itself even more complicated. 3M announced in early May that it would be acquiring wound-care company Acelity for a hefty $6.7 billion as a means of ramping up the growth of its healthcare business, whose 2018 results were disappointing. But if the company can't sell what it already makes, what assurance can it offer investors that it can sell Acelity's products any more effectively?There may be a legitimate answer to the question, but if there is, it wasn't passed along to the owners of MMM stock.Meanwhile, investors may be cheering for a turnaround, but there are reasons 3M stock price continues to make lower lows. There's a lot of work, longer-term initiatives, and tough decisions that 3M needs to make at this point, but it doesn't appear the company is ready for that just yet.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Why 3M Stock Is Untouchable appeared first on InvestorPlace.
Comcast (CMCSA) shares popped after Goldman Sachs issued a positive note on the company recently. Goldman upgraded its rating for Comcast to "buy" from "hold."
Procter & Gamble worked with a Google subsidiary to develop a baby monitoring system that alerts parents via a smartphone app if a Pampers diaper needs changing.
The company took out a full-page ad in The New York Times urging others to ‘help close the gender pay gap.’
L’Oréal, which operates a manufacturing plant in Northern Kentucky and is a major competitor of Procter & Gamble, will rely on patented technology developed by P&G; for plastic packaging.
Google’s life sciences sister company Verily has created a baby monitoring system based around “smart nappies”, working with Procter & Gamble’s Pampers to use sensors, software and video to surveil when infants sleep, wee and poo. Parents will be able to raise “quantified babies”, attaching an activity sensor to the child’s nappy, which feeds data on when a nappy is wet and on a baby’s sleep time to an app that charts daily and weekly routines to show its development. P&G’s Lumi system, set to launch in the US this autumn, also includes a video monitor made by consumer electronics company Logitech, so that parents can watch their baby through the app anywhere in the world.
Stevi Gable Carr, a former Procter & Gamble manager who now works in creative marketing for UC Health, is launching a network for women that will focus on work-life balance.
Colgate's (CL) growth efforts indicate that it will likely retain the robust bottom-line surprise trend. However, soft margins and adverse currency may be deterrents.
Procter & Gamble has signed off on a licensing deal for its Braun appliance brand name to be used in connection with high-fidelity speakers.
Boston Beer (SAM) is likely to deliver robust second-quarter 2019 results on continued depletion and shipment growth. However, rising costs and a sluggish Samuel Adams brand may act spoilsport.
Investors have been keeping their eyes locked on the relationship between the US and China as the rhetoric spewing from the conflict has impacted the stock market for the over a year now.
Coca-Cola's (KO) strategy of introducing new products with focus on expanding successful brands globally is aiding its performance. However, adverse currency may mar second-quarter 2019 results.
Procter & Gamble launched a commercial in March to advocate equal pay for women who play soccer, and on Sunday the company pressed the issue further with a full-page ad in the New York Times.