127.83 -2.05 (-1.58%)
After hours: 7:58PM EDT
|Bid||127.70 x 800|
|Ask||127.90 x 1000|
|Day's Range||127.79 - 145.75|
|52 Week Range||26.30 - 176.55|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Roku (ROKU) shares closed down almost 14% on Wednesday as social media giant Facebook (FB) announced that they would be jumping on the streaming bandwagon.
After a couple of quiet days for equity investors, we finally got some action in the stock market today. The move comes after the Federal Reserve announced a 25 basis point reduction in the Fed Funds rates.Just the day before, we had noted that the likelihood went from a sure-fire rate cut a few weeks ago to a coin toss. Well, the Fed delivered with lower rates and Fed Chair Jerome Powell said the Fed will be accommodating in the future.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe SPDR S&P 500 ETF (NYSEARCA:SPY) climbed 0.1%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) rallied 0.2% and the Invesco QQQ Trust (NASDAQ:QQQ) slipped 0.04%. Fed CutsWhile the Fed statement says it will be accommodating, the group does not seem interested in a spree of rate cuts. That's according to the voting members and where they stand in regards to cutting rates both this month and throughout the rest of the year.That's not to say they will not cut rates -- the Fed overall sees at least one more rate cut this year -- but the group's stance caused some dovish investors to recoil initially. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Have no fear, though. While Powell said he doesn't anticipate negative interest rates, such as in the European Union, he also said the Fed may have to raise its balance sheet sooner than expected. Further, the Fed will only stop taking accommodating action once it is warranted.If anything, it was a reassuring meeting where equity investors got the rate cut they wanted and heard the Fed has their back. Powell called it an "insurance" move, and that's exactly what it was. Roku WreckedDespite the accommodating stance of the Fed, Roku (NASDAQ:ROKU) was smashed on the day. Shares had already declined notably from its highs near $176, but they were holding up pretty well between $140 and $150 as the 20-day moving average was buoying the stock.That is, until today.Despite Guggenheim analysts maintaining their "buy" rating and moving their price target from $119 to $170, the stock plunged more than 14% at one point. The stock came within this close of hitting its 50-day moving average on the decline.From a trading perspective, it's got some investors wondering if ROKU will test and hold this mark, or if it will knife right through it like so many other red-hot tech stocks did earlier this month.In any regard, the decline comes as both Facebook (NASDAQ:FB) and Comcast (NASDAQ:CMCSA) announce over-the-top products and platforms. Increasing competition, especially from these juggernauts, dealt a blow to Roku today. Let's see where it ends up finding support. Movers in the Stock Market TodayAdobe Systems (NASDAQ:ADBE) initially took a tumble after reporting earnings. The company beat on earnings and revenue expectations, but provided lower-than-expected guidance for next quarter. As such, shares sank 1.8% on the day.(Here's how to trade Adobe stock now, by the way).Shares of FedEx (NYSE:FDX) were creamed on Wednesday and deservedly so. Revenue was flat year-over-year and in line with expectations, while earnings missed analysts' expectations. Worse, the company cut its full-year revenue and earnings outlook, with the midpoint of the latter coming in roughly 16% below consensus estimates. Shares fell almost 13% and hover just above its 52-week lows. The result is also ushering in a slew of Wall Street downgrades.Chewy (NYSE:CHWY) fell 6.2% after the company reported earnings. Revenue grew 43% year-over-year and topped expectations, while earnings missed estimates. However, margins expanded and EBITDA topped estimates. Let's see how this recent IPO does in the coming days and weeks.General Mills (NYSE:GIS) slipped 0.9% after beating earnings and missing on revenue expectations. Management reaffirmed its full-year outlook and while the quarter wasn't great, it wasn't terrible either. With that 3.6% yield and the Fed cutting interest rates again, it may be enough to keep investors going to GIS.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Stock Market Today: Federal Reserve Cuts Rates; Roku Tumbles appeared first on InvestorPlace.
A trio of earnings announcements set the tone at the top of Wednesday's PreMarket Prep show. After the close on Tuesday, FedEx Corporation (NYSE: FDX) disappointed the Street with a third-quarter miss along lower guidance for 2020 EPS and sales. The next issue on the hit parade was Chewy Inc (NYSE: CHWY).
Buckingham Capital Management was launched back in 1985 by David Keidan. Mr. Keidan is the fund’s President and Chief Investment Officer, and also a Trustee at Montefiore Health System Inc. He holds MBA from Harvard Business School, and prior to founding Buckingham Capital Management he gained vast experience in research, trading and asset management. He […]
It has been a quiet week, but stocks were on the move Wednesday after the Fed announced it would cut interest rates by 25 basis points. Let's look at a few top stock trades going forward. Top Stock Trades for Tomorrow 1: RokuRoku (NASDAQ:ROKU) was by far the top focus on Wednesday, with shares falling more than 14% at one point. The fall comes despite the stock consolidating at its 20-day moving average and receiving a nice price target increase on the day. However, both Facebook (NASDAQ:FB) and Comcast (NASDAQ:CMCSA) announced over-the-top streaming products for its customers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt seems like investors were just looking for an excuse to sell Roku. After all though, shares ran from ~$100 pre-earnings to more than $175 a month later. As if a 75% rally in one month weren't absurd enough, shares were up almost four-fold from the December lows before that rally. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars So what now?Shares puked right down into the 50-day moving average. Is it still enough to unwind that overbought condition? We won't know until ROKU puts in a few more sessions. Right now, it certainly looks like more losses could be on the way.Perhaps not in the next day or two, but looking forward to the intermediate term. That said, we don't have a crystal ball and we need to keep watch day by day.At $120, Roku stock would be back to its gap-up post-earnings open and at the 38.2% retracement. Should we get a Q4 swoon where the market is hit hard, one could see a scenario where Roku is back down into the $100 to $110 level.A reversal could change the tune for Roku, with bulls back in control if shares reclaim the 23.6% and the 20-day moving average. Let's start with the 50-day and see how Roku does from there. Top Stock Trades for Tomorrow 2: Adobe SystemsAdobe Systems (NASDAQ:ADBE) fell after reporting earnings, but held a very key spot. Support came into play from the 200-day moving average and uptrend support (blue line).I would love to see ADBE stock reclaim the key $277 level, as well as the 20-day moving average. In this event, look for a possible rally up to the 50-day moving average.Below Wednesday's low is cause for concern for longs. Top Stock Trades for Tomorrow 3: Beyond MeatBeyond Meat (NYSE:BYND) is on the move lower after Tim Horton's will reportedly pull BYND's products from most of its locations.So far though, BYND remains mostly range-bound. Below uptrend support near $145, and range support at $140 is on the table. Below that mark certainly raises a red flag for bulls, but if it holds, a rebound could be in store.Should support hold or should Beyond not even fall to that point, look for a possible rally to range resistance near $170 and the 50-day moving average, currently near $168. Top Stock Trades for Tomorrow 4: Bristol-Myers SquibbAfter hitting a low point in July, Bristol-Myers Squibb (NYSE:BMY) stock has been slowly but surely making its way higher. Remember it's in the midst of acquiring Celgene (NYSE:CELG) too.In any regard, look to see if we can get a move over $50. If so, it puts a run up to $53 on the table. * 7 Momentum Stocks to Buy On the Dip On the downside, I want to see prior short-term resistance near $48 act as support. Below uptrend support and/or the 20-day moving average, and BMY may need more time to setup.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CELG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post 4 Top Stock Trades for Thursday: ROKU, ADBE, BYND appeared first on InvestorPlace.
Streaming video stocks came under pressure Wednesday, led by a double-digit percentage loss in shares of Roku Inc (NASDAQ: ROKU ). The catalyst some investors are citing is Facebook, Inc. (NASDAQ: FB ...
Roku Inc.’s massive 2019 rally took a dent on Wednesday after a longtime media giant made a move that undercuts the makers of streaming-media players.
The case for turning incrementally positive on streaming video hardware and software company Roku Inc (NASDAQ: ROKU ) is based on its industry-leading platform and an attractive international growth opportunity, ...
Roku Inc. shares are off 8% in Wednesday trading after the company got some new competition in streaming video. Comcast Corp. announced that it would be giving internet-only customers a free Xfinity Flex device, which lets them watch their streaming services on a TV set. Also on Wednesday, Facebook Inc. announced its $149 Portal TV device, which supports video calls that get streamed to a TV set and also allows users to watch various programs. Roku shares have gained 356% so far this year, while the S&P 500 has risen 20%.
Facebook, Inc. (NASDAQ: FB ) is preparing to launch Portal TV, a clip-on camera accessory for video calling, AR gaming and content co-watching. The news sent Roku Inc (NASDAQ: ROKU ) shares lower. Roku ...
Roku's stock tumbled nearly 14% and was on track for its worst one-day loss since March as investors reacted to the increased competition against the Silicon Valley company's own streaming products. Roku's stock has surged over 300% in 2019 and recently traded at almost 13 times expected sales, according to Refinitiv data. "We are having a tough time justifying Roku's valuation, especially facing such substantial competitors as Amazon, Apple and Google.
(Bloomberg) -- Facebook Inc. on Wednesday upgraded its Portal video chat devices, with a new model for TVs and lower prices. It also said users can opt out of the company accessing voice recordings collected by the hardware.With the new products, called Portal TV, Portal, and Portal Mini, Facebook is trying to break into the crowded smart speaker and connected living room markets.The Portal TV, which goes on sale for $149 in October, can be connected to a TV set with standard HDMI cable and has a camera and several microphones to enable video calling via Facebook’s Messenger and WhatsApp services.The device supports Spotify, along with Amazon’s Prime Video service, Ring cameras and Alexa voice assistant. But it lacks content from Netflix Inc. and some other popular video-streaming services. That may make it difficult to compete without the range of video and apps offered by rival streaming devices from Roku Inc., Apple Inc. and Amazon.com Inc.Facebook executive Andrew Bosworth emphasized in a demonstration that the device’s primary purpose is video calling. That’s the company’s unique sales proposition and people will likely use additional devices for content that they can’t get via the Portal TV, he said.Facebook’s new Portal smart display devices, coming later in October, will sell for $129 and $179, down from the previous $199 starting price. The devices still come in two sizes, 8-inch and 10-inch variations. The new versions have improved speakers and a physical shutter that can either disable both the camera and microphone or just the camera.Facebook said it will transcribe some audio clips collected by the Portal devices, but users will be able to opt out.Facebook first launched its video-calling hardware in 2018, following a series of privacy scandals. The company doesn’t report Portal sales, but it slashed the price in half earlier this year. Bosworth said sales and consumer reception of the device were “warmer” than expected, but he declined to provide specific figures.To contact the reporters on this story: Mark Gurman in Los Angeles at firstname.lastname@example.org;Kurt Wagner in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair Barr, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
You may cherish your Roku (NASDAQ:ROKU) device to meet your entertainment needs. But unless you want to get played by shares on the price chart, now is not the time to purchase ROKU stock. Let me explain.Source: AhmadDanialZulhilmi / Shutterstock.com I love my Roku streaming stick. I cut the cable cord with my first Roku device more than six years ago and have never looked back. Now, and with more and more people making the same switch, the future continues to look very good for ROKU.Roku's hardware is the overwhelming platform of choice when watching streaming content from Netflix (NASDAQ:NFLX), Disney's (NYSE:DIS) Hulu and the soon-to-launch Disney+, Amazon's (NASDAQ:AMZN) Prime and AT&T's (NYSE:T) HBO Now. And that's great news.InvestorPlace - Stock Market News, Stock Advice & Trading TipsStill, that doesn't mean there are threats that Roku stock can completely ignore.Front and center, there's always the possibility of competition for the Roku stock price. Others like Apple (NASDAQ:AAPL) have and will continue to try and muscle in on Roku's action. Speaking of which, the tech giant is fighting back once again with the introduction of Apple TV+ and a slew of less-expensive, high-quality original programming for consumers. * 7 Momentum Stocks to Buy On the Dip There's also the market itself to be cautious of when it comes to investing in ROKU.A bit more than a month into a confirmed rally, the S&P 500 has clawed its way back up to an all-time-high this past week as the market moves into the second half of a seasonally difficult September and ever closer to the notorious calendar month of October. And that could have seriously implications for a growth name like Roku stock and its price chart, which is already looking technically suspect for today's buyers. Roku Stock's Weekly ChartIf ever there was a mover and shaker on the price chart, ROKU would undoubtedly be in the running for top honors. That said, volatility is a two-way street. And while just a short time ago shares of Roku could have been played profitably for upside momentum, today is a very different story and the odds are stacked against bullish investors.As the weekly chart shows, Roku shares have established a confirmed bearish engulfing candlestick. Coupled with an incredible market-leading rally off its August bottom, a stratospheric 2019 for shareholders, an overbought and bearish stochastics crossover and technical support well below today's ROKU stock price, bullish investors need to wait before buying.Given the potentially treacherous near-term environment for ROKU, my suggestion is to watch for a leg down into or between the first couple support zones from roughly $127-$130 and $116-$119 for bottoming. A challenge of those key price areas on the Roku stock chart offers investors an opportunity to buy into a great name after a minimum, but much-needed correction of at least 25%.I'd also recommend that instead of simply trying to catch a falling knife into a support zone, investors should wait for the weekly stochastics to support the potential for a bottom. Lastly, locating a reversal pattern -- not unlike those formed in December, April and early August -- makes a good deal of sense before buying Roku stock.Investment accounts under Christopher Tyler's management do not currently own positions in securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post The Bull Market in Roku is Over -- For Now appeared first on InvestorPlace.
After watching Apple (NASDAQ:AAPL) get a bump in its stock price following its annual hardware event, Amazon (NASDAQ:AMZN) stock is aiming for the same result.Source: Jonathan Weiss / Shutterstock.com Both companies are chasing Microsoft (NASDAQ:MSFT) in the race to be the richest of the "Cloud Czars." Apple's market cap is over $992 billion while Amazon's market cap is at $891.6 billion. Microsoft stock is king of the hill at just over $1 trillion.Amazon shares hit an all-time high over $2,000 in July but have since traded as low as $1,750. AMZN stock opened Sept. 16 at $1,824.02. Government antitrust efforts concerning its Marketplace have hurt the stock. But operating cash flow, which Amazon calls its key metric, has yet to slow. It came in during the June quarter at over $9 billion, up from $7.5 billion a year ago.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What's in StoreLater this month, on Sept. 25, Amazon will host its second annual product-focused press event. Several outlets predict that once again, this event will focus on its Alexa voice interface. The Alexa interface is becoming as important to Amazon as the iPhone is to Apple, because its services tie people into Amazon's cloud and e-commerce store.The most anticipated improvement is better sound quality, which could lead customers to upgrade their devices. The interface could also feature connectivity to more Amazon products, expanding its reach throughout consumers' homes. * 7 Tech Stocks You Should Avoid Now Amazon has been seeking hardware partners for Alexa in companies like Anker, Toshiba (OTCMKTS:TOSBF), JVC Kenwood (OTCMKTS:JVCZY) and Grundig. The result should be more support for Fire TV, which is competing for market supremacy with Roku (NASDAQ:ROKU).One product that would be a surprise is an Amazon phone. The company's Fire Phone, launched in 2014, was a debacle. Amazon has since taken to selling phones from Lenovo (OTCMKTS:LNVGY) at a discounted price, loaded with Amazon shopping services and advertising.Another possibility could be improved Kindle e-book readers. Amazon has a virtual monopoly on both e-books and readers. The latest versions are distinguished from the Fire tablet, which also supports Kindle books, by their front-lit, high-resolution displays. Amazon Stock Needs Some CatalystsAmazon needs some new earnings catalysts as it faces a chorus of political push back.While Amazon remains just over half the size of Walmart (NYSE:WMT), the retail giant is successfully portraying itself before regulators as a poor underdog, even while it copies Amazon features like its marketplace and one-day delivery.This is getting results. In addition to a federal investigation of its marketplace, politicians are now questioning Amazon's treatment of delivery drivers. Many are classified as independent contractors, like Uber (NYSE:UBER) drivers. Others are employed by third-party contractors, meaning Amazon takes no responsibility for their treatment.Amazon is expanding employment in Boston, Chicago, Dallas and Nashville, as well as at its Seattle headquarters and "HQ2" operation near Washington DC. The company has spread its technology development to 18 different cities. The Bottom Line on AMZN StockAmazon's explosive growth has it competing with companies across the media, marketing, technology and retail landscapes, from FedEx (NYSE:FDX) to Walmart, and from Apple to Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).It's not just competing in the marketplace with these companies. Increasingly it's competing in Washington, and in other nation's capitals, as companies threatened by its growth seek government protection.For investors, it means they can now get Amazon for just 75 times last year's earnings, and less than three times its expected 2019 revenue of $331 billion. Given that it's still growing at rate of 30% per year, and that profits are no longer a rounding error, that's looking cheaper by the day.As has been said about Apple, Amazon is a stock you hold for the long run. Ignore the noise.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in MSFT, AAPL and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Amazon Stock Channels Apple's Magic Through Sept. 25 Event appeared first on InvestorPlace.
There is a feeling in financial markets right now that the U.S. and global economic environments are actually improving. Look no further than Citi's Economic Surprise Index, which measures how economic data is coming in relative to expectations. For the first time since early 2019, this index has poked into positive territory.If the U.S. and global economic environments are actually improving, then the long end of the U.S. Treasury yield curve shouldn't be so low. Right now, the long end of the curve is basically screaming "recession." The data disagrees with this assessment. Almost always, the data wins out. Thus, there are murmurs out there that the long end of the yield curve should actually move higher over the next few months.While that is great news for the economy, it's bad news for growth stocks. Low rates inflated growth stocks, because as rates went lower, so did the discount rate for which investors used to discount future profits. Growth stocks get all of their value from future profits. Thus, as the discount rate on those future profits tumbled, the present value of those future profits soared, and so did growth stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe opposite could happen, too. Rates could rise, and if and when they do, growth stocks could drop. * 7 Tech Stocks You Should Avoid Now Of course, this blanket assessment doesn't apply to all growth stocks. For many of them, this unwinding of the growth trade that was inflated by low rates will just be a blip on the radar. Once rates stop moving higher, these stocks will stop moving lower, and they will continue on their secular up-trends.But, for some growth stocks, this unwinding could be more serious. Which growth stocks could get hit hardest in this unwinding period? Let's take a look at five growth stocks to sell as rates creep higher. Growth Stocks to Sell as Rates Move Higher: Chipotle Mexican Grill (CMG)Source: Northfoto / Shutterstock.com YTD Gain: 88%One growth stock which looks like it could get hit particularly hard if/when rates move higher as the U.S. economic outlook improves is Chipotle Mexican Grill (NYSE:CMG).Shares of the fast-casual Mexican eatery are up more than 88% year-to-date, mostly because the company has successfully and impressively executed on its turnaround initiatives, including building-out the digital delivery business, expanding the menu, and re-branding the chain as a "healthy ingredients" restaurant. Comparable sales have turned into sharply positive territory. Margins are have run higher. Profits have soared. So has CMG stock.But part of this rally has unequivocally found support in low rates. How else do you explain a restaurant sock trading at over 45-times forward earnings? The average forward earnings multiple in the restaurant sector is 28, less than half of Chipotle's forward multiple.As such, if/when rates creep higher over the next few months, CMG stock could get hit particularly hard -- not because the fundamentals here aren't good, but because the valuation looks almost entirely dependent on rates remaining low. Workday (WDAY)Source: Sundry Photography / Shutterstock.com YTD Gain: 9%One growth stock which has already been hit hard in the unwinding of the growth trade in anticipation of higher rates is Workday (NASDAQ:WDAY).Workday is a market-leading provider of cloud-hosted enterprise resource planning solutions. The cloud growth narrative has been on fire this year. So has Workday's growth narrative. In 2019, Workday's revenues, profits, and stock have all marched higher. But, as I've pointed out before, WDAY stock has marched into aggressively overvalued territory, and investors are finally starting to notice as the company's numbers have shown signs of weakness.Over the past two months, WDAY stock has shed more than 20%, mostly thanks to slowing growth trends in the company's most recent earnings report. During those two months, the 10-Year Treasury yield actually dropped from over 2% to about 1.6%. Thus, even with the long end of the curve dropping, WDAY stock has still dropped big over the past two months because the growth narrative here is losing momentum. * 10 Battered Tech Stocks to Buy Now If the long end of the yield curve reverses course here and starts to move higher, that will add more pressure to what is an already pressured WDAY stock. That added pressure should result in material weakness in Workday stock for the foreseeable future. Match Group (MTCH)Source: Shutterstock YTD Gain: 80%Another growth stock that seems aggressively overvalued and which could get hit hard in the event that rates do move higher is Match (NASDAQ:MTCH).MTCH stock is up 80% year-to-date -- and up 400% over the past three years -- as the company has emerged as the unchallenged leader in the secular growth online dating space. Specifically, two things have happened here. One, Match has acquired all of its competition (ex: Bumble) and now holds a portfolio of apps which cumulatively dominate the entire online dating landscape. Think Facebook (NASDAQ:FB) of online dating. Two, online dating has turned into a super valuable industry, as consumers have expressed ample willingness to pay up for premium and exclusive online dating services and perks.Consequently, Match's user base, revenues, and profits have all expanded dramatically over the past few years. This big growth has fueled big gains in MTCH stock. But, this is now a stock which trades at 37-times forward earnings, on revenue and profit growth that was under 20% last quarter. That's a really big multiple for not-that-big of growth. Excluding legal fees, Facebook is growing revenues at a faster rate and profits at a comparable rate. And FB stock trades at just 19.5-times forward earnings.From this perspective, it does appear that low rates are inflating the valuation underneath MTCH stock. If/when rates do move higher from today's all time low levels, then MTCH stock could suffer from material multiple compression. Roku (ROKU)Source: Michael Vi / Shutterstock.com YTD Gain: 388%It's tough for me to put streaming device maker Roku (NASDAQ:ROKU) on any "stocks to sell" list. The long-term growth narrative is just so good. But, ROKU stock has come so far, so fast, that I do think this stock could get hit hard if/when rates creep higher.Big picture, ROKU stock is a long-term winner. The company is transforming into the cable box of the streaming TV world, and in so doing, will one day have over 100 million active accounts, from which the company will be able to extract tons of high-margin dollars through TV ad sales and subscription sharing agreements. This company is in the first few innings of a very big long term growth narrative -- and that narrative will ultimately end with ROKU stock being way higher in the long run.In the near-term, ROKU stock is ahead of itself. See the math here. It's tough to justify a price tag above $150 today for this stock, even under aggressive long-term growth assumptions. The only justification for a price tag above $150? Low rates support it. But, if that low rate support disappears, you could see a big sell-off in ROKU stock. * 7 Discount Retail Stocks to Buy for a Recession As such, while I love the growth narrative underlying ROKU stock, I'm also worried that the stock could give back gains in a hurry if/when rates move higher. Starbucks (SBUX)Source: monticello / Shutterstock.com YTD Gain: 41%Joining Chipotle as the only other non-tech growth stock on this list, coffee retail giant Starbucks (NASDAQ:SBUX) seems susceptible to a sizable pullback in the event rates move higher.The logic here is simple. Starbucks is firing on all cylinders today -- positive comps, upward moving margins, double-digit profit growth, etc. That's why SBUX stock has rallied 41% year-to-date to fresh all-time highs.Starbucks is also growing at a slower pace than it has over the past several years. Sure, profits are expected to grow at a 10%-plus pace for the foreseeable future. But since 2014, EPS growth has been largely north of 15%, and often north of 20%.During that 15%-plus profit growth stretch, SBUX stock averaged a 25-times forward earnings multiple. Today, during a slower growth era, SBUX stock is trading at 29-times forward earnings. A bigger multiple for slower growth? That doesn't make sense … unless you consider that today's valuation is inflated by low rates.That's exactly what is happening. SBUX stock is trading at a bigger-than-normal multiple today for slower-than-normal growth because low rates support a bigger multiple. That low rate support could disappear over the next few months. If it does, SBUX stock could be due for some serious pain.As of this writing, Luke Lango was long FB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post 5 Growth Stocks to Sell as Rates Move Higher appeared first on InvestorPlace.
Investing.com – Netflix (NASDAQ:NFLX) climbed higher on Friday after Piper Jaffray backed the streaming giant to continue its dominance, even as rivals eye a piece of the pie.
In a week that was otherwise light on market news, Apple (NASDAQ:AAPL) lit a fire under large-cap tech stocks Tuesday with its livestream. This Apple event is the annual ritual where Tim Cook dons the traditional dark sweater, gets onstage at the "Steve Jobs Theater," and presents the new product lineup.We saw the new hardware: the Apple Watch Series 5…the 7th generation iPad…and of course the iPhone 11, now with two or even three rear cameras!But Apple also had a little surprise for its competitors in the streaming media market:InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe new Apple TV+ will launch Nov. 1, two weeks before Disney+…and it will be quite affordable. At $4.99 per month, it'll undercut everyone on price.This was a direct shot at Netflix (NASDAQ:NFLX), which starts at $8.99 per month these days, and The Walt Disney Co (NYSE:DIS), which currently charges $5.99 per month for Hulu and will offer Disney+ for $6.99. (Or you can get it bundled with ESPN+ and Hulu Original for $12.99 per month.) * 10 Battered Tech Stocks to Buy Now This is a pretty aggressive strategy to help Apple TV+ compete in a well-established space where Netflix (for example) already has over 150 million subscribers and nearly 1,800 TV shows and 4,000 movies.Judging by the market reaction to the Apple event, Apple TV+ is a contender. On an otherwise flat trading day, AAPL stock gained 1.2%, while NFLX, DIS and especially Roku (NASDAQ:ROKU) sold off hard. Below you can see how things played out after the livestream of the Apple event began at 1 p.m. EST:Investors were perhaps wise to be selling DIS. Sure, sales are growing - and perhaps Disney+ preorders are helping, along with major moneymakers like "Avengers: Endgame." But operating margins certainly aren't. Disney's earnings stats are dismal as well, with analysts revising their projections lower. Here is the full Report Card for DIS from my Portfolio Grader:Netflix's advantage over the likes of Disney is that (like Apple) it is an innovator. It totally disrupted its market with a game-changing product, and today it invests heavily in original content. Meanwhile, Walt Disney Pictures is just churning out remake after remake. At Accelerated Profits we went with NFLX stock and cashed out a 122% profit, regardless of Disney+.The media market has become ultra-competitive, and the innovators will win out. Ultimately, as I've made clear in Growth Investor, we're a consumer-driven economy - and today's consumers want unique, high-quality content.It's telling that the reaction to the Apple event had more to do with content services than hardware: The new iPhone 11 with its slow-motion selfies ("slofies") got little fanfare, and ROKU stock has been outright rejected since Tuesday.Now, Roku still has the lead, similar to how Netflix got a big lead from being installed on new TVs. But I think Apple TV will succeed in capturing market share and take the 2 spot. Apple fanatics can now forego the Roku media player - but still get that same convenience: They can get a year of Apple TV+ for free by buying an Apple TV (or any other) device…and they can stream Apple TV+ on their phones.In fact, Apple has been transitioning its focus from Products to Services for quite some time.While iPhone is still its largest sales category, Apple's Services segment contributes roughly twice as much as the wearables, the Macs and even the iPads. Naturally, Apple wants to keep that gravy train rolling by offering Apple TV+ to boost revenue further (and make earnings more predictable). Services is already what's driving Apple's revenue growth.Even Apple's latest major innovation - the Apple Watch - may soon become a vehicle for this trend…if Tuesday's livestream is any indication. The Other Key Takeaway from The Big Apple EventThe hardware on the Apple Watch is pretty impressive. With last year's Series 4, Apple added a heart sensor that lets you take your own electrocardiogram (ECG/EKG); the Apple Watch will automatically notify you if there's anything unusual. Now with the Series 5, there's an always-on display - which you can see from almost any angle - and a built-in compass. The Apple Watch can place an emergency call for you in 150 countries, now, too.But most of the focus with the Apple Watch was on your quality of life. In this year's livestream Apple event, the presentation of the iPhone 11 was all about what it can do. But with the Apple Watch, it was what it can do for you.Tim Cook kicked it off with testimonial videos: We heard from an elderly man whose Apple Watch automatically dialed 911 (and his wife) during a heart attack…plus stories from young parents, in which their EKG readings and the Watch's baby-monitor app featured prominently.In this shot from the presentation, you see it's all about the apps as well:Source: Apple Special Event September 10, 2019 Now that you can track just about anything for your health… what Apple is really selling you here is your own data.From workouts to your sleep cycles, reproductive health, and even meditation, the amount of data these wearables can collect is staggering. And to fulfill their potential, the apps need "the mother of all technologies."Up until now, technologies have certainly made our lives easier and more efficient…but with a lot of room for human error. People trip over cords, spill their coffee, and get tired.Artificial intelligence (A.I.) does not.If A.I. sounds futuristic, well then, the future is already here. If you use apps like Netflix, TurboTax, QuickBooks, Zillow (NASDAQ:Z), or even an email spam filter, then A.I. is already helping your day run more smoothly and efficiently. And as scientists find even more applications for artificial intelligence - from healthcare to retail to self-driving cars - it's incredible to imagine how much data will be involved.To create A.I. programs in the first place, tech companies must collect vast amounts of data on human decisions. Data is what powers every A.I. system.So any one company that can help with customers' data issues - is the one company that's most worth investing in.You don't need to be an A.I. expert to take part. I'll tell you everything you need to know, as well as my buy recommendation, in Growth Investor. My 1 stock for the A.I. trend is still under my buy limit price -- so you'll want to sign up now; that way, you can get in while you can still do so cheaply.Click here for a free briefing on this groundbreaking innovation.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. 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 Event: New Offerings Leverage the Little-Known Future of Tech appeared first on InvestorPlace.
The entertainment streaming wars are heating up fast. Apple Inc. (AAPL), one of the world's largest companies with $1 trillion in market value, has operated largely on the fringes of the movie and TV streaming industry. Apple raised eyebrows on Wall Street and the industry this week, according to Bloomberg, when the company said its streaming video service will debut at a subscription price of $4.99 per month, which undercuts by as much as 60% monthly prices offered by rivals including (NFLX), Amazon.com Inc. (AMZN), and The Walt Disney Company (DIS).
U.S. stock futures are trading higher this morning in what looks to be a quiet open for the market. Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.17% and S&P 500 futures are higher by 0.13%. Nasdaq-100 futures have added 0.17%.Source: Shutterstock In the options pits, call volume saw a modest uptick, helping to drive overall volume above average levels. Specifically, about 21.7 million calls and 17.9 million puts changed hands on the session.At the CBOE, the single-session equity put/call volume ratio rose to 0.65 -- a one-week high, and the dead center of its 2019 range. The 10-day moving average held its ground at 0.65.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOptions traders swarmed in Ford (NYSE:F),Visa (NYSE:V) and Roku (NASDAQ:ROKU) among others. Below we'll explore the catalysts and investigate their price action. Ford Motors (F)Volatility seized Ford shares yesterday after the automaker saw its credit downgraded to junk by Moody's. The ratings agency believes Ford sits in a poor financial position for its multi-billion dollar restructuring. Traders viewed the stock's large down gap as a buying opportunity, however.Initially, the company saw its shares open down 5%, but bulls swarmed to pare the losses to just 1.26% by day's end. Trading volumes surged to over 70 million shares for the session, marking the highest volume day since late-July. The price trend of Ford stock leaves much to be desired. It rests below its 50-day moving average but above the 20-day and 200-day. The mixed messages suggests neutrality more than anything. * 10 Healthcare Stocks to Buy Despite the Headlines While the trend gives traders little to latch on to, the beefy 6.37% dividend is likely sufficient to keep income seekers targeting the stock for the foreseeable future.On the options trading front, calls slightly outpaced puts on the day. Activity swelled to 335% of the average daily volume, with 145,384 total contracts traded. The increased demand drove implied volatility up to 34%, placing it at the 24th percentile of its one-year range. Premiums are now pricing in daily moves of 20 cents or 2.1%. Visa (V)Credit card stocks have not fared well over the past two sessions. Visa has fallen almost 6% from Monday's intraday high on above-average volume. Yesterday's whack pushed V stock back below its 50-day moving average. Normally that kind of breach would question a stock's uptrend, but Visa has seen multiple probes below the 50-day during its trend and few have actually mattered.Bottom line: this is probably a dip worth buying.On the options trading front, speculators favored calls throughout the session. Total activity jumped to 220% of the average daily volume, with 114,740 contracts traded. Calls claimed 53% of the take.Implied volatility cruised higher to 23% and now sits at the 27th percentile of its one-year range. Premiums are baking in daily moves of $2.57 or 1.5% so set your expectations accordingly. Roku (ROKU)Roku stock is finally receiving its comeuppance. Monday's wicked bearish engulfing candle marked a short-term top and yesterday's epic plunge confirmed the easy money in its upswing is over. ROKU stock has fallen 18.4% over the past two days.The action reminds me of the old trading adage, "bulls make money, bears make money, pigs get slaughtered." Roku's ascent had long since left the stratosphere and was well on its way to the moon when profit-taking and the inevitable pullback commenced. And, like so many gravity-defying rallies before it, Roku learned that gravity always wins in the end. * 7 Upcoming IPOs for September On a positive note, because ROKU had risen so far off of support and its major moving averages, this pullback hasn't broken any critical support levels. With its overall trend still pointing higher, it might just need a reset or time of rest before eventually moving higher.On the options trading front activity pushed to 218% of the average daily volume, with 309,379 total contracts traded. Calls barely inched out puts driving 51% of the session's sum.Implied volatility rallied to 66%, placing it at the 32nd percentile of its one-year range. Selling bull puts is the way to go if you're in the mood for buying the dip.As of this writing, Tyler Craig held bullish options positions in Roku. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Wednesday's Vital Data: Ford, Visa and Roku appeared first on InvestorPlace.
One of the most surprising elements of Apple Inc.’s September iPhone launch was its aggressive pricing on many products, especially its new streaming service.
All eyes were on Apple (NASDAQ:AAPL) for its streaming announcements, as well as new iPhones, iPads and Apple Watch upgrades. The implications go further than just Apple and the holiday season though. Let's use this opportunity to look at a few top stock trades. Top Stock Trades for Tomorrow 1: AppleApple announced a lot of exciting updates for its customers, one of which is streaming video. That dealt a blow to other names in the streaming space that I want to look at more closely in a minute.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Best Stocks That Crushed It This Earnings Season For Apple, the stock is setting up in an ascending triangle pattern. That's a bullish technical development where rising support squeezes shares up against a static level of resistance.In this case, resistance comes into play near $215. A sell-the-news event could cause this setup to break down. But a close over $215 could trigger a move up to the July highs near $220. Over that and $230+ is in the picture, with the all-time highs not far above that.Below uptrend support and I want the 50-day moving average to act as support. Top Stock Trades for Tomorrow 2: DisneyAfter years of stagnation, Disney (NYSE:DIS) stock erupted in April. In just a few months, the stock went from $106 in March to almost $150 in July. The company is doing well, although shares fell almost 3% once Apple announced its $4.99 per month streaming service.That undercuts its Disney+ service, which is $6.99 a month or $70 for the year, and shares came under pressure as a result.In any regard, we can see short-term uptrend support (blue line) failing, while the 50-day moving average is acting as resistance. That's a change in Disney's tune and unless it can reclaim the 50-day soon, lower prices may be on the way.On the downside, $130 has been support since the April rally, with the 38.2% retracement just below. If that fails, the 200-day is on the table. Top Stock Trades for Tomorrow 3: NetflixNetflix (NASDAQ:NFLX) can't fall back on the type of profitability that Disney can. As such, shares continue to linger near the lows.InvestorPlace readers knew to be careful with the stock when it failed to reclaim its 20-day moving average. As expected, shares are now threatening to break below its recent lows. If it does, $270 is on the table. Below that and even lower prices are possible. Keep in mind, there are plenty of Q4 lows beneath $270.Over the 61.8% retracement at $290 changes the narrative. Top Stock Trades for Tomorrow 4: RokuShares of Roku (NASDAQ:ROKU) are getting hammered on Tuesday, down more than 10%. The day prior, Roku put in a bearish engulfing candle and the selling is cascading on Tuesday.The decline in high-growth stocks doesn't help, although it wasn't a complete blindside.So far, the 20-day moving average isn't buoying the name, but given that it ran from sub-$100 to $176.50 in less than a month, that's fair. Now, I would love for a test of the 50-day moving average. If it gets there, let's see if it draws in buyers or if it goes right through it like some other high-growth stocks did. * 10 Stocks to Sell in Market-Cursed September That's vague, but when a stock goes from $26 to $175 in less than a year and starts to unwind, it's best to proceed with caution. Those who love Roku for the long-term and sold on the rise, can consider nibbling a bit if it responds well to the 50-day.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL and DIS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 4 Top Stock Trades for Wednesday: AAPL, DIS, NFLX, ROKU appeared first on InvestorPlace.