14.74 -0.02 (-0.14%)
After hours: 5:48PM EDT
|Bid||14.73 x 800|
|Ask||14.78 x 2200|
|Day's Range||14.64 - 15.01|
|52 Week Range||4.82 - 15.01|
|Beta (3Y Monthly)||0.82|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 5, 2019 - Aug 9, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||11.56|
Woe to those who left Snap Inc (NYSE:SNAP) for dead. After almost two years of an extended trend downward, SNAP stock has revitalized itself and turned a corner.Source: Shutterstock There was a time when investors who were long SNAP stock were embarrassed to discuss this holding publicly, as so much disdain was held for this particular tech stock. There were a series of missteps in the early days that led to SNAP stock price plummeting shortly after its IPO pop. User growth deceleration, a voting structure that was very unfriendly to shareholders, issues with its Android app, and subsequent executive departures all contributed to SNAP stock price dropping more than 50% and trading down to $5 a share. * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 But those same owners of Snapchat stock are the ones standing tall now. SNAP stock price is up over 165% this year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe shares have been on a huge run, rivaling the performance of recent IPOs. With a number of new services including Snap Games and original premium content directed specifically at mobile-device users, it looks like the best is yet to come for Snapchat stock. Where SNAP Is NowWith 190 million Daily Active Users (DAUs), it would be a mistake to dismiss SNAP as a fad. The user base skews quite young, but that highly targeted audience is the proverbial nectar for the bees that are advertisers.Snapchat reaches 90% of all 13-24 year-olds and 75% of all 13-34 year-olds in the U.S.Even though SNAP has a disadvantage to the likes of Facebook, Inc. (NASDAQ: FB) in terms of advertising capabilities, that has changed markedly with the improvement of its interface and incremental technological upgrades.SNAP has successfully upgraded and enhanced its Ads Manager to make it more friendly to marketers. Features like target- cost bidding, bulk uploading capabilities, bulk editing and cloning, and the expansion of location categories to the U.K., Canada, and France are all major steps that will ultimately improve its top line. Additionally, its Reach & Frequency product now allows for one-day ad buys (the previous minimum was three) and has similarly undergone geographic expansion.These are all extremely positive signs.An example from SNAP's first-quarter earnings conference call shows that the company is attracting huge advertisers:"Toyota Motor Corp (NYSE:TM) ran a sophisticated campaign across our various video and AR products to promote the Corolla Hatchback among Millennials. Snapchatters engaged with the ads, watching more than 90% of their Commercials on average, and playing with their Lenses for more than 10 seconds each on average." SNAP's New Products Will Drive MonetizationThere is a lot of potential in the new slate of Snap Originals, the company's premium, mobile shows created exclusively for Snapchat's audience. SNAP now offers more than 450 premium content channels worldwide and in the first quarter, launched over 50 new Shows and Publisher Stories in international markets.The premium content and Snap Games will continue to bring users back to the platform, increasing their stickiness and making SNAP more than just a camera-centric company. More importantly, new products mean new monetization opportunities e.g., video advertising. The Bottom Line on SNAP StockA lot of people, especially those over 30, are still inclined to dismiss SNAP as a fad for youngsters. However, there are pockets of value within a company that has worked through a lot of its initial missteps.There is so much room to monetize SNAP's captive and targeted user base, and it looks like the company is finally showing signs of doing so by improving both the product side and the advertising platform. Those trends will definitely be positive for SNAP stock.As of this writing, the author did not own shares of any of the stocks named. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post The Best Is Yet to Come for Snap Stock appeared first on InvestorPlace.
It looks like Snapchat (SNAP) has got its mojo back. After three quarters of flat-to-negative user growth, the company added two million daily active users during the first quarter, and it may have added some in the second quarter as well.
Stocks have been on fire in 2019. Year-to-date, the S&P 500 is up more than 16%. Over the past decade, the S&P 500 has rallied more than 16% in a full year only three times. It has done so only five times in the past two decades. We are already at that mark today, and it isn't even July.In other words, stocks have had a record-setting performance in the first half of 2019. As the old saying goes, "a rising tide lifts all boats." Thus, as the broader market has rallied big in early 2019, most stocks have rallied alongside it.But, as any good investor knows, no party lasts forever. There's reason to believe this party in stocks will moderate into the end of the year. Depressed valuations supported the big rally in stocks in early 2019. Coming into the year, the S&P 500 was trading around 14-times forward earnings, well below the historical norm.InvestorPlace - Stock Market News, Stock Advice & Trading TipsToday, this depressed valuation support no longer exists. The S&P 500 now trades at over 16.5-times forward earnings, which is above the historical norm for the index. Sustained profit growth can keep stocks in rally mode despite this above-average valuation. But, with valuations now higher than they were before, the big 2019 stock market rally will likely slow into the end of the year.As it does slow, gains across the market will become less broad and more narrow, meaning that we will see a handful of stocks struggle in the back half of the year. * 6 Stocks Ready to Bounce on a Trade Deal Which stocks fall into this category? Let's take a look at six stocks to sell before the stock market party slows down. Stocks to Sell for the Rest of 2019: Under Armour (UAA)Source: Shutterstock At the top of this list of stocks to sell, we have athletic apparel company Under Armour (NYSE:UAA).The bull thesis on UAA stock is pretty simple. You have a beaten up athletic apparel company that has struggled to grow revenues over the past several years, and which operates at depressed margins. But the company has finally cleared its inventory, and management is sounding a bullish tone about growth prospects over the next several years. Thus, there's reason to believe that revenue growth can and will re-accelerate over the next several years, and as it does, profit growth will be doubly robust since margins will ramp from a depressed 2018 base.This bull thesis is legit. That is exactly what will happen. But, it misunderstands one very important thing: valuation.UAA stock trades at 53-times forward earnings. The growth darlings in this industry, Nike (NYSE:NKE) and Lululemon (NASDAQ:LULU), both trade sub-40 forward multiples. They are also both growing revenues faster than Under Armour. Sure, UAA has more profit growth potential because of its depressed 2018 margin base. Even if you model everything out, though, it's tough to justify a $29 price tag on UAA stock today.As such, I think growth will disappoint in the back-half of the year, and that this disappointing growth will ultimately short-circuit the recent rally in UAA stock. Snap (SNAP)Source: Shutterstock Second on this list of stocks to sell in the back half of 2019 is hyper-growth social media company Snap (NYSE:SNAP).Much like Under Armour, the bull thesis on Snap is pretty simple. After several quarters of user base compression, the user base has finally stabilized, and will likely resume growth in the coming quarters as the Android app revamp grows the platform's international reach. With the user base back in growth mode, the company can return its focus to improving the ad business, which should result in advertisers flocking back to the platform. This will result in healthy revenue growth, which should also drive strong margin expansion, and one day produce big profits at scale.Much like the bull thesis on UAA stock, the bull thesis on SNAP stock misunderstands valuation and competition.SNAP stock trades at a whopping 12-times forward sales. Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR) both trade around 8-times forward sales. Again, some of the valuation premium is warranted because Snap is ramping growth from a smaller base. But competition concerns are very real here, and could ultimately short-circuit Snap's renewed user growth trajectory and ad growth ramp, especially if Instagram plunges more into commerce and grows young consumers mind-share. If that happens, SNAP stock will fall in a big way from today's elevated valuation levels. * 7 Value Stocks to Buy for the Second Half Net net, SNAP stock has simply come too far and too fast in 2019, and looks subject to a big draw-down in the back half of year in the not-so-unlikely event that the growth trajectory flattens out. Proctor & Gamble (PG)Source: Mike Mozart via Flickr (Modified)Third on this list of stocks to sell in the second half of 2019 is consumer staples giant Proctor & Gamble (NYSE:PG).At first glance, PG stock looks like a great place to hang out right now. This is a consumer staples giant which sells the sort of stuff that will have stable consumer demand forever regardless of the economic backdrop. Thus, with macroeconomic risks on the rise in a late stage bull market, P&G's relatively stable profit growth outlook is attractive. Further, the stock has a juicy 2.7% yield, which looks especially attractive against the backdrop of a depressed 10-year Treasury Yield.The problem, though, is that everyone is looking at PG stock this way, and long Procter & Gamble has become a crowded trade.PG stock now trades at 24-times forward earnings. That's a bigger forward earnings multiple than both Facebook and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Both Facebook and Alphabet grew revenues by over 20% last quarter, have reported 20%-plus revenue growth for the past several years, and project to do the same over the next several years. P&G reported organic revenue growth of 5% last quarter and un-adjusted sales growth of 1%. Over the next several years, this projects as a low-single-digit revenue grower.In other words, the long PG trade has become way overcrowded. Towards the back half of the year, as growth continues to come in at the low-single-digit range, this crowded trade will unwind, and PG stock will fall. Starbucks (SBUX)Source: Shutterstock Another stock to sell in the back half of 2019 is retail coffee giant Starbucks (NASDAQ:SBUX).Much like Procter & Gamble, SBUX stock looks really good upon first glance. You have the world's leading retail coffee company which is using menu innovations and digital integrations to drive re-accelerated positive comparable sales growth in the U.S. At the same time, the company is rapidly expanding in China and has robust growth potential over there, supported by a long unit growth runway. Margins are stable. Profits should head higher. So should the stock.But, there are competition risks here which could hamper the growth narrative in the second half of 2019.On the U.S. front, traffic growth has gone from consistently positive to consistently negative, meaning that positive comps in the U.S. are being driven entirely by price hikes. But, with McDonald's (NYSE:MCD) expanding its presence in the low-price breakfast category and indie coffee shops expanding their presence in the high-price breakfast category, Starbucks doesn't have much wiggle room to hike prices further without risking big traffic declines. This all could come to a head in the back half of 2019, and comparable sales growth could fall back to the flat line. * 5 Stocks to Buy for $20 or Less At the same time, the China growth narrative is threatened by the rapid expansion of freshly public Luckin Coffee (NYSE:LK). In the big picture, the Starbucks growth narrative is sliding on thin ice right now. That ice could break in the back half of 2019. When it does, SBUX stock is liable to fall in a big way. Ulta (ULTA)Source: Mike Mozart via FlickrWhen it comes to stocks to sell in the back half of 2019, one name that comes to mind is cosmetics retailer Ulta (NASDAQ:ULTA).Structurally, there is nothing wrong with the Ulta stock growth narrative. Ulta is the biggest cosmetics-focused retailer in the United States, and has naturally benefited from powerful secular growth tailwinds in the cosmetics industry over the past several years (the rise of selfie-focused and image-sharing apps has led to a rise in consumers wanting to look good, which has led to a rise in beauty sales). This tailwind will persist.Ulta is also benefiting from a healthy unit growth narrative which has consistently powered 10%-plus unit growth over the past several years. This tailwind will largely persist, too. The company also has a strong direct business and healthy margins.But, all of those tailwinds are slowing down and they will continue to slow. ULTA stock simply isn't priced for this slowing to persist.In 2017, comparable sales growth was nearly 16%. In 2018, it fell to 11%. Last quarter, it was 7%. For the full year, it's expected at 6.5%. Digital sales growth and unit growth have followed a similar deceleration trajectory. Meanwhile, operating margins are flattening out.The Ulta growth narrative is slowing. But, ULTA stock trades at a 52-week high valuation of nearly 28-times forward earnings. A 52-week-high valuation coupled with a slowing growth narrative? That's not a recipe for success. As such, as those two divergent dynamics converge in the back half of 2019, ULTA stock could drop. Zoom (ZM)Source: ZoomLast, but not least, on this list of stocks to sell for the rest of 2019 is IPO darling Zoom Video (NASDAQ:ZM).Zoom is a great company. Video conferencing is the next big leg of growth in the enterprise communication world. Zoom is at the heart of this video conferencing growth narrative and has emerged as the hottest player in that market. Revenues rose more than 100% last quarter. Importantly, gross margins are in sky-high 80%-plus territory, the operating expense rate is rapidly falling, and the company is already profitable.This rare combination of early profitability and big revenue growth has investors drooling over ZM stock. Consequently, the stock has nearly tripled from its IPO price.But, this rally seems overdone. The video conferencing market is big. But not that big. Plus, there's a ton of competition in this market, and Zoom is actually one of the smaller players. Sizable competition and a limited addressable market are two going concerns here. If you math out the company's long term potential, it would take some awfully bullish assumptions to justify a $100-plus price tag for ZM stock today. * 6 Stocks Ready to Bounce on a Trade Deal Broadly, then, ZM stock just seems to have come too far, too fast, during its IPO honeymoon phase. Eventually, this honeymoon phase will end, reality will sink in, and Zoom stock will drop.As of this writing, Luke Lango was long NKE, LULU, FB, TWTR, GOOG, MCD, and LK. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Blue-Chip Stocks to Buy for a Noisy Market * 5 Strong Buy Biotech Stocks for the Second Half * 6 Stocks Ready to Bounce on a Trade Deal Compare Brokers The post 6 Stocks to Sell in the Back Half of 2019 appeared first on InvestorPlace.
(Bloomberg) -- The advertising industry’s annual gathering on the French Riviera has become a recurring cycle of contrition from technology giants and admonishment from the Mad Men. In 2017, it was YouTube apologizing for ads appearing next to jihadist terror videos. In 2018 came Facebook Inc.’s mea culpa for a data privacy scandal. This year, Facebook regretted live-streaming a mass shooting in New Zealand and YouTube battles the spread of hate speech.All the while, the marketing money continues to flow. Facebook and Google’s advertising sales grew 38% and 22%, respectively, in 2018, and both dominated the beach front in Cannes again this year with showy largess. Google served up grape smoothies, gingerbread ice cream and live tunes from synth-pop duo Pet Shop Boys and electro outfit Justice. Facebook held panels with Grammy-winning singer-songwriter John Legend and style icon Jenna Lyons, while Chief Operating Officer Sheryl Sandberg hosted some of the biggest advertisers by the shore.But the recurring scandals hitting the tech giants have created a dilemma for chief marketing officers. Do they take a principled stand and move their ad dollars elsewhere, sticking to more traditional media like TV and newspapers but missing out on the global reach and hyper-specific targeting of consumers that the platforms afford? Or do they accept the risk of being drawn into future hate speech and toxic content controversies, if it means they can keep growing sales? The consensus in Cannes this year from advertisers: let’s ride it out.“Every once in a while there’s going to be a screw-up and unfortunately the screw-ups are pretty big,’’ said Michael Roth, chairman and chief executive officer of the Interpublic Group of Cos., the world’s fourth-largest advertising company by revenue. “The thing is, it still works.”Unlike the past, when adverts were confined to spaces curated by professionals, such as TV commercial breaks, radio programs or billboards, chief marketing officers are opting to get comfortable with the daily risks of placing their products alongside non-vetted, user-generated content.In Cannes, Facebook and Google both stressed their latest efforts to keep their platforms safe, from investing in machine learning that spots offending material before it’s uploaded to hiring more humans to oversee posts. But each conceded they’ll never keep all the objectionable material at bay. Sandberg said Facebook had a ‘Herculean’ task on its hands and that generally, all technologies can be used for both bad and good.“Bad actors are smart and find ways to circumvent our policies and brush right against where the new line has been drawn,’’ said Cecile Frot-Coutaz, YouTube’s head of Europe, Middle East and Africa. “It’s that delicate balance of keeping the openness but protecting our users and advertisers.”YouTube’s latest controversy is how it keeps its service safe for children, after predators were found to be leaving pedophile comments on videos featuring kids. YouTube has previously come under fire for allowing fake or misleading content to flourish on its platform, and not removing videos with homophobic and racist remarks.Pressure isn’t just building from marketers, but also from other platforms touting their wares in Cannes to lure spending. Amazon.com Inc. hosted meetings in a top-floor suite at the five-star Carlton hotel with spectacular views over the Mediterranean, showing brands how they can advertise in Amazon search results and grow sales through its Alexa smart speaker. Snap Inc. entertained guests in a contemporary art museum, handing out rainbow-colored flip-flops. Music streamer Spotify Technology SA and Walt Disney Co.’s Hulu brought in Grammy-nominee Ciara for a VIP party at a hillside villa.Advertisers’ latest initiative to tackle the issue of safety online is a so-called ‘Global Alliance for Responsible Media’ that includes brands, ad agencies and platforms. Yet pushed at the partnership’s launch on specific measures they’d like to see, marketers from consumer-goods giant Unilever, confectionery manufacturer Mars Inc. and drinks-maker Diageo Plc weren’t forthcoming.Yannick Bollore, CEO of ad giant Havas, called it “unthinkable” not to advertise on social platforms, because that’s where consumers spend most of their time.“But we need to guarantee to our clients that we can find a positive environment,” he said in an interview in Cannes.His counterpart at WPP, Mark Read, went furthest in publicly suggesting changes that might be needed, mooting moderation of content in certain categories or limiting what can be posted from new accounts.“We need to think about the design of the platforms,” Read said, whose London-based advertising group spends billions of dollars of client money with Facebook and Google. “Clearly they haven’t done enough.”Marketers are making investment decisions at a time when the average tenure of a chief marketing officer, or CMO, is a mere 43 months, or less than half of that of a CEO, according to research by headhunters Spencer Stuart. Their short shelf-life shows the scrutiny they’re under from their boards, said Michael Kassan, founder of MediaLink, which advises the world’s most influential marketers and media companies.“The easiest way to talk is with your cheque book,” Kassan said. “But the pressure on a CMO to deliver results is intense.”And even if marketers wanted to force change through financial pressure, it’s not clear it would work. The tech giants have built a base of millions of small- and medium-sized businesses that advertise using their tools, which limits the leverage of any particular brand, said Pedro Earp, chief marketing officer of beer-maker Anheuser-Busch InBev NV.“Some of these issues are complicated and aren’t solvable like that,” Earp said, who sits on Facebook’s client council which consults on how to improve the platform for advertisers. “It’s been a constructive dialog.”But so long as Facebook and Google continue to offer marketers an unparalleled ability to reach consumers and ease of use, they’ll keep dominating the industry, said Wenda Harris Millard, vice president at MediaLink and based in London.“For advertisers it’s kind of like, ‘Do I press the F button or the G button?”’ she said. “It’s hard to stop all this.”To contact the reporters on this story: Joe Mayes in London at email@example.com;Angelina Rascouet in Paris at firstname.lastname@example.orgTo contact the editors responsible for this story: Rebecca Penty at email@example.com, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On CNBC’s “ Trading Nation ” on Thursday, Todd Gordon of TradingAnalysis.com said Starbucks Corporation (NASDAQ: SBUX ) is the largest holding in his portfolio and says it's in the midst of a breakout. ...
(Bloomberg) -- Stewart Butterfield loved the game, but not enough people agreed with him. He spent two years and raised roughly $11 million to build an online adventure game called Glitch that featured garrulous, blue-headed creatures and milk-drunk butterflies.Once people had a chance to play it and Butterfield could track the numbers, the verdict was clear: Glitch was a flop. “There was this night where I just lost faith,” Butterfield said in a podcast interview. He decided in 2012 that it was game over. Butterfield made plans to shut down the company and give the remaining money back to his investors.Andrew Braccia, a partner at venture capital firm Accel, wouldn’t accept the refund. He and other investors urged Butterfield to keep the remaining $5 million and try something else. That turned into Slack Technologies Inc., the maker of corporate chat software that went public Thursday. At the close of trading, Slack’s market value was $19 billion.Accel invested about $200 million in Slack over seven years, largely driven by Braccia’s unwavering faith in Butterfield. As of the stock debut, Accel held 24% of the company, the biggest VC stake in a newly public unicorn in recent history. Those shares are worth $4.6 billion today.Owning such a large chunk of a company is unusual in venture investing for a couple reasons. If a startup appears to be succeeding, founders and other investors compete fiercely for shares. And when things are uncertain, overexposing a fund to one company can be a foolish gamble. “They don’t all look like winners right away,” said Trae Vassallo, managing director of early-stage venture firm Defy.The startup failure rate is 67%, according to research firm CB Insights. Just 1% of those achieve a unicorn valuation of at least $1 billion. “You have to have a clear conviction when making a concentrated bet,” said Byron Deeter, a partner at Bessemer Venture Partners. “If you’re right, you’ll be disproportionately rewarded. But if it goes bad, there’s a real risk.”Slack is what happens when a risky bet pays off. The value of Accel’s stake is greater than that of any private financier of Lyft Inc., Snap Inc., Spotify Technology SA or Twitter Inc., each of which went public at higher market values.In an interview Thursday, Butterfield said Accel was eager to buy into every funding round for Slack—of which there were many—and offered to invest more than expected almost every time. The company had raised more than $1.2 billion in private capital, according to CB Insights data. “Our whole board, the VC members of the board, have worked incredibly hard,” Butterfield said. “I feel incredibly well supported.”In the windup to Slack’s listing, Accel converted about a quarter of its Slack holdings to common stock, allowing it to sell that portion of its shares. Such a transaction could return more than $1 billion for the VC firm, earning back the total sum of several funds. And that doesn’t account for two other Accel companies that have gone public since April, Crowdstrike Holdings Inc. and Pagerduty Inc.In 2012, when Butterfield was convinced he’d failed, Braccia was steadfast, said Bradley Horowitz, who put some of his own money in the game company. That’s probably because Braccia recalled what happened the last time Butterfield made a bad game. It morphed into a popular photo-sharing site called Flickr, which Yahoo! bought for around $25 million in 2005. Braccia, Butterfield and Horowitz all worked together at Yahoo.Horowitz, now a vice president of product at Google, said Braccia “was the one who said ‘keep going.’ He had the determination.” Horowitz joined Braccia in refusing to take his money back when Butterfield was ready to give up. “Stewart could have told me he was building a new coat hanger,” Horowitz said. “I would be all in.”Braccia declined to be interviewed, citing the regulatory quiet period. Bloomberg Beta, the venture capital arm of Bloomberg LP, is also an investor in Slack.In 2015, just as Slack was beginning to gain traction, Braccia explained why he was making such a big bet on the company. Butterfield has an uncanny ability to recover from failure and then rally people around his next idea, Braccia told a crowd at the time: “He’s resilient. He’s been knocked down multiple times, and he’s picked himself back up.”\--With assistance from Ellen Huet.To contact the author of this story: Lizette Chapman in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Milian at email@example.com, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The perils of raising and protecting children in the digital age seem to be causing an anxiety epidemic among parents. My parents’ generation are now purveyors of anxiety-inducing content that perpetuates their own fears and creates new ones.
Three years after Pokémon Go introduced hundreds of millions of people to augmented reality, its creator Niantic launched a new mobile game on Friday that brings a touch of Harry Potter magic into the world of muggles.
Despite its size, Facebook (FB) continues to add more users than any other social media app. According to the latest report by SensorTower, Facebook saw the highest number of global downloads in May across both the Google Play Store and the iOS App Store.
Amid an overall bull market, many stocks that smart money investors were collectively bullish on surged during the first quarter. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 40% and 25% respectively. Our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted […]
Shares of Snap soared as much as 10% on Tuesday after BTIG media and tech analyst Richard Greenfield raised his price target to a street-high of $20 from $15 on the belief that the company's recovery has meaningfully increased since March.
Contrary to your suspicion after reading the title, I was not smoking any cannabis products when I wrote today's note. But let's get the negatives out of the way before sharing the opportunity in IBM (NYSE:IBM) stock.Source: Shutterstock I've been a critic of IBM's management because they have failed at adapting to the new world order. They have yet to complete the transition into the new tech world, which centers around subscription services. They keep talking the talk, but every earnings report shows disappointing progress.Meanwhile, companies like Microsoft (NASDAQ:MSFT) got the job done, and that's why Wall Street rewarded them with record prices. IBM stock is almost 40% below its all-time high so clearly they have more work to do.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Upside in IBM StockHaving said that, today's write-up is to share an 18% upside opportunity in IBM. This is a technical setup and it's completely independent of my opinion of IBM's management. I believe that they need a new CEO, but for some reason Wall Street still hasn't pushed Ginni Rometty out from the job. For today's purpose, this does not impact this bullish opportunity.The entire stock market corrected hard last October and it didn't end until late December. During that time, IBM fell 30%. But the story has a happy ending, because on Christmas the market bounced. IBM stock rallied 35% to recover almost all of its losses. But it stalled at a significant volume level which is a point-of-control around $145 per share. So it failed to recover the $153 to fill the whole correction range.What killed the rally were the most recent earnings. The negative headline reaction caused IBM stock price to fall 13% since mid April. The good news is that this almost fills the gap that the prior earnings spike left open. * 7 Value Stocks to Buy for the Second Half The IBM recent levels are neat. The rallies and corrections happen at levels that make technical sense, so they weren't surprises. And this gives today's opportunity trade clear target and stop-loss levels.For the last few weeks, IBM has been building an inverse head-and-shoulders pattern where the neckline is just above current price. If the bulls can break out from $137, they will invite momentum buyers to carry it up to $145 per share.But this is where it gets interesting, because that would put IBM at the doorstep of an even bigger bullish pattern. If the price can rise above $146, it would kick-start a cup-and-handle-ish pattern to target $160 per share. There will be resistance along the way had $153.Simpy put, I'm suggesting that there is a small bullish pattern developing here that could also launch a secondary and bigger pattern above. Together they would catapult IBM stock to $160 per share or higher. In total, the opportunity from today could exceed 18% upside.This will require the help of the entire market. Today's Fed binary event and next week's China trade deal rhetoric are two big extrinsic variables that could gravely affect the odds of the opportunity at hand. Levels to Watch in IBMSince this is a trade not an investment, stop losses are important. There are lines below to note, but these depend on personal risk tolerances. For the lower-time-frame stops, $134 per share is important. This applies to traders who want a tight stop and do not want to turn this trade into an investment.For traders with a bit more patience, IBM has support through $132 per share. So if the price action can stay above it then today's setup is still alive. Conversely, losing $126.75 would trigger a bearish pattern that would target $118 per share. While this is not my forecast, it is a scenario that exists if things get ugly.There is a twist in this story which is good news for those who are bullish IBM for the long term.On the weekly chart time frame, IBM has been setting higher lows and lower highs and it is coming into a point. More interesting is that this also coincides with important levels from February 2016. When this happens, usually there is a big move that follows but the direction is yet unknown. For as long as IBM continues to set higher lows then odds are that the bulls will prevail. Click to Enlarge And if this is the case then they will break out of the descending trend line of lower highs. So here we have two different bullish setups on different time frames. They converge here so they could combine to make the 18% rally in IBM almost certain. We recently had that happen to Snap (NYSE:SNAP) where two scenarios on two different time frames one long and one short both converged and let to a great rally there.At these levels and since IBM has a forward price-to-earnings ratio of 10 it has little froth in it. Owning it here is not likely to be a financial tragedy. So the upside opportunity is far greater than the downside risk especially if I use tight stops.Or investors can use the options markets, where the out-of-pocket risks is much smaller and the reward is definitely bigger.In options I can buy Aug $160 calls for 60 cents per contract. This is a small price to pay for a time limit bet. But the disadvantage in using options is that time is my enemy. If I own IBM shares, time doesn't diminish their value like in options.That's why I personally prefer selling puts to express my bullish thesis. I can sell the October $100 put and collect $1 to open the trade. This way I don't even need a rally to profit. As long as IBM shares are above $100 in mid October then I win. If IBM collapses, I accumulate losses below $99 per share but that is much better than owning shares and riding them all the way down from here.Options are tricky, so I would never sell naked puts unless I am willing and able to buy the shares at that price. Otherwise, I would use bull put spreads instead.Regardless of the method, today's upside opportunity in IBM's is there for the taking.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room free here. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post IBM Stock Has an 18% Rally at Hand appeared first on InvestorPlace.
U.S. stock futures are trading near unchanged this morning as traders gear up for this afternoon's announcement from the Federal Reserve.Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.05%, and S&P 500 futures are higher by 0.03%. Nasdaq-100 futures have added 0.13%.In the options pits, call trading zoomed higher helping drive overall volume to above-average levels. Specifically, about 22.8 million calls and 16.7 million puts changed hands on the session. The bullish festivities made waves at the CBOE, where the single-session equity put/call volume ratio plunged to 0.55 -- a two-week low. Meanwhile, the 10-day moving average slipped to 0.55.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSnap (NYSE:SNAP) saw renewed options interest after a price target hike from BTIG sent its stock flying. Boeing (NYSE:BA) stock soared after the aerospace juggernaut received a large buy order at the Paris Air Show. Finally, United States Steel (NYSE:X) benefited from a resurgence in the metal and mining sector.Let's take a closer look: Snap Inc (SNAP)The message from Snap's volume patterns is clear -- institutions are stampeding into the stock. Yesterday's rousing 9.7% rally was simply the latest episode in a saga of accumulation days. As is usual for outlier sessions, there was a catalyst. BTIG analyst Rich Greenfield boosted the firm's price target from $15 to $20 while reiterating a buy rating. Greenfield cited his firm's increased conviction in the Snapchat parent as well as investors skepticism of the ongoing SNAP stock recovery as reasons for the renewed optimism. * 10 'Buy-and-Hold' Stocks to Own Forever This year's turnaround is certainly worth celebrating. What began as a sharp up-gap following February's earnings release has grown to a full-fledged long-term trend turnaround. SNAP is now up 170% year-to-date.Derivatives traders were certainly excited about Tuesday's action. The groundswell in activity to 266% of the average daily volume made SNAP the most popular stock in the options pits; 276,294 total contracts traded with calls claiming 76% of the tally.The uptick in demand lifted implied volatility to 54%. With an IV rank of 21%, it remains in the lower quartile of its one-year range suggesting long premium plays (like long calls) are the way to go. Traders are pricing in daily moves of 50 cents or 3.4%. Boeing (BA)Boeing stock is turning the corner. So says Tuesday's 5% surge, which delivered a breakout that finally pulled the beaten-down aerospace stock into an uptrend. It marks the first time BA stock has been above the 50-day moving average since the fallout from the fatal Ethiopian airlines crash of its 737 MAX earlier this year.A flood of new orders for Boeing's aircraft at the Paris Air Show had bulls on the move yesterday. International Airlines Group revealed its intent to purchase 200 737 MAX jets. The company also nabbed orders for two 787 Dreamliner aircraft.With the price trend of BA stock now pointing higher, bullish trades are back on the menu. Consider $400 the next upside target.On the options trading front, traders chased calls throughout the session. Total activity climbed to 219% of the average daily volume, with 159,187 contracts traded. Calls accounted for 66% of the take.Implied volatility grew to 28%, reflecting an increase in option premiums. The reading now stands at the 27th percentile of its one-year range. The expected daily move in the stock is $6.59 or 1.8%. Bull call spreads offer a smart, limited risk bet on more upside here. United States Steel (X)Traders came after metal and mining stocks in a big way. The Metals & Mining ETF (NYSEARCA:XME) saw its second-highest volume session of 2019 and climbed 2.9%. United States Steel proved one of the most popular stocks in the industry, notching a 4.4% gain of its own.But bulls weren't finished. The buying binge is continuing premarket with the stock up another 4% to $15.15. * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer Watch for a close above the 50-day moving average to signal X stock's four-month downtrend has finally ended. Depending on the outcome of this afternoon's Fed announcement, it could happen today. A break back below support at $13.20 would invalidate the reversal attempt. Consider that an appropriate stop area.On the options trading front, calls outpaced puts by a modest margin. Total activity rocketed to 150% of the average daily volume, with 86,281 contracts traded. Calls claimed 60% of the sessions sum.Implied volatility drifted sideways but remained at a lofty 57% or the 57th percentile of its one-year range. Naked puts are an interesting play here. Premiums are pricing in daily moves of 52 cents or 3.6%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post Wednesday's Vital Data: Snap, Boeing and United States Steel appeared first on InvestorPlace.
A sizeable chunk of Tuesday's intraday gain was given back before the closing bell rang, though even then the S&P 500 was able to muster a 0.97% win. But, between the bullish gap and the headlines needed to make it happen, it's anyone's guess as to where things go from here.Source: Allan Ajifo via Wikimedia (Modified)Snap (NYSE:SNAP), parent company of Snapchat, was arguably the most noteworthy winner, rallying nearly 10% after BTIG upped its price target to $20. General Electric (NYSE:GE) did more to help the overall market though, gaining almost 4% after long-term doubter John Inch, analyst with Gordon Haskett, conceded that at the very least, GE wouldn't face insolvency. Fanning those bullish flames is a projection that General Electric expects this year's Paris Air Show to yield at least $35 billion worth of orders.Holding the market back more than any other name was La-Z-Boy (NYSE:LZB), down 1.5% during the regular hours session, but off more than 8% in after-hours action after posting poor fourth-quarter numbers after the closing bell rang.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer Except for GE, none make for great trading prospects headed into Wednesday's trading. And for that matter, stock charts of McCormick & Company (NYSE:MKC), FMC (NYSE:FMC) and Pfizer (NYSE:PFE) all look like better prospects than GE from a risk/reward perspective. Here's why. Pfizer (PFE)A little less than three weeks ago, Pfizer was featured as a name that was about to break out, but would have to clear an incredibly tough hurdle to do so. It did so. Namely, it not only broke above the upper boundary of a falling trading range, but broke above the pivotal 200-day moving average line, plotted in white on both stock charts.It's what has happened in the meantime that merits this second look. Although progress has been slow, thanks to yesterday's renewed strength, PFE is entirely back above the 200-day line and now knocking on the door of another resistance level. A move above that ceiling could prove catalytic, as there are no major technical ceilings left standing in the way. Click to Enlarge * The last line in question is $43.34, marked with a white dashed line on the daily chart. That's where Pfizer peaked in April, and where it peaked earlier this month. Shares are one good day away from moving above it. * Beyond that, plotted in red, the highs around $43.80 are the next most likely stumbling blocks, though it's likely they're not a terribly big factor at this point. * Bolstering the bullish case is how much volume took shape behind yesterday's modest advance. It's a subtle hint there are more bulls waiting in the wings, if they can just find enough to be confident about. McCormick & Company (MKC)McCormick & Company shares were nothing but bullish between January's deep low and the rally through early April … a move that reclaimed a miserable last few weeks of last year and rekindled the bullishness from the bulk of 2018.The past several weeks have been decidedly less bullish though. While still making forward progress, that progress was shallow and only driven by a modestly rising support line. And as of Tuesday, that line is on its last legs, and the sellers are starting to turn into a horde. * 10 Tech Stocks to Buy Now for 2025 Click to Enlarge * The support line in question is marked as a white dashed line on both stock charts, tagging all the key lows going back to early April. You have to look closely to see it, but Tuesday's weakness actually broke under that line. * Simultaneously, yesterday's 1.18% setback dragged MKC under the purple 50-day moving average line, which had served as a support line earlier in the month. * Zooming out to the weekly chart of McCormick & Company we can see weakness has already developed in earnest, even if the trend is still "up." The Chaikin line is en route to fall below zero, and we're just one more bad week away from a bearish MACD crossunder. FMC (FMC)Since the middle of last year, FMC has made several attempts to break above what's become a well-established resistance line right around $80.75. Clearly each attempt has failed, resulting on various levels of selloffs.The buyers are at it again though, and this time the outcome may well be different. This time, the effort is starting out from a point that wasn't so deep in the hole. With less ground to cover just to get into position for a breakout thrust, there's more gas in the tank to actually get the stock over the hump. Click to Enlarge * That "hump" is plotted with a yellow dashed line on both stock charts. Although not perfect resistance, it's clear there's something about that level holding FMC shares back. If it can be hurdled, the buying floodgates could readily open. * Last month's low around $71 is a much healthier start to the effort than the December low near $61 was. * Backing out to see the weekly chart we can readily identify a bullish undertow in the Chaikin line as well as with the fresh MACD crossover.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post 3 Big Stock Charts for Wednesday: Pfizer, FMC and McCormick & Company appeared first on InvestorPlace.
The Dow and S&P 500 on Tuesday finish at their highest levels in about six weeks ahead of a key Federal Reserve decision, as President Donald Trump tweeted that he had a productive conversation with Chinese counterpart Xi Jinping.
Snap Inc.’s former Chief Strategy Officer Imran Khan has launched his next venture. Verishop opened on Tuesday online and on iOS with its sights set on Amazon.com Inc. The new online shopping venture — more of a department store than a marketplace — targets millennials with a curated selection of women’s, men’s, home and beauty products. Verishop also offers a Tastemakers section featuring picks from influencers such as Jess Conte and Alex Costa, and The Responsible Shop with “brands and products that uphold a higher level of social consciousness.” Similar to Amazon (NASDAQ: AMZN), Khan’s new venture promises free two-day shipping with no minimum purchase, free returns within 30 days and 24/7 customer service.
SNAP stock is heading higher on Tuesday following a new price target for it.Source: Shutterstock The new price target for Snap (NYSE:SNAP) comes from BTIG analyst Rich Greenfield. This update from the analyst has the price target for SNAP stock increasing from $15 per share to $20 per share.That new price target for SNAP stock represents a roughly 33% increase over the previous price target from Greenfield. It is also sitting at about 47% above the stock's closing price of $13.55 on Monday.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"We believe street expectations for user growth and revenues/Ebitda are simply too low, with far too many investors continuing to ignore Snapchat's recovery, driven by repeated overpromising/missing expectations during Snapchat's first two years as a public company," Greenfield says in a note obtained by MarketWatch.What doesn't change from this recent update on SNAP stock is the BTIG analyst' rating. The firm continues to hold a "Buy" rating for the stock. The reason for the rating is the belief that the company will continue to see increasing user growth with its core demographic of users between the ages of 13 and 34. * 5 Stocks to Buy for $20 or Less Another benefit for SNAP stock comes from new features it is introducing. This includes the addition of games within its app. There have also been new filters that have gone over well with users. Other new filters that perform well may also be a reason that Snap could see an increase in users, CNBC notes.SNAP stock was up 8% as of noon Tuesday and is up 134% since the start of the year. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post Why SNAP Stock Is Surging Today appeared first on InvestorPlace.
(Bloomberg) -- Snap Inc. shares jumped on Tuesday, extending a multi-month surge that has seen the stock nearly triple in value as analysts grow more confident that the social-media company is in the middle of a turnaround.The stock jumped as much as 9% and was trading at its highest level since April 2018. Shares have gained more than 190% off a December low.Tuesday’s rally was fueled by BTIG raising its price target by $5 to $20. The move was just the latest reflection of the firm’s growing confidence in the company, which is known for its Snapchat social-media app. BTIG upgraded Snap to neutral in December, and then to buy in March, and now its target is the highest on the Street.There are “far too many investors” ignoring the company’s recovery, analyst Richard Greenfield wrote, adding that his own conviction “has meaningfully increased” since March. He listed eight catalysts that could extend the rally, including a “more open approach to third-parties” and higher daily active users, and lamented that consensus expectations for user growth and revenues/Ebitda “are simply too low.”Snap’s 2019 rally picked up steam in early February, when its fourth-quarter results beat expectations and it pointed to a stabilizing user base. An additional leg up followed in April, when it announced a suite of new products and services, including a video-game business.One of the most significant catalysts came after Chief Executive Officer Evan Spiegel said a highly anticipated Android redesign would be fully rolled out by the end of the year, news that helped assuage concerns over user engagement.“With the Android rebuild stunting user growth for much of 2018, the launch of the updated app is supporting a resurgence in Android users,” Jefferies analyst Brent Thill wrote on Tuesday, citing an analysis of Android data for April and May. “Positive user growth in 1Q has continued into 2Q and time spent on the platform is relatively stable.”Jefferies has a hold rating on the stock, writing that “improvements may already be priced in” and that it was waiting for a better entry point to turn more positive.On Monday, Aegis Capital Corp upgraded Snap to buy from hold, in what the firm noted was the first time it had recommended the stock “since our pre-IPO initiation work, when we were skeptical of Snap’s ability to drive user growth.” Now, analyst Victor Anthony sees fundamentals improving to the point that he no longer thinks Spiegel should find a buyer for the company.“Snap can stand on its own,” he wrote.To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Snap shares popped on Tuesday after BTIG's Rich Greenfield raised his price target to $20 per share, up from $15, on the belief that the company's recovery has meaningfully increased. Rich Greenfield joined Myles Udland and Jen Rogers on the Final Round with his take on Snap.
Snap could be winning back Wall Street. Aegis Capital upgraded the stock to a 'buy' rating, saying it is confident in the company's user engagement and advertising platform. Yahoo Finance's Seana Smith and Dan Howley discuss.