|Bid||139.03 x 900|
|Ask||139.66 x 1000|
|Day's Range||134.66 - 139.75|
|52 Week Range||103.29 - 198.99|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||163.68|
"Any company with any kind of consumer product could potentially end up in their crosshairs, and that's a very dangerous place to be," the "Mad Money" host says.
Michael Purves, Weeden & Co Chief Global Strategist, says financials are set to see “reasonably good earnings, not great” earnings moving forward. Yahoo Finance’s Akiko Fujita speaks to him, Brian Sozzi and Jared Blikre.
Amazon today announced the launch of a free, ad-supported music service in the U.S. that will be available to anyone who wants to play free music on their Echo speaker. Amazon Music Unlimited, meanwhile, has 50 million songs. The new service gives Echo owners a way to enjoy free music from Amazon on their Echo, instead of having having to turn to a third-party free provider, like Spotify or Pandora.
Companies seeking to raise interest-free capital from the public mostly take the initial public offering (IPO) route to publicly list their shares on stock exchanges. There are two ways to list the shares—the standard and popular IPO process, and the direct listing process. In most cases, the shares listing process is performed by the company by using the services of intermediaries called underwriters, who facilitate the IPO process and charge a commission for their work.
Sirius XM's (SIRI) first-quarter 2019 results are expected to benefit from its varied content offerings that include music and sports.
Facebook's (FB) first-quarter 2019 results are likely to gain on continued subscriber growth, driven by rapid adoption of Instagram and WhatsApp Stories.
A majority of office workers allowed to listen to music say it makes them feel more productive, according to recent studies. The isolation of headphones comes in direct response to the move by many companies to open floor plans lacking privacy and quiet. Spotify has playlists devoted to productivity and office life which have amassed hundreds of thousands of followers.
From one perspective, Wayfair (NYSE:W) is being treated like most tech stocks. Wayfair stock has a market capitalization of nearly $14 billion despite the fact that Wayfair is unprofitable, even on an adjusted EBITDA basis.Source: Shutterstock From another perspective, however, Wayfair stock price might be considered cheap: its price-sales multiple of two is among the lowest of all 'tech' stocks. * 7 Dental Stocks to Buy That Will Make You Smile The argument over Wayfair stock price, then, seems to come down to whether it truly is a "tech" stock. Certainly, the company's online business model seems to suggest that it is.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, at the end of the day, there's also an argument that Wayfair is simply a furniture company that sells its products online. If that's the case, then W stock might be significantly overvalued because furniture companies are not getting much credit in this market. The Cyclical Problem Facing W StockOne of the more favorable aspects of many newer tech stocks with high valuations is that their exposure to economic cycles shouldn't be that severe. The revenue of a "software-as-a-service stock" like Salesforce.com (NYSE:CRM), for instance, should stay reasonably steady even as the economy ebbs and flows.A company might cut a few SaaS licenses if it lays off sales staff. But customers of Salesforce.com or Workday (NASDAQ:WDAY) or even the cloud unit of Amazon.com (NASDAQ:AMZN) aren't going to end their contracts in the middle of a recession.Even some consumer plays - think Netflix (NASDAQ:NFLX) or Spotify (NYSE:SPOT) - should be similarly resilient. As Josh Enomoto pointed out late last year, Netflix might even be counter-cyclical; consumers might eliminate their more expensive cable subscriptions, accelerating the shift to Netflix's streaming services.That is clearly not the case with Wayfair. The furniture business in particular is enormously cyclical. So, too, are many of the company's other key categories, like decor and appliances. And the obvious risk facing Wayfair stock is that the U.S. is in the tenth year of an economic expansion. Wayfair's growth has been impressive over that stretch, but what happens when the economy inevitably slows down? Should the Wayfair Stock Price Be This High?The price of Wayfair stock might not seem like a concern right now, particularly as stock markets look poised to re-take their all-time highs. But the fact is that other similar, albeit mostly brick-and-mortar, companies, already are pricing in the risk of a recession.Most furniture retailers and manufacturers trade in the range of 10 times to 12 times their earnings. La-Z-Boy (NYSE:LZB) might be the most expensive of the group; backing out net cash, it trades at about 14 tines its earnings, as does volatile RH (NYSE:RH).Home-decor retailers have been hammered. Bed Bath & Beyond (NASDAQ:BBBY), Tuesday Morning (NASDAQ:TUES), and Pier 1 Imports (NYSE:PIR) all are struggling. Williams-Sonoma (NYSE:WSM) is holding up better, but it still has traded sideways for over three years now.Cyclical fears aren't the only factor holding many of those stocks down. In fact, they likely aren't the biggest factor behind their weakness. Wayfair's impressive top-line growth, and share gains by Amazon and other online retailers, are key reasons why stocks in the furniture-retail sector have struggled. But even growing companies like RH and La-Z-Boy are being valued cheaply.And taking a broader look, most cyclicals - auto manufacturers, boating plays, equipment stocks like Caterpillar (NYSE:CAT) - are being valued as if the end of the cycle is closer than the beginning. A decade into an upcycle, that's not surprising. What is surprising, perhaps, is that W stock doesn't seem to be getting the same treatment. Be Careful Out ThereThe core argument around Wayfair stock really comes down to whether Wayfair's market is viable. Its revenue growth has been impressive,. But those who are bearish on Wayfair stock argue that the company's higher sales simply are being purchased by huge advertising costs and free shipping.The jury's still out on that debate. But the cyclical aspect of the business has to be a concern. When the economy turns, Wayfair likely is going to take a hit. That, in turn, means it has to convince investors of the validity of its business model before that happens.If the market thinks Wayfair will be a dominant retailer for decades to come, Wayfair stock can ride out temporary weakness by the company. If the battle over Wayfair's outlook is still raging, and the economy turns south, however, W stock is going to plummet.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post The One Big Catch With Wayfair Stock appeared first on InvestorPlace.
Before buying a stock, investors need to ask themselves one more important question, Jim Cramer told his Mad Money viewers Monday. Cramer said Amazon's ability to disrupt commerce is unlike that of any other company, and Amazon it takes aim at a sector, those stocks will never trade the same again. down 4.4%, despite the fact Spotify has been a market leader with a beloved product that was thought to protect it from newcomers.
Then this morning we learn that Amazon might be about to rollout a similar service to Spotify's free version. Now I don't know how real this Amazon foray might be. No one ever seems to want to say it but that's Amazon eating at the margins.
Spotify shares were down Monday after Billboard reported that Amazon.com was preparing to launch a free, ad-supported music service.
STOCKHOLM/LONDON (Reuters) - A vibrant start-up scene, which has spawned stars such as Spotify, Skype and Rovio, is inspiring Nordic pension funds to invest more money with local private equity funds. "With Spotify we got a call that maybe there were some shares for sale ... We thought it was a great product so we said let's dig into this and we made an acquisition with our friends at AMF," Bo Selling, Alecta's head of equities, told Reuters. Swedish pension funds Alecta and AMF saw their 2016 investments in Spotify nearly triple in value when it listed in 2018.
The bank's stock fell 0.1% after reporting mixed quarterly results . Citigroup's earnings per share topped analyst expectations as the company repurchased more than $4 billion in stock. Goldman Sachs GS — Shares of Goldman Sachs slid about 3.8% after the investment bank posted weaker-than-expected first-quarter revenue.
Amazon would market the free music service through its voice-activated Echo speakers, a Billboard report said on Friday, adding that it could become available as early as this week. Amazon Prime also offers free delivery and access to its Prime Video service. In addition, the company sells Amazon Music Unlimited subscriptions for $9.99 a month, which is available for Prime members at a lower fee of $7.99 per month.
was looking into starting a free-music service. Amazon's ad-supported music service will be a direct threat to global streaming leader Spotify, which offers free content on mobile and tablets. Amazon's free-music service could start this week via its Echo speakers, according to Billboard, which cited a source familiar with the plan.
Since its IPO, Tencent Music (NYSE: TME) stock has continued its upward trajectory. Investors' bullishness on Tencent Music stock only grew after TME reported its fourth-quarter results, which were strong. Strong Fourth-Quarter ResultsTME reported Q4 revenue of $785 million, up 50.5% from last year's Q4. TME lost $127 million in the period due to a one-time equity issuance charge of $221 million related to the company's issuance of TME stock to Warner Music Group and Sony Music Entertainment. * 7 Mid-Cap Stocks to Find the Market's Sweet Spot For the full year, TME's total revenue rose 72.9% to $2.76 billion. TME reported net cash provided by operating activities of $281 million. The company's cash and cash equivalents rose by over 300%, to $2.52 billion. The IPO of Tencent Music stock added $509 million to the company's cash total, while its operations generated $819 million of cash.InvestorPlace - Stock Market News, Stock Advice & Trading Tips TME's International Growth OpportunityFunds from the IPO ofTencent Music stock will support the company's global-growth ambitions. CEO Cussion Kar Shun Pang pointed to online music and social-entertainment services as the two growth areas for the company. Its investments in premium content, innovative products, and proprietary technology drove its recent growth. This year, it will build on that strategy while accelerating the promotion of its premium content.Premium content can increase the company's profit. If Tencent Music can get a higher percentage of revenue from premium content while attracting more customers, expect its earnings growth to accelerate in the quarters ahead, boosting Tencent Music stock.TME's investments in its partnerships are paying off. By joining forces with domestic and international music labels, Tencent Music broadens its appeal to its customers. Proprietary, in-house content that caters to users' demands will also boost TME's growth, further differentiating the company from its competitors and lifting Tencent Music stock. Mobile Growth ExpectationsTME reported 27 million paying users of its online services, representing growth of 39.2% year-over-year. The number of the company's paying social-entertainment users grew by 22.9% to 10.2 million. But the total monthly average users of the company's online-music products was 644 million, suggesting that it could monetize more of its users. And so far, TME has proved that it has the right balance of producing content in-house, partnering with others, and discovering other innovative ways to promote its products. Higher CostsInvestors should not ignore TME's costs. In Q4, its cost of revenue grew 62.5% as its content fees and its revenue-sharing fees rose. The more content it produces in-house, the higher its costs will be. Fortunately, Tencent's high-quality original content should attract more users and subscriber revenue over the long-term.TME's operating expenses grew 58.1% to $197 million. It also spent more on sales and marketing, as it increased its efforts on branding, its products, and its content. The company's general and administrative spending increased after the company incurred higher employee and personnel costs. If TME can keep its staff turnover low, then the initiative should benefit the company over the long-term. The Valuation of Tencent Music StockThe eight analysts who cover TME stock believe the stock is trading at fair value, according to Tipranks. With analysts' price targets on Tencent Music stock ranging from $15 - $21, TME stock could fall if investors decide to buy its competitors' stocks instead.Among its competitors are Sony (NYSE: SNE) and Spotify Technology SA (NYSE: SPOT). Tencent Music, like many young companies, is growing quickly, and it should be profitable over the long-term. Investors will need to weigh the current $29 billion market capitalization of Tencent Music stock against its prospects.The number of shares of Tencent Music stock being sold short is also up, increasing from 19.4 million shares in January to 30.4 million shares on March 14, 2019. The Bottom Line on Tencent Music StockTencent Music stock's growth outlook is are very good. Investors should add TME stock to their watch lists.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post The Growth Outlook of Tencent Music Stock Is Strong appeared first on InvestorPlace.
Not to be outdone by its now-publicly-traded rival Lyft (NASDAQ:LYFT), this past week Uber submitted its initial public offering paperwork to the SEC. The long-awaited and oft-discussed Uber IPO is finally about to happen. * 10 Stocks That Are Screaming Buys Right Now Source: Shutterstock A bunch of traders are buzzing because… well, many traders love cool concepts. At the other end of the spectrum, naysayers can't get past the line in the official filing that says the company "may not achieve profitability."It's a dire suggestion, but it's not the red flag many investors are making it out to be.Most companies that aren't profitable at the time of their IPO warn in their S1 paperwork they may never turn a profit. Twitter (NYSE:TWTR), for instance, cautioned investors in 2013 in its S1 filing it "may not be able to achieve or subsequently maintain profitability."InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut it's making money now.In 2003, salesforce.com (NYSE:CRM) was worried enough to issue this warning to would-be IPO buyers: "If our revenue does not grow to offset these expected increased expenses, we will not continue to be profitable."Salesforce has earned $1.11 billion over the course of the past four reported quarters.It's boilerplate language.Still, investors would be wise to be wary of the Uber IPO because it may not actually ever turn a sustained profit, even if the warning in its recent paperwork was just the usual rubber-stamped disclaimer. The PlanWhether or not Uber said so, there's a very real possibility the company may never create sustained profits.Uber, of course, is a ride-hailing company. Tech-centered and volume-minded, the organization was founded in 2009, with relatively humble beginnings. Travis Kalanick had sold Red Swoosh just a couple years prior, freeing him to partner up with computer programmer Garrett Camp to create what was then called UberCab.The app itself was and still is the centerpiece of the company's operation, which has since cultivated an army of roughly 3 million independently-contracted drivers.It's clever competition to conventional taxi cab companies. Those 3 million drivers all work remotely, and independently, and are dispatched by the same platform that powers the consumer-facing app. It's arguably more efficient than traditional taxi companies.That doesn't make it profitable, though.It's complicated, but the short explanation of the concern is this: Uber spends more on regular, recurring operating costs than it collects in net-revenues.That may not always be the case. In fact, Uber specifically believes that won't be the case in the foreseeable future. The plan is to grow ride-hailing revenue to the point where they finally exceed fixed, unavoidable costs. Higher fares aren't likely to be a component of that improvement, as it faces off with Lyft and other, more localized players. Paying its drivers less isn't a great option either. The plan is to grow the number of rides it facilitates.Even that, however, may not get the company over the hump. Scale Isn't Necessarily the KeyMany observers have laid out the flawed thinking in Uber's growth plan. But, giving credit where it's due, it's Intelligencer's Yves Smith that makes the most cogent case against buying into the Uber IPO. He penned the following late last year:"Uber is a taxi company with an app attached. It bears almost no resemblance to internet superstars it claims to emulate. The app is not technically daunting and does not create a competitive barrier, as witnessed by the fact that many other players have copied it… [apps] do not create network effects. Unlike Facebook or eBay, having more Uber users does not improve the service."Smith adds a subtle but important detail the matter, noting "More drivers means more competition for available jobs, which means less utilization per driver. There is a trade-off between capacity and utilization in a transportation system, which you do not see in digital networks."In short, an Uber swing to profitability assumes that the ride-hailing market (however they're hailed) is not yet mature, and further assumes that competitors won't win any market share if the market does somehow expand.And the fact that Uber drivers feel they're being forced to break the law as well as being forced to cancel rides when fares are too low suggests the supply-demand dynamic has already run out of runway. Bottom Line on Uber IPODon't misread the message: The Uber IPO may prove amazingly fruitful for traders able to actually buy into the initial public offering and offload their Uber stock at a much better price in the open market. Although it didn't work for Lyft this way, Uber shares may ride the post-IPO buzz higher and higher. Euphoria is a powerful force.Sooner or later, though, Uber has to realistically prove to investors that it may be able to turn a decent profit at some point in the future. The company's top brass continue to tacitly hint that it can, but consider the source. The more convinced investors are that Uber will be viable one day, the more money those insiders make on the shares they already own.Notice, in particular, that Uber has yet to offer any solid growth outlook that's based on verifiable, validated data that jibes with the market's growth expectations.Never say never, but this smells a lot like another Groupon (NASDAQ:GRPN) or Spotify (NYSE:SPOT). Consumers love their products, but the companies aren't actually "businesses" with a model capable of consistently producing earnings. * 10 Dow Jones Stocks Holding the Blue Chip Index Back To that end, there's a reason LYFT stock is down 16% from its IPO price in just a few days.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 * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Seriously, Uber May Never Actually Turn a Profit appeared first on InvestorPlace.