154.39 +0.08 (0.05%)
Pre-Market: 6:08AM EDT
|Bid||153.30 x 1000|
|Ask||154.99 x 900|
|Day's Range||151.01 - 154.38|
|52 Week Range||103.29 - 198.99|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 31, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||166.85|
“We find that approximately 82% of outstanding credit card balances are debt, or that they are revolved for a month or more,” they write. The numbers are almost as bad even among those with high credit scores, they report. In other words, over half of credit-card balances are part of debt that is being carried for more than 12 months.
Last week's gallery on breakout stocks to buy delivered big-league profits. So we're returning to the well for three more candidates that boast price charts brimming with potential.This week's targets are inspired in large part by the S&P 500, which closed at a new record high of $3,013.77 on Friday. Nothing brings buyers to the yard like a major index touching its highest price in history. It reveals optimism and a risk-on attitude.Last week's demand surge was aided in part by Federal Reserve Chair Jerome Powell's testimony before Congress that all but confirmed the market's expectation for a rate cut at the upcoming July 31 meeting. Betting markets peg the odds of a quarter-point cut at 72% and a half-point cut at 28%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dependable Dividend Stocks to Buy Without further ado, check out these three breakout stocks to buy. 3 Breakout Stocks to Buy: Cisco (CSCO)Source: ThinkorSwim Friday's rally for Cisco (NASDAQ:CSCO) succeeded where its predecessor did not. Last month's breakout attempt over $57.50 was met with rejection and sharp selling. Friday's bid, however, powered through the ceiling and closed at a new 52-week high.With the gain, CSCO stock officially ended its three-month consolidation zone and signaled that the next stage of its uptrend is upon us. I'd use $60 as the first upside target. It would take a break below the 50-day moving average at $55 to invalidate the bullish backdrop. So until then, the path of least resistance is higher.At 41%, the implied volatility rank is fiddling in the middle of its range. Couple that with earnings coming over the next month, and I think bull call spreads are the way to go.Buy the Sep $57.50/$60 bull call spread for around $1.20. Home Depot (HD)Source: ThinkorSwim Home Depot (NYSE:HD) was one of the best stocks on the board Friday. The retailer surged 2% on heavy volume to a new all-time high. On the technical front, there's nothing not to like about its price action. The 20-day and 50-day moving averages are trending higher to confirm buyers' dominance of the short- and intermediate-term trends.A few accumulation days have cropped up over the past two weeks to signal institutions are wading into the waters. As far as options go, implied volatility is in the basement revealing an utter lack of uncertainty in the stock. That means prices for derivatives are dirt cheap. Long calls and call spreads offer great low-risk, high-reward bets right now. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond If you think the good times continue to roll, then buy the Sep $220/$230 bull call spread for around $3.75. Spotify (SPOT)Source: ThinkorSwim Last week's rally ushered Spotify (NYSE:SPOT) to the cusp of a clear breakout zone. In fact, SPOT stock looks better than at any time since last year's IPO. This summer's recovery pushed shares of the streaming music service back above all its major moving averages for the first time.The base built throughout 2019 should serve as a solid foundation to build an uptrend from if buyers decide to press their advantage here.If SPOT can clear $155, look for a run toward the next ceiling of $170. To capitalize, buy the Oct $160/$170 bull call spread for around $3.30.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 * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post 3 Breakout Stocks to Buy appeared first on InvestorPlace.
In the latter part of 2018, bearishness took hold of Apple (NASDAQ:AAPL) stock and sent shares to the $150 range as AAPL stock investors took in the news that the company would no longer issue unit sales numbers for its iconic iPhone device.Source: Shutterstock CEO Tim Cook reasoned that subscription and app sales mattered more for profitability. By that logic, Apple could afford to offer less transparency into its business each quarter. Now that the shares have recovered, there are three reasons investors should buy Apple stock. Weaker iPhone Sales ExpectedInvestors have had more than six months to accept that unit sales for iPhones will fall. Average selling price (ASP) is significantly higher with each successive release of the device. And although loyal customers will hold off upgrading to the latest iPhone, their device will stay in the iOS ecosystem. Even if revenue falls, Apple will enjoy healthy profit margins from sales of iPhone 8, X, XR, and XS Max.InvestorPlace - Stock Market News, Stock Advice & Trading TipsExpect the total profit per user to hold steady or increase, driven by more customers signing up for Apple Music. In April, The Wall Street Journal reported that Apple had 28 million subscribers, 2 million more than Spotify Technology (NYSE:SPOT). SPOT stock trades at similar price/sales and price/book multiples compared to Apple. Yet Spotify's price/forward cash flow multiple is 75, compared to 20.5 times for Apple. * 7 Retail Stocks to Buy for the Second Half of 2019 Don't forget that Apple recently launched its News App. By sending notifications for timely news, users who use the app often may end up subscribing to the service. In doing so, they get Apple News Plus, which gives users access to premium newspapers and more than 300 digital magazines. Look for Earnings Beat on July 30When Apple reports quarterly earnings on July 30, the company may beat the Q2/2019 EPS estimate of $2.12.Source: TipranksLast year, Apple reported earnings of $2.34, topping the $2.17 estimate. Strong revenues are possible because Apple Music subscription growth is gaining momentum. The iPad and iPad Mini refresh could drive device sales higher. Conversely, the iPad Pro faces stiff competition from Microsoft's (NASDAQ:MSFT) Surface book and Surface tablet. Still, Apple has the AirPod, Watch, and HomePod to offset a drop in Pro sales.In the unlikely scenario that AAPL stock falls after reporting strong results, the drop gives investors a chance to average down. Most who invest in Apple are in it for the long term. Viewing short-term drops in the stock as entry points played out well in the last decade. * 10 Stocks to Sell for an Economic Slowdown To be sure, weak iPhone sales could spook investors and send Apple stock lower. Yet if consumers are simply holding off on upgrades in general, Apple is not losing market share. So if users are not leaving the iOS ecosystem for Android, Apple subscription and software sales will return high profits. Service Revenue Will Drive GrowthThe second quarter 2019 saw Apple report its best quarter ever for Services, as revenue topped $11.5 billion. Even as worldwide iPhone revenue fell 17%, Services grew to new heights, with more than 390 million paid subscriptions at the end of March, up 30 million in the last quarter. During 2020, Apple expects to surpass 500 million subscriptions.That is a phenomenal rate of growth. And the strong uptake of Services will include growing App sales. In Q2, the number of paid third-party subscriptions increased by over 40%. Apple has a well-diversified source of revenue from apps; the biggest third-party subscription app accounted for just 0.3% of its total Services revenue.Apple forecast revenue of $52.5 billion - $54.5 billion for the upcoming report for the June quarter. Gross margin will be around 38%. Operating expenditures will be $8.7 billion - $8.8 billion. Your Takeaway on AAPL StockApple is confident about the growing revenue from the product category level. More importantly, it expects iPhone sales improving Y/Y in the upcoming Q3 report. Cash flow generation is so strong that AAPL stock repurchase authorization and its quarterly dividend. A dividend hike is unlikely but if Apple does so, look for Apple stock continuing its uptrend.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post 3 Reasons to Buy Apple Stock Ahead of End-of-Month Earnings Report appeared first on InvestorPlace.
“This is what happens when you sign a deal at fifteen to someone for whom the term ‘loyalty’ is clearly just a contractual concept,” Ms Swift wrote. The move, while dramatic, was consistent with Ms Swift’s history. While some of Ms Swift’s younger fans may have been introduced to the concept of master recordings for the first time, she is one of a long lineage of musicians to do battle with the record labels that typically own their work.
Prior to universal access to digital technology, identifying music in restaurants, bars, or stores was difficult to nearly impossible. Founded in 2000, Shazam provided a readily-available solution to music identification.
Sure, Spotify has 100 million paid subscribers, and Apple Music has 60 million. According to Financial Times, the number of people subscribing to Amazon Music Unlimited grew roughly 70 percent in the last year. As of April, Amazon had more than 32 million subscribers across its music services, including Unlimited and Prime Music.
One of the world's largest companies -- Apple (NASDAQ:AAPL) -- with one of the biggest net cash balances ever -- $122 billion -- continues to promise that it will be "net cash neutral" over time. That means AAPL still has $122 billion to deploy to buybacks, dividends, acquisitions, investments, so on and so forth.At this point in time, it seems the smartest path forward would be for Apple to use that $122 billion on a big-time acquisition. Recent quarterly numbers underscore that peak iPhone is here.While the company has nice growth initiatives through new hardware like the Apple Watch and services businesses like Apple Pay and the App Store, none of those new initiatives are groundbreaking enough to fully replace what will soon be a flat iPhone business.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThus, Apple can either be a tepid growth business forever going forward, or the company can recharge growth by using its huge net cash balance to acquire a hyper-growth company.The second option sounds far more attractive, and should be the route that optimizes long-term gains for Apple stock.The list of companies Apple could buy is long. The company has enough net cash to essentially acquire any company in the world. But, the list of companies Apple should buy is short. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Indeed, I think it as short as seven companies. Thus, let's take a look at seven companies that Apple should buy as it aims to be net cash neutral over the next few years. Netflix (NFLX)The most obvious M&A use of Apple's huge net cash balance is an all-in acquisition of streaming giant Netflix (NASDAQ:NFLX).Source: Shutterstock No one can really deny the momentum that Netflix has by simply being the brand name in the streaming market. Nor can they deny the huge potential of that market, as the world increasingly cuts the cord and pivots to streaming, or the competitive moat that Netflix has established through quality and diverse original content.Because of these three factors, Netflix promises to be a big growth company for a lot longer. Apple could use that growth. As the hardware business dries up, the company is doubling down on the software business, and that reportedly includes a big dive into streaming and original content.Netflix would give Apple a head-and-shoulders leader in that market. Apple can also afford that growth. Netflix is a $150 billion company. Some cash and some debt could easily fund this acquisition.Overall, Netflix is a highly attractive target for Apple as the latter pivots toward creating software services to monetize the install base. Spotify (SPOT)If Netflix is a "reach for the stars" acquisition, then Spotify (NYSE:SPOT) is a much more grounded acquisition target with still promising upside potential.Source: Spotify Spotify is trying to do in the streaming music market what Netflix did in the streaming video market. Granted, there's no original content, so the moat is much smaller. Also, Apple Music is a thing, and it has already dethroned Spotify in the U.S., Canada and Japan. Thus, this acquisition doesn't provide as much firepower or unique assets as a Netflix acquisition.But, it's also much cheaper, at just $20 billion. It would also give Apple complete control over the streaming music market, a position that AAPL could use to its advantage down the road through exclusivity agreements and price hikes. Plus, as mentioned earlier, Apple is pivoting big time into the software side of its business. Spotify fits right into that wheelhouse. * 10 Best ETFs for 2019: The Race for 1 Intensifies Overall, Spotify is a good acquisition target for Apple because the latter needs mobile software growth to offset plateauing hardware growth, and Spotify gives them just that. Disney (DIS)Apple wants to get into the streaming and original content market. But, in order to be successful in that market, Apple needs content. Right now, the company doesn't have any. But, Disney (NYSE:DIS) has a bunch of it, and all those content assets are arguably very undervalued today.Source: Baron Valium via FlickrDisney is a global media company with a brand name that is second to none. The company owns perhaps the most valuable content assets in the world, and between Star Wars, Marvel and Pixar movies, the company dominates the box office every year.The problem with Disney is that, as the world has pivoted to streaming, the company has been slow to catch on, and post box-office content distribution hasn't kept up with the times.Apple is unparalleled in terms of its digital reach to the consumer. Between iPhones, iPads, Macs and Apple Watches, most U.S. and global consumers have some digital connection point with Apple.Thus, it should be easy for Apple to push a streaming service (like Disney+ for example). But, AAPL needs the content. Disney has the content, and for only $170 billion (that includes the highly lucrative parks and box office businesses).Overall, Disney is an attractive acquisition target for Apple because, together, the two companies could create a very good streaming service that is rich with content and very easy to access. Tesla (TSLA)A lot of investors and analysts are saying that Apple's last truly revolutionary product was the iPhone, and that here hasn't been a breakthrough product ever since. Now, with the iPhone growth cycle on its last legs, those same analysts and investors are saying that Apple desperately needs to find that next breakthrough product before time runs out.Source: Shutterstock Let's say hello to Tesla (NASDAQ:TSLA). This is a breakthrough company with not just one, but a portfolio of breakthrough products. That portfolio today includes the Model S, Model X and Model 3. Down the road, it will include many more Tesla vehicles, all of which share the same core electric powered characteristic.The benefits to Apple of such an acquisition would be enormous. Apple has been reportedly working on a car for a long time now, but this project hasn't materialized anything substantial to date. Acquiring Tesla would give Apple broad exposure to the auto market. * 10 Best Stocks for 2019: A Volatile First Half Plus, Apple could easily incorporate and integrate its numerous consumer-facing hardware and software products more seamlessly into Tesla vehicles. The benefits therein to both Tesla's auto business and Apple's services business would be huge.Overall, Apple should buy Tesla because Apple needs a breakthrough hardware product to replace the iPhone, and Tesla gives them a portfolio of breakthrough hardware products while also providing synergies with the services business. Shopify (SHOP)One of the markets in which Apple has a small presence today is e-commerce. But, Apple has all the resources to make a big play in the e-commerce market. If AAPL does that, a natural first step would be the acquisition of Shopify (NYSE:SHOP).Source: Shopify via FlickrShopify provides e-commerce solutions for retailers of all shapes and sizes. Essentially, the company helps anyone and everyone create an e-commerce business.This is a big growth market because: 1) e-commerce is only growing in adoption, and 2) as e-commerce grows in popularity, more retailers will shift toward digital, and the e-commerce market will become increasingly decentralized and less consolidated.As such, over the next several years, I predict a majority of e-commerce dollar volume will flow through Shopify-powered stores.Thus, Shopify has all the e-commerce merchants and transactions. Apple creates a majority of the hardware products that enable those transactions.A marriage of these two companies would make perfect sense. Apple would control the whole e-commerce process, and could adapt the iOS ecosystem so that it works seamlessly with Shopify-powered stores, thereby ushering in an era of truly friction-less e-commerce.Overall, if Apple is looking to make a play in the red-hot e-commerce market, a natural first step would be to acquire Shopify, a company that would give Apple access to a large volume of e-commerce merchants and transactions. iRobot (IRBT)Going back to the "Apple needs a breakthrough hardware product" theme, a less expensive way to accomplish this than buying Tesla, is to buy iRobot (NASDAQ:IRBT).Source: Shutterstock iRobot is a $2 billion company that is known for its robotic vacuum cleaners, Roomba. Roomba has been a huge success for iRobot as the robotic vacuum market has gradually gained traction over the past several years, and this has powered big gains in revenues, profits and the stock.But, Apple isn't interested in a robotic vacuum cleaner. That's too small of a product to move the needle. But, Apple should be interested in the entire consumer robotics space. For iRobot, robotic vacuum cleaners are just the tip of the iceberg. * 7 A-Rated Stocks to Buy for the Rest of 2019 Over the next several years, you will see robotic lawnmowers, robotic window cleaners, robotic car washers, robotic chefs, so and so forth. In sum, all these consumer robotics products provide a huge long-term opportunity. If Apple were to couple its resources and experience with iRobot's leadership position in this market, the two could create an immensely valuable consumer robotics company with multiple breakthrough automation products that become household norms over the next several years.Overall, iRobot is an attractive acquisition target for Apple because, for just $2 billion, Apple could gain entry into what could be a very large consumer robotics market that is still in the early stages of hockey stick growth. Roku (ROKU)The last entry on this list may surprise people. After all, Roku (NASDAQ:ROKU) and Apple are essentially competitors in the streaming device market. But, the synergies of an acquisition far outweigh the costs.Source: Shutterstock Despite Apple's best attempts in the streaming device market, the lion's share of this market still belongs to Roku. The company controls roughly 40% of the streaming device market, and 25% of the smart TV market. Thus, Apple trying to beat Roku in this market, while possible, is an uphill battle.Instead, Apple should just buy Roku. AAPL could absorb the entire streaming player and platform businesses into its own ecosystem, and put other competitors in this market, like Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), at a huge disadvantage. Buying Roku would also be pretty cheap (sub-$5 billion market cap), and it would give Apple wider reach to push a potential streaming service down the road.Overall, as opposed to trying to squash Roku, Apple should just buy them, and create a streaming platform business that is unrivaled in terms of reach and scale.As of this writing, Luke Lango was long AAPL, NFLX, DIS, TSLA, SHOP, ROKU, AMZN and GOOG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits The post 7 Companies Apple Should Consider Buying appeared first on InvestorPlace.
Apple (AAPL) stock still rests 13% below its 52-week high despite its roughly 30% climb in 2019 amid trade war worries and a slowdown in iPhone sales. Now, let's peek ahead to see what investors should expect from Apple's third-quarter fiscal 2019 financial results.
The music giant's June app redesign makes podcasts easier to access, but there have been quite a few complaints about changes made to its music-listening features.
We are now on the cusp of earnings season with hundreds of companies set to release their financial results in the coming days. In general, sentiment is cautious- Wall Street expects the S&P 500's earnings to fall by 2% compared to the same quarter last year. This would represent the first such decline since 2016.However, Barclays has some good news for investors- and for tech investors in particular. The firm has just released a report revealing a bullish 2Q outlook for large cap tech stocks compared to previous prints. That’s thanks to a slew of factors. Namely: 1) sentiment is mixed following multiple quarters of decelerating growth, downward estimate revisions, and increased regulatory scrutiny; 2) valuations remain well off the previous peak; and 3) acceleration from a couple of key companies (see below) should drive sentiment higher.“In contrast to the pattern over the past 5+ years, the S&P is currently achieving new all-time highs without the leadership of large cap internet, and contrarians like us would view this as favorable for the current setup” writes top-rated Barclays analyst Ross Sandler. With this in mind, the analyst sets out his five favorite Internet stocks for this earnings season. According to TipRanks, he is ranked 370 out of over 5,200 tracked analysts for his strong stock picking skills. Here are his five favorite stock picks now: Amazon.com, Inc. (AMZN)Out of all the internet stocks covered by the firm, Amazon is the number one stock for Sandler. The e-commerce giant is set to report its earnings figures on July 25. “AMZN is our top mega-cap long idea heading into 2Q - you own the name into retail revenue growth acceleration regardless of margin compression, full stop” the five-star analyst tells investors. He is modeling for 2Q revenue of $63.3 billion and anticipates a modest acceleration for retail revenue growth. This is based on checks and data showing both organic acceleration and strong next-day shipping in several US zip codes. “3Q revenue guidance should similarly benefit from a full quarter of these trends and additional time for Prime Day” he adds.However, Sandler does expect Amazon to guide below consensus for Operating Income (OI) in 3Q. Based on management's commentary that this year will return to normal pace of investment, the analyst writes “we think the street's $4.3B for 3Q is a bit aggressive.”But at the end of the day, revenue acceleration trumps all. “In periods of accelerating growth, little else has mattered for AMZN shares historically” says Sandler. And looking out to the rest of 2019, Sandler reiterates his view that “Owning AMZN into accelerating growth in retail is a winning strategy in our view hence our optimism into 2Q, despite the step down in operating profit.”In the last three months, no less than 35 analysts have published buy ratings on AMZN. Over the same period, only one analyst has stayed sidelined. Meanwhile the average analyst price target stands at $2,244 (11% upside potential). View AMZN Price Target & Analyst Ratings Detail Facebook, Inc. (FB)Social media giant Facebook is the second top stock on the Barclays’ list. “FB seems actionable once again into 2Q as most long-only investors seem to be still watching from the sidelines, and we expect upside” enthuses Sandler. In a report titled “Facebook: Too Cheap To Ignore” the analyst reveals that he expects FB to report both revenue and EPS above his estimate and consensus. Checks remain solid around both newsfeed and stories ad revenue for 2Q, says Sandler as he forecasts 2Q revenue of $16.8 billion. That’s with estimated DAU (daily active user) growth of 7% to a whopping 1.57 billion which “could prove a tad conservative.”Bottom line: it’s worth adding to positions into the July 24 print. “As the conversation moves away from putting out privacy fires and back toward innovation, we think FB shares can continue to move higher” Sandler concludes.Like Amazon, Facebook also scores a ‘Strong Buy’ consensus from the Street. That’s with 35 recent buy ratings vs 4 hold ratings. On average, analysts see the stock rising 9% to reach $221 in the coming months. View FB Price Target & Analyst Ratings Detail Spotify Technology SA (SPOT)Music streaming service Spotify is out with its all-important numbers on July 31. “SPOT is likely to announce its new label agreements (removing a big overhang) and have solid premium net ads” predicts Sandler. The company is very close to the end of several months’ negotiation with major music labels, says Sandler, and could announce new agreements soon. This could easily act as a positive catalyst for prices.He expects SPOT to report paid subscribers, revenue and operating income towards the upper half of its guidance range, and reiterate its full year range. Specifically, Sandler is looking for 109 million premium subscribers, with at least 9 million net subscriber additions. That’s with new partnerships, geographical expansion and increased penetration all helping boost subscriber growth.“Shares have rebounded a bit since the December lows, but at 2.6x 2020 revenue and 9.5x GP, are still well below peer averages and the cadence of the business is improving” the analyst contends. The Street has a cautiously optimistic ‘Moderate Buy’ consensus on SPOT. While 9 analysts call the stock a buy, 2 rate the stock a hold and 1 a sell. Their average price target works out at $168 (11% upside potential). View SPOT Price Target & Analyst Ratings Detail Uber Technologies Inc (UBER)Ride-sharing stock Uber hit the markets in May with an unexpectedly disappointing IPO. In fact, Fortune reports that it was one of the worse-performing mega IPOs ever, with shares dropping 7.6% on the first day of trading. Things went from bad to worse when the company reported first quarter earnings and revealed a quarterly loss of over $1 billion. So what can we expect this time around on August 8? “UBER is likely to report modest upside to consensus GBs, Revenue and EBITDA losses in 2Q and potentially provide a FY EBITDA target for 2019; we would add to positions into the print” advises Sandler. In particular the analyst is looking for ‘robust growth’ in Uber Eats- the popular online food ordering and delivery platform launched by Uber in 2014. “UBER will likely accelerate in Eats revenue significantly this quarter” says Sandler, thanks to the new pricing model rolled out in mid-March. Uber split its fee into a delivery and service fee, and cleverly added a small order fee for orders under $10. However Sandler thinks the real breakout will happen when Rides take-rate starts to expand more meaningfully in 2H19. This refers to the fraction of total fares that Uber skins from trips and deliveries. “At 4.5x 2020 revenue, we think UBER is one of the few names in our coverage that could see multiple expansion and upward estimate revisions over the next year” the analyst concludes.Based on all the recent ratings, UBER holds a ‘Moderate Buy’ Street consensus. Twenty one analysts rate the stock a buy, and 8 analysts rate the stock a hold. The $53 average analyst price target translates into sizable upside potential of 22% from current levels. View UBER Price Target & Analyst Ratings Detail Snap Inc (SNAP)Photo-disappearing app maker Snap Inc has put on a whopping 178% year-to-date gain. Despite a disastrous 2017 and 2018, the company has come roaring back to life so far this year. And even at these levels Sandler is still optimistic about the stock’s potential. “For the more risk-seeking investor we like SNAP here despite the near-triple YTD share price rise on the back of accelerating DAUs (but would watch buyside expectations closely into the print)” he comments.True, DAU (daily active user) numbers may seem a little ‘frothy’ at current levels- and Sandler cautions that DAU may miss the high expectations. He is expecting 7 million daily active users versus the “+10m-15m DAU figure we've heard thrown around in buy-side conversations.” “Nonetheless, we think the company has a lot of momentum currently on the back of Android and some of the new product releases (filters, games, etc), hence we continue to view SNAP as one of our favorite small to mid-cap long ideas for 2019” sums up the analyst. He is modelling for $355m in revenue- and an upbeat tone for 2H when the company reports on July 23.The overall consensus on SNAP stock remains ‘Hold.’ Only 6 analysts call the stock a buy, with 14 hold ratings and 3 bearish sell ratings. Meanwhile the average analyst price target of $13 now undercuts the current share price by 13%. View SNAP Price Target & Analyst Ratings DetailFind the latest 'Strong Buy' stock picks with the Trending Stocks Tool
Elsewhere on Thursday, -- Jeffrey Epstein and Deutsche Bank. -- 1MDB and Deutsche Bank. -- Salvini's secret Russian oil deal. More from the Financial Times Shock Mexican resignation deepens danger for ...
FT subscribers can click here to receive #techFT every day by email. Amazon's striking growth in subscribers to its streaming music service highlights the advantages a widely based tech group has over a pureplay rival like Spotify. , subscribers to Amazon Music Unlimited have grown by about 70 per cent in the past year, according to people briefed on its performance.
Baby boomers may not be into techno or hip hop but they still want to stream smooth jazz and The Beatles. Increasingly they turn to a familiar, safe choice for digital music. Amazon now trails Spotify and Apple in total streaming music subscribers.
Amazon is adding subscribers to its music-streaming service at a faster rate than rivals such as Spotify, Apple and Google, making music the latest industry to be disrupted by the ecommerce group. The number of people subscribing to Amazon Music Unlimited has grown by about 70 per cent in the past year, according to people briefed on its performance. In April Amazon had more than 32m subscribers to all its music services including Unlimited and Prime Music.
They were tweens when the Great Recession hit. One young Millennial shares his thoughts on stocks, gold, real estate and taking Ubers to work.
In the run up to the IPO for Slack Technologies Inc (NYSE:WORK), much of the news coverage centered on the Company's decision to go public via direct offering and how it might affect Slack stock.Source: Shutterstock The questions and concerns about foregoing the usual route where banks are heavily involved in pricing the securities were similar to those that were voiced when Spotify Technology (NYSE:SPOT) chose a similar path last Spring.Even though SPOT shares have had a rough go over the past year--having not fully recovered from the selloff beginning last fall--the immediate months post initial offering saw shares rally around 30 percent.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Stocks for 2019: A Volatile First Half Given the rather frothy current state of markets coupled with a particular appetite for IPOs, generally speaking, it's reasonable to think that Slack stock has a good chance of rallying as well.Investors have been eager to pay for growth whether it's found in a tech company or a plant-based meat company, and in this environment, that is pretty forgiving toward even money-losing companies. Slack has a great shot at thriving.Shares for the San Francisco-based work messaging platform have traded down over the past couple of weeks, but given promising growth across metrics, there is a good chance the lull is temporary. Slack Is a Truly Global CompanyFor those concerned about U.S. growth, Slack provides a kind of diversity that is hard to find amidst tech companies. Slack boasts over 10 million worldwide daily active users across 150 countries. Over half of those DAUs come from outside the U.S.The platform is used by over 600,000 companies to shrink time and space while increasing efficiency within organizations.That data doesn't lie. People across the globe are using Slack's platform with great regularity. Over 1 billion messages per week are sent.There is real traction here. Slack is clearly delivering on mission to make people's working lives simpler and more productive. It's a deceptively simple statement but difficult to execute on.Slack has found a way through its enterprise software to understand what organizations need to become more agile. They've made the product intuitive and engaging.The results speak for themselves. Slack now has more than 88,000 Paid Customers, of which more than 65 companies are ranked in the Fortune 100. Many of these Paid Customers have thousands of active users and our largest Paid Customers have tens of thousands of employees using Slack on a daily basis.With these kinds of high profile customers and a half a million free customers that provide an huge opportunity if Slack can convert them, posting the kind of growth numbers the market wants should be no issue. Slack Stock and Top-Line GrowthRevenue growth has been exactly what investors want to see for a high flying software company. It's been growing by leaps and bounds: annual growth of 110 percent and 82 percent from fiscal years 2017, to 2018 and 2018 to 2019, respectively.Despite investments in the business, Slack has managed to decrease net losses as a percentage of revenue over time as revenue growth has outpaced the growth in operating expenses. Both good signs for future profitability.As long as Slack stock can keep delivering similar growth numbers, shareholders should be rewarded. The Bottom Line on Slack StockCEO of Slack, Stewart Butterfield, is extremely bullish on Slack's prospects at disrupting the traditional world of email. His time horizon for a migration en masse is a fast one: five to seven years. Email may still have a place in personal communication, but for corporate communication, Butterfield sees Slack dominating the space.The name of the game is growth, and Slack stock needs to keep delivering. If it can do so, the stock should have no issues regaining its footing and joining the trajectory of other recent IPOs.As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post Slack Stock Has a Compelling Story and the Numbers to Back It Up appeared first on InvestorPlace.
US stock-market listings have roared back to life after a slow start to the year, but a new way of offering shares to the public has left top executives and venture capitalists wondering about following suit. In doing so, it cut out many of the ways in which investment banks traditionally drum up interest among fund managers. The deal followed Spotify, the music streaming service, which used a similar method in April 2018.
While the U.S. stock market is making fresh new highs, Chinese firms are not enjoying the fun. Chinese stocks remain mired in a bear market, and its tech companies are in a drastic slump. Not surprisingly, iQiyi (NASDAQ:IQ) hasn't been spared. In fact, IQ stock has lost more than half of its value over the past year.Source: Shutterstock Much of this is probably due to external factors. The trade war has scared American investors away from Chinese stocks in general. And China's economy is showing signs of strain. But iQiyi has some concerns of its own that could keep the stock in the doghouse in coming months. Is iQiyi To Fault For Its Massive Stock Price Losses?Chinese stocks have gotten absolutely hammered over the past year. There are 39 Chinese firms with a market cap over $2 billion that have been listed in the U.S. for at least a year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Stocks for 2019: A Volatile First Half Of these, 24 (well more than half ) have lost at least 20% of their value over the past year. Only four out of the 39 have posted a positive return over the past year.IQ stock has been the biggest loser of the bunch, however, shedding 59 percent of its value over the past 12 months. Other notable peers have performed almost as bad, however.Weibo (NASDAQ:WB) is down 58 percent. Sina (NASDAQ:SINA) has plunged 52 percent. And even internet giant Baidu (NASDAQ:BIDU) hasn't been spared; it has knifed 55 percent lower. So IQ stock, while being the worst of a sorry bunch, is hardly an overwhelming outlier. iQiyi's Recent TumbleLike most tech stocks, IQ plummeted to end 2018. Shares recovered to start 2019, but that recent optimism faded in March. Since then, IQ stock has been going straight down again.In addition to the general concerns about the trade war and the health of the Chinese economy, iQiyi is facing two more direct concerns.The first of these is increased government regulation. The China National Radio and TV Administration "NRTA" recently issued more strict guidelines for China's major video players. These will sharply limit the amount of historical dramas that these companies can produce, in relation to dramas based on modern settings.The Chinese government suggested that the video companies were promoting false and harmful views of China's past with these dramas.While this may sound like a silly issue to western investors, it is something to take seriously. Even the most hyper-capitalist of companies must play by a different set of rules in China than they would in places that have more free speech protections.Additionally, it's worth noting that various other Chinese media companies listed in the U.S. have gotten in trouble with the Chinese government for concerns ranging from piracy to sexual content previously, causing sizable share price declines. The current issue with historical dramas will probably blow over. But IQ stock will always face the headwind of the possibility of a government content crackdown at any point.iQiyi also issued more than $1 billion in convertible bonds in March. At the time, it appeared to be a success for IQ stock. They raised money at a lower interest rate and at a less dilutive price than expected. It also represented the second largest convertible bond offering by a Chinese firm in the United States to date.Still, it also appears to have reminded investors that iQiyi has a troubling balance sheet and no plans to make profits anytime soon. When Will iQiyi's Business Model Turn The Corner?It's popular to refer to iQiyi as the Netflix (NASDAQ:NFLX) of China, but this analogy doesn't fully work. For one thing, Netflix relies almost exclusively on subscription revenues. iQiyi, by contrast, gets less than half of its revenues from paid subscriptions. At its price points of $3/month for monthly subscriptions and $2/month for annual subscriptions, iQiyi needs a whole lot of subs to turn a profit.Notably, iQiyi doesn't have the first mover advantage that Netflix did. Already, the Chinese market has three major players. iQiyi has more than 500 million monthly users (not subs), but so does Tencent's offering. Alibaba's (NYSE:BABA) Youku has more than 400 million as well.They all offer competitively subscriptions at super low price points. This makes it difficult for iQiyi to simply copy the Netflix model of raising the subscription price frequently.On the other hand, iQiyi shares a major similarity with Spotify (NYSE:SPOT) rather than Netflix. This is that it has a robust free option, and generates substantial advertising revenues from it.iQiyi, like Spotify, hopes free users will upgrade over time, but it's not a completely closed community like Netflix. Advertising, though down as a percentage of the pie, still made up 43% of iQiyi's revenues in 2018, with subscriptions at just 37%.The idea is that iQiyi will eventually have enough original content to be able to drive far more subscription revenue. At this point, iQiyi is spending nearly as much on content costs as it brings in in revenue. That's obviously not a sustainable model.The question is, will iQiyi be able to reach an inflection point where it starts earning a profit on its content? The fact that two well-funded rivals in Alibaba and Tencent oppose them make it very difficult to either lock up the market or raise prices aggressively. IQ Stock VerdictIf iQiyi can stay the course for quite a few years, it can become a huge winner. It trades far cheaper than Netflix and other streaming companies on a Price/Sales basis. The combination of aggressive revenue growth and an expanding valuation multiple could make IQ stock a home run.But it will be many years, if ever, until iQiyi reaches that point. Right now, the business is losing gushers of money. That's problematic as it faces entrenched rivals. How long will investors fund iQiyi's money-burning content strategy? If the company can keep adding subscribers quickly, IQ stock will eventually recover. But there's a decent chance it will continue to struggle for a long time to come.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post Right Now the Future Looks Pretty Bleak for IQ Stock appeared first on InvestorPlace.
(Bloomberg) -- Spotify Technology SA released a new version of its music streaming app for customers in emerging markets, an effort to grow outside of its strongholds in the U.S. and Europe.The Spotify Lite app, which runs on Android phones, will appeal to users who are limited by data plans and slower networks, especially in regions like Asia, the Middle East, Africa and Latin America, the company said in a statement. The app was released in 36 markets and an ad-supported service will be available for free while a premium version will cost the same as on its regular music-streaming platform.The company is counting on Spotify Lite for a much-needed boost in markets with lots of potential. The streaming service also needs to reassure investors about its growth prospects while it continues to lose money. The shares are down 26% from their high a year ago.“There’s much, much room for us to grow, both geographically and also product-wise,” Cecilia Qvist, Spotify’s global head of markets, told the RISE tech conference in Hong Kong. “Hopefully when we thrive, the ecosystem thrives.”Spotify’s biggest challenge remains the royalties it pays for music rights, which eat up more than 60% of revenue and are a major source of its losses. The company has agreed not to push for another cut in fees in its current of negotiations with the music industry.That’s prompted Spotify to seek other avenues for growth, such as podcasting. But podcasting is still a nascent business, with $479.1 million in U.S. revenue in 2018, according to the Interactive Advertising Bureau. An estimated 62 million people in the U.S. over the age of 12 listen to a podcast every week, according to a 2019 report by Edison Research and Triton Digital.Spotify has asked investors to trust that the market for audio streaming is still in its early stages. The company counts on North America and Europe for 65% of its users. Africa, Asia, and the Middle East make up just 13%.YouTube LightRival YouTube has already introduced a light version of its app for emerging markets, and has added millions of users across Southeast Asia. Netflix Inc., meanwhile, made it possible for users to download full movies and TV shows to watch offline for the same reason.Spotify isn’t in as many countries as either of those services, but has been expanding across Asia, the Middle East and North Africa.Spotify Lite will use of 10 megabytes of storage, compared with about 100 megabytes for the main app. It offers the same look and feel as the normal Spotify app, but with limitations to preserve data consumption. Users can also set a data limit within the app to ensure they never exceed it.“‘Lite’ is a small, fast and simplified version of our unparalleled music experience that works much like the main Spotify app,” the company said in a blog post.(Updates with executive’s comment from the fourth paragraph.)To contact the reporters on this story: Lulu Yilun Chen in Hong Kong at firstname.lastname@example.org;Lucas Shaw in Los Angeles at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Rob Golum, Nick TurnerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Spotify's Lite app is now official. The app has been in beta since last year, and now Spotify is officially releasing it in 36 countries worldwide. The app is designed to work on patchy or weak internet connections and, at just 10MB, it is small enough to cater to older phones and lower-end devices that have limited storage.
Spotify has been testing a smaller, lighter version of its app since mid-2018 in hopes of expanding its reach to regions where internet connections are slow and people tend to use low-end-to-mid-range devices. Spotify Lite is now officially available on Google Play for 36 markets with more to follow. As you'd expect, those markets include developing regions across Asia, Latin America, Middle East and Africa, including Brazil, Mexico, Honduras, the Philippines and India.