|Bid||0.00 x 1300|
|Ask||0.00 x 1000|
|Day's Range||30.65 - 31.15|
|52 Week Range||26.80 - 36.39|
|Beta (3Y Monthly)||0.84|
|PE Ratio (TTM)||10.80|
|Earnings Date||Apr 24, 2019|
|Forward Dividend & Yield||2.04 (6.63%)|
|1y Target Est||33.81|
The Dow Jones Industrial Average ended higher Monday in cautious trading as global growth concerns continued to weigh on Wall Street. rose 1.6% after its board approved a $5 billion share repurchase program. U.S. Treasury bond yields continued to suggest difficult economic times.
Frontier Communications' Financial Position in March(Continued from Prior Part)Frontier’s video subscriber numbers Analysts expect Frontier Communications (FTR) to see a net loss in the total number of video customers in the first quarter. The
U.S. stocks edged higher on Monday, pulling back from their session lows, as shares of industrial and consumer discretionary companies rose, but gains were kept in check by worries of a global slowdown. Weak factory data from the United States, Europe and Japan on Friday triggered a sell-off in U.S. equities and also led to the inversion of U.S. Treasury yield curve for the first time since 2007. Yields on U.S. 10-year treasury yields rose slightly on Monday after data showed German business morale improved unexpectedly in March, but spreads between U.S. three-month and 10-year Treasury yields modestly inverted as the session progressed.
AT&T* and the Elizabeth Dole Foundation today announced their agreement to work together to promote Access from AT&T. This effort provides affordable home internet access to low-income customers, including veterans, military caregivers and their families located within six major metros across AT&T’s 21-state wireline service area. Through this collaboration, AT&T and the Elizabeth Dole Foundation will help educate these veteran families about this opportunity to receive low-cost internet service.
Amazon (NASDAQ:AMZN) is aggressively removing money-losing products from its platform. This initiative should allow the company to post better margins in its e-commerce business. We might see some slowdown in the retail growth rate, but it will be due to a greater focus on profitability by management.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsEventually, this should help in lifting the margins of the entire company and boost the bullish sentiment for Amazon stock.A slower growth rate from the lower-margin retail segment should increase the revenue share from higher-margin segments like AWS and advertising. AWS currently contributes 10.3% to the total revenue base while the "Other" segment (primarily advertising) contributes 4.7%. The growth in the revenue share of these two segments should increase the earnings-per-share estimates and bring down the valuation multiples for Amazon stock. Removing cRaPInternally, Amazon lists products which do not make money for the company as cRaP, short for "Can't Realize a Profit". These products can vary in size and price. If the shipping and fulfillment cost of a product is greater than the fees which Amazon makes, then these products are added to the cRaP list. Recently, Amazon has started removing the option to advertise these products on its platform. These vendors have been asked to lower the cost of these products on Amazon to again become eligible for advertising.These products can take the form of a $5 bottle of water which takes more money for Amazon to store and ship to customers than it produces. It can also include heavier products, which have much higher shipping costs. This is a smart move by Amazon at the current stage in the company's business growth. In the trailing twelve months, Amazon had over $200 billion in net sales in North America and international regions. Losing a few billion dollars of sales from money-losing products will not hurt the net sales of the platform. However, removing these products can significantly improve the low-margin retail business for the company and help Amazon stock.Money saved from the retail operations can be diverted to segments which have better growth potential. Amazon will be facing a streaming war in the next few quarters, as new players like Apple (NASDAQ:AAPL), Disney (NYSE:DIS), and AT&T (NYSE:T) join the streaming bandwagon. Amazon needs a healthy war chest to compete against these giants. By saving money in retail operations, Amazon can ramp up its content investments. Slow and Steady TrajectoryIt is clear that Amazon can easily increase its revenue growth in retail by offering greater discounts or lowering its fees. A greater focus on profitability might lead to slower revenue growth, but it reduces the pricing pressure on the company. Source: Amazon FilingsWe can see that Amazon's online store sales growth has declined in the last few quarters. It is possible that this segment reports a single-digit growth rate, as Amazon focuses more on profit. The growth rate of AWS and advertising is quite high compared to the lower margin in online store sales. The online store sales is close to $40 billion while AWS and Other sales is only $10.5 billion. The consolidated revenue was $72.38 billion. If the current trajectory in AWS and advertising continues, we should see their revenue share increase from 15% in the last quarter to 30% by the end of 2021. A higher share of more profitable segments should boost the valuation multiple of Amazon stock. Improving Margin and EPS EstimatesAn increase of revenue share in profitable segments should help in improving the overall margin of the company. We have already seen rapid growth in net income in the past few quarters. This trend will continue in the near-term due to a greater focus on profitability. A better EPS will also reduce the pricey valuation multiple for Amazon stock. Amazon stock is currently trading at less than 30 times EPS estimates for two fiscal years ahead. The slowdown in revenue can be a short-term headwind for the bullish sentiment in Amazon stock. But Amazon can always kick-start the revenue growth by acquiring another retailer or entering a new business segment. Investor Takeaway on Amazon StockAmazon is removing the option to advertise for products which are losing money for the company. Further restrictions on these products should help in limiting their sales. This will help in improving the margins in the retail segment. It will also allow the company to invest in other segments which have longer growth runway. * 7 Marijuana Stocks to Play the CBD Trend We can continue to see some slowdown in the retail business of Amazon due to these initiatives. But this slowdown should be offset by growth in other profitable segments, like AWS and advertising. Due to the rapid increase in EPS estimates, Amazon stock is valued at a much lower multiple compared to where it has been historically.As of this writing, Rohit Chhatwal held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post Amazon Removes 'cRaP' From Its Platform to Boost Profits appeared first on InvestorPlace.
Apple (NASDAQ:AAPL) has planned an event for 1 p.m. Eastern on March 25 at the "Steve Jobs Theater" in its Cupertino headquarters. There, Apple is expected to announce its full launch into TV.Source: Flash.pro via Flickr (modified)The announcement comes just as layoffs loom at the new Fox unit of Walt Disney (NYSE:DIS), as streaming overtakes cable as the entertainment of choice, while AT&T (NYSE:T) fights to cut costs at its DirecTV satellite unit at the expense of Viacom (NASDAQ:VIAB).Interesting times.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHow it shakes out into a "new normal" is unclear, but what is clear is that Apple is determined to define the new normal for television, and profit from it. Apple's OpportunityApple is expected to create a streaming bundle that looks a lot like today's cable bundle. What will make the Apple offer stand out is 1.4 billion iOS devices, iPhones and iPads. The software bundle that was once in a box under your TV, that Amazon (NASDAQ:AMZN) and Roku (NASDAQ:ROKU) made into a small add-in device, is going to become an app. In the process, all those 1.4 billion devices will become TVs. * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock This is what is assumed.There is a model for this, which I wrote about recently -- it's iQiyi (NASDAQ:IQ), a Chinese company that has been exploring the mobile TV space for years. What works for iQiyi, however, aren't the same things that work on traditional TV. But turning the one-way world of TV into a two-way channel, driven less by audience reach than audience engagement, is what Apple is in for. Think game shows, interactive contests that create their own stars; shows like Disney's American Idol, or Comcast's (NASDAQ:CMCSA) Project Runway. How Apple Compares to Old Line Media StocksFor most of this decade, analysts have been debating the value of "media stocks," or the companies delivering one-way programs into American living rooms since Carl Reiner was a newly released Army veteran. What the markets are saying today is that the glory days are over for these media stocks.Viacom, which owns Comedy Central, Nickelodeon and a host of other cable channels, is now worth just $11.2 billion (it's lost roughly 70% since its 2014 heights). CBS (NYSE:CBS), with all its history and its expansion into cable and publishing, is worth $17 billion (down 30% over the past five years). Discovery (NASDAQ:DISCA), which owns a lot of the cable landscape from Discovery to FoodTV, is worth $19.1 billion (down 35% since 2014). AMC Networks (NYSE:AMCX), which brought us shows like Mad Men, is worth just $3.1 billion (down 22% over the past five years).What the markets are saying is that distribution matters more than production, and that the internet is the medium of choice. To make matters worse for the old line, the internet is in a very small number of hands …Alphabet (NASDAQ:GOOGL), which owns YouTube, is worth $840 billion. Amazon is worth $872 billion. Apple opens for trade March 25 with a market cap of $900 billion, against less than $50 billion for all the aforementioned programming assets just described.It's true that there are three other players to overcome. AT&T, with a market cap of $226 billion, now owns Time Warner. Comcast, with a market cap of $179 billion, owns NBC. They claim to control internet access. Disney, too, is worth $161 billion.But all these companies taken together, as the whole media and internet access complex, have a market cap of $615 billion, barely two-thirds of what Apple alone is worth.What the market is saying, as Apple makes it announcement, is that clouds and devices are TV's trump card. After this announcement, we will see if the market is right.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing, Dana was long AAPL stock and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post Can Apple Do for TV What It Did for the Phone? appeared first on InvestorPlace.
Viacom news about it reaching a deal with AT&T has VIA stock up on Monday.Source: Shutterstock The deal between Viacom (NASDAQ:VIA,VIAB) and AT&T (NYSE:T) has to do with the distribution of Viacom's channels though AT&T's DirecTV. This is a renewal of the previous deal between the two groups and will allow customers to continue to view VIA's channels through the satellite service.Leading up to the signing of this new deal, Viacom and AT&T were battling over the renewal. Viacom was accusing AT&T of using its new market-leader position to try and favor its own content in an effort to stifle competition.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA Viacom news release on its Keep Viacom website reads as follows."We are pleased to announced a renewed Viacom-AT&T contract that includes continued carriage of Viacom services across multiple AT&T-DirecTV platforms and products. The deal brings AT&T customers more choice and improved value for Viacom content. Thank you for your support."This new Viacom news isn't just good for VIA stock, but also DirecTV customers. It means they will continue of have access to some major channels. This includes Nickelodeon, BET, MTV, Comedy Central and others. * 7 Marijuana Stocks to Play the CBD Trend While the recent Viacom news does bring an end to the feud, it wasn't without some troubles. The expiration date for the previous deal was March 22. A deal wasn't reached by then, but it only took a few days after for one to come about.VIA stock is up 4%, VIAB stock is up 4% and AT&T stock is down slightly as of Monday morning. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post Viacom News: VIA Stock Surges on Renewed AT&T Deal appeared first on InvestorPlace.
How’s Verizon Financially Positioned in March?(Continued from Prior Part)Analysts’ recommendations According to data compiled by Reuters, as of March 20, 18 of the 30 analysts covering Verizon (VZ) stock recommended a “hold,” while 12
Viacom stock had fallen more than 7% last week while the company was at risk of not reaching a deal with DirecTV to keep its 17 channels—like Nickelodeon and MTV—on the satellite TV provider, which is owned by AT&T.
shares surged Monday after the media group said it reached a deal to renew its distribution contract with DirecTV parent A&T Inc. Viacom had warned that DirecTV customers could lose access to channels such as Nickelodeon, BET, MTV, Comedy Central and Paramount after accusing AT&T of "busing its new market position by favoring its own content". A March 22 deadline to renew the previous contract, which had paid Viacom around $1 billion in annual carriage fees, passed without progress, but the two sides came to an agreement Monday in a deal that looks to have boosted shares in both groups.
Viacom shares rose as much as 8 percent, the most since Aug. 9, to $27.36 in New York trading Monday. Investors had feared AT&T had the upper hand, sending Viacom down nearly 10 percent in the week leading up to the potential channel outage. AT&T shares fell 0.3 percent Monday.
Broadcaster Central European Media Enterprises (CME) said on Monday that it has launched a review of strategic options including possibly selling the company. The announcement sent the company's shares surging more than 8 percent on the U.S. Nasdaq exchange. The group, majority owned by AT&T, operates 30 television channels in five central and east European markets and has been slashing its debt burden in recent years.
The very public confrontation between two media giants last week has come to an end with an agreement.
Wall Street's main indexes were set to open slightly lower on Monday, as investors struggled to shrug off global growth fears even as a report showed that President Donald Trump's campaign did not collude with Russia. S&P 500 futures initially rose on Sunday after Special Counsel Robert Mueller found no evidence of collusion, but the report left unresolved the issue of whether Trump obstructed justice by undermining the investigations that have dogged his presidency.
Viacom and AT&T continued to negotiate over the weekend carriage of Viacom's networks on AT&T's DirecTV, U-verse and WatchTV platforms, Deadline reported. Despite the prior contract expiring Friday at midnight, Viacom's channels were still running as normal and Viacom stopped running a crawl on its networks cautioning its customers of a potential blackout in the near term. A crisis was averted as the two companies reached an agreement that would give AT&T customers "more choice" and "improved value," according to Deadline's Peter White.
How’s Verizon Financially Positioned in March?(Continued from Prior Part)Verizon’s scaleAt the end of the trading session on March 21, Verizon (VZ) was the largest US mobile operator by market capitalization at $238.3 billion, followed by
Viacom needed to resolve the AT&T contract before considering any other strategic moves including a potential tie-up with CBS Corp, sources told Reuters on Friday. Shares of Viacom rose nearly 4 percent to $26.30 before the opening bell, while those of AT&T were marginally higher.
How’s Verizon Financially Positioned in March?(Continued from Prior Part)Shareholder returns and stock trendsOn March 20, Verizon’s (VZ) closing price was $57.67 per share. Based on the closing price, Verizon has a market capitalization of
Viacom Inc. and AT&T Inc. have reached a deal that will keep Comedy Central, MTV, Nickelodeon and other channels on AT&T's DirectTv service, the LA Times and other media reported Monday. The deal came after days of tense negotiation and after the previous contract had expired, said the paper. As the nation's biggest pay-TV distributor, AT&T was demanding a cut in the carriage fees charged by Viacom. AT&T provides TV service to 24.5 million homes in the U.S. Terms of the new deal were not disclosed. Viacom shares rose 5% in premarket trade, while AT&T shares were up 0.3%.
Viacom renewed its carraige contract with AT&T. As Fred Katayama reports, AT&T's DirecTV subscribers were able to avoid a blackout of Viacom programming on channels like MTV and Nickeodon.