|Bid||79.11 x 800|
|Ask||79.11 x 800|
|Day's Range||78.97 - 79.53|
|52 Week Range||59.96 - 85.22|
|Beta (3Y Monthly)||0.57|
|PE Ratio (TTM)||20.73|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg Opinion) -- Masayoshi Son could be on track for the biggest triumph of his career. Or the biggest failure. His decision to jump in and save a drowning unicorn, WeWork, goes against the precepts of the SoftBank Vision Fund that he founded, and could cause reputational damage worth more than the billions of dollars in this one deal.SoftBank Group Corp. may get control of the troubled office-rental startup as part of a financing package that could relieve a looming cash crunch, Bloomberg News reported. Directors of The We Co. may soon choose one of two options: a SoftBank takeover, or a debt package led by JPMorgan Chase & Co.Actually running one of the fund’s portfolio companies would be a grave step for a man entrusted to manage $100 billion of investors’ capital. Such a move goes beyond doubling-down on a flailing investment in a single company and would saddle Son’s team with a task the fund wasn’t set up to tackle. That puts at risk not just shareholder money, but the status of the Vision Fund and its mastermind, Son himself.WeWork was one of the world’s hottest companies before its IPO prospectus revealed it was burning cash and had a complicated shareholding structure that overly favored its founder and chairman, Adam Neumann. Public investors balked, forcing the company to shelve a planned listing. That brought its valuation crashing down, to as little as $15 billion from $47 billion.In late September, there was talk that SoftBank would give WeWork more cash in return for a reduced price at which it acquires stock. That deal would have made sense, allowing Son and his investors to enjoy a wider upside from an eventual exit, or at the very least narrow any downside from a worsening valuation.Having sunk as much as $10 billion in WeWork, it’s understandable that Son and his team want to do all they can to save it.Engineering the exit of Neumann, as SoftBank successfully did, is not tantamount to re-engineering the company and its troubled business model. This is likely the beginning of an ugly cleanup, as my colleague Shira Ovide wrote. But that doesn’t mean SoftBank should be the one to do the dirty work.It’s normal for a startup's investors to offer advice, make introductions, or even force change. It’s highly unusual for a venture capital vehicle to then become the parent company, tasking itself with being the turnaround merchant. That’s the realm of private equity and takes a different skill set. It also takes a lot of time and management resources.Son’s desire to be a savior may be strong. His 2012 takeover of U.S. telecommunications company Sprint Corp. is one of the most notable examples. But Vision Fund investors may also take it as a warning: Sprint remains unprofitable. It has also taken up a lot of management time as SoftBank executives worked to find a buyer — Sprint now plans to merge with T-Mobile USA — and then regulators to allow the deal to go through.As big as WeWork is, that investment is just 10% of the Vision Fund. Yet VC investing returns aren’t measured in percentage points, but multiples. The Vision Fund should be able to write off WeWork in its entirety and still post solid profits. It also means that expending an inordinate amount of time, and reputation, on one investee is not in the best interests of the Vision Fund’s other 82 portfolio companies, nor its investors.Of course, there may be another strategy: Keep WeWork on life-support just long enough to raise the second Vision Fund. Plans for this sequel already look shaky. Would-be backers seem to be having second thoughts and SoftBank is reported to have leaned on its own employees to take out loans to fund personal investments. The WeWork debacle isn’t making the Vision Fund 2 an easy sell.The reputations of Son and the Vision Fund needn't be made or broken by one deal. Sure, a successful turnaround could do wonders. But it seems more likely that negative headlines will keep coming for years and gradually erode Son and SoftBank’s mystique. This hill isn't worth dying on.To contact the author of this story: Tim Culpan at email@example.comTo contact the editor responsible for this story: Patrick McDowell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
After gaining Mississippi’s support, the T-Mobile-Sprint merger faces a new hurdle as a group of economists asked the DOJ to reject the proposed merger.
So far, T-Mobile stock has risen more than 22% this year. Recent developments related to the company's merger with Sprint (S) continued to drive the stock.
Sixteen states and the District of Columbia, led by New York Attorney General Letitia James, remain opposed to the deal.
Mississippi, once a critic of the T-Mobile-Sprint merger, now backs it. Could other states withdraw from the multistate lawsuit opposing the merger?
Arista (ANET) is providing SK Telecom with universal spine and leaf network switches, combining routing and switching to reduce complexity and significantly improve scale.
AT&T (T) will receive $1.95 billion in cash at close of the deal, which comprises network assets including spectrum, real estate and leases.
One of 17 U.S. states that sued to block a proposed $26.5 billion tie-up of Sprint Corp and T-Mobile US Inc agreed to drop the challenge after reaching a deal with the companies. Mississippi Attorney General Jim Hood said in a statement he will withdraw from the legal challenge over the planned merger of the third- and fourth-largest U.S. wireless carriers. Hood said the prior merger agreement did not include any specific commitments benefiting Mississippi.
AT&T; plans to post its Q3 earnings results before the market opens on October 23. The second-largest wireless carrier had an eventful quarter.
As 5G partner and sole radio access network provider, the contract allows Ericsson (ERIC) to enable nationwide 5G in Telia Norway's network by 2023.
AT&T; (T) stock received a target price upgrade on Monday. Investment firm Raymond James increased its target price on the stock from $35 to $40.
(Bloomberg) -- A federal court’s decision Monday to force President Donald Trump to turn over his tax returns may have ramifications outside of politics, and turn out to be a signal on how a judge may rule in the multistate lawsuit seeking to block T-Mobile US Inc.’s purchase of Sprint Corp.Judge Victor Marrero’s ruling on Trump’s taxes suggests that when he presides over the telecom mega-merger, he may not defer to the Department of Justice and Federal Communication Commission’s support for the phone company combination, New Street analyst Blair Levin said in an email. Instead, he will rule on the law when the court hearing about the deal begins in early December in Washington, and it may not be so predictable.“For those on Wall Street -- and there were many -- who believed that the judge was likely to defer to the judgment of the DOJ (and FCC), today’s ruling should be a data point to rethink that view,” said Levin, a former FCC chief of staff. “Today’s ruling suggests to me he is a very thorough, thoughtful judge whose decision will be carefully grounded in the law and facts. Reasonable minds can differ as to where that will lead him in the antitrust trial, but simple deference to the DOJ’s conclusion is not the likely path.”Levin’s assessment is similar to that of attorney Matthew Cantor, who told the New Street analyst last month that while the judge will weigh evidence about the DOJ and FCC decisions, he’s unlikely to defer to those agencies.To contact the reporter on this story: Joshua Fineman in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Brad OlesenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A Bloomberg report on October 4, 2019, citing two industry sources stated that the T-Mobile–Sprint deal was set to receive majority support from the FCC.
T-Mobile believes the T-Mobile–Sprint merger is good for competition. Earlier this year, the companies filed six commitments related to the deal.
For investors, a little can go a long way. That's the theory behind investing in small-cap stocks. These stocks have the ability to beat large-cap stocks over time … if you know which of these stocks to buy.One of the reasons for this is because of their relatively low price. When these companies have even small increases in revenue, it can have a significant impact on their sales and profit. And since these companies typically have a lower stock price, a small movement of just a few dollars in their price can be a 20% or higher positive return on their investment.The end of the calendar year is a time for investors to take stock of where their portfolio is, and where they want it to go. We've identified five small-cap stocks that look to finish out the year in style. Some of these companies have seen growth this year that has outpaced that of the S&P 500, and represents a much smaller investment on our part.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best High-Growth Stocks to Buy for Young Investors So without further explanation, let's take a look at five small-cap stocks to buy as we get ready to put a wrap on 2019. Best Small-Cap Stocks to Buy This Year: LivePerson, Inc. (LPSN)Source: Shutterstock If you've ever had a "live chat" online and realized that you weren't talking to a real person, you've probably been exposed to LivePerson, Inc. (NASDAQ:LPSN) technology. The company uses artificial intelligence to deal with customer relations management. The company calls their technology "conversational commerce" and it allows businesses to interact with their customers at a fraction of the cost of using live agents.LivePerson serves the needs of two demographics (milennials and Gen Z) who prefer messaging to human conversation. The company currently works with over 18,000 businesses, including Home Depot (NYSE:HD), Delta (NYSE:DAL) and T-Mobile (NASDAQ:TMUS). LivePerson is one of the best performing stocks on the market regardless of size. It is up nearly 100% year-to-date.In the most recent quarter, the company announced that it signed more deals than it had in all of 2018, and recent comments from the company's CEO Rob Locascio indicate the addressable market is continuing to grow. To capture this market, the LPSN is adding to its sales team, which will add to the company's expenses in the short term. However, the company forecasts year-over-year growth in the high teens for this year and 20% growth in 2020. The company generated $249.8 million in revenue, which is up 14% from 2017. Telaria, Inc. (TLRA)Source: Shutterstock The trend toward consumers cutting the cord is having an effect on how advertising is delivered. Which is where Telaria (NYSE:TLRA) comes in. Telaria delivers digital video solutions that address mobile, over-the-top and connected TV (CTV) content.For the past two years, Telaria has been a revenue-generating machine. Their revenue on CTV devices increased 322% year-over-year in 2018. As of March of this year, revenue from CTV devices accounted for almost 1/3 of their revenue. And the company is forecasting an increased demand for their tools, allowing them to capture more market share. * 7 Stocks to Buy From the Harvard Endowment The share price took a recent tumble, but with the revenue the company is generating, this may have been a case where the market got ahead of itself. What is more intriguing about the stock is that the consensus analyst expectation is for the company to turn a profit in 2020. This would require a growth rate of approximately 68%. While this may be a little optimistic, the company has a clean balance sheet with regard to debt and certainly looks like a low risk for investors who are concerned about investing in a company that has yet to post a profit. Callaway Golf (ELY)Source: Shutterstock The good news for Callaway Golf (NYSE:ELY) is that they have high brand equity. They are one of the most recognized golfing brands. And their "[e]quipment and golf balls account for over 60% of its revenue." What has some investors concerned is the added debt the company has accumulated as they've tried to grow through acquisition.However, this debt appears to represent an opportunity for ELY to increase its exposure in other markets. That has been the case with their acquisition of Jack Wolfskin that increased its presence in China and Central Europe. As of March, revenue outside the United States accounted for over 50% of its sales.Furthermore, the company has a solid balance sheet with a gross margin in "the high 40% range." Callaway also has positive trailing-12-month net income of $90 million of net income through the first quarter of this year. Recently Raymond James raised its rating on ELY stock to an Outperform from Market Perform. The analyst firm also raised its price target for Callaway to $21, which would give the stock about a 15% bump from its current level. Instructure (INST)Source: PRONEC Corporation via FlickrWhen you're looking to invest in a software-as-a-service (SaaS) company, you want to see that they have well-established products. Instructure (NYSE:INST) has two products that should be able to provide solid, repeatable revenue for the company. Its main product, Canvas, is widely used in the higher education market. And their newest product, Bridge, is starting to catch on with corporations. * 7 Next-Generation Healthcare Stocks to Buy But Instructure has a wide range of software products that are being used by over 4,000 colleges, universities and K-12 school systems. And each client pays the company thousands to millions of dollars. Even better news for the company is a net revenue retention rate that exceeded 100% in 2018. In fact, revenue from recurring subscriptions is over 90% of INST's sales. And sales saw a 30% YoY increase to $210 million in 2018. The combination of the education and corporate markets gives the company an estimated $15 billion addressable market. Institutional investors are buying large volumes of shares from the company as well signaling that the stock may be on the verge of a breakout. Freshpet (FRPT)Source: Shutterstock Rounding out our list of small-cap stocks to look at for the remainder of 2019 is Freshpet (NASDAQ:FRPT). In case you haven't noticed, the pet industry is big business. The math is simple and favorable. There are over 300 million pets in America. The dog- and cat-food retail market is valued at over $30 billion with a compounded annual rate of growth of 6%.That's the pool that Freshpet is swimming in. But they're not just swimming, they're disrupting the market. Freshpet supplies refrigerated, fresh food options by providing refrigerators in over 20,000 retail outlets. That was a 10% YoY increase. Sales are estimated to increase by 24% in 2019.The company's stock was punished after it posted a second-quarter loss that was larger than expected. There was also some concern about contracting margins. However, for a long-term growth stock like Freshpet, increasing revenue should be the priority for investors. That has been the driver for a stock price that has tripled over the last three years. According to CEO Billy Cyr, "Our second-quarter results demonstrate continued momentum behind our Feed the Growth strategy. Our strategic advertising investment drove our strongest gains in household penetration and retail availability in several years, giving us tremendous confidence that Freshpet is still in the puppy stage…with significant growth ahead."As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post The 5 Best Small-Cap Stocks to Buy for the Rest of the Year appeared first on InvestorPlace.
(Bloomberg) -- T-Mobile US Inc.’s proposed merger with Sprint Corp. has received a third “yes” vote at the U.S. Federal Communications Commission, moving the deal toward agency approval in coming days, according to two people familiar with the matter.All three Republicans on the five-member agency have voted for the deal, setting in motion procedures that would require agency action by Oct. 9, or Oct. 16 if an extension is requested by a commissioner, the people said. Neither agency Democrat has cast a vote, and both have called for delay.The third “yes” came from Commissioner Brendan Carr, according to the people, who spoke on condition they not be identified because the voting is conducted behind closed doors. Carr in May issued a formal statement supporting the deal.Carr’s office on Friday didn’t immediately respond to an email or phone call seeking comment. Tina Pelkey, a spokeswoman for the FCC, declined to comment. Sprint declined to comment.Sprint rose 14 cents, or 2.4%, to $6.10 and T-Mobile was up 93 cents, or 1.2%, to $77.95 at 11:54 a.m. New York time.T-Mobile and Sprint have agreed not to close their deal until after a verdict in a multistate lawsuit, where trial is set for early December. The states say the combination of national wireless carriers will decrease competition and raise prices. The deal’s backers say it will quickly bring advanced 5G networks and create a stronger rival to leaders AT&T Inc. and Verizon Communications Inc.Groups including Consumer Reports, the Communications Workers of America union and the Rural Wireless Association in a filing Friday asked the FCC to pause its review. They said the agency needs to fully investigate its accusation that Sprint improperly accepted subsidy payments.The FCC on Sept. 24 said Sprint had claimed payments for 885,000 subscribers, even though those people weren’t using the system. Pai told the FCC’s enforcement bureau determine the extent of the problem and propose a remedy.The claim may slow but won’t threaten FCC approval of the merger, Matthew Schettenhelm, a Bloomberg Intelligence analyst, said in a note.(Updates with call to pause consideration in seventh paragraph.)\--With assistance from Scott Moritz.To contact the reporter on this story: Todd Shields in Washington at email@example.comTo contact the editors responsible for this story: Jon Morgan at firstname.lastname@example.org, Justin BlumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.