|Bid||250.35 x 800|
|Ask||250.31 x 1400|
|Day's Range||244.89 - 251.38|
|52 Week Range||176.99 - 387.46|
|Beta (3Y Monthly)||0.34|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 24, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||277.15|
Formula E, the top flight electric racing league, is wrapping up its season finale here in New York City this weekend. Manufacturers like Audi, BMW, Nissan, and Jaguar are part of the mix - and joining them next year - is Porsche. Porsche Formula E race car driver, Neel Jani, joined The Final Round to discuss
Tesla Inc. vehicles win two ‘car of the year’ awards this week, with a U.K. magazine using an all-purpose British compliment to describe the Model 3 mass-market sedan and a U.S. magazine calling the Model S sold a few years ago the “ultimate car.”
European manufacturers were sleeping when Tesla built a network of 1,533 superfast charging stations. This means that today a Tesla customer can drive from Faro in Portugal to the edge of the Arctic Circle ...
(Bloomberg) -- The car industry is reinventing the wheel to prepare for autonomous vehicles.Japan’s Sumitomo Rubber Industries Ltd., whose roots stretch back to when Henry Ford was building his Model T, is developing a “smart tire” that can monitor its own air pressure and temperature, and eventually respond by itself to changes in road conditions.Yet it’s more than just tires that are being changed. Koito Manufacturing Co., AGC Inc. and Lear Corp. are putting semiconductors and sensors inside headlights, glass and seats to make them as intelligent as the cars driving themselves.Alphabet Inc.’s Waymo LLC, Intel Corp.’s Mobileye NV and Baidu Inc. dominate the core technology for autonomous driving, yet suppliers still count on finding their own space in the business. Parts for advanced driver-assistance systems and autonomous driving are expected to become a $57 billion market within a decade, according to BIS Research, and old-school companies born during the early days of the automobile know they must either adapt or risk extinction.“Autonomous driving is a challenge for carmakers, but it’s a bigger challenge for conventional parts makers,” said Zhou Lei, a partner at Deloitte Tohmatsu Consulting in Tokyo. “They are striving to become the ‘five senses’ of the vehicle so they can remain relevant.”Carmakers have disclosed more than $14 billion in investments in autonomy and mobility companies since 2010, according to data compiled by BloombergNEF. Toyota Motor Corp. tops that list at about $3 billion.Though the deployment of highly autonomous commercial fleets isn’t expected to begin until at least 2022, the looming threat is that the increasingly sophisticated designs of those cars will render some ordinary parts –- and their suppliers -- unnecessary.For example, why would a self-driving vehicle that uses cameras, lasers and sensors to get around need headlights or mirrors?Smart HeadlightsThe response from century-old Koito Manufacturing is to reinvent the headlight. The Tokyo-based company, which traces its roots to making lenses for railway signal lamps in 1912, is adding sensors and artificial-intelligence chips to lamps it plans to introduce by about 2025.Positioned on the four edges of the vehicle, the lamps will be able to process information and react, such as by illuminating poorly lit crossings, signaling pedestrians that it’s safe to cross and raising an alarm to surrounding drivers by flashing a specific color.The company’s current customers include Toyota, Volkswagen AG and General Motors Co., according to data compiled by Bloomberg.“Autonomous driving will change the role of lamps,” said Yuji Yokoya, who recently retired as executive vice president of the Tokyo-based company. “We see them not just as lamps, but more as corner modules.”Tokyo-based automotive glass-maker AGC is re-imagining that product and making it part of a vehicle’s communication system.Window AntennasThe company, founded in 1907 as Asahi Glass Co. Ltd., is designing windows with built-in antennas for 5G wireless connections, allowing cars to send and receive signals with other vehicles and infrastructure. AGC’s customers include Toyota, Tesla Inc. and Sony Corp., according to data compiled by Bloomberg.An overarching challenge is to convince carmakers that the smarter -- and more expensive -- components make economic sense. Not all parts manufacturers need a radical transformation to keep up with autonomous and electric vehicles since they’ve been evolving gradually as the industry takes shape, said Deepesh Rathore, an independent automobile analyst based in Bengaluru.“A car is a car, and the shape of the tire doesn’t change,” Rathore said. “I can imagine some of those companies having to reinvent everything -- especially those working with engines and gearbox technologies.”Even components that aren’t facing an immediate existential threat are evolving. Sumitomo Rubber is researching tires that can transmit data about road conditions to the car as well as to other vehicles.Smart Tires & SeatsThe next step will be a tire that automatically adapts to road conditions. When the tire detects water, it will change the structure of its surface into one that is optimal for wet roads, said Kozaburo Nakaseko, an official in the research and development division of Sumitomo.“Tires need to become smarter,” Nakaseko said. “We cannot move into an autonomous car society without information about the roads we drive on.”The innovations aren’t just limited to Japan. In the U.S., Lear Corp. is equipping its car seats with biometric sensors to detect stress, drowsiness and changes in heart rate, and then activate treatments in response. The seats also can transmit data to a doctor or family member if necessary, the company said.Other functions include controls that let users create individual “micro-climates” where they are sitting, and noise-canceling features in the headrests, the Southfield, Michigan-based company said.“All the mechanical stuff will just slowly go away, and there is a lot of electronics coming in instead,” said Egil Juliussen, principal auto analyst with IHS Markit. “You have to change in order to survive.”\--With assistance from Mei Futonaka, Anurag Kotoky and Indranil Ghosh.To contact the reporters on this story: Ma Jie in Tokyo at email@example.com;Nao Sano in Tokyo at firstname.lastname@example.org;Masatsugu Horie in Tokyo at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Ville Heiskanen, Michael TigheFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Brain-computer Neuralink is set to reveal its work developing ‘ultra-high bandwidth brain-machine interfaces to connect humans and computers’ next week.
Richard Branson’s Virgin Galactic Flights is set to list its shares on the public market in the near future. Two American self-made billionaires, Jeff Bezos and Elon Musk, are also competing with Branson to make space tourism a reality. Who Will Strike First? Virgin Galactic is a spaceflight company within the Virgin Group founded by Branson.
CSX Corporation (NYSE:CSX) is slated to report its earnings on Tuesday after the closing bell. Analysts who follow CSX stock, on average, expect the company's earnings and revenue to rise year-over-year.Source: Shutterstock CSX has benefited from tremendous growth, especially over the last three years. But given the economic headwinds the company could face going forward, the railroad could see its bull run end and partially reverse course. Although CSX stock should serve investors well over the long-term, they should probably avoid buying it ahead of the company's earnings. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond CSX's Earnings, Revenue Likely IncreasedAnalysts on average forecast that the Jacksonville, Florida-based rail company earned $1.11 per share of CSX stock in the second quarter. If the company meets that estimate, that means its EPS rose nearly 10% year-over-year. Analysts' consensus Q2 top-line estimate is $3.16 billion, a 1.7% increase from the $3.1 billion CSX reported in Q2 of 2018.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGiven these numbers and the performance of CSX in recent years, this company deserves more attention than it's gotten. Railroad stocks boomed in the 19th century, when they acted as the tech equities of their day. Today, cutting-edge tech looks much different, and rail transport typically does not generate much excitement. CSX stock is not the next Tesla (NASDAQ:TSLA) stock. However, investors should pay attention to this sector. CSX Offers Profit Growth and Dividend IncreasesIn early 2016, the CSX stock price stood at just over $21 per share. Today, CSX stock trades at over $77 per share. This rally has happened for the right reasons: rising profits and improving cash flows. As a result, the price-earnings (PE) ratio of CSX stock, which stood at around 13.5 a few years ago, has increased to about 18.8 now.Despite this still-low multiple, analysts, on average, expect CSX's profit to rise 13% this year and 9.7% in 2020. Both Union Pacific (NYSE:UNP) and Norfolk Southern (NYSE:NSC) offer slightly higher growth and have slightly higher PE ratios. Still, with these metrics, CSX stock looks like it will be a winner over the long-term.The company's track record has also been strong when it comes to its dividend. With a yield of about 1.25%, investors will probably not buy CSX stock for the payout. However, since 2005, the company has increased its dividend almost every year, making it very reliable in that area. Watch CSX's Forward GuidanceDespite the recent strength of CSX's results (or maybe because of it), investors should pay careful attention to its forward guidance. The current economic expansion has reached its 11th year. Moreover, the ongoing trade war with China could disrupt the raw material exports on which CSX depends.This might explain why the company provided lower than expected full-year revenue guidance in January. Further signs of slowing could end the bull run of CSX stock, which has benefited those who have owned the stock over the long-term. With its low costs compared to other types of freight, I expect rail transport to remain a fixture for a long time to come. However, I do not recommend buying this name going into earnings. The Bottom Line on CSX StockDespite the stellar performance of CSX stock, investors should take a cautious view of the equity going into earnings. CSX has beaten consensus earnings estimates in each of the last four quarters. Consequently, I would expect its EPS to come in higher than the expected $1.11 per share.However, I think investors should focus on its guidance. In recent months, consensus expectations for its annual revenue growth has dropped from high-single-digit-percentage levels to the low-single-digits. In light of the current economic conditions, CSX could cut its guidance further.I do not think the company's results will change the long-term bull case on CSX stock. Trading at roughly 18 times earnings and delivering (almost) double-digit-percentage EPS growth, CSX remains reasonably priced. However, since the equity could easily drop from these levels, I think traders should stay on the sidelines on CSX stock for now.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. 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 Going Into Earnings, Approach CSX Stock With Caution appeared first on InvestorPlace.
The VanEck Vectors Global Alternative Energy ETF is now the VanEck Vectors Low Carbon Energy ETF (NYSEARCA:SMOG), a change that took place earlier this week. The smartly-tickered SMOG tracks the Ardour Global Index Extra Liquid (AGIXLT). “The index is intended to track the overall performance of low carbon energy companies which are those companies primarily engaged in alternative energy which includes power derived principally from bio-fuels (such as ethanol), wind, solar, hydro and geothermal sources and also includes the various technologies that support the production, use and storage of these sources,” according to VanEck.
The 2010's were the decade when the electric vehicle (EV) revolution got started.At the start of the decade, electric vehicles were essentially non-existent. Over the course of the next ten years, several things happened, all of which sparked more widespread EV adoption. Global legislation started promoting EV purchases in an effort to combat carbon emissions. Infrastructure was built out to support EVs. Technology advanced to give EVs more range and power. Battery costs came down to make EVs more affordable. Consumers became increasingly aware of the adverse environmental impact of gas-powered cars, and similarly increased their uptake of EVs.Net net, EVs went from non-existent at the start of the 2010's, to over 2 million global deliveries in 2018, or over 2% of global auto deliveries.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis growth ramp is far from over. If the 2010's were the decade when the EV revolution got started, the 2020's will be the decade wherein the EV revolution goes mainstream.All the same tailwinds will remain in play. Global legislation will continue to incentivize EV adoption. Charging station infrastructure will continue to expand. EVs will continue to become more advanced with more range. Battery costs will continue to come down. Consumers will continue to pivot toward EVs as they become more and more concerned with reducing carbon emissions.In other words, all the same tailwinds that started the EV revolution in the 2010's, will sustain that revolution in the 2020's. Considering EVs are ramping from a 2% penetration rate in 2018, the room for further growth here is tremendous. Indeed, IEA thinks that by 2030, global EV sales could measure anywhere between 20 million and 30 million cars, implying 10-fold to 15-fold growth from 2018. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond That's huge growth. Big enough to warrant buying and holding some EV stocks for the next decade. Tesla (TSLA)Source: Shutterstock At the top of this list of EV stocks to buy for the future of transportation, we have global EV leader Tesla (NASDAQ:TSLA).Tesla is the poster child of the EV revolution, and with good reason. At just under 250,000 deliveries last year, Tesla accounted for about 12% of global EV deliveries. Year-to-date, Tesla has delivered around 160,000 vehicles, equivalent to roughly 15% share (assuming June global sales are equivalent to May). Meanwhile, in the U.S. EV market, Tesla has gone from ~25% share on a trailing twelve month basis back in 2017, to 60% as of last quarter.In other words, Tesla is the unparalleled giant in the EV industry, with increasing market share thanks to the introduction and production/delivery ramp of new vehicles, like the Model 3. This dynamic should persist, with the Model Y next, and then future vehicles thereafter. As such, Tesla projects to maintain its leadership position in the global EV market over the next decade -- a period during which the EV market will grow by at least 10-fold.The result? Huge revenue and profit growth over at Tesla. All that growth will inevitably drive TSLA stock higher in the long run. General Motors (GM)Source: Shutterstock Traditional auto stocks aren't just sitting on their hands while the EV revolution passes them up. Instead, many traditional auto stocks are actually pivoting their vehicle portfolios to benefit from secular EV adoption tailwinds. One traditional auto stock which has done a really good job of this? General Motors (NYSE:GM).General Motors has an impressive line-up of EVs. It's headlined by the Chevrolet Bolt, which is the fourth best selling EV in the U.S. this year, and the Chevrolet Volt, which lines up as the eighth top selling EV in the U.S. in 2019. Importantly, both cars are on the cheap end of the EV price range, which paves a path for both of these vehicle models to gain huge mainstream traction at scale. * 10 Stocks to Buy for Less Than Book As such, the General Motors strategy in the EV market is pretty simple. Design solid EVs, which the masses can afford, and as the masses pivot into the EV market, convince them to buy the Bolt and/or Volt. This is a good strategy, and it does broadly imply that as the EV revolution gains mainstream traction in the 2020's, General Motors will benefit from robust EV growth. All that EV growth should drive GM stock higher in the long run. Ford (F)Source: Shutterstock One traditional auto stock that has been slow to pivot into EVs is U.S. auto giant Ford (NYSE:F). But, the company is starting to aggressively pivot into the EV market, and this pivot lays the groundwork for healthy growth over the next decade.To start, Ford's headline EV -- the Ford Fusion Energi -- is the ninth best selling EV in the U.S. this year. But, that's just the tip of the iceberg. Ford is in the process of building a Mustang-influenced electric crossover to rival Tesla's Model Y, a fully electric Lincoln crossover, a fully electric SUV and a fully electric F-150 pickup truck, alongside a handful of hybrid models. The sum of all these new EVs means that, by 2025, Ford's vehicle roster will be much more levered to EV tailwinds than it is today.The implication of this is that Ford's unit growth rates, which have been sluggish for several years, should look at a lot better within the next few years. This growth trend improvement should push Ford stock higher in the long run, especially from today's depressed base. Toyota (TM)Source: Shutterstock Much like General Motors, Toyota (NYSE:TM) has been aggressive early on with its pivot into developing and marketing affordable EVs that cater towards mass adoption.Toyota's headline EV -- the Prius -- is the arguably the only non-Tesla electric vehicle that consumers far and wide recognize. Not by coincidence, it's also the only non-Tesla electric vehicle, which held its own against the Model 3, S and X in 2018 in terms of sales volume. It continues to hold its own in 2019. Year-to-date through June, the Prius is the third best selling EV in the U.S., behind only the Model 3 and Model X.Importantly, the Prius is exceptionally affordable, with prices in the $30,000 and under range. Thus, for capital-constrained consumers looking to pivot into the EV space who don't have $30,000-plus to shell out on a car, Toyota's Prius is the obvious choice. A lot of consumers fall into that categorization. As such, a lot of consumers project to buy Prius vehicles over the next several years as EV adoption rates soar. * 7 Companies Apple Should Consider Buying The result for Toyota is supercharged revenue and profit growth, the sum of which could breathe life back into TM stock, which has been stuck in a sideways trading pattern for the past five-plus years. BMW (BMWYY)Source: Shutterstock Not all the growth in the EV market over the next several years will happen at the low end of the price chart. Indeed, some of that growth will come through the high end of the price chart. Capturing a nice chunk of that growth will be BMW (OTCMKTS:BMWYY).BMW already has a formidable EV roster. Last year, the BMW 530e, i3 and X5 were among some of the top selling EV models in the U.S. This year, many of those same models are again some of the top selling EVs in America, alongside the luxury i8, which has seen its U.S. delivery volume grow ten-fold from January 2019 to June 2019.Going forward, BMW is only going to grow this EV roster. The company is planning to have 25 EVs on its vehicle roster by 2023, many of which will be luxury EVs. In so doing, the company will better position itself to drive healthy revenue and profit growth through luxury EV adoption over the next several years. Indeed, management expects EV sales to double by 2021.That's a bunch of growth. BMW stock, which trades at more than 40% off decade highs, is not priced for this growth. As such, over the next several years, robust luxury EV growth should converge on a discounted valuation and spark a nice recovery rally in BMW stock.As of this writing, Luke Lango was long TSLA and F. 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 5 EV Stocks to Buy for Big Gains Over the Next Decade appeared first on InvestorPlace.
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.
There's an old Wall Street proverb that even a dead cat will bounce if tossed from a high-enough building. In Mandarin, dead cat bounce translates to Sǐ māo tantiao or 死猫弹跳. A Chinese example of such a rally is Nio (NASDAQ:NIO).Source: Shutterstock Nio was called the "Chinese Tesla (NASDAQ:TSLA) when it went public last September. On its opening day of trading it sold for as much as $12.69 per share. Since then, except for a brief period in March, it has been all downhill.But a surprising pick-up in deliveries gave the shares a 45% rally in one week recently. With 87.4 million shares traded July 9, Nio had the highest volume on any U.S. exchange.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo, buy, buy, buy? No, no, no. Wait, wait, wait!At least, know what you're getting into. Nio Stock and the EV RevolutionThis much is true. There's an electric vehicle revolution going on. China is at the heart of it. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond But as government subsidies have been pulled, sales have declined. Thus, it was a big surprise when the China Passenger Car Association said sales in June rose 4.9% from a year earlier.Nio itself delivered 1,340 vehicles. Deliveries for the full quarter were 3,553. Tesla, by comparison, delivered 95,200 vehicles in the second quarter. Nio is not Tesla.Before this good news, all the commentary on Nio was bad. Some 4,803 cars were recalled after the batteries in three of them caught fire. Lithium ion batteries are subject to this risk, and a short-circuit can mean big trouble.The views of our David Moadel were typical. "Can the Nio Stock Wreckage Be Salvaged?" he asked on June 28. Nio, he concluded, is a speculative bet. It was a perfect set-up for anything perceived as being good news to send the stock rocketing upward.But at its July 11 opening price of $3.69 per share, Nio is still $2.50 per share away from what had been its trading range around $6 per share last Christmas. It's a $4.2 billion market cap on $4.9 billion of 2018 revenue, on which it lost $23.3 billion. (Ouch.) Seeking HopeThat doesn't mean a speculation on Nio isn't one some young investors might want to make.The company has begun deliveries of a new "crossover," the ES6. The ES6 has a swappable battery pack, so its range can be upgraded. There's also a "hypercar" called the ES9 on the horizon, which is setting speed records. Nio is once again talking about building its own factory, rather than relying on state-owned JAC Motors.Despite the subsidy pull-back, and despite the spectre of a Tesla factory going up in Shanghai, the fact is the Chinese government remains big on electric cars, and especially big on Chinese electric car companies. The MEB platform being pushed by Volkswagen (OTCMKTS:VLKAY) could create a China-based, global standard for mass-market electrics within 5 years.In that world, a luxury Chinese electric might sell well. The Bottom LineSadly, I agree with our Thomas Niel, who warned investors away from Nio on July 5. He sees the local market as saturated, the export market subject to the trade war.I think there are better ways to play the trend. Warren Buffett has invested in BYD Company (OTCMKTS:BYDDF) He took a 9.9% stake for $282 million 10 years ago, when BYD was just a battery maker. BYD is growing faster than the Chinese electric car market, with sales of 73,172 vehicles in the last quarter.If you're going to bet on electric cars, bet on the mass market, not the class market.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. 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 Nio Stock Is Still Too Speculative for Most Investors appeared first on InvestorPlace.
Volkswagen will reportedly invest $2.6 billion in Ford's self-driving vehicle unit Argo. Where does that leave the duo vs. industry leaders like GM's Cruise and Waymo.
Nio (NYSE:NIO) is on fire. Since late June, Nio stock has risen by close to 65%. This offers welcome relief to NIO shareholders who have seen little else but decline since the stock launched its IPO in 2018.Source: Shutterstock Still, despite the improved sentiment, production remains low, and losses continue to mount. The better-than-expected sales numbers may stoke optimism. However, the conditions that turned NIO into a penny stock remain in place. NIO Benefits From a Dramatic TurnaroundNio stock saw nothing but pain from March to June. A spike in the stock price took NIO briefly past the $10 per share mark in early March. However, a "greater than anticipated" slowdown cited in their earnings report took the Nio stock price down by more than 20% in a single day and more than 11.5% in the following trading session. From there, NIO saw a steady slide, falling to below $2.50 per share by last June.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOver the last two weeks, sentiment has shifted dramatically. The latest surge in the stock came when the company reported a "greater than anticipated" number of deliveries. As a result, the stock has risen substantially from the $2.50 per share range where it traded in late June. Now, with the Nio stock price hovering close to $4 per share, many wonder if now is the time to buy NIO.In fairness, some optimism has returned to the market. Its much larger American counterpart Tesla (NASDAQ:TSLA) has risen by more than 30% since early June. The China Passenger Car Association also reported a 4.9% increase in sales. This is the first such increase in about one year. The Rally in Nio Stock Is Unlikely to HoldHowever, none of this changes the fact that analysts project nothing but losses for the foreseeable future. Yes, I did not see the surge in Nio stock coming recently. However, I predicted NIO would tread water, but little else. I stand by that sentiment.For one, it remains a small player. Our own Tezcan Gecgil points out that Chinese companies produced 254,000 electric vehicles (EVs) in the first quarter of 2019. Nio produced just under 4,000 of those cars.Gecgil makes good points that may ensure its survival. The company has backing from the likes of Baidu (NASDAQ:BIDU) and Tencent (OTCMKTS:TCEHY). It also remains true that pollution guidelines in places such as Beijing and Shanghai make it challenging to obtain licensing for non-electric vehicles.However, judging by the company's financial statements, that survival could come at a high cost to holders of Nio stock. Nio lost just over ¥2.65 billion renminbi ($390 million) in the previous quarter alone. Its ¥7.45 billion renminbi ($1.08 billion) in cash will not last long at that rate. Moreover, with ¥9.25 billion renminbi ($1.35 billion) in short and long-term debt, they have little room left to borrow.Hence, its backers will probably want more stock in return for funding. While the increased stock price helps with fundraising, the stock dilution will hurt current shareholders. The Bottom Line on Nio StockDespite the optimism surrounding Nio stock, Nio remains a troubled company struggling to survive. Indeed, improved sales bode well for the company. The suffocating pollution in China's large cities also helps drive sales in the EV industry.However, despite a slight uptick in sales, Nio stock will likely post losses for years to come. Moreover, with cash levels likely to fall, and debt burdens becoming increasingly heavy, the company will probably have to issue more stock to stay in business.Given the push for cleaner energy, EVs are likely here to stay. However, to earn investment returns in this industry, established car companies and even Tesla stock offer safer options. With better choices out there, and the risk that the latest move amounts to a dead cat bounce, I see no reason to buy Nio stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Investors Should Not Expect Nio Stock to Keep Cruising Higher appeared first on InvestorPlace.
I don't always understand trends, but I do recognize them. And for whatever reason, Plug Power (NASDAQ:PLUG) attracts a lot of eyeballs. Now, part of it is due to the company's strong performance in the markets. At time of writing, the PLUG stock price is trading hands at $2.30, representing an over 85% year-to-date haul. That is serious power!Source: Shutterstock Another element likely driving positive sentiment is the company's longer-term potential. Back in the craziness of the 2000 tech bubble, Plug Power stock reached well into four-digit territory. When you compare where shares once were to where they are now, you can't help but wonder: a return to those heights is the stuff of cryptocurrency dreams.Finally, you have the technological fundamentals underlining PLUG stock. As most of you likely know, Plug Power specializes in hydrogen fuel cell systems. Scientifically, it's an exciting arena, potentially offering another pathway to total energy independence. That right there appeals to a broad segment of the population, from traditionalists to trendy millennials.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy for the Second Half of 2019 Moreover, these same fundamentals attracted buyers several years ago to companies like Tesla (NASDAQ:TSLA). Today, speculators are piling into similar electric vehicle and alternative-energy companies like NIO (NYSE:NIO). The allure of untold upside gains justified by next-generation technologies keeps investors salivating.But are these factors good enough to consistently bring home shareholder returns in Plug Power stock? I have my doubts, which focus on one concept: you've got to understand the science of alternative energy.When you do, you'll see that whatever drives the PLUG stock price is mostly human psychology in action. If it traded on the actual science, PLUG would soon be unplugged. PLUG Stock Has the Narrative but Not the SubstanceYou don't have to be a scientist to understand that limitations govern life. For instance, if you're running late to the office, you could literally do that: run. But if you do, you'll expend energy. And the longer you run, the rate at which you burn energy will accelerate.In economic and financial terms, we call this the law of diminishing returns. Further, there's an adage that states you can't have your cake and eat it too. And these principles stymie the longer-term narrative of the PLUG stock price.Let's consider the broader marketing message behind PLUG. With their alternative-energy sources, society can achieve multiple goals at once. These include cleaner emissions and eventually no dependency on volatile Middle Eastern politics. Theoretically, alternative energies keep consumer costs low, protecting us from price gouging at the pump.Naturally, the message resonated with risk-takers, boosting the market value of Plug Power stock. Yet the science is not clear about the benefits of hydrogen fuel cells. According to a litany of counterarguments against hydrogen energy by CleanTechnica.com contributor Zachary Shahan, based on a post on this blog, this energy subsegment could be pure hype.While some of the points have been disputed, Shahan reiterates some of the post's detailed criticisms, such as that fuel cells wear out more quickly than lithium-ion batteries, and are difficult to regenerate. Furthermore, he makes the claim that hydrogen as a fuel is very difficult to make. I pulled up an article from Energy.gov which confirms Shahan's concerns. Hydrogen also has significant infrastructure problems.While I won't dissuade anyone from taking potshots at Plug Power stock, you've got to look at the real fundamentals. I don't think they speak kindly about the long haul.Instinctively, you know what Shahan and other critics say is true. If you enhance one attribute, you necessarily sacrifice others. PLUG looks like that tardy worker who claims he can run for hours without breaking a sweat. Plug Power Stock Masquerades as a Legitimate InvestmentHere's the thing that confounds the picture regarding PLUG stock: the underlying technologies actually work. Many high-profile names, including Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT), and General Electric (NYSE:GE), have signed on with various deals and partnerships.But that doesn't mean the technology is economically viable. Tesla CEO Elon Musk called hydrogen-based cars "mind-bogglingly stupid." You'll recall that Musk himself doesn't always make smart decisions. Hydrogen-based cars are currently very expensive, and so are the fueling stations. But that doesn't mean the technology has topped out. And of course, hydrogen-based cars would be a real threat to Tesla if they became affordable to the average driver.However, I'm going to go a step further: pure EVs aren't the answer, either. For drivers to have clean emissions and attractive, sporty rides, they must sacrifice something. Often, this means a higher ticket price, or inconveniences such as long charging times. While some folks can afford these costs, most probably can't.To summarize, PLUG stock represents a viable technology in that it works. However, Plug Power is not a viable business because hydrogen currently doesn't work efficiently. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Until we change that -- and it will be a while before it happens -- I wouldn't risk excessive funds on Plug Power stock.As of this writing, Josh Enomoto 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 The Tech Behind PLUG Stock Still Needs to Catch Up to the Promises appeared first on InvestorPlace.