|Bid||110.90 x 1100|
|Ask||110.80 x 1200|
|Day's Range||110.13 - 111.91|
|52 Week Range||85.78 - 115.49|
|Beta (3Y Monthly)||0.67|
|PE Ratio (TTM)||25.06|
|Earnings Date||Nov 14, 2019|
|Forward Dividend & Yield||2.12 (1.89%)|
|1y Target Est||118.33|
On Friday, China announced that it would impose retaliatory tariffs on $75 billion of U.S. goods. Meanwhile, Charles O'Shea, Moody's retail analyst, thinks major retailers like Walmart, Target, Amazon, Costco and Amazon are actually 'best positioned' to brace the impact of those tariffs. He joins Yahoo Finance's The First Trade to discuss.
(Bloomberg) -- Walmart Inc. isn’t the only corporation that has seen its Tesla Inc. solar panels catch fire.On Friday, Amazon.com Inc. said a June 2018 blaze on the roof of one of its warehouses in Redlands, California, involved a solar panel system that Tesla’s SolarCity division had installed. The Seattle-based retail giant said by email that it has since taken steps to protect its facilities and has no plans to install more Tesla systems.Tesla also said in a statement it worked with Amazon following the “isolated event” last year that occurred in an inverter at one of the sites. “Tesla worked collaboratively with Amazon to root cause the event and remediate,” it said. “We also performed inspections at the other sites, which confirmed the integrity of the systems,” adding that all 11 Amazon sites are generating energy and are monitored and maintained.News of the Amazon fire comes just three days after Walmart dropped a bombshell lawsuit against Tesla, accusing it of shoddy panel installations that led to fires at more than a half-dozen stores. The claims threaten to further erode Tesla’s solar business at a time when the company is fighting to gain back market share.Walmart and Tesla issued a joint statement late Thursday, saying they were in discussions to resolve their issues. “Both companies want each and every system to operate reliably, efficiently, and safely,” they said. Tesla fell 0.8% in after-hours trading on Friday to $209.75.In the complaint filed Tuesday, Walmart said it had leased or licensed roof space at more than 240 stores to Tesla’s energy unit. Two of the Walmart fires occurred in May 2018. Amazon said it has a very small number of solar systems installed by Tesla.More widely known for its electric cars, Tesla bought panel installer SolarCity three years ago in a $2 billion deal that proved highly controversial. SolarCity’s chief executive officer at the time is the cousin of Tesla CEO Elon Musk, and Musk was the chairman of SolarCity’s board.Also this week, Business Insider reported that Tesla launched an effort to replace a faulty part used in some of its solar panel systems last year. It was unclear whether issues with the component known as a “connector” affected Walmart or Amazon installations.Tesla said in response to the Business Insider story that some connectors manufactured by Amphenol Corp. “experienced failures and disconnections at a higher rate than our standards allow.” Over the past year, the company said, less than 1% of sites with these connectors exhibited abnormal behavior.Amphenol did not respond to a request for comment.(Updates with Tesla’s response in third and fourth paragraphs.)\--With assistance from Brian Eckhouse.To contact the reporters on this story: Dana Hull in San Francisco at firstname.lastname@example.org;Matt Day in Seattle at email@example.comTo contact the editors responsible for this story: Lynn Doan at firstname.lastname@example.org, Kara WetzelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
PayPal takes on India’s digital payments market as it looks to international markets for growth. India presents a $1.0 trillion opportunity for the company.
Win Cramer thought his company was out of the firing line in the escalating Sino-U.S. trade war after his "Made-in-China" wireless headphones, speakers and earbuds were taken off Washington's tariff list a year ago. Little did the JLab Audio chief executive know that nine months later those products would again be targeted, posing an even greater risk to his California-based company. Earlier this month, U.S. President Donald Trump unexpectedly put off new 10% tariffs on about half of $300 billion of targeted Chinese imports until Dec. 15.
In a joint statement, Walmart and Tesla said they “look forward to addressing all issues” raised in Walmart’s civil suit Tuesday.
The U.S. National Retail Federation (NRF) said on Friday it is "unrealistic" for American retailers to move out of China, the world's second-largest economy, as 95% of the world's consumers live outside the United States. "Our presence in China allows us to reach Chinese customers and develop overseas markets," NRF Senior Vice President for Government Relations David French said in a statement. Earlier, President Donald Trump said he has ordered American companies to exit China after Beijing unveiled retaliatory tariffs on $75 billion in U.S. goods.
(Bloomberg) -- Amazon.com Inc. struck a deal that gives it the right to eventually buy a stake in India’s Future Retail Ltd., as the U.S. giant seeks to bolster its presence in one of the world’s fastest-growing retail markets.Amazon.Com NV Investment Holdings LLC agreed to buy 49% of Future Coupons Ltd., Future Retail said in a filing Thursday. The deal gives Amazon the option to buy all or part of Future Coupons’ shareholding in Future Retail, though that won’t be exercisable until between three and 10 years.The terms of the agreement weren’t disclosed. The Indian company said earlier this month that Future Coupons held warrants that would give it a 7.3% stake in the listed entity.People familiar with the matter said last week that Amazon was in late-stage talks to acquire as much as 10% of Future Retail, with the Indian company seeking a valuation of about 20 billion rupees ($278 million) for the stake.“Amazon has agreed to invest in Future Coupons Limited, which is engaged in developing innovative value-added payment products and solutions such as corporate gift cards, loyalty cards, and reward cards primarily for corporate and institutional customers,” the Seattle-based company said in an emailed response to Bloomberg. “This investment will enhance Amazon’s existing portfolio of investments in the payments landscape in India.”Shares of Future Retail fell 4.6% in Mumbai on Friday while the main S&P BSE Sensex index gained.Amazon’s AmbitionsThe link-up with India’s No. 2 retailer by revenue underscores Amazon’s ambitions in the country, after losing ground in China. India’s modern retail market will more than double to $188 billion by 2023 from $79 billion last year, according to consultant Technopak Advisors.Amazon is in a battle for India’s consumers with rival Walmart Inc., which spent $16 billion last year to acquire e-tailer Flipkart, and the e-commerce venture of Mukesh Ambani, Asia’s richest man, that plans to combine online and offline retail formats in India.Amazon has been acquiring small stakes in other Indian brick-and-mortar chains in the past few years, such as Shoppers Stop Ltd. and a grocery chain from the Aditya Birla Group.Mumbai-based Future Retail operates more than 2,000 stores across 400 Indian cities, including the “Big Bazaar” stores that are designed to appeal to value-conscious urban consumers.The deal with Amazon will help the Indian retailer adapt better in the highly competitive sector, local brokerage Edelweiss Securities Ltd. said in a note on Friday.“Players opting for omni-channel platform will ace the game,” Edelweiss said, adding that it was essential for Future Retail “to join hands with a global player to bolster it financially as well as technologically.”(Adds Amazon response)\--With assistance from P R Sanjai and Saritha Rai.To contact the reporter on this story: Angus Whitley in Sydney at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Jeff Sutherland, Bhuma ShrivastavaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Greenlight Capital’s (GLRE) David Einhorn has called for Elon Musk to resign from Tesla (TSLA) in the wake of Walmart's solar panel fire lawsuit.
(Bloomberg) -- It only took 12 hours for hedge fund investor David Einhorn, a well-known Tesla Inc. critic, to wade into the controversy over the company’s solar systems.He called on Tesla Chief Executive Officer Elon Musk to resign after a Business Insider report overnight showed the company tried to replace faulty parts in its rooftop solar panel systems as part of an effort known as Project Titan. Earlier this week, Walmart Inc. sued Tesla, saying panels that the company’s energy unit installed caught fire on at least seven of its stores.“How many solar panels are still defective and could cause fires?” Einhorn said in a tweet Friday. “A recall should have happened long ago.”Tesla has proactively implemented a “remediation effort” to limit the impact a part known as a connector may have had, it said in an emailed statement. The company is unaware of any equipment manufacturer or regulator which has determined that substantial hazards exist. Over the past year, less than 1% of sites with such connectors have exhibited abnormal behavior, it said.Its efforts include “replacing any faulty H4 connector at sites or adding failure detection hardware, and issuing a software update to ensure systems are turned off in case of failure,” Tesla said.Einhorn’s tweet isn’t all that surprising given his short position in the company and how much his fund has profited from it. In April, he said “the wheels are falling off” for Tesla and has blasted the company’s electric-car business too.Late Thursday, Walmart said it and Tesla are in discussions to address the solar-system issue.(Updates with Tesla comment in fourth paragraph.)To contact the reporter on this story: Brian Eckhouse in New York at email@example.comTo contact the editors responsible for this story: Lynn Doan at firstname.lastname@example.org, Pratish Narayanan, Steven FrankFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
CIRP estimates that Amazon Prime members spend $1,400 per year on Amazon’s e-commerce platform—much higher than non-Prime members' $600 annual spending.
Amazon (AMZN) agrees to acquire 49% stake in Future Coupons, through which it will be entitled to snap up a minority share in Future Retail.
Costco Wholesale (NASDAQ:COST) is the best retail stock besides Amazon (NASDAQ:AMZN). The shares are up almost 22% in the last year, 82% over the last two years and 130% over the last five. It delivers a small, but steady dividend that has doubled over the last five years.Source: Helen89 / Shutterstock.com Costco's reputation as the best place to buy goods in bulk is reflected in its financial statements, where net income usually comes close to the amount it generates in membership fees. The stores are usually running at break-even.I have owned Costco shares, but sold them a few years ago, thinking they were overpriced. I worried that Costco was running out of places to grow, as young people moved into small city apartments the company doesn't serve.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI was wrong. So far in 2019 Costco shareholders have done better than those at Walmart (NYSE:WMT) or even Amazon. Communist? Or Conservative?Costco is unique among retailers not just in that it pays its line employees well, but in that it doesn't overpay managers. Employees are thus more satisfied with their pay and working conditions at Costco than employees at any other company -- even those at Apple (NASDAQ:AAPL).But Costco is also conservative, in the best possible way. It can cost as much as $100 million to outfit a new store, so it usually rolls out just one or two each month. Its stores are all located in upper-middle class suburbs, with ample parking, gas stations and tire centers. It is the last great suburban success story. Unlike Walmart, it doesn't suck up the whole retail market, it just skims the cream off its top. * 7 Retail Stocks to Buy on the Dip Costco has no secrets. Management admits its focus is on customers and employees, not just shareholders. Its stock is limited to a few items in each category, and its markups average just 15%, against 25-50% markups from other retailers. The company's Kirkland store brand often offers better quality than the national brands it competes with. Costco was late to online shopping, but its app is already considered better than that of Walmart's Sam's Club.During the era of President Donald Trump, which has benefitted upper-income suburbanites most, Costco's growth has accelerated. Sales for the first three quarters of 2019 are up 6.5% overall, and online sales are up almost 25%. During the current fiscal year, it has paid back over one-quarter of its long-term debt, nearly $1.7 billion, despite super-low interest rates. Can Costco Stock Continue?There are indications that finally, Costco is running out of growth. Neighborhoods and local governments are fighting new stores in some wealthy neighborhoods.Costco's profits accelerated after it switched from using an American Express (NYSE:AXP) to a Citicorp (NYSE:C) by Visa (NYSE:V) card, as did benefits to cardholders. But that's a trick that is hard to repeat.Costco is growing internationally and opened its first store in Shanghai this month. Currently 68% of its stores are in the U.S., but that will change as it rolls out executive memberships in South Korea, Japan and Taiwan.Costco's growth has been decelerating slowly in 2019, into the mid-single digits each month, as its fiscal 2018 revenue came to $141 billion. The Bottom Line on COST StockCostco stock is an investment, not a trade. Costco is managed conservatively for the long run. Even if the stores look cookie-cutter, they don't open until after years of careful planning. Risks are growing. A higher international profile means there are now currency risks, trade risks and social dislocation risks. Even Walmart has had its misadventures in growing globally.But, as I said at the outset, I was a fool to sell my shares. Hang on to yours.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear , 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 shares in AMZN and AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post Investors Can Only Hope to Contain Costco Wholesale Stock appeared first on InvestorPlace.
When Amazon.com (NASDAQ:AMZN) reported on its ever-increasing free cash flow growth last quarter, the stock fell regardless. At 12% below its $2,000 July peak and after trading recently at $1,805.60, should investors accumulate AMZN stock?Source: BigTunaOnline / Shutterstock.com Amazon.com reported second quarter 2019 free cash flow of $25.02 billion, up 140% year-over-year. Its long-term goal is to optimize free cash flows and it certainly looks like the job's getting done. It will achieve that in a way every other fast-growing firm does so: by growing sales. Net sales were $63.4 billion, up 20% Y/Y. North America accounted for 61% of the online retailer's net sales in the period. International was 27%, while AWS was 12% of sales.In North America, operating income fell 15% to $1.56 billion. Its guidance is for the next quarter is lower than analyst expectations. The focus on one-day shipping is driving higher shipments but higher costs come with it. The associated costs of additional transportation and getting capacity in place will continue to hurt operating income.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe short-term underperformance might explain why the stock fell by almost 10% in the last month. Though the stock is still trading in an uptrend, conservative investors might want to wait for operating cost growth to slow. One-Day Shipping Lures CustomersShipment unit volumes increased in the second quarter, driven by the one-day shipping offering. The lower ASP is a setback because it puts pressure on profit margins. Still, offering faster shipping times differentiates the online retailer from competitors like Target (NYSE:TGT) or Walmart (NYSE:WMT). So long as Amazon balances price convenience and selection, customers will gravitate back to the site. The faster shipping option will drive revenue growth for the long term. Plus, attracting more third-party merchants will give customers a wider range of product choices on the site. * 10 Stocks Under $5 to Buy for Fall Amazon continues to invest in its fast-growing AWS cloud business. It is also investing in devices, video, and the global expansion of much of its Prime Benefits. Development of grocery delivery, through Whole Foods, Prime Now, and AmazonFresh units will weigh on income for a while longer. In Q1, the firm did not face much of these costs. These efforts picked up in Q2 and will continue through the remainder of the year, at the very least. Ads and Alexa's AllureVideo ad revenue is a potential business opportunity. But to grow its viewership, the company will first expand its video and over-the-top offerings. It is developing live sports offerings and IMDb TV. Looking ahead, Amazon Publisher may benefit from service integrations. As more and more consumers buy a Fire TV device, Amazon.com could easily compete with Roku (NASDAQ:ROKU) in growing its subscriber base. * 10 Undervalued Stocks With Breakout Potential Video advertising opportunities are greatest in North America. International markets have the potential to draw video ads, too, but Amazon must first improve on delivering more relevant ads that match viewers within international geographies.With hundreds of third-party devices building in Alexa, Amazon becomes a touch point for even more consumers. Good partnerships and arrangements with companies like BMW and its Mini increase the frequency of consumers interacting with Alexa. As the software gets better and smarter, consumers may enjoy the benefit of the enhanced experienced the home assistant has to offer. Valuation Shows UpsideSome 31 analysts who cover AMZN stock have an average price target of $2,284. Per TipRanks, that represents an upside of 26.5%. Conversely, investors may build a 5-year Growth Exit model that assumes a perpetuity growth rate of 3.5% - 4.5%. In this more conservative forecast, the stock's fair value is $1,961, 8% above its recent $1,806 price.Simplywall.st thinks the stock is worth $2,086, based on future cash flow:Source: https://simplywall.st/ Your Takeaway on Amazon StockThis is a conglomerate with a wide range of businesses that will shield it from any downturn. The Amazon.com stock valuation is relatively lower than that of Roku or Netflix (NASDAQ:NFLX) stock. Yet investors get an online retailer, a supplier of music and video, a grocery, and a consumer devices maker, just to name a few segments. The share price is holding steady at the $1,800 level and could bounce higher as investors decide to buy the dip.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 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Why It's Time to Buy the Dip in Amazon.com Stock appeared first on InvestorPlace.
Plug Power (NASDAQ:PLUG) reported record second-quarter deployments and gross billings on August 6. PLUG stock, however, dropped on the news but has since recovered those losses.Source: Shutterstock As speculative, money-losing stocks go, Plug Power stock is a pretty good one. It's operating in an industry that will continue to get busier as the demand for alternative fuel sources rises.In May, I suggested that if you owned PLUG stock prior to it announcing Q1 2019 earnings, and you were in it for the long haul (three to five years), I'd continue to hold. Moreover, I recommended buying some more if it dropped on the news, which it did.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSince then, it has recovered its post-earnings losses. But despite excellent Q2 2019 results, the PLUG stock price struggles to hit $3. * 10 Marijuana Stocks That Could See 100% Gains, If Not More If Plug Power stock wants to make it to $3 and beyond, here's the reality: it'll have to move beyond Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) to do so. On-Road GrowthPlug Power is best known as a provider of fuel-cell systems to the logistics industry. Amazon, Walmart, and many others use them in forklifts and other machinery at their e-commerce warehouses.However, if it wants to grow to become a profitable business, it's got to find other markets to sell its first-rate products.As part of its Q2 press release, PLUG discussed how it had obtained its first on-road customer during the quarter. The alternative-energy company signed a deal with StreetScooter, a subsidiary of DHL.StreetScooter will deliver 100 ProGen hydrogen fuel cell-powered trucks to be used by Deutsche Post DHL starting in 2020. It's the first commercial-scale application of fuel-cell engine deployment for on-road logistics. The ProGen engine will go farther and be cheaper to run.If the initial 100 do well, DHL could see as many as 500 vehicles in its fleet utilizing the ProGen system.Now, if it can get about 100 more orders just like this one, investors won't be talking about $3; instead, they'll be talking about $30. Pathway to ProfitabilityIn 2018, Plug Power had revenue of $133 million, 55% higher than a year earlier. In 2019, it expects revenue of at least $235 million, 77% higher than in 2018.That's good news.Unfortunately, its gross profit on its sales is negligible. Add in R&D and SG&A expenses and Plug Power lost $102 million on its 2018 sales. For every dollar of sales last year, it lost 77 cents.Look more closely at its various streams of revenue: you'll notice that except for the actual sale of its fuel-cell systems, each of its other revenue generators costs more to produce or provide than the money they bring in.At least the sale of fuel-cell systems brought in $71.3 million in 2018. And their cost of goods was only $54.8 million, generating a gross margin of 23%.In the first six months of 2019, Plug Power's $40.8 million in fuel systems sales had a gross margin of 37.6%. This was considerably higher than in all of 2018.If PLUG can keep pushing its gross margin higher on the fuel-cell systems, the largest of its revenue streams, and it can move beyond the logistics market, it's got a legitimate shot at generating consistent profits.The first half of 2019 could be an aberration: in the first six months of 2018, its fuel-cell systems had a gross margin of 13.4%. But if not, the company's projection that it will deliver positive adjusted EBITDA for the entire fiscal 2019 doesn't seem outlandish in the slightest. The Bottom Line on PLUG StockAs speculative plays go, Plug Power stock is an interesting one.Its business appears to be doing better than it ever has, both operationally and financially. And yet the PLUG stock price is stuck around $2.20 a share.Having Amazon and Walmart as a backstop is nice. However, if it really wants to take off, it has got to deliver more deals like DHL. It just has to.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post For Plug Power Stock to Snag $3, It Needs More Than Amazon and Walmart appeared first on InvestorPlace.