240.69 +0.18 (0.07%)
After hours: 7:59PM EDT
|Bid||240.45 x 1000|
|Ask||240.60 x 1800|
|Day's Range||237.48 - 240.99|
|52 Week Range||142.00 - 240.99|
|Beta (3Y Monthly)||1.10|
|PE Ratio (TTM)||20.42|
|Earnings Date||Oct 30, 2019|
|Forward Dividend & Yield||3.08 (1.30%)|
|1y Target Est||230.20|
Markets are in the green due to optimism for upcoming earnings and a pause in the U.S.-China trade conflict. Yahoo Finance’s Jen Rogers and Heidi Chung discuss with Thornburg Investment Management’s Head of Investments Ben Kirby on how if the economy is late cycle, what this means for earnings and the Fed’s next meeting.
There are certain characteristics and reasonings behind stocks that are suitable for investors to buy – and hold – throughout the life of their portfolios.
(Bloomberg) -- A top-performing global technology fund manager has raised bets on Samsung Electronics Co., making the stock the number one holding in his portfolio, ahead of Apple Inc. or Alphabet Inc.Hyunho Sohn, portfolio manager at FIL Investment Management whose Fidelity Global Technology fund runs about $4.8 billion of assets, said he has been adding positions in the world’s largest memory-chip maker since late 2018. He interpreted the sharp plunge in Samsung’s share price toward the end of that year as an opportunity, and he believes in the long-term growth of the tech giant.“If you ask me why I bought the stock, while the chip cycle was experiencing a downturn, I’d say I have faith in its fundamentals from a long-term perspective,” Sohn said in a telephone interview from London. “Samsung is a typical example of my strategy, which is buying an undervalued stock that the market participants hate temporarily.”Read about Bloomberg Intelligence’s take on the global chip sector hereHis fund, which holds about 60 global technology stocks, has beaten 98% of its peers with an annualized return of about 20% over the past five years, according to Bloomberg-compiled data. The fund’s top five holdings also include Alphabet, Apple, Intel Corp., and Microsoft Corp.The potential growth in demand for memory chips is apparent in the growing needs of cloud storage and service providers alongside the artificial intelligence industry that needs data storage, he said. Compared with global tech stocks, valuations of Samsung are “still attractive,” he added.Read more: Samsung’s Stock Is Signaling a Bottom for the Global Chip MarketAlthough Samsung’s forward price-to-earnings ratio of 12.6 times is not cheap compared with its historical average, it still lags Micron Technology Inc.’s 14.7 times and Taiwan Semiconductor Manufacturing Company’s 18.6. On forward price-to-book terms, Samsung is trading at 1.2 times, lower than almost all of its peers.Shares of Samsung have risen about 30% this year as overseas investors bought net 4.3 trillion won ($3.6 billion) of shares, the most sought-after stock on Korea’s KOSPI benchmark this year.Read more: TSMC’s $15 Billion Splurge Galvanizes Hope of 5G-Led ReboundTo be sure, it’s not all rosy for the memory chip sector. Micron, the third-largest player in the industry, released disappointing sales forecasts last month. And Samsung’s third-quarter preliminary earnings guidance announced earlier this month is less than half of its operating profits a year earlier. Chip prices have also been mixed. Contract prices for 32-gigabyte DRAM server modules fell 13.8% in the third quarter from the previous three-month period, while those for 128-gigabit MLC NAND flash memory chips rose 12.3%, according to inSpectrum Tech Inc.“I know we don’t see clear signs of recovery in the memory chip industry yet,” Sohn said. “But for me, based on valuations, long-term growth potential, and balance sheet metrics like free cash flow, Samsung is a stock that I am comfortable with having large positions in. I still see an upside for the stock.”(Adds a link to BI report about chip sector)To contact the reporter on this story: Heejin Kim in Seoul at email@example.comTo contact the editors responsible for this story: Lianting Tu at firstname.lastname@example.org, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Netflix Inc. is planning to raise another $2 billion in debt as it moves to raise the financing needed for new content as the battle for streaming customers heats up with a slate of new offerings on tap.
(Bloomberg) -- Adobe Inc. has picked Illustrator as the next major application it will put on Apple Inc.’s iPad, the latest effort to create a version of the software maker’s top desktop products for mobile devices, according to people familiar with the matter.The San Jose, California-based company will preview Illustrator for iPad at its Max conference in November before launching it in 2020, according to the people, who weren’t authorized to speak publicly about the decision. Illustrator, which designers rely on for digital drawing and creating graphics, would follow in the footsteps of Photoshop, which is scheduled to be available on the iPad later this year. Illustrator is one of Adobe’s most popular apps in its Creative Cloud software suite and would mirror many of the features from the desktop version when running on the iPad.“We have nothing new to share at this time,” an Adobe spokeswoman said when asked about the company’s plans.Adobe has recently launched a slew of other iPad apps, including Fresco and Premiere Rush, that don’t have as many features as the upcoming Photoshop and Illustrator apps. Still, early testers of Photoshop for the iPad have criticized it for lacking some key elements of the version for personal computers, Bloomberg News reported last week.The new apps underscore Apple’s effort to position the iPad as a computer replacement and Adobe’s need to deliver software to consumers on whatever devices they use. Adobe, founded in 1982, is revamping major apps for mobile devices to maintain a leading position in creative software amid waning consumer enthusiasm for PCs. Adobe’s mission is twofold -- to satisfy the professionals who rely on its software for photo-editing and illustration, and to capture casual users. The strategy may boost sales growth for the company’s Creative Cloud unit, which has slowed over the last year.Adobe’s plan to place the iPad at the center of its cross-platform strategy is another signal the software maker and the Cupertino, California-based hardware giant are long past a once-contentious relationship. Although Apple had been an investor in Adobe, Steve Jobs in 2010 criticized Adobe’s Flash player for video and games on the internet, saying it hurt device battery life, privacy and security. In recent years, Adobe has been a fixture at Apple product announcements, continuously being used as an example of software that takes advantage of new Apple devices.To contact the reporters on this story: Mark Gurman in San Francisco at email@example.com;Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Tom Giles at email@example.com, Andrew Pollack, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Larry Hite is a long-time successful hedge-fund manager who doesn’t believe he — or really anyone — can predict what the stock market (and other markets) will do next, or which seemingly successful companies will suddenly crash. Hite expounded on his approach to investing in his new book, “The Rule: How I Beat the Odds in the Markets and in Life―and How You Can Too.” He discussed his investment style, a current trade and some of his best and worst trades in an email interview with MarketWatch. Answer: I’m interested in stocks that went from selling software to subscription models.
Netflix (ticker: NFLX) said it plans to issue junk-rated bonds denominated in dollars and euros. Disney-plus is priced at just $6.99 a month compared with the $8.99 Netflix charges for its basic plan, and will include its entire library of films and TV shows, including the Marvel and Star Wars franchises. Disney will pull some of its existing content from Netflix once licensing agreements expire, including “Friends” and “The Office,” which have proved popular with a millennial audience.
Apple stock surged to an all-time high on Monday after getting a positive analyst report ahead of its September-quarter earnings release. Apple plans to post quarterly results on Oct. 30.
The stock market continued strong in late trading as earnings remained strong and a top China official made positive comments about trade talks.
(Bloomberg) -- U.S. stocks advanced amid positive signs on trade talks and as investors awaited earnings from some of the world’s biggest companies. Treasuries fell.The S&P 500 Index climbed to a one-month high, surpassing the 3,000 level, led by energy and financial shares. Apple Inc. rallied to a record, while Teva Pharmaceutical Industries Ltd. surged after saying it has an agreement to settle thousands of opioid lawsuits. The Dow Jones Industrial Average underperformed major equity gauges as Boeing Co. tumbled on pessimism over the 737 Max crisis. The British pound dropped after Prime Minister Boris Johnson was thwarted in his latest attempt to get a Brexit deal approved.Investors monitored the latest developments on trade talks between the two largest economies, with U.S. President Donald Trump saying China has indicated that negotiations over an initial deal are advancing. Earlier Monday, Commerce Secretary Wilbur Ross said it was more important to get details of the agreement right than it was for Trump to sign it at the expected meeting with Chinese President Xi Jinping next month in Chile.“What’s most important is that negotiations continue. That will help with confidence,” said Don Townswick, director of equity strategies at Conning, which has about $171 billion in global assets under management. “Earnings have been coming in fairly strong, at least relative to expectations. And that’s important.”Read: Analysts Are Taking the Knife to Their 2020 Profit EstimatesWith industry heavyweights McDonald’s Corp., Caterpillar Inc. and Amazon.com Inc. all scheduled to deliver earnings this week, investors will get numerous chances to see how corporations are withstanding the effects of trade tension, slowing growth and Brexit.“The needle is pointing mildly positive,” David Sowerby, portfolio manager at Ancora Advisors. “As much as the trade issue is a headwind, I think companies are quite sensible in how they are spending their capital on healthy cash flow growth.”Here are some key events coming up this week:Earnings season is in full swing with companies reporting including: Amazon.com, Microsoft, Daimler, Kia Motors, McDonald’s, Procter & Gamble, Caterpillar and UBS.Thursday brings monetary policy decisions from the European Central Bank and Bank Indonesia.U.S. factory orders for business equipment will provide a look into the strength of capital investment in September. The figures will show to what extent the latest tranche of tariffs on China and others is impacting investment decisions.These are the main moves in markets:StocksThe S&P 500 climbed 0.7% to 3,006.72 as of 4 p.m. New York time.The Stoxx Europe 600 Index rose 0.6%.The MSCI Asia Pacific Index increased 0.4%.The MSCI Emerging Market Index added 0.5%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro decreased 0.2% to $1.1148.The British pound declined 0.2% to $1.2962.The Japanese yen fell 0.2% to 108.64 per dollar.BondsThe yield on 10-year Treasuries jumped four basis points to 1.80%.Germany’s 10-year yield increased four basis points to -0.34%.Britain’s 10-year yield rose four basis points to 0.75%.CommoditiesThe Bloomberg Commodity Index slid 0.5%.West Texas Intermediate crude fell 0.9% to $53.31 a barrel.Gold lost 0.4% to $1,488.10 an ounce.\--With assistance from Sybilla Gross, Adam Haigh, Todd White, Samuel Potter, Sarah Ponczek and Lu Wang.To contact the reporters on this story: Rita Nazareth in New York at firstname.lastname@example.org;Vildana Hajric in New York at email@example.com;Claire Ballentine in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, Rita NazarethFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
FAANG stocks are popular. • Over a long stretch, Netflix’s stock significantly outperformed the Dow Jones Industrial Average (DJIA) S&P 500 Index (SPX) and the Nasdaq-100. • Netflix had been the darling of FAANG stocks.
The race for $1 trillion in market capitalization continues between Apple and Microsoft. On Friday, Apple overtook Microsoft. So what's next?
Netflix Inc. is mobilizing ahead of the launch of two big new competitors in November with an armory of 59 new offerings next month, including the arrival of 43 original programs.
It's all because some stocks are more powerful than others and the aberrations are to the downside. Not the upside.
The Nasdaq rallied Monday thanks to big gains from Apple and chip stocks, while the Dow Jones Industrial Average lagged as Boeing weighed.