|Bid||0.00 x 1100|
|Ask||0.00 x 900|
|Day's Range||1,875.51 - 1,895.23|
|52 Week Range||1,307.00 - 2,050.50|
|Beta (3Y Monthly)||1.73|
|PE Ratio (TTM)||78.74|
|Earnings Date||Jul 24, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||2,246.75|
Law enforcement agencies across the nation are turning to the growing number of home security cameras, like Amazon's Ring, to solve crimes. Police departments in states like Texas, New York and Iowa have started offering residents free or discounted ring devices with the condition that residents hand over footage upon request. The Final Round panel discusses.
Rep. Alexandria Ocasio-Cortez spoke out against Amazon CEO Jeff Bezos, saying he pays his workers 'starvation wages'. Amazon responded, saying Rep. Ocasio-Cortez was 'just wrong'. Yahoo Finance's Zack Guzman and Brian Cheung are joined by Taylor Lorenz, The Atlantic staff writer, to discuss.
E3 2019 brought us plenty of news about cloud gaming. Here's where the major playings including Google, Microsoft, and Sony stack up.
Amazon-owned free streaming service IMDb Freedive is getting a new name, morecontent and, soon, is expanding to Europe, the company announced this morning
Shares of Chinese e-commerce giant JD (NYSE:JD) have been in bounceback mode in early 2019 for one very simple reason: the narrative surrounding JD stock has changed dramatically -- for the better -- over the past several months.Source: Daniel Cukier via FlickrSpecifically, over the past several years, the narrative surrounding JD stock has been one defined by rapidly decelerating revenue growth and profit-margin erosion, which led to concerns surrounding the company's long-term profit growth potential. As those concerns grew, JD stock dropped. From $50 in early 2018, to $20 by late 2018.But that slowing growth, compressing-margin narrative has changed course over the past several months. JD's revenue growth rates have started to stabilize in the 20% range. Profit margins have begun to expand meaningfully. Management expects both of those trends to persist for the foreseeable future. Thus, clarity and optimism have been injected into this company's long-term profit outlook. That dynamic has ultimately propelled JD stock 30% higher in 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsJD stock will stay in rally mode for the foreseeable future. This new narrative implies that JD has big long-term profit growth potential. That big long-term profit growth potential still isn't fully priced into shares. Hence, JD stock has runway to head even higher over the next several months. * 7 Top-Rated Biotech Stocks to Invest In Today How much higher? The fundamentals say JD stock has runway to levels north of $30. Consequently, I'm staying bullish on this stock until it crosses above $30. The Narrative Has Changed for the BetterWhen it comes to JD, the big-picture narrative is pretty straightforward.You basically have the Chinese version of Amazon (NASDAQ:AMZN), which operates a giant e-commerce business in China's rapidly expanding and urbanizing consumer economy. Much like Amazon, JD operates that e-commerce business at slim profit margins, but the long-term plan is to win market share and then leverage scale to meaningfully expand profit margins. Also, much like Amazon, JD has jumped into multiple tangential growth verticals -- like logistics -- and while those businesses operate at poor margins today, they too will eventually scale into much more profitable operations.Because the long-term plan follows the Amazon roadmap and does pave the path for huge profit growth at scale, JD stock soared in early 2018 to $50.But that long-term plan was called into question throughout 2018, as the company's growth rates decelerated and margins failed to expand with scale. Specifically, from the end of 2017 to the end of 2018, revenue growth dropped from ~40% to ~20%. Meanwhile, operating margins were sliced in half from 0.8% to 0.4%. As investors questioned the long-term profit trajectory, they sold the stock, and shares of JD fell all the way to $20.In early 2019, though, the narrative has changed course. It once again supports huge profit growth at scale. Revenue growth has stabilized over the past two quarters around 20%, and projects to stay at 20% next quarter too. Meanwhile, operating margins expanded 70 basis points in the fourth quarter of 2018, and 80 basis points in the first quarter of 2019.Thus, the Amazon roadmap of sustained big revenue growth on top of margin expansion is once again the underlying trend at JD. This underlying trend ultimately supports JD stock shooting above $30 soon. JD Stock Has Good Upside PotentialThe numbers supporting JD stock look pretty good at the moment.You have a 20%-plus revenue growth company with growth that projects to stabilize around the 20% mark for the foreseeable future. At the same time, you have operating margins that are hugely depressed, hugging the flatline, making huge upward progress in early 2019, and which project to keep heading higher over the next several years. Thus, for the foreseeable future, JD projects as a big revenue-grower on top of big margin expansion, which should drive doubly big profit growth.That's why analysts see EPS essentially doubling this year, rising by 50% next year, and rising another 35% the following year. Net net, analysts think this is a 45% annualized profit-grower over the next several years. JD stock trades at less than 40 times forward earnings.A 40 forward multiple for 45% profit growth is an attractive combo. If you model that out, EPS should get to around $2.20 by fiscal 2023, from $0.34 in fiscal 2018. High quality retailers, like Walmart (NYSE:WMT), tend to trade around 20 times forward earnings. Based on that 20 multiple, a reasonable fiscal 2022 price target for JD stock is $44. Discounted back by 10% per year, that equates to a fiscal 2019 price target of roughly $33.Thus, this rally in JD stock has fundamentally supported runway to above $30 in 2019. Bottom Line on JD StockThe narrative surrounding JD stock has completely changed over the past two quarters. This new narrative -- defined by stable revenue growth and big margin expansion -- once again supports robust profit growth at scale. * The 10 Best Index Funds to Buy and Hold This robust profit growth is not fully priced into JD stock, yet, and the stock has fundamentally supported runway to levels above $30 in 2019.As of this writing, Luke Lango was long JD, AMZN, and WMT. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Why JD Stock Has the Potential to Trade Above $30 appeared first on InvestorPlace.
The Federal Reserve is charged by Congress to accomplish full employment and stable prices. For economists, these objectives pose a tradeoff, and the Fed targets 2% inflation as a compromise. The Phillips Curve postulates that as unemployment falls, workers get more bargaining power and push up wages and prices.
Uber (NYSE:UBER) shares dropped another 3.3% over the past week, after the company announced some surprising management changes. On June 7, Uber announced COO Barney Harford and CMO Rebecca Messina are leaving the company.Source: Shutterstock For a company with a huge amount of near-term uncertainty, this latest Uber news was frustrating for investors on many fronts. The timing of the announcement is suspicious at best and yet another reason investors should think twice about buying Uber stock. Suspicious TimingIt's probably very difficult for Uber stock investors not to be cynical about the timing of these management departures. The Uber IPO happened just one month ago. The company and the executives involved would likely never admit it, but there's no way these departures came completely out of the blue within the past month.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top-Rated Biotech Stocks to Invest In Today Uber and/or the executives leaving knew what they were doing. Announcing a management shuffle right before an IPO creates uncertainty in the market. It might weigh on IPO demand and valuation. Announcing the departures right after the Uber IPO creates too much suspicion that the company was withholding the announcement. Announcing the departures one month after the IPO creates enough plausible deniability that the company/executives won't get too much heat.I don't know if Uber or the executives leaving are to blame. Either way, this announcement was carefully timed. There's nothing deceptive or fraudulent about the timing of executive departures; however, this was a Public Relations 101 move to make the announcement after the dust settled on the Uber IPO.You don't have to take my word for it."While the timing of these executives departures so soon after the IPO will raise some eyebrows for investors and add more pressure on [Uber CEO Dara Khosrowshahi and company] in the near-term we believe this move is better to happen sooner rather than later," Wedbush analyst Daniel Ives says."This news comes as a shock to the Street and clearly one of the last things investors wanted to see with the stock currently coming under pressure." Uber Stock IPO a FlopEver since the overhyped Lyft (NASDAQ:LYFT) IPO in March, I have been pounding the table for investors to stay away from these big-tech IPOs.Former Kase Capital hedge fund manager Whitney Tilson recently summed up his thoughts on these IPOs very bluntly. Tilson said he has never participated in a tech IPO and doesn't plan to any time soon. In fact, Tilson went as far as to say the U.S. market is currently in an IPO bubble."Mathematically speaking, they've done studies and it's the single worst place to invest," Tilson said. "There is no surer way to lose money in any strategy than buying hot IPOs."Tilson's comments echo the sentiment of one of his biggest influences, value investing guru Warren Buffett.The general idea with these tech IPOs is that they tend to happen when company insiders believe the market value is highest. Value investors know when a stock is at its highest point, it's time to sell, not buy. IPO investors are buying many of these stocks at the absolute worst time. Not only is the valuation at a relative high point, IPO underwriters and the financial media hype these stocks so hard that the market gets whipped into a frenzy.As a result, more than a month later, Uber stock IPO investors are underwater on their investment. Where to Go From HereThe timing of the executive departures is yet another example of how IPO investors often get played as suckers. The question for investors at this point is what to do now.Management turnover is just one of many unanswered questions for Uber stock investors. Uber seems to be reshaping its corporate structure. The company's losses have mounted as its business has grown. Growth is slowing.According to Reuters, eight out of the 10 largest tech IPOs of all time generated a negative overall return of between -25% and -71% in their first year of trading following their IPOs.As I have said before, long-term Uber stock bulls that believe in the company have a valid thesis. Uber may very well end up being the Amazon (NASDAQ:AMZN) or Netflix (NASDAQ:NFLX) of transportation. However, both Amazon and Netflix have experienced decades of strong stock market returns, nit just one year. * 10 High-Yield Monthly Dividend Stocks to Buy Uber stock investors should consider letting the dust settle for a year before they buy the stock. In a worst-case scenario, Uber gets its act together and investors have to pay a higher price a year from now. They would also be potentially be making a much safer investment than they would be today.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Management Turnover Adds Even More Uncertainty for Uber Stock appeared first on InvestorPlace.
(Bloomberg) -- Since Japan launched its first deep space probe in 1985, the photographs have been taken in a relatively low-tech way, by pointing cameras at objects in the cosmos and letting them run. Whatever is captured gets sent back to Earth, where people cull the material for the most beautiful shots.Problem is, this dragnet approach uses up precious bandwidth and batteries. So Japan’s space agency is experimenting with a camera that’s more discriminating: It decides which pics have the best light, angle and composition, and beams back only those. Using artificial intelligence on powerful, large computers? That’s no big deal. But it’s a lot harder on a tiny spacecraft with its serious energy constraints.Enter LeapMind Inc., a Tokyo company specialized in “edge computing,” or running computations not on a central server or even a PC, but on remote devices with limited processing power and no internet connection. The idea is to bring AI to traffic lights, security cameras, home appliances—or even the odd space probe.Artificial intelligence can do amazing things, but it’s still rare because the math takes enormous computing power and loads of electricity. This means driverless cars must be something akin to data centers on wheels, with dozens of processors that can get hot enough to boil water. Edge computing promises to make AI work inside the thousands of smaller gadgets and machines in people’s homes and offices.“The hurdles to putting AI in actual products are really high,” said LeapMind’s founder, Soichi Matsuda, 36. “There are all kinds of severe limitations: price, power-consumption, dealing with exhaust heat.”LeapMind is just one of dozens of companies working on edge computing. Google and Amazon.com have led the way, but last year venture capital firms invested about $750 million in startups working in the field, according to CB Insights, up 26% from the previous year. In 2017, a group led by Intel Capital invested $10 million in LeapMind.They’re all seeking to drastically simplify the way AI works, so that everyday devices can take voice commands, respond to gestures and see the world around them. The technology would enable a home security camera to tell family members from strangers or allow sensors sewn into clothing to track your health, without sending private information to the cloud.“Edge AI is becoming more and more important, especially in areas where latency, power consumption, connectivity and security matter,” said Anthony Lin, senior managing director at LeapMind investor Intel Capital.In order to understand what makes edge computing so difficult, it helps to recall your high school algebra. Each variable in a typical AI algorithm is built out of a 32-digit string of ones and zeros that allows for 4.3 billion possible combinations. (They look like this: 0010001001000.0000101001000010110.) The detail is what gives AI its predictive power.The trick in edge computing is shaving down the numbers so they can be processed by smaller chips, but without losing too much precision. It’s a challenge because for every digit that’s lopped off, there’s an exponential loss in expressiveness.This is why even the smallest achievements in edge computing are treated as major victories. In March, for example, when Google announced it finally managed to get a speech-recognition function to run offline on its smartphones, at least one Google engineer called the effort “heroic.” For most users the difference is probably unnoticeable, but making it work without being connected to the internet required chopping the program’s variables down from 32 to 8 digits, or bits.LeapMind is working at a level that’s orders of magnitude smaller, just 1 or 2 bits, according to Matsuda. It’s the computer science equivalent of boiling the English language down to just four words and somehow still being able to convey a lot of meaning.“When we started working on this in 2015, we knew that someone like Google would eventually do 8 bits,’’ Matsuda said. “So we had to aim higher.’’The techniques developed by LeapMind are sufficient for many, but not all tasks. You couldn’t run a driverless car with them, for example. But they’d be useful for driver-assist functions or other less-exacting work.Which brings us back to the space agency’s photography problem.As it stands, JAXA’s probes can’t devote scarce computing power to getting visually-pleasing photos, no matter how valuable they are for PR purposes, because it would come at the expense of doing actual science. The photos that the public sees now have been taken in the process of doing other work, not specifically for their beauty.That’s why JAXA researcher Takayuki Ishida decided to try using LeapMind’s tools to build a smart camera. He started by taking 10,000 photos of planet and probe models, shot from different angles and with different juxtapositions, and ranking them in terms of aesthetic appeal.Then he used LeapMind’s software to create a pattern-matching algorithm that learned to differentiate between good photos and bad ones. The code was compact enough to run on a single chip that consumed no more electricity than a 10-watt light bulb.JAXA declined to comment, but Ishida described his experiments in a paper he presented at a February conference held by LeapMind.If the system works, it would be a small step forward for space exploration and perhaps a big leap for everyday devices closer to home.“If you want to add AI to a television or a laptop or any other existing product, you have to re-design things from scratch because most of the power supply is already spoken for,’’ said LeapMind’s Matsuda. “Power is the big constraint.’’To contact the reporter on this story: Pavel Alpeyev in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Jason Clenfield, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Amazon.com, Inc. (NASDAQ: AMZN ) has responded to U.S. Rep. Alexandria Ocasio-Cortez, a Democrat from New York, after she said the company pays its warehouse workers "starvation wages." .@AOC ...
The trade war rhetoric has had a negative impact on investor sentiment as well as prices of many tech stocks. As weeks go by, not many analysts believe that the U.S. and China are likely to conclude a comprehensive trade agreement soon. The negotiations may well drag out right up to the U.S. presidential elections. Therefore, the recent volatility we have experienced, especially in the tech sector, is likely to stay with us for a while.Today, I am going to discuss three tech stocks that may be appropriate for investors who are looking for stocks that have had pullbacks in price and thus offer better risk/reward ratios than they did several months ago. These stocks are Alibaba (NYSE:BABA), AT&T (NYSE:T) and Oracle (NYSE:ORCL).I believe investors who buy into the shares of BABA, T or ORCL at any upcoming dip or even around the current levels will be rewarded well in a few years.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top-Rated Biotech Stocks to Invest In Today Shareholders who are still concerned about potential short-term risks may also consider hedging their positions. In that case, covered calls or put spreads with July 19 expiry could be appropriate as straight put purchases are likely to be expensive due to heightened volatility. Alibaba (BABA)Source: Shutterstock Notable Tailwind Catalysts: High growth in business segments, including e-commerce, cloud and electronic payments; potential end to U.S.-China trade warsExpected Price Range Until Next Earnings in late August: $135-$165The current environment offers valid reasons to be concerned about Chinese stocks, including Alibaba, the e-commerce giant. Alibaba's share price has thus seen a significant amount of weakness of late. Over the past year, the stock is down over 21%.BABA stock has been increasingly volatile on the back of the recent earnings released on May 15 as well as the U.S.-China trade war and Chinese economic concerns.Yet Wall Street concurs that with a population of almost 1.4 billion people, China's economic growth is still in its early stages and that the Chinese middle class is likely to expand for a long time.Furthermore, consumer disposable incomes are also going up, fueling growth in many sectors, including e-commerce.In fact, the e-commerce market in China is forecast to almost double within the next four years to reach $1.8 trillion. Therefore, even if the Chinese economic growth pauses for a few quarters to come, the country's growth potential is intact.Alibaba's current share of the Chinese e-commerce space is almost 60%. Many analysts believe that BABA's bottom line is not going to be too adversely affected by these current trade wars as its business model is tied to China directly, decreasing the long-term risks of bi-party trade wars.BABA's core e-commerce business contributes to about 85% of its revenue. Yet BABA is rapidly expanding into many other lucrative industries, including cloud computing infrastructure, digital payments, online entertainment and food delivery.Alibaba's concentrated push deeper into cloud computing is increasingly being compared to the success of Amazon's (NASDAQ:AMZN) cloud business. In cloud computing, BABA is now the market leader in Asia.In 2018, Alibaba merged its food delivery platform Ele.med with its lifestyle app Koubei to be able to capture a higher market share in servicing "hungry customers" and to better compete with Meituan, which is backed by Tencent Holdings (OTCMKTS:TCEHY).As a result of increased diversification, Alibaba's revenue is expected to grow by double-digit-percentage rates. Such a growth rate would indeed be impressive for a company with a market cap of $415 billion.On May 15, when BABA released its quarterly results, both sales and earnings exceeded estimates. Total revenue came at $56.1 billion, an increase of 51% year-over-year.In the earnings statement, shareholders paid attention to four main areas: * Core commerce (BABA's largest segment grew 54% YoY); * Cloud computing (revenue soared 76% YoY); * Digital media and entertainment (revenue increased 8% YoY); and * Innovation initiatives (where revenue jumped 22% YoY ).One important highlight was that BABA's mobile monthly active users (MAUs) on its e-commerce platforms reached 721 million. The owners of BABA stock will be interested to know the corresponding number to be released in the next statement in late August.Another metric to pay attention to is Alibaba's operating margin, which currently stands at 15%. Over the years, BABA's high operating margin has contributed to its profitability, which has been even higher than that of Amazon (NASDAQ:AMZN). BABA's net profit margin is also over 23%. In short, Alibaba is showing strong performance across the board.Finally, forward-looking investors may want to pay attention to BABA's international growth numbers too. Currently, more than 90% of the e-commerce giant sales are made in China.But BABA also has investments in start-ups in South Asia and Southeast Asia. Higher incomes and rising internet penetration rates are likely to strengthen both regions' e-commerce markets and contribute to BABA's bottom line.Given the fundamental strength of the company, I regard BABA stock buy-worthy at current levels.However, in the coming weeks, I do not expect BABA stock to regain its recent high of $195.72, which was last seen on May 3.Instead, BABA stock is likely to trade in a range, between $165 and $135, for several weeks, possibly until its next earnings report expected in late-August.The daily volatility of Alibaba stock is high, giving it a wide trading range, so short-term traders should proceed with caution. Nonetheless, long-term investors could view any decline in BABA stock as a good opportunity to buy into the shares. AT&T (T)Source: Shutterstock Notable Tailwind Catalysts: High growth in business segments; growing content through WarnerMedia; decreasing debt levels; respectable dividend yieldExpected Price Range Until Next Earnings in late July: $30-$37.5As internet-based communication becomes increasingly integrated into our daily lives, I find AT&T shares well-positioned to benefit from various commercial opportunities that would eventually benefit the stock price. June has already rewarded T investors well; the stock is up over 7% so far.Yet over the past few years, AT&T stock had lagged behind the broader market. Within the past 12 months, the stock has basically remained flat. The T share price on June 14, 2018 closed at $32.52. A year later, T stock is hovering around the same level.Even though the company has a strong brand and wireless infrastructure -- two factors that are likely to make it a dominant player in the 5G sphere -- the AT&T stock price has not yet reflected the company's robust forward-looking potential.Thus, now may be a good time for investors to decide whether the rest of the year could witness a sustained up move in the price of T shares.AT&T reported Q1 2019 earnings on April 24. With a market capitalization of $230 billion, the Dallas-based group breaks down revenue into six main segments: * Mobility (includes wireless subscribers) * Entertainment Group (includes DirecTV and U-Verse customers) * Business Wireless (provides services to companies and the government) * Latin America (includes Latin American and Mexican operations) * Warner Media (includes HBO, Turner and Warner Bros.) * Xandr (handles all advertising business)This diversified revenue stream of T stock is important for long-term shareholders who do not want to worry too much about short-term volatility.The company's key Mobility wireless segment generated revenue of $17.57 million, up 1.2% year-over-year. AT&T also added wireless subscribers and its domestic wireless business is neck and neck with Verizon (NYSE:VZ) for market share.In June 2018, a federal court approved the merger of AT&T's $85 billion acquisition of Time Warner -- a deal that has now turned AT&T into a media giant and "content king."This merger has been weighing on the T stock price for some time; however, the rest of 2019 should see the question marks slowly disappear.In the quarterly report, investors cheered that the group was selling off assets to decrease its debt burden. Indeed, over the past few quarters, AT&T's debt load had been on Wall Street's radar. The company finished 2018 with $171 billion of debt.The group has recently sold its minority stake in Hulu, a premium streaming service, to Hulu's other owners Walt Disney (NYSE:DIS) and Comcast (NASDAQ:CMCSA), for almost $1.5 billion.Acquiring Time Warner has bloated this debt load. However, the communications giant is now working to cut costs and debt at the same time. Management realizes the importance of decreasing the level of debt sooner than later.In addition to the company's strong earnings power through telecom and media-related operations, T stock also offers a strong dividend yield at over 6.3%. AT&T's dividend is a big attraction for many long-term investors seeking passive income. * The 10 Best Index Funds to Buy and Hold In short, along with the rest of the market, T stock could experience volatility near term. But long-term, the prospects for AT&T stock are robust and it offers a respectable dividend yield for income investors. Qualcomm (QCOM)Source: Shutterstock Notable Tailwind Catalysts: High growth in business segments; moving on from recent regulatory probes and legal headlines; 5G Leadership; respectable dividend yieldExpected Price Range Until Next Earnings in late July: $55-$75Shares of Qualcomm, the leading supplier of modem technology for smartphones, have been in a free fall since early May.On May 2, QCOM stock saw an intraday high of $90.34. Then on May 29, Qualcomm shares closed at $65.76.Legal headlines were mainly behind the unforgiving drop in the QCOM stock price. A federal regulatory probe recently concluded that the company had violated antitrust laws and that its licensing fees were too high.Qualcomm stock reports revenues in three main segments: * QCT (Qualcomm CDMA Technologies); * QTL (Qualcomm Technology Licensing); * QSI (Qualcomm Strategic Initiatives)Wall Street saw the ruling as having a negative impact on Qualcomm's QCT (i.e., chipmaking) and QTL (i.e., patent licensing) segements.Qualcomm is the largest maker of chips for smartphones, and its chipsets account for about two-thirds of its total revenue. Its chipmaking QCT segment produces the Snapdragon mobile system on a chip (SoC), a semiconductor product which bundles together a CPU, GPU and modem in a single unit.Its second-highest source of revenue is mobile-phone royalties and licensing. About 60% of its pre-tax profits are from its patent-licensing division, thanks to royalties from 3G and 4G technologies the chip giant helped invent.Qualcomm's patent portfolio is crucial for the company and the licensing business is the higher-margin segment of the three segments.The chip giant is currently appealing this ruling. Although the company may be successful in overturning the ruling, going forward, there is likely to be further choppiness in the stock price.In other words, if the company loses the appeal, the result could be fewer chipset sales in the QCT segment as well as much lower QTL patent licensing revenue for Qualcomm stock.On the other hand, a successful appeal could push QCOM stock upward, possibly to new highs. Yet, it will probably be several months before the company has a final answer from the courts.Analysts believe QCOM will also play a dominant and early role in 5G, replicating its success with 3G and 4G mobile networks. If the analysts are correct, then Qualcomm stock is indeed a good pick for long-term investors. The company is likely to provide a significant part of the intellectual property that will be used to develop 5G communication standards.Recent legal troubles and the subsequent share price drop in QCOM have followed the positive headlines in the second half of April. The chipmaker and Apple (NASDAQ:AAPL) had announced earlier that they had finalized a favorable agreement regarding intellectual property licensing fees for chips used in Apple's mobile devices.This agreement now dismisses all outstanding litigation between the two parties. Because of the success of the settlement, QCOM believes its revenues are likely to double annually in Q3 (the group's fiscal 2020 starts on Oct. 1).In other words, over the past few weeks, important legal developments have been the main driver behind the major volatility in QCOM stock. Therefore, as the dust settles, I expect investors to concentrate once again on the bottom-line results as well as the leadership position of the company.Meanwhile, the 3.6% dividend yield of QCOM stock and the generous stock repurchase program are likely to act as support in case the price of Qualcomm shares declines further in the coming weeks.For investors not familiar with Qualcomm, this drop in its share price may provide a good opportunity to research the company and decide if they would like to include QCOM stock in a long-term portfolio.Tezcan Gecgil holds covered calls on T and VZ stock (June 21 expiry). More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post 3 Leading Tech Stocks I'd Buy On A Dip appeared first on InvestorPlace.
IMDb TV is tripling down on its free ad-supported streaming service. IMDb, which is owned by Amazon.com Inc. (NASDAQ: AMZN), has ditched that name but signed new content deals with studios including Warner Bros., Sony Pictures and MGM to bring “thousands” of new titles to the platform in the coming months. In addition, IMDb TV will launch in Europe later this year, the company said.
In its recent earnings, Amazon (NASDAQ:AMZN) reported a substantial slowdown in the growth of Others segment, which is primarily made of advertising revenue. At 36%, the growth rate in this segment is only a few percentage points higher than Facebook's (NASDAQ:FB) growth of 26% in the latest quarter. This has led to concerns that Amazon is close to hitting the saturation in terms of ad load and pricing. Strong growth in advertising segment gave a bullish momentum to Amazon stock in the last few quarters. Hence, a slowdown in this segment can hurt the long term sentiment.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, there are a number of levers which Amazon can use to deliver better advertising growth in the near term. For starters, Amazon is experimenting with video search features. It is also developing better tools to improve ad conversions. Amazon has a long growth runway to improve its advertising business and increase the market share in digital advertising. The advertising segment continues to be an important factor for Amazon stock and investors should closely watch the future growth trend in this business. A Slowdown or a Transition for Amazon?The quick growth in Amazon's advertising business had taken the market by surprise. Now, it has increased expectations, which led to a mismatch between revenue growth and current capabilities. Amazon's advertising growth in the last few quarters was over 100% but that was due to an accounting change. If we remove this factor, the Q4 2018 growth was 38%. The growth rate in the advertising segment was between 51% and 73% in the previous quarters.Source: Amazon filingsFacebook was also at this revenue rate in 2014. Since then, it has reported an average revenue growth rate of close to 45%. And like Facebook, Amazon has a number of options to improve its revenue from advertising. Long-term investors should see better sentiment in Amazon stock as the company improves its advertising tool. * 7 Top-Rated Biotech Stocks to Invest In Today Amazon is currently trying to make those improvements with video search ads, which is a direct shot at Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google. The less-controversial nature of Amazon's platform is also attracting more brands. Last year, Piper Jaffray's Michael Olson had forecasted that Amazon's advertising income will surpass AWS profits by 2021. Next Big Growth Driver for Amazon StockOne of the big opportunities with Amazon is to shift marketing spend from in-store branding. Morgan Stanley has estimated that a whopping $178 billion is spent on in-store brand promotions and coupons. While Google can only offer brand marketing to bigger consumer-packaged-goods (CPG) companies, Amazon can offer performance marketing. This means that Amazon's platform helps in driving sales for these companies. On the other hand, Google can only put the ads in front of customers -- it's far less of a guarantee of converting them into sales.This is a gradual process in which more ad dollars will shift to Amazon's platform. Walmart (NYSE:WMT) is trying to improve its own advertising business. Recently, the company moved its entire ad sales for its stores and website in-house. While Walmart has a larger sales base, Amazon is ahead in terms of its tools and third-party sales. This is a big advertising segment and Amazon is sure to grab more ad dollars from in-store promotions industry. What About the Competition?Amazon's rapid growth has alarmed Google and Facebook. Both these giants are now looking to expand their own retail presence. Facebook has launched new features which allow customers to directly make a purchase from within Instagram. Google has recently launched new shopping features at Google Marketing Live event. Users will be able to make purchases from within YouTube by the end of this year. Google will also have a personalized Google Shopping page where users can compare and filter by price and brands.According to eMarketer, Amazon is in third position behind the duopoly of Google and Facebook in terms of digital ads. And it's coming for them.Source: eMarketerIn the recent quarter, Amazon's growth was ahead of both Facebook and Google. As new features and advertising tools are launched by Amazon, we should see an upward trajectory for growth in advertising revenue. Amazon's advertising segment is currently close to $10 billion on a trailing-12-month basis. At the current growth rate, this number should hit $20 billion by the end of 2020. Better margins in advertising will help in driving the overall margins higher. We have already seen this in the past few quarters. Amazon reported an operating margin of 7.4% compared to 3.8% in the year-ago quarter. Investor TakeawayThe concerns over a slowdown of the advertising segment in Amazon are overblown. Even at the current growth rate, Amazon should be able to show a revenue trajectory similar to that shown by Facebook in the last five years. There is a high probability that we will see an uptick in advertising growth from Amazon as new tools and features are launched.The long-term growth projections for Amazon's advertising segment are very bright. This will help in lifting the operating margin of the entire company and help in the improvement of EPS. And we should continue to see bullish momentum in Amazon stock in the near future as the advertising segment increases its revenue share. As of this writing, Rohit Chhatwal did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Amazon's Advertising Business Is in a Transition appeared first on InvestorPlace.
WeWork joins Apple and Oracle as other candidates to fill the unique tower, which will be Seattle's second tallest when it's completed next year.
Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains dives into what we know about Google (GOOGL) and Microsoft's (MSFT) cloud gaming plans