|Bid||162.36 x 800|
|Ask||162.47 x 1000|
|Day's Range||160.86 - 164.70|
|52 Week Range||123.02 - 218.62|
|Beta (3Y Monthly)||1.23|
|PE Ratio (TTM)||21.47|
|Earnings Date||Apr 23, 2019 - Apr 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||197.94|
Jeffrey Gundlach says Facebook sold themselves as comfortable and safe, but they're not. And they're unrepentant.
Facebook and Google have made big splashy deals, but the largest acquisitions of late have been in the enterprise. GitHub, Red Hat, CA and MuleSoft were all acquired last year. While big internet companies like Facebook FB and Google GOOGL have been fairly quiet of late on the deal-making front, business software vendors have kept bankers quite busy.
As a result, Facebook generates cash flow like few other businesses, and its stock is also dramatically undervalued. Facebook is not just a social media website. Facebook's family of apps is a platform where 2.7 billion users spend time on every month.
Apple's stock had risen 436% in the five years preceding that dinner. After everyone gave an answer, the seasoned chip executive confidently predicted Apple's stock would actually be lower in five years' time, not higher. The executive was wrong, however: Apple shares went on to double in the ensuing five years.
There are two ticker symbols for Alphabet Inc. on the NASDAQ stock exchange: GOOG and GOOGL. The short answer is a stock split, but a longer answer is an attempt by the co-founders of Google, Sergey Brin and Larry Page, along with company chairman Eric Schmidt, to retain as much control of the company as possible. The two tickers represent two different share classes: A (GOOGL) and C (GOOG).
Big tech saw some big developments this week. Retailers TJX, BURL, ROS, KSS are poised to report earnings. Watch the video for more.
Google-parent Alphabet continues to keep YouTube financials a guessing game. Google may well be the least transparent of the FANG stocks, which also include Amazon, Facebook and Netflix.
A 29-story office tower downtown boasting Facebook as its largest tenant is on the market, and the sale price could be a record for Austin. It was previously reported that Facebook had dibs on buying the building, so it may have passed on the deal.
Facebook faces a record multibillion-dollar fine from the Federal Trade Commission, but investors don’t seem deeply concerned.
Roger McNamee, a longtime tech investor and one of the early backers of Facebook Inc., was a very early voice warning about privacy and data collection problems on the world’s largest social network that eventually erupted in the public eye. Now, he is trying to help carve out some solutions.
Warren Buffett and top hedge funds sold tech stocks like Apple, Netflix, Facebook and Alibaba in Q4, though the "Oracle of Omaha" bought bank stocks and GM.
Two venture capital firms launched new funds this week. Silicon Valley-based Future Ventures, co-founded by Steve Jurvetson and Maryanna Saenko, raised $200 million to invest in "frontier technologies," including machine intelligence, food, computational biology, and aerospace.
"Thekey thing for us, is really invoking that we are connected in the two roomsand making you feel like you're there and just hanging out
Any hedge fund with more than $100 million in assets under management has to file a 13F with the SEC detailing its top U.S. equity positions. Warning! GuruFocus has detected 4 Warning Signs with HUBB. Looking through the 13Fs that have been filed so far, for example, we can see that one of the most-bought stocks last quarter was social network Facebook (FB).
I've been skeptical about Twitter (NYSE:TWTR) stock for some time now. Admittedly, even though TWTR stock has been range-bound since late July, I've been too skeptical towards it, as Twitter stock has rallied over the last two years, roughly doubling during that period.As I wrote in December, the gains of Twitter stock have been deserved, at least to some extent. The company's total user base (as represented by MAUs, or monthly active users) hasn't grown much. But its engagement is up, as shown by increases in its DAUs (daily active users). And Twitter has become a better, more valuable partner for advertisers.Yet that success hasn't done much for TWTR stock of late. Its Q3 earnings, which were reported in October, sent Twitter stock soaring. Yet a 10% decline after the Q4 release earlier this month wiped out most of those gains. Twitter stock now actually is down 7.4% over the past twelve months.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Hot Stocks Leading the Market's Blitz Higher There's one big reason why: valuation. TWTR looked hugely expensive at $45 in June, but even at $31, where it currently trades, it's not exactly cheap. And with Twitter's earnings growth likely to be muted in 2019, it's tough to see how concerns about its valuation will ease any time soon. The Valuation of TWTR StockTwitter stock still trades at about 17 times its enterprise value-EBITDA ratio. After backing out close to $5 per share of net cash, TWTR trades at about 30 times analysts' 2019 earnings-per-share consensus of 89 cents. (Those estimates may come down as analysts adjust their models.)Neither of those metrics is cheap. Based on both of the above criteria, Twitter is more expensive than Facebook (NASDAQ:FB), which continues to grow faster. It's more expensive than Alphabet (NASDAQ:GOOGL,GOOG), whose revenue is also rising faster than that of TWTR. The 30 times forward P/E multiple of Twitter stock is above the S&P 500's average valuation.At the very least, the valuation of Twitter stock suggests either that Twitter will grow for years or that Twitter will be sold. But an acquisition still seems unlikely: TWTR was clearly on the auction block in 2016, only to see Alphabet, Disney (NYSE:DIS), and Salesforce.com (NYSE:CRM) all pass on a deal.And so, TWTR has to grow to justify the valuation of TWTR stock. Even though Twitter's business has improved, that seems like a lot to ask after the company's Q4 report. How Twitter Stock Can Move HigherFrom a broad standpoint, there are three ways that Twitter's earnings can increase. It can attract more users. It can make more money from its users. Or it can lower costs as a percentage of its revenue, either by increasing its revenue more quickly or by cutting its costs.Again, Twitter has had some success. What the company now calls mDAU (monetizable daily active usage) rose 9% year-over-year in Q4, and about 10% for the full year. Monthly active users (which Twitter no longer will disclose ) declined, in part due to the removal of bots and fake accounts. The two figures show that the users who visit Twitter are using it more often.But the MAU figure also highlights a key problem: Twitter isn't attracting users who weren't previously familiar with the service. That alone suggests a potential headwind to growth.On the revenue per user front, Twitter is also making progress. Its Q4 revenue rose 24%, driven by the 9% increase of mDAU. The shift to video - a strategy of which I admittedly was highly skeptical - is attracting advertisers and increasing the company's revenue.But Twitter delivered relatively disappointing Q1 guidance. Its Q1 revenue guidance of $715-$765 million represents an increase of 7.5%-16.5%, slower growth than the company has posted in recent quarters. It looks as if the improvements in the monetization of its users are fading, another reason to believe that the company's overall revenue growth is going to decelerate. High Spending Will Dent Twitter's EarningsMeanwhile, Twitter's costs are set to move higher, both on an absolute basis and as a percentage of its revenue. Specifically, TWTR expects its GAAP and non-GAAP operating expenses to rise 20% in 2019.That means its costs likely are going to rise faster than its revenue will. The higher spending is being partly caused by Twitter's efforts to improve its IT security and users' experience.As a result, Twitter's Q4 earnings look a bit like the Q2 report that caused Facebook stock to plunge in July. Facebook's revenue growth slowed, and it warned that it would have to spend a great deal more money to protect its platform. Consequently, FB stock lost the most money in a single day in stock-market history.The selloff of TWTR stock obviously wasn't nearly as bad. Nor should it have been; Twitter's spending isn't spiking to anywhere near the same extent as Facebook's did.But it's worth noting that Facebook stock still trades below where it did after that plunge. And while the stories of the two stocks aren't identical, the results could be similar. Twitter stock still is pricing in quite a bit of earnings growth. The company is saying that that growth isn't coming, at least in 2019. That divergence could keep on a lid on TWTR stock for quite some time.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post Twitter Stock Still Has a Valuation Problem appeared first on InvestorPlace.
Is Warren Buffett Still Optimistic about Apple?Warren Buffett On February 14, Berkshire Hathaway (BRK-B) released its fourth-quarter 13F. The company trimming its stake in Apple (AAPL) and exiting Oracle (ORCL) were the most notable changes.
I'll state this outright: I can't stand Democratic Congresswoman Alexandria Ocasio-Cortez, or "AOC" as she's often called, for reasons outside of politics. An unwritten rule exists that you must progressively earn your way into exercising power. The recent uproar involving Amazon's (NASDAQ:AMZN) second headquarters and its decision to cancel its HQ2 proposal in Long Island City, Queens, perfectly reflects why this unwritten rule is so important.Almost a year ago, I discussed some of the top locations that analysts believed would host Amazon HQ2. During the initial bidding phase, 238 cities competed for hosting privileges. Of these, AMZN whittled the candidates down to 20, which is no easy task. Several deserving candidates failed to make it to the second round, demonstrating how competitive this process was. At the time, I wrote:"With a proposed budget of at least $5 billion, the new Amazon headquarters will create up to 50,000 jobs. And I'm not talking about the package-handling, fork-lifting, mundane labor. The vaunted e-commerce giant stated clearly that these will be high-paying employment opportunities. For individual states and cities facing budget crises, this was music to their ears."InvestorPlace - Stock Market News, Stock Advice & Trading TipsI give credit to AOC for leading the charge against Amazon HQ2 and, indirectly, Amazon stock. The media plastered her name across multiple headlines. She had made her mark …… but had she consulted with others before jumping on the "corporations are bad" bandwagon, she might have arrived at a different conclusion. * 10 Hot Stocks Leading the Market's Blitz Higher This is why you earn your way. Contrary to stereotypes, our elders offer a wealth of knowledge. Now, Long Island City's denizens must hope and pray that AOC and her cohorts made the right decision. Did they? Is the Cancellation of Amazon HQ2 Good for New York?I suspect that most of my readers believe that forcing Amazon out of Queens was an ignominious decision. As I referenced earlier, AMZN wasn't exploiting cheap land to build old-school factories with the aim of exploiting cheap labor. Instead, Jeff Bezos & Co. wanted to bring high-tech jobs -- jobs that would probably average around six figures.Here was a chance to renovate a city hurting for economic stimulus through an influx of economic activity. Even high-profile Democratic politicians, like New York City Mayor Bill de Blasio, championed the Amazon HQ2 proposal.But nothing occurs in a vacuum. While the move would have somewhat de-levered Amazon stock from its Seattle headquarters, the bid sparked controversies. Specifically, Ocasio-Cortez balked at the $3 billion incentives that the city and state would have provided AMZN.She argued, "we could invest those $3 billion in our district, ourselves, if we wanted to." This entails hiring more teachers, fixing New York City's infrastructure and other desired endeavors.Furthermore, our own Dana Blankenhorn argued that this initial Amazon HQ2 proposal was out of touch with reality. Blankenhorn rightfully noted that internet firms don't need to be centralized in specific (elitist) regions. He wrote:"But Amazon's decision isn't transformative at all. Adding new office workers to New York City and Washington D.C. saves the company little and changes nothing for Amazon stock. Like the other tech Microsoft, Alphabet, Facebook and Apple -- Amazon remains centered in just a few places while the rest of the country suffers, and resentment builds."The political wildfire spawned by this is going to get worse, which is unhealthy for Amazon stock. Why Opposition Forces Made a Dumb MistakeWhen I first read about the Amazon HQ2 cancellation, all I could think about was House Speaker Nancy Pelosi and her "clap back" meme.Congrats to @SpeakerPelosi for inventing the "fuck you" clap. sotu pic.twitter.com/eueoUf9IBT-- Patton Oswalt (@pattonoswalt) February 6, 2019Based largely on political reasons, Long Island City residents will no longer benefit from one of the world's greatest corporations.Certainly, I appreciate the nuisances that Amazon's presence would spark. I live in southern California: Our freeways are a mess and are only getting messier with population growth. But I have nothing to complain about when discussing New York City. Its infrastructure is already atrociously congested.But what is the alternative?To not attract new businesses and talent, so that you could live "the quiet life?" If that's the case, I don't see any reason to live in a metropolitan area. You could move out to the boonies, divorced from humanity.No, people move to these major hubs because that's where demand is strongest. Of course, it's not fair nor equitable that most of the tech giants call Seattle and Silicon Valley home. Guess what? Life isn't fair.Sadly, the opposition forces failed to represent their constituents. Rather than allow the affected to make that choice, overpaid politicians and a vocal minority made the choice for them.The real tragedy is that no other company will want to do business in Long Island City after this fiasco. Shame. Gentrification Accusations Hurt Amazon StockUltimately, I believe that the political elites will regret their opposition to Amazon HQ2. The best way to help people and communities is not through charity but through opportunity. Former President Barack Obama routinely mentioned the dignity of work.But despite the positives that this project would have brought for Long Island and Amazon stock, we can't ignore an ugly undertone: gentrification. According to Google, gentrification is defined as "the process of renovating and improving a house or district so that it conforms to middle-class taste."May I cut the BS and give you the real definition?It's when white people move in and price people of color people out. For instance, northern California's tech boom has made modest-income earners in that region practically unable to live there.In that respect, civil rights advocates may consider the Amazon HQ2 cancellation a victory. But in the long run, I'm not sure that this was the right move.According to the Chicago Tribune, racist dynamics in real estate hurt black homeowners to the tune of $48,000. In short, white people and businesses avoid black neighborhoods, thereby collectively deflating black wealth.Although it's a complicated and controversial situation, it appears that the best answer is to incentivize companies to invest in underdeveloped or impoverished neighborhoods … but that's exactly what the original HQ2 proposal called for!If AMZN touched down in Long Island, it's gentrification. If they avoided the city, it's white flight. No matter what, Amazon stock absorbs the PR stain.The wrinkle here is that Amazon HQ2 will go ahead with its Northern Virginia proposal. That's regional equity. But it also keeps white neighborhoods white, and black neighborhoods black, worsening the problem that HQ2 could have addressed.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 * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post OPINION: Ocasio-Cortez Makes Regrettable Error Evicting Amazon HQ2, Hurting AMZN Stock appeared first on InvestorPlace.
After a Facebook user made a threat to the company’s Europe office back in 2018, the social media tech giant confirmed to mining its network for threatening comments and in some cases uses its products to track the location of people they believe could be a threat. Yahoo Finance's Adam Shapiro, Julie Hyman and Brian Cheung discuss.
Facebook CEO Mark Zuckerberg, Amazon's Jeff Bezos, and other tech industry executives will be called to testify before a committee of global political leaders in Canada on March 28. CBS News reporter Graham Kates joins CBSN with details.