|Bid||123.37 x 2900|
|Ask||123.48 x 1800|
|Day's Range||121.31 - 123.50|
|52 Week Range||90.28 - 123.52|
|Beta (3Y Monthly)||1.01|
|PE Ratio (TTM)||28.62|
|Earnings Date||Apr 24, 2019|
|Forward Dividend & Yield||1.84 (1.56%)|
|1y Target Est||129.25|
Two tech companies had different receptions from investors in their Wall Street debuts Thursday, as the much-anticipated consumer unicorn company Pinterest’s strong showing was overshadowed by Zoom Video, which saw a 72.2% jump in its debut, reminiscent of some of the dot-com era IPOs.
Site plans reveal multiple buildings on the southeast corner of the largest of two parcels of land purchased by the tech giant in the West Valley city.
The plans and renderings come after months of speculation over what sort of massive development Jay Paul Co., which has a reputation of building high-quality buildings and attracting big-name tenants, would put together for a key site in the middle of San Jose’s growing downtown.
Microsoft (MSFT) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
“Many women simply aren’t cut out for the corporate rat race, so to speak, and that’s not because of ‘the patriarchy,’” a Microsoft employee wrote.
Virtual reality can be a rush to the senses, but not if you have vision problems. Microsoft researchers are trying to solve that problem via a tool kit for Unity VR developers to help players with low vision. Since vision problems vary by individual, the research team at Microsoft decided on a tool kit approach so players can customize their experience.
Microsoft (NASDSAQ:MSFT) has been on a winning streak given its diversified business portfolio and ability to deliver growth and financial results in a timely manner. Analysts continue to rally around the stock heading into its earnings announcement on April 24, which makes sense given the momentum on the charts, and sustained interest for a variety of Microsoft’s products both for consumers, and within the enterprise as well.The growth narrative tied to Azure Cloud drives much of the upside commentary among analysts despite the growth rate from Azure is expected to decelerate over the next couple-years. MSFT still trades at a fairly reasonable valuation at 31.35x earnings. The company’s current market capitalization is $934 Billion, with psychological resistance at $1 Trillion, or $130.37. Chances are Microsoft can reach $130 within the next couple months, assuming the stock market rally continues, and investors chase stocks at higher valuations.Despite multiple expansion adding to the recent stock price gains, software companies tend to trade at a bit a premium multiple given the defensiveness plus recurring revenue of the business model. Just look at Adobe for example, which trades at 49x earnings right now, despite EPS growth expectations of 20%. Microsoft trades at 30x earnings with consensus expecting 14.1% earnings for FY’19. So, there’s definitely some room for Microsoft to trade at a higher when compared to other software companies in the segment.UBS analyst Jennifer Swanson Lowe remains optimistic on Microsoft heading into Q2’19:> Microsoft shares had a slow start to the year as concerns about slower hardware purchasing from hyperscale providers and tough compares in the transactional portions of the company's weighed on sentiment. However, our checks point to sustained demand for Azure and ongoing Windows upgrade activity as Win7 end of life looms, while a reset in expectations post Q2 should improve the setup into Q3. Stock performance has perked up in recent weeks, but valuation at ~21x EV/CY19 FCF still looks defensive, and MSFT remains one of our favorite names for CY19, offering a balance of top-line growth, margin expansion, and FCF-based valuation support.The analyst has maintained her $125 price target on MSFT, and anticipates commercial cloud revenue growth of 39% in the next quarter:> We forecast Commercial Cloud rev. growth of 39% YoY to $9.6B on the back of 66% growth in Azure and 26% rev growth in Office 365 Commercial. Our checks continue to highlight strong demand for Azure as the platform underpinning digital transformation (growth is partially impacted by relatively mature per-user business while consumption-based business continues to remain healthy. We expect Commercial Cloud gross margin to improve 100 basis points quarter-on-quarter at 63%, based on improvements in Azure partially offset by lower-margin consumption-based services.The stock clearly wants to trend higher, and Microsoft does have a fairly solid track-record of meeting or beating consensus expectations. While Microsoft is a mature growth stock, the current consensus still anticipates the stock to trade at $129 currently, which implies that the stock could reach $1T in market valuation over the next 12-months.Microsoft will need to deliver some pretty solid results and raise financial outlook to get the stock trending up to $130. It seems doable given the stock’s momentum, and the valuation comparisons to some of its other software peers. Despite the catalysts tied to earnings, the summer months should also be interesting, as there’s a number of game software companies riding on this summer’s E3 conference like Electronic Arts and Activision Blizzard.At this year’s E3 2019 Conference, Microsoft is expected to announce the Xbox 2, which will launch next year, but the preview announcement could add some excitement to the stock, as it looks to renew interest in its gaming franchise. Microsoft’s gaming business produced $10.35B revenue in FY’18 making it a big enough of a business, for Microsoft to start pouring resources into it. With the opportunity to refresh its console line-up, it would be a big opportunity for Microsoft to announce more exclusive titles developed in-house to regain momentum versus Sony, and also build a larger installed base of Xbox Live subscribers from 57 million, which has grown fairly stagnant in the past four quarters.Bottom Line:Improvements in gaming related announcements along with the announcement of earnings on April 24th will add some positive sentiment to the stock. Analysts seem relatively optimistic on the company and it’s hard to mess up on the announcement of a next-generation console this year, so the buzz generating commentary will keep Microsoft relevant in the minds of consumers this year. Disclosure: The author has no position in MSFT stock.Read more: Is Microsoft (MSFT) Stock Still a Strong Pick for Growth? More recent articles from Smarter Analyst: * Jeff Bezos Is Leading Amazon (AMZN) in the Right Direction * Why Autonomous Could Be a Strong Driver for Nvidia (NVDA) Stock * Oppenheimer Still Sees 40% Upside for Tesla (TSLA) Stock * The Qualcomm (QCOM) Hype Continues: Canaccord Boosts Price Target on the Stock
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Eric Yuan, the founder of Zoom, was inspired by a 1994 Bill Gates speech on the future of the internet. The U.S. rejected the Chinese coder's visa eight times and when Yuan was finally able to emigrate, he didn't yet speak English. Now, his videoconferencing company is worth billions after Thursday's IPO.
When Eric Yuan was in his early 20s, he heard a speech from then-Microsoft CEO Bill Gates about the promise of the internet, and Yuan decided he wanted to move from China to the US to be a part of the Silicon Valley tech boom. Today, Yuan is the 49-year-old founder and CEO of videoconferencing cloud software company Zoom, which debuted on the Nasdaq exchange on Thursday in an IPO that currently values the company at more than $16 billion . In 1994, Yuan was just out of college and working in Japan for a few months at the same time that Gates was in that country to give a speech.
For the most part, video game stocks are performing well in 2019. Shares of Electronic Arts (NASDAQ:EA), one of the largest U.S.-based video game makers, are up 24% year-to-date, but the industry also has some laggards. Activision Blizzard (NASDAQ:ATVI), one of EA's most direct competitors, sees its shares lower by 2% this year.Globally, the video game industry is a $140 billion business and it is growing."Video game revenue in 2018 reached a new peak of $43.8 billion, up 18 percent from the previous years, surpassing the projected total global box office for the film industry, according to new data released by the Entertainment Software Association and The NPD Group," reports TechCrunch.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe video game industry, while expansive, is also highly fragmented. So while there are a growing number of thematic exchange-traded funds (ETFs) on the market today, the number of video game ETFs, as readers will see here, is quite low. In fact, there are just two funds resembling dedicated video game ETFs. * 10 Best Stocks to Buy and Hold Forever With that in mind, let's look at some of the funds, including some stretches, that have credibility as video game ETFs. ETFMG Video Game Tech ETF (GAMR)Expense Ratio: 0.75%, or $75 annually per $10,000 investedThe ETFMG Video Game Tech ETF (NYSEARCA:GAMR) turned three years old last month and is the first dedicated video game ETF to list in the U.S. For an ETF focused on a somewhat narrow niche, GAMR has been relatively successful as highlighted by the fund's $100 million in assets under management. Home to almost 80 stocks, this video game ETF tracks the EEFund Video Game Tech Index.GAMR is reflective of the global nature of the video game industry as the fund provides exposure to 14 countries. The video game ETF's largest geographic weights will not surprise seasoned gamers. The U.S., Japan, South Korea and China combine for almost 78% of the fund's weight. GAMR provides exposure to several compelling video game themes, including mobile gaming and digital downloads."The percentage of digitally downloaded video games rose from 31% in 2010 to 74% in 2016," according to ETFMG. "This is expected to climb to nearly 93% by 2021."This video game ETF is up nearly 17% year-to-date. VanEck Vectors Video Gaming and eSports ETF (ESPO)Expense Ratio: 0.55%In the video game ETF realm, the VanEck Vectors Video Gaming and eSports ETF (NYSEARCA:ESPO) is the most direct competitor to the aforementioned GAMR. ESPO, which debuted last October, is not just a video game ETF. The fund is one of the best avenues for exposure to the booming e-sports market.ESPO tracks the Global Video Gaming and esports Index. Many of the dedicated esports companies are not yet publicly traded, so ESPO's 25 holdings run the gamut of video game makers, such as Activision Blizzard and Electronic Arts, semiconductor makers and console makers. ESPO's components must derive at least half their sales from video games or esports to be included in the fund.Up 20.28% this year, this video game ETF has recently been hitting new highs, reflecting investors' expectations for the growing esports market. * 6 Cheap Stocks That Cost Less Than $10 "Competitive video gaming audience expected to reach 454 million people globally in 2019," according to VanEck. "Esports revenue growth has increased almost 40% yearly since 2015, supported by a young, affluent audience." iShares PHLX Semiconductor ETF (SOXX)Expense Ratio: 0.47%No, the iShares PHLX Semiconductor ETF (NASDAQ:SOXX) is not a video game ETF, but remember, there are not many video game ETFs and some semiconductor makers are heavily involved in the video game and competitive gaming markets. That includes Nvidia (NASDAQ:NVDA), the largest holding in SOXX.Nvidia rival Advanced Micro Devices (NASDAQ:AMD) is also making inroads in the video game space, having recently reported that its chips will power Google's online gaming platform known as Stadia. Shares of Nvidia and AMD combine for about 13% of SOXX's weight.While that is not enough to make this chip fund a video game ETF, it is enough to make SOXX an appropriate option for investors looking for indirect video game exposure via the ETF wrapper. SOXX is higher by 29% this year. First Trust Cloud Computing ETF (SKYY)Expense Ratio: 0.60%Some of the largest companies in the U.S., such as Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN), have significant video game exposure, but because video games are not the primary drivers of those companies' revenue, they do not reside in video game ETFs.While it is not a proper video game ETF, the First Trust Cloud Computing ETF (NASDSAQ:SKYY) has some legitimated video game credibility. Mobile game maker Zynga (NASDAQ:ZNGA) is SKYY's largest holding at a weight of 6.18%. Facebook (NASDAQ:FB), a platform for social gaming, represents nearly 5% of SKYY's weight while Amazon and Microsoft combine for nearly 7% of the fund's weight. Additionally, there are myriad cloud applications in the video game universe. * 10 Dividend Growth Stocks You Can't Miss "On trend with community gaming, the increasing preference for multiplayer gaming is pushing momentum in the cloud gaming industry," according to ETMG. "Cloud gaming allows gamers access to supercomputers that can render high-end games, exceeding the processing power that normal hardware players are capable of." iShares Expanded Tech-Software Sector ETF (IGV)Expense Ratio: 0.47%As its name implies, the iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is a software fund, not a dedicated video game ETF. However, IGV does have ample video game exposure because many companies in this space are software makers.Microsoft is IGV's largest holding at a weight of just over 8% … a relevant point because the company is the maker of the Xbox console. Additionally, a point that gets overlooked because of Microsoft's sprawling businesses, including business software and the cloud, is that the company is actually the fourth-largest video game company in the U.S.Video game makers Activision, Electronic Arts and Take-Two Interactive Software (NASDAQ:TTWO) combine for nearly 7% of IGV's weight. Global X Social Media ETF (SOCL) Expense Ratio: 0.65%The Global X Social Media ETF (NASDAQ:SOCL) is a valid alternative for a traditional video game ETF for several reasons. China's Tencent Holdings (OTC:TCEHY) is SOCL's largest holding at a weight of nearly 13% and that company is a significant footprint in China's growing video game market. In fact, China is the world's largest video game market.Bolstering the case for video game growth in China is that the government there approved nearly 800 games in the first quarter, most of which were not traditional poker or gambling-related board games. SOCL's video game ETF status is boosted by exposure to Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Facebook and Zynga, among others.With so many gamers turning to multi-player games and using these games to interact with friends and make new acquaintances, the intersections of social media and gaming are potentially limitless and highly lucrative for advertisers and game makers. Simply put, SOCL is a social media fund, but its video game ETF credentials have the potential to exponentially grow in the years ahead. Communication Services Select Sector SPDR (XLC)Expense Ratio: 0.13%The Communication Services Select Sector SPDR (NYSEARCA:XLC) is the first ETF dedicated to the communication services sector, which debuted last year. As such, this fund features massive exposure to Facebook and the two share classes of Alphabet. Those stocks combine for almost 43% of XLC's weight, giving this fund video game ETF viability.Activision Blizzard is also a top 10 holding in XLC and Electronic Arts and Take-Two also reside in this fund. XLC would see its video game ETF credentials increase if Netflix (NASDAQ:NFLX) and Walt Disney (NYSE:DIS), which combine for 10.26% of the fund's weight, bolster their video game exposure.Ultimately, XLC has some video game exposure, but the average market value of its 26 components is $358.69 billion, meaning many of these companies' bottom lines are not going to be materially altered by video game exposure over the near to medium term.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post 7 Video Game ETFs That Will Make You a Winner appeared first on InvestorPlace.
Microsoft has never been shy about being acquisitive, and today it announced it's buying Express Logic, a San Diego company that has developed a real-time operating system (RTOS) aimed at controlling the growing number of IoT devices in the world. Express Logic is not some wide-eyed, pie-in-the-sky startup. It has been around for 23 years building (in its own words), "industrial-grade RTOS and middleware software solutions for embedded and IoT developers." The company boasts some 6.2 billion (yes, billion) devices running its systems.
Express Logic says it has 6.2 billion deployments of its ThreadX operating system, reflecting the widespread nature of connected devices.
cloud business could drive yet another earnings beat when the software giant reports its third quarter 2019 earnings next week on April 24. Beyond this earnings report, the cloud business could be primed to drive the stock higher for the next year or so, Wedbush Securities analyst Dan Ives wrote in a Thursday note in which he raised his price target to $150 from $140. The new price target represents 25% upside from the stock's current level.
Zoom Video Communications' valuation topped $16 billion on its first day of trading amid reports that Microsoft made many unsuccessful offers to buy the San Jose cloud-based video-conferencing business over the years.
Google Cloud lags Amazon and Microsoft in market share and customer experience, but new CEO Thomas Kurian, previously a longtime Oracle executive, is trying to change that.
Starting Thursday and following a software update, users in the EU opening Google’s mobile app store will be presented with a choice of alternatives to Google search and Chrome. The Alphabet Inc. unit said options will vary by market, but Microsoft Corp.’s Bing and Norway’s Opera are notable competitors in the European search and browser market respectively.
As financial markets have rebounded in 2019, so have shares of now-cloud giant Microsoft (NASDAQ:MSFT). Owing to its operational stability, lack of any prominent headwinds, and robust exposure to secular growth tailwinds in the cloud market, MSFT stock was largely insulated from the late 2018 market sell-off.Until December. Then, markets fell off a cliff. So did MSFT stock. In just a few weeks, it spiraled from $112 to $94.Since then, it's been nothing but up, up and away for MSFT stock. The shares rebounded back above $100 by the end of the year. They cruised past $110 by February and by April, sailed above $120. All together, MSFT stock has rebounded 30% over the past few months to trade at fresh all-time highs today.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Q3 Numbers Will Be Gut CheckThis rally is about to get a gut check. Microsoft reports third quarter numbers next week. Considering how far and how fast Microsoft stock has come over the past few months, the company needs these numbers to be good in order for the stock to hold onto its year-to-date gains.Will the numbers be good? I think so. Everything I'm looking at suggests that Microsoft's cloud business has been on fire over the past few months. Ultimately, that should lead to headline beating numbers which will keep the rally in MSFT stock alive.Bigger picture, continued cloud strength will keep MSFT stock on a longer-term winning trajectory. Until that cloud strength cools, MSFT stock will keep making new highs. Investors Brushed Off Earlier DisappointmentBroadly speaking, Microsoft's upcoming third quarter earnings report is critical because it has the power to either confirm or negate the big year-to-date rally in MSFT stock. * 10 S&P 500 Stocks to Weather the Earnings Storm To be sure, this isn't the first time we've heard numbers from Microsoft in 2019. Back in late January, the company delivered Q2 numbers that were largely underwhelming. The big negative? Slowing growth. Revenue growth slowed from 18% in Q1 to 12% in Q2, while operating profit lost its mojo, with growth sliding from 28% to 18%. The culprit behind slower top- and bottom-line growth? Slowing cloud expansion, and that wasn't a bullish sign, since the Microsoft growth narrative goes as its cloud businesses go.But, investors largely brushed off those slowing growth concerns, and MSFT stock has rallied ever since. Why? Because investors chalked-up slowing Q2 cloud growth to broadly deteriorating global economic conditions. Those global conditions have meaningfully improved since late 2018, and as such, investors are thinking that maybe the Q2 cloud slowdown at Microsoft was just a blip on the radar. They reason that Q3 numbers should be much better.From this perspective, Microsoft needs to report a solid Q3 in order to satisfy bulls and keep MSFT stock in rally mode. Earnings Will Be GoodFortunately, I think Microsoft will deliver solid third-quarter numbers.Over the past several months, Exxon (NYSE:XOM) has tapped Microsoft as its cloud service provider in what is reportedly the largest cloud computing partnership in the oil industry. Volkswagen struck a similar large cloud deal. Meanwhile, Microsoft has teamed up with Adobe (NASDAQ:ADBE), VMWare (NYSE:VMW), and Slack in separate landmark partnerships, all of which have only broadened the utility and use cases of Microsoft's enterprise cloud solutions. Microsoft has also been named as one of the finalist for the Pentagon's huge JEDI contract, with the other being Amazon (NASDAQ:AMZN).In other words, it appears that over the past several months, Microsoft's cloud businesses have re-gained momentum that was lost in late 2018. This momentum will show up through improved Q3 growth rates, which will excite bulls and keep the stock in rally mode. * 7 High-Risk Stocks With Big Potential Rewards Longer term, this trend should continue to play out in favor of MSFT stock. The global cloud growth narrative is still in its first few innings, and Microsoft has established itself as an entrenched and dominant player in that industry. Thus, as cloud becomes a bigger and bigger piece of the total Microsoft pie, overall growth rates and margins will continue to improve. That will lead to healthy profit growth, which will ultimately keep MSFT stock on a winning trajectory. Bottom Line on MSFT StockThe big picture here is very easy to digest. Cloud is a huge growth industry, and Microsoft is right at the heart of all that growth. Thanks to the company's dominant position in the secular growth cloud industry, MSFT stock has secured a bright future for itself.As of this writing, Luke Lango was long ADBE and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post Cloud Strength Will Keep Microsoft Stock On A Winning Path appeared first on InvestorPlace.
Wedbush managing director Daniel Ives and Axios markets editor Dion Rabouin discuss the upcoming release of big tech earnings and what companies investors should be focused on.
Microsoft hitting a new all-time high ahead of next week's earnings, and Wedbush thinks it's set to go even higher. The "Halftime Report" traders debate the tech giant in the "call of the day."
Yahoo Finance's Adam Shapiro, Julie Hyman, Rick Newman, Jared Blikre, and Andy Serwer join Triton Research Co-Founder & CEO Rett Wallace to discuss Zoom's start to trading.