|Bid||154.45 x 1100|
|Ask||154.54 x 1800|
|Day's Range||152.85 - 154.89|
|52 Week Range||93.96 - 154.89|
|Beta (5Y Monthly)||1.23|
|PE Ratio (TTM)||29.16|
|Earnings Date||Jan 28, 2020 - Feb 3, 2020|
|Forward Dividend & Yield||2.04 (1.33%)|
|1y Target Est||160.69|
I read an article on Bloomberg about Holocene Advisors. According to Bloomberg Holocene Advisors tripled its assets to $5.3 billion since its inception in 2017. That's probably because Holocene is a beta neutral hedge fund (I will explain what that means in a bit) and returned 9% in 2017, 3% in 2018, and 14% in […]
Microsoft has deftly counter punched by sticking to tightly-scripted comments and side-stepping an ugly dispute between AWS and the federal government.
The conspiracy theory at the heart of Amazon.com Inc.’s lawsuit over its loss of the $10 billion JEDI contract is another example of more possibly unethical tactics by the Trump administration.
Tech spats between China and the US have encompassed smartphones and social media apps — and now the humble office keyboard. The new directive, nicknamed “3-5-2”, aims to increase China’s reliance on homemade technology and could deal a blow to foreign technology groups such as HP, Dell Technologies and Microsoft.
(Bloomberg) -- The U.S. Army will spend $111 million next year in a new contract with Palantir Technologies Inc., deepening ties between Peter Thiel’s data analytics company and the Pentagon.The new Defense Department deal will represent about 10% of Palantir’s revenue next year, according to people familiar with the company’s finances. It’s the first step in what could be a four-year, $440 million deal with the Army.The Silicon Valley company will provide software to connect human resources, supply chains and other Army operations systems into a single dashboard. The Army considered earlier proposals for related work from Accenture Plc, Deloitte, Ernst & Young and Microsoft Corp.“We started Palantir in 2004 to help the war fighter and solve difficult problems,” Doug Philippone, head of Palantir’s global defense business, said in an emailed statement. “In helping the Army make better use of its own data, we accomplish both goals.”The Defense deal solidifies a relationship between the U.S. government and the Palo Alto, California-based company, which was co-founded and partly bankrolled by Thiel. The billionaire venture capitalist and adviser to President Donald Trump has chastised other technology companies, in particular Alphabet Inc.’s Google, for their reluctance to work with the Defense Department. After Google abandoned a Pentagon effort known as Project Maven, Palantir stepped in to help develop video recognition software as part of the project, a move reported earlier by Business Insider.On Saturday, a company spokeswoman said Palantir will run its first-ever commercials, which will air during the Army-Navy football game, in a bid to show its support for the U.S. military.In recent years, Palantir has sought to work more with companies and be less reliant on government contracts. Airbus SE and Merck KGaA are among its customers, but government clients still make up a significant portion of revenue.To contact the reporter on this story: Lizette Chapman in San Francisco at email@example.comTo contact the editors responsible for this story: Mark Milian at firstname.lastname@example.org, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Creating community and providing workspaces for a range of employee needs were core to the design GitHub put together when it moved into its Bayside Village headquarters six years ago.
To get a taste of what’s coming, head to California. On Jan. 1, two new California laws will try to address some of the thorniest issues created by tech companies’ mounting power. Let’s start with AB (Assembly Bill) 5, which focuses on improving working conditions for “gig” economy workers at places like (UBER)(ticker: UBER), (LYFT) (LYFT), DoorDash, Postmates, and Instacart.
The stock market took another roller coaster ride in late-session trading Friday, a day after the White House agreed to a trade deal with China.
The new device is a thick-looking brick that promises to be a major step up from the Xbox One. It looks more like a PC tower than a console, and that’s great for its performance prospects.
Amazon had a big week with government issues, a host of new deals and announcements at its annual conference and developments in India.
(Bloomberg) -- Scott Lang, the new chief executive officer of Turvo Inc., wants to emphasize an important corporate policy at his startup: Employees may not entertain clients at strip clubs and certainly not bill those trips to the business. The rule is salient because his predecessor was fired for doing just that.The board accused the co-founder, Eric Gilmore, of expensing $76,120 at strip clubs over a three-year span and removed him as CEO in May, according to legal filings. Gilmore, 39, didn’t deny the accusations, but he sued the company, claiming the board didn’t follow the proper protocol for his termination. Turvo said it did, and they settled in September. Gilmore declined to comment through a spokesman.Lang, a former executive in the energy industry, joined Turvo just before Thanksgiving. The Silicon Valley startup makes software to help companies track the movement of freight and is backed by about $85 million in venture capital. In his first interview since taking the job, Lang said he’s focused on helping the company move past the scandal. When asked about trying to win over prospective clients at stripper joints, he said: “Never have. Never will.”The situation at Turvo, which hasn’t been previously reported, illustrates the steps some boards are taking to quietly address allegations of misconduct before they become public. The MeToo movement has claimed the jobs of many technology executives, such as Kris Duggan of Betterworks Systems Inc. and Andy Rubin of Essential Products Inc., and venture capitalists Justin Caldbeck and Shervin Pishevar. Often, the consequences only arrive after allegations are published in the news.Gilmore, a veteran of Microsoft Corp. and Coupons.com, started Turvo in 2014. Mubadala Investment Co., the Abu Dhabi-based sovereign wealth fund, led a $60 million investment in the Sunnyvale, California-based company last year. Soon after, Gilmore hired a new chief financial officer, who discovered a pattern of unusual charges from the CEO in a review of corporate spending.The stripper-related expenses spanned most of the company’s life, and Gilmore made no attempt to conceal them. Strip clubs represented more than half of the $125,000 in entertainment charges initially flagged by the CFO.At a hastily called meeting in May after the board learned of the expenses, directors from Mubadala and venture capital firms Felicis Ventures and Activant Capital told Gilmore he was out. They demanded he sign a separation agreement. Gilmore declined and argued the process violated company bylaws because the confrontation wasn’t at first presented as a formal board meeting and didn’t adhere to other rules. The board disagreed. Gilmore’s lawsuit over the dispute lasted three months. Terms of the settlement weren’t disclosed.Gilmore remains on the board and is the company’s largest shareholder, according to a person familiar with the matter who wasn’t authorized to discuss it publicly and asked not to be identified. Gilmore’s two co-founders still hold executive roles at Turvo, and there has been no suggestion they misused their expense accounts.The Turvo board selected Lang as the new CEO in the hope he could reinvigorate a company still grappling with a demoralizing situation. Lang, the former CEO of Silver Spring Networks, praised the 200-person team at Turvo for winning several big contracts recently and posting “massive” growth this year. He declined to provide details.To contact the author of this story: Sarah McBride in San Francisco at email@example.comTo contact the editor responsible for this story: Mark Milian at firstname.lastname@example.org, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A multiyear business restructuring by Oracle has moved the database software giant solidly into cloud computing, as bulls and bears continue to debate what it means for the company's stock.
Amazon (NASDAQ:AMZN) has reported a significant decline in its Amazon Web Services operating margin in recent quarterly earnings. The operating margin of AWS declined from 31.1% in the year-ago quarter to 25.1% in the latest quarter, a staggering 600-basis points fall.Source: Rocky Grimes / Shutterstock.com Despite a 35% year-over-year growth in revenue, the operating income grew by a mere 6%, excluding foreign exchange. One of the main reasons behind this sudden fall in operating income is the changing dynamics within the cloud industry.Microsoft (NASDAQ:MSFT) is the chief rival of AWS. It reported 59% growth in its Azure cloud segment. The revenue base of Microsoft's cloud segment has increased to a level at which it is competing with AWS on even the most lucrative of cloud deals. Microsoft recently won a $10 billion cloud contract from the U.S .Department of Defense. Amazon was another of the main bidders.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPlus, Microsoft's multi-billion partnership with AT&T (NYSE:T) is also going smoothly. In the last few days, it has won a partnership with Salesforce (NYSE:CRM).We could also see Microsoft emerge as the chief cloud option -- outside of AWS -- for clients such as Walmart (NYSE:WMT). These factors can curb the growth of AWS and also squeeze its margins. This will be the biggest headwind for Amazon stock in the next few quarters. Negative Trends for AWSThe decline in overall operating income from Amazon was a bit shocking. Management cited growing shipping costs as one of the main reasons behind this decline. However, looking closely at all the business segments, we can see that AWS has played a key role in the fall of operating income. * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade Amazon reported 35% year-over-year revenue growth in AWS. This is a bit lower than in previous quarters, but it is still quite good. However, the operating income of AWS increased by a mere 6%. This is a big change compared to the year-ago quarter. AWS is the main contributor to Amazon's operating income.Hence, single-digit operating income growth in AWS played a big role in pulling down the overall operating income of the company. This also led to the first decline in company-wide operating margin in the last few quarters. Slower revenue growth and falling margins are a major challenge for Amazon stock Microsoft Goes All-InMicrosoft is making an aggressive pitch to gain market share in the cloud segment. The revenue growth in Azure has been higher than in AWS for the past few quarters. In the latest quarter, Azure grew by 59% compared to 35% growth in AWS.Microsoft does not break down the Azure revenues, but the consensus estimate is that it is right behind Amazon in terms of cloud market share. The commercial cloud revenue of the company which includes Azure, Office 365 commercial and Dynamics 365 reported year-over-year growth of 36% to $11.6 billion. More importantly, management mentioned that the gross margin of this segment expanded by 4 percentage points on a year-over-year basis. They forecast that this expansion will continue into fiscal 2020. Microsoft Has the AdvantageIn the long term, Microsoft has a number of important advantages against AWS. One of the biggest is that it is not Amazon. Clients in industries like retail, finance, healthcare and content streaming would like to avoid taking cloud services from Amazon as it is their main competitor. For example, Walmart made a strategic partnership with Microsoft in 2018 to buy cloud services. If Walmart were to buy the same cloud service from Amazon, it would only strengthen its chief rival.This is true even in international markets. Microsoft is the cloud provider for Jio and Eros Now in India. Both of these companies view Amazon as a competitor.Microsoft has been able to increase its revenue from India to over $1 billion on the back of the cloud push. This trend could repeat in other important international regions where Amazon provides retail services. Amazon is also focusing on its financial platform, which makes it a competitor to traditional financial players. Microsoft does not compete in this segment, making it a better alternative compared to AWS.MSFT also has the advantage of high margins in other segments. While Amazon depends heavily on AWS to boost its profits, Microsoft has a more diversified profit base. This allows Microsoft to give greater discounts to gain market share. We have already seen this in the growth rates of Azure mentioned above. If Amazon wants to show respectable growth in AWS, it would need to give higher discounts. This will end up hurting its operating margin in this segment as well as the overall margins. Impact on EarningsMicrosoft cloud growth will be the biggest headwind for Amazon stock in the next few quarters. It should be noted that recent estimates have valued AWS at a standalone valuation of over $500 billion, almost 60% of Amazon's market capitalization. If the revenue growth in this segment falls substantially or there is a further decline in AWS operating margins, we could see a bearish sentiment towards AMZN stock.AMZN stock's trailing price-to-earnings ratio is close to 80. This is quite high if the company shows a negative trend in earnings per share. The fall in operating margin in the latest quarter has led to a big decline in EPS and also reduced future EPS estimates.Investors should closely monitor the revenue and margin trends in AWS over the next few quarters. This will show if the recent results were due to some seasonal issue or if they are part of a long-term headwind. My Takeaway on AMZN StockMicrosoft is rapidly growing its cloud revenue which makes it a major challenge for AWS. In the latest quarter, Microsoft's Azure showed a revenue growth of 59% compared to 35% by AWS. The gross margins of the cloud operations of Microsoft have also expanded by 4% while the operating margin of AWS has declined by 6 percentage points compared to the year-ago quarter.Microsoft can continue to use its huge resources to build its cloud business. It will also be at an advantage due to the fact that it is a better option than AWS for many cloud consumers who view Amazon as their competitor. If the current trend of declining margins in AWS continues in the next few quarters, it could lead to negative sentiment towards AMZN stock.As of this writing, Rohit Chhatwal did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade * 7 Tech Stocks to Stuff Your Stocking With * 7 Sinfully Good Casino Stocks That Could Win the Jackpot in 2020 The post Amazon's Cloud Battle With Microsoft Weighs on AMZN Stock appeared first on InvestorPlace.
We found three cloud-focused software stocks using our Zacks Stock Screener that investors might want to consider buying for 2020...
The Dow Jones Industrial Average whipsawed on news of a "very large" phase-one China trade deal per President Trump's tweet in the stock market today.
(Bloomberg Opinion) -- Electrons aren’t much of a growth industry in the U.S., the second-largest electricity market in the world after China. Electricity sales rose last year, after nearly a decade of being flat or falling slightly, but are still only up 3% since 2007. There is one market, though, where demand for electrons is booming: data centers. That power-hungry growth market, though, is also where some of the world’s biggest, most capitalized and most innovative companies are bringing their might to bear. Before getting into that innovation, though, there’s a crucial equation to consider: the power usage effectiveness ratio, or PUE. PUE is a measure of a data center’s energy efficiency — the ratio of total energy used divided by energy consumed specifically for information technology activities. The theoretical ideal PUE is 1, where 100% of electricity consumption goes toward useful computation. All the other stuff — power transformers, uninterruptible power supplies, lighting and especially cooling — uses power but doesn’t compute, and as a result raises a data center’s PUE. A 2016 Lawrence Berkeley National Laboratory study listed what was, at the time, PUE for facilities at various scales: a server sitting in a room, a server in a closet, a “hyperscale” extremely large data center. The smaller the server, the higher its ratio and the lower its efficiency. For the smallest server spaces, the PUE is above 2, meaning that more than half of its energy use is for things other than computing. For hyperscale, the PUE is 1.2 — meaning that most of the energy is going to computation. Here are that same data, expressed a bit differently, to show a server or data center’s power consumption by use. Here you can see that the smallest applications used more power for cooling than for computation. But at hyperscale data centers, more than 80% of power consumption went to IT (servers, networking and storage), and only 13% went to cooling. But now, with so much computation happening in the cloud (and, in reality, in hyperscale data centers), it’s worth finding out what today’s PUEs are and just how close they can get to that theoretical ideal of 1.0. A recent Uptime Institute survey of 1,600 data center owners and operators found that 2019’s average PUE is 1.67, and that “improvements in data center facility energy efficiency have flattened out and even deteriorated slightly in the past two years.” That PUE means that 60% of data center electricity consumption is going to IT, and the rest to cooling, lighting and so on. However, some operators are doing much better than that. Google says that its data centers have a PUE of 1.1, with some centers going as low as 1.06. There’s some seasonality in play, particularly because most of Google’s data centers are in the Northern Hemisphere; its Singapore data center has the highest PUE and is the least efficient of its sites. That’s not surprising given Singapore is hot and humid year-round. One key way to lower the cooling demand for a data center is to cool only to the temperature at which the machines are comfortable, not to where humans are most comfortable. For Google, that’s a temperature of 80 degrees Fahrenheit. There’s another approach, and one that draws on computation itself: machine learning. Google unleashed its DeepMind machine learning platform on the problem of data center energy efficiency three years ago; last year, it effectively turned over control to its own artificial intelligence: In 2016, we jointly developed an AI-powered recommendation system to improve the energy efficiency of Google’s already highly-optimised data centres. Our thinking was simple: even minor improvements would provide significant energy savings and reduce CO2 emissions to help combat climate change.Now we’re taking this system to the next level: instead of human-implemented recommendations, our AI system is directly controlling data centre cooling, while remaining under the expert supervision of our data centre operators. This first-of-its-kind cloud-based control system is now safely delivering energy savings in multiple Google data centres.It seems likely that more of that sort of approach will be adopted by Amazon Web Services, Microsoft, IBM and other major cloud computing firms. Even with efficiency gains, data center electricity demand is voracious and growing; that growth has a number of implications for the power grid and for power utilities. The first is that many of these major consumers of electricity are also contracting for wind and solar power to meet their demand. The second is that, with many data centers clustering in locations such as Northern Virginia, data center loads are becoming a meaningful share of utility peak demand in a given service territory. Recent BloombergNEF research finds that data centers could make up 15% of Dominion Energy Inc.’s summer peak demand by 2024. Given that data center operators have every incentive to economize on electricity, utilities need to compete to provide service. Preferential — and confidential — contracts for power supply are one way to do that, with the result being that other rate payers bear the cost, as Bloomberg News reported last year. Gains in efficiency don’t mean that data center demand for electricity is going down. Their scale and growth is a testament to their power usage effectiveness. Their preferential contracts for electricity, on the other hand, feel like a testament to their effective usage of a different kind of power: buying power. Weekend readingChevron Corp.’s $10 billion to $11 billion impairment charge, related mostly to its Appalachian natural gas assets, “ushers in oil’s era of the sober-major.” Chevron has also called time on the Kitimat liquefied natural gas export plant in British Columbia, writing off years of development while also planning to sell its 50% stake. Kawasaki Heavy Industries Ltd. has launched the world’s first liquefied hydrogen carrier. Tesla Inc. has lost its third general counsel in the course of a year. Vancouver-based Harbour Air Ltd.’s electric seaplane has taken flight. I looked at the environmental implications of electrifying aviation last month. Stanford University has released its 2019 Artificial Intelligence Index Report. Venture capital fund Piva, funded by $250 million from Malaysia’s Petronas, has launched with a focus on energy and industry. Bloomberg Media will acquire CityLab, a news site covering “urban innovation and the future of cities.” Nomura Holdings Inc. will acquire sustainable technology and infrastructure boutique investment bank Greentech Capital Advisors. Hiro Mizuno, the chief investment officer of Japan’s $1.6 trillion Government Pension Investment Fund, has “embraced ESG principles so enthusiastically” that the fund will not award new mandates to managers without environmental, social and governance credentials. Considering the legacy of Xie Zhenhua, a key architect of the Paris Agreement and China’s climate negotiator for more than a decade. Greta Thunberg is Time Magazine’s Person of the Year. Get Sparklines delivered to your inbox. Sign up here.To contact the author of this story: Nathaniel Bullard at email@example.comTo contact the editor responsible for this story: Brooke Sample at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nathaniel Bullard is a BloombergNEF energy analyst, covering technology and business model innovation and system-wide resource transitions.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
I have written about Amazon (NASDAQ:AMZN) stock many times before and I have been consistent with my message. Long term, AMZN stock will be higher. This management team under the leadership of Jeff Bezos has earned the benefit of the doubt. They have executed very well on their plans for over a decade. That's how they've come to dominate so many verticals including the cloud.Source: Hadrian / Shutterstock.com In the last five years, Amazon stock continues to clobber the averages and all of the top five tech mega-cap companies. It's up more than 472% while the S&P 500 is up only 52%. For reference, Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Facebook (NASDAQ:FB) are up 120% to 160%. Microsoft (NASDAQ:MSFT) is up 220% for the same period. There is no doubt that AMZN is a star among giants. * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade In spite of the winning record, lately the consensus on Wall Street is that AMZN is not a stock to buy today. The reason they cite is that management is in spending mode. This to me is the opportunity because whenever AMZN spends money, it usually results in a new revenue source. But for now and from the report the company delivered on their last earnings call, the critics have their reasons to avoid the stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor the long term, dips are buying opportunities. Since I am not a perma-bull just for the sake of being one, I prefer to trade the AMZN price action based on the short-term levels.Amazon stock looks like a stock that is consolidating around its five-year point of control. This is the level where most of the price action occurred during that stretch of time. As buyers and sellers fight it out around $1,760 they establish a strong base. Bulls then use this base to mount another breakout rally. This is also the case on lower time frame charts. The 12-month daily chart also shows the AMZN stock price has been pivoting around the $1,777 point of control. These levels tend to be sticky as they provide support, but are also tough to break through. Resistance Is AMZN Stock's Upside OpportunitySource: Charts by TradingView If and when AMZN stock rises above the zone it will overshoot much higher. Depending on the investor trading speed there are a few different bullish trigger levels, the slowest of which is near $1,833 per share. Above it the bulls can launch a rally that can bring about $150 of upside potential. This would bring it close to filling a gap just below $2,000 per share.Shorter term, there are resistance levels at $1,766 and $1,789. But these are also bullish triggers when they are taken out. It is important to note that $1,808 was a major failure point from late November which will also be strong resistance on the way up. Amazon Needs to Hold Important LevelsI promised you that I won't be a perma-bull, so it is not all coming up roses for AMZN stock these days. Yes, there is strong support near $1,740, but if it closes below $1,730 or $1,723, sellers will gain momentum downward. But even then the damage should be contained.There is a very clear bounce level from the earnings reaction near $1,690 per share. Usually emphatic rejections of a level like the one from the earnings report and from Oct. 19 are tough levels to breach.There are other ways of trading Amazon stock without being in immediate danger through options. A few weeks ago I wrote about selling the Amazon January $1,550 puts and collecting $6 for the risk. This trade is now a huge win with $4 of profit without any money out of pocket to do it. The risk then would have been to own AMZN stock but with an 11% buffer. The options markets offer hundreds of ways to trade AMZN bullish, bearish, or both.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade * 7 Tech Stocks to Stuff Your Stocking With * 7 Sinfully Good Casino Stocks That Could Win the Jackpot in 2020 The post AMZN Stock Is Building a Base to Set New Highs appeared first on InvestorPlace.
The Series X, powered by a custom AMD chip, will deliver four times the processing power of the previous generation's Xbox One X.
Smith has become an important voice on some of the most salient issues facing the Puget Sound region, Washington state and the nation — from transportation to affordable housing to education. He is the Business Journal's 2019 Executive of the Year.
The new model called Xbox Series X, which Microsoft describes as its "fastest, most powerful console ever," will launch in Holiday 2020. "We wanted to design a console where the form was driven by the function," Phil Spencer, vice president of gaming at Microsoft, told GameSpot.