|Expense Ratio (net)||N/A|
|Last Cap Gain||N/A|
|Morningstar Risk Rating||N/A|
|Beta (3Y Monthly)||N/A|
|5y Average Return||N/A|
|Average for Category||N/A|
Memory chip prices have soared over the past week as a diplomatic stand-off between Japan and South Korea has escalated, threatening global supplies of smartphone and computer components. The spot prices for dynamic random-access memory chips have spiked nearly 12 per cent since July 9, the biggest such jump since 2017, according to data from Bernstein, as fears build over Tokyo’s new export controls on materials critical to the manufacture of computer chips, South Korea’s biggest export. Tokyo’s restrictions meant that from July 4, the country’s exporters of fluorinated polyamide, photoresists and hydrogen fluoride etching gas — Japanese groups hold dominant market shares globally — had to get clearance for selling the materials to the world’s two biggest memory chipmakers, Samsung Electronics and SK Hynix.
South Korea, one of the world’s leading producers of semiconductors, has been caught in the crossfire of trade and tech wars. The payback is coming now, as trade friction, tech confrontation and a cyclical bottom in the semiconductor cycle exacerbate a collapse in the price of chips. The perfect storm will cause Korean exports to contract in 2019.
Samsung is exploring the possibility of developing augmented reality glasses,based on one of its latest patent applications first spotted by PatentlyApple
Memory stocks have been on the rise since June 25, when chip maker Micron Technology reported better-than-expected earnings results.
Japan’s threat of export controls on South Korean chipmakers risks “large unintended consequences” on the technology supply chain, including for Japanese companies, a top Asia economist has warned. on exports of key materials used by South Korea’s semiconductor manufacturing giants, in a move aimed at forcing Seoul to change its position on compensation over wartime forced labour. Shaun Roache, chief Asia-Pacific economist at S&P Global Ratings, said Tokyo’s export controls were a sign that technology is increasingly being used as a “geopolitical tool” by governments who might not understand the economic cost of their actions.
So much for Samsung maintaining even the slightest bit of secrecy around the Galaxy Note 10 ahead of its August 7th debut . Both Ishan Agarwal (via MySmartPrice ) and WinFuture have obtained what look to be official press images for the regular Note 10 and its larger Note+ counterpart (shown above). As you might have suspected, the two phones appear to push the Galaxy S10's nearly-all-screen concept even further. The more rectangular design has virtually no bezel, and the only interruption is a hole-punch camera located at the top center of the display.
Micron's Baa3 rating on its existing senior unsecured notes, the Baa2 rating on the senior secured term loan, and the stable outlook are unchanged. The rating is supported by Micron's excellent liquidity, with unrestricted cash and long term marketable investments of about $7.9 billion as of May 30, 2019, a $2.5 billion revolver maturing in 2023 (undrawn as of May 30, 2019), which Moody's expects will remain unused, and Micron's FCF generation and net cash leverage position.
FT subscribers can click here to receive Tech Scroll Asia by email. Hi everyone — south-east Asia is rising, China is cooling. Elsewhere in the region, Japan’s tech spat with South Korea appears to be claiming Samsung as a victim.
South Korean chipmakers may be spared the worst damage from Tokyo’s new trade restrictions on Seoul with Japanese officials saying the country plans to still grant export licences for all “bona fide” civil semiconductor exports.
Guidance from Samsung (SSNLF), the world’s largest manufacturer of memory chips, smartphones, and displays, has added to semiconductor worries and has sent most chip stocks down.
Investors saw a 0.10% decline in the Nasdaq today, while the S&P 500 slipped 0.24%. However, that's much better than where the markets were in the first few hours of the day on Friday. Stocks initially sold off somewhat hard in the session after the June jobs report was released.Source: Shutterstock The non-farm payrolls report showed that 224,000 jobs were added to the economy in June. That far outpaced economists' expectations of 160,000 jobs and follows the May report which missed analysts' expectations by a wide margin.There were already calls for the Federal Reserve to cut interest rates before the May jobs report was released. Once it missed expectations though, those calls grew even louder. In fact, investors started to clamor for a 50 basis point cut, rather than just a 25 basis point cut.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith the latest report coming in notably ahead of estimates, the expectations for a 50 bps cut are dwindling quickly. Breaking Down the Rate CutsObviously, the jobs report is the big driver on Friday. Particularly when the market was closed on Thursday for the Fourth of July and while volumes are light. Just hours after the NFP report was released, we now see that Fed Funds futures are calling for a less than 5% chance of a 50 basis point cut. * 3 Earnings Reports to Watch Next Week Notably though, they still call for a 95% chance of a 25 basis point cut. If the Fed opts not to cut interest rates at this month's meeting (July 30-31), it's going to cause issues in the stock market.How do rates relate to tech stocks and the Nasdaq today? The Nasdaq fell almost 1% on the day at the lows, before recovering later in the day. While tech is not the most rate-sensitive sector out there, it's hard to argue that lower rates are bad for tech stocks. It makes borrowing cheaper and given that many of these companies use debt to fuel their growth -- like Tesla (NASDAQ:TSLA) or Netflix (NASDAQ:NFLX) for instance -- that's good for their financials. Further, stock valuations benefit from lower interest rates and when multiples expand, tech is one of the biggest beneficiaries. Click to EnlargeAs for the Nasdaq today, the index made a near-perfect pullback to the key 8,100 level. The index promptly bounced from this mark and closed up toward 8,162. While it did breach 8,100 temporarily, Friday's action was pretty healthy overall. Let's see if 8,100 can hold up as support again next week, and potentially push the Nasdaq to new highs. News in the Nasdaq TodaySamsung (OTCMKTS:SSNLF) warned that its profit fell by 56% in the quarter. Sluggish demand for smartphones and memory chips weighed on the tech giant's bottom line.Given the action and news we've seen and heard from other chip and memory stocks -- Broadcom (NASDAQ:AVGO) and Micron (NASDAQ:MU) for instance -- Samsung's announcement is no surprise. Micron, Nvidia (NASDAQ:NVDA), Intel (NASDAQ:INTC), Skyworks (NASDAQ:SWKS), NXP Semiconductors (NASDAQ:NXPI) and others fell on the news too.Shares of Electronic Arts (NASDAQ:EA) were under further pressure Friday, falling more than 4% on the day. The stock is now down 7.5% for the week, as the company releases its second season of Apex Legends. The action is very disappointing, with the stock blowing through various moving averages and solidifying its range resistance. On the plus side though, key support is still holding up.Amazon (NASDAQ:AMZN) found itself in the news for a few reasons on Friday.First, Amazon filed for permission with the FCC to launch more than 3,200 satellites into orbit with the intention to provide broadband internet. It's not unlike some of the internet ambitions we've heard from companies like Elon Musk's SpaceX, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Facebook (NASDAQ:FB). Amazon believes its internet plans -- called the Kuiper project -- can serve tens of millions of customers at one point. * 7 Retail Stocks to Buy That Are Down in 2019 Elsewhere, Amazon hit a regulatory hurdle with its $575 million investment of Deliveroo. U.K. regulators have ordered the e-commerce giant to pause on its investment into the company while it weighs the competitive implications of the deal.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AVGO, NVDA, AMZN and GOOGL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Are Down in 2019 * 7 of the Best SPDR ETFs -- Besides SPY and GLD * 5 Dividend Stocks to Buy From Across the Globe The post Nasdaq Today: Jobs Report Alters Rate-Cut Expectations, Moves Tech appeared first on InvestorPlace.
Stocks finished slightly lower on Friday, backing away from all-time highs hit earlier this week, after a better-than-expected employment report in June partially rolled back investors' expectations for multiple rate cuts this year. The S&P 500 was down 0.2% to finish around 2,991. The Dow Jones Industrial Average shed 41 points, or 0.2%, to end near 26,925. The Nasdaq Composite was down 0.1% to end around 8,162. For the week, Dow was up 1.2%, S&P was up 1.7%, and Nasdaq up 1.9%. The S&P snapped a five-day winning streak, and the Dow ended its four straight session of gains. The U.S. economy added 224,000 jobs in June, above the 170,000 expected by analysts. Semiconductor stocks were on the backfoot on Friday after South Korean chip maker Samsung Electronics Co. Ltd. reported a 56% drop in its second-quarter profits.
On Friday, Samsung announced weak second-quarter guidance. It expects its operating profit to tank nearly 56% year-over-year in the quarter.
South Korea's Samsung Electronics Co said Friday its operating profit fell 56% year-over-year in the second quarter to 6.5 trillion Korean won ($5.5 billion) as memory chips continue to experience weakness ...
The major stock indexes were broadly lower early Friday after a strong jobs report. Chip stocks weakened after Samsung's profit warning.
The past nine months have been nothing less than miserable for Nvidia (NASDAQ:NVDA). Since peaking near $293 per share in October of last year, Nvidia stock price has dropped to a low of $124.46, and its couple of rebound efforts in the meantime have been less than permanent.Source: Shutterstock The current Nvidia stock price near $163 is still just over half of what it was less than a year ago.Certainly the underpinnings of NVDA's weakness are understandable. They include the rebirth of rival Advanced Micro Devices (NASDAQ:AMD), the implosion of the cryptocurrency mining industry and a tariff war with China, all of which are still key factors weighing on investors' minds.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Dividend Stocks to Buy From Across the Globe The degree of the punishment doesn't fit the scope of the crime, however, and three recent developments may well prove to be the excuse sidelined bulls are waiting for to file back into NVDA. RTX Super CardsWhether it's by design or just a simple coincidence is unclear, but the two big graphics processing powerhouses -- AMD and Nvidia -- rarely launch new products at the same time.That dynamic let Advanced Micro Devices steal some graphics processing unit (GPU) market share last quarter, driven by purchases of AMD's then-new 7 nanometer Radeon VII as well as its updated Polaris family.NVDA appears to have only been biding its time, however. The company's new GeForce RTX 2070 Super and GeForce RTX 2060 Super graphics cards, launching this month, deliver more power at the same price AMD is charging for its most comparable discreet GPUs.The current quarter could be better than expected for NVDA. Getting a Cheap Price From SamsungRather than tapping Taiwan Semiconductor Manufacturing (NYSE:TSM) as the manufacturer of its Ampere GPUs slated to debut in 2020, NVDA has asked Samsung Electronics (OTCMKTS:SSNLF) to handle the load. That may mean little on the surface to the layperson, but to technophiles, it matters.Details of the deal are scant, but most credible rumors seem to suggest that Samsung offered Nvidia a price it couldn't refuse. Either NVDA will enjoy wide margins on the GPUs or it will be able to pass those savings along to customers.It's often a risky move to switch suppliers and contracted manufacturers. Samsung has done similar work for NVDA in the past, though, and the Korean firm isn't exactly an unknown name in the business. MellanoxFinally, in March of this year, Nvidia announced that it intended to buy Israel's Mellanox Technologies (NASDAQ:MLNX), which makes internet switches and adapters, offering $6.9 billion in cash for the company.China, however, could still scuttle the deal.Chinese regulators could claim the pairing violates its antitrust standards. It's a stretched argument, but that scenario could still play out And, given the trade war tensions in place now, Beijing could easily run such interference for purely political reasons.Following a relatively amicable G20 summit that ended in an agreement to at least not impose any new tariffs on trade between China and the United States, however, China may choose to offer another olive branch by not impeding the acquisition.Mellanox would provide Nvidia with an even stronger hold on the data center market. The Bottom Line on NVDA StockDon't kid yourself. For better or worse,rhetoric and perception has done most of the damage to Nvidia stock, and it's a change in the rhetoric and perception that will lift Nvidia stock price again. This is, as much as anything else, a psychological situation.None of the three aforementioned developments is earth-shattering, but all are high-visibility developments that can quickly improve sentiment towards Nvidia stock, setting the stage for a sizable rebound.But there's still the impasse with China, which supplies Nvidia with half of its revenue. Even with no new tariffs being established, existing ones remain in place. There's little doubt that NVDA has felt their impact.Eventually, however, the tariffs will be rescinded or Nvidia will figure out a way to adapt to them. The deeper dive into data centers is one such adaptation. Switching production of its GPU to Samsung is another.Meanwhile,analysts' average price target for Nvidia stock is about $182; the most bullish analyst has a $225 price target on the name. Though those are forward-looking targets on NVDA, the company's got enough fresh firepower in its arsenal to justify prices somewhere between those two figures.It increasingly looks like investors are starting to recognize that reality, too.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post 3 Reasons to Take a Shot at Nvidia Stock Now appeared first on InvestorPlace.
Wall Street's main indexes were set to open lower on Friday after a strong rebound in U.S. job growth in June dashed hopes of an aggressive interest rate cut by the Federal Reserve this month. Nonfarm payrolls rose by 224,000 jobs last month, the most in five months, the Labor Department data showed. "It is still more likely than not that the Fed will cut rates but the odds have decreased somewhat," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
On June 26, Wedbush raised its 12-month price target on Roku (NASDAQ:ROKU) from $65 to $105. The investment-research firm cited the company's substantial growth opportunities. Roku stock is up significantly in 2019, so Roku shareholders surely welcome any upgrades to keep it moving higher.Source: Shutterstock And international expansion is where Wedbush finds justification for the upgrades. In its note to investors, the company stated:"Roku has built an exceptional platform on the back of its players, and as it expands in the rapidly growing Smart TV category, it has positioned itself as best in class for OTT advertising and is poised for international expansion."InvestorPlace - Stock Market News, Stock Advice & Trading TipsI couldn't agree more. * 10 Stocks That Should Be Every Young Investor's First Choice While its business in the U.S. is sizzling, the opportunities outside America are endless. Here's why: Roku Stock Has Barely Scratched the SurfaceConsider Roku's latest earnings report.ROKU generated less than 10% of its $206.7 million in revenue outside the U.S. It's so small that it doesn't break out its international business, presenting its sales in two reportable segments: platform and player.Of these two components, I'm going to focus on the platform business. That's the one that the company monetizes through the use of advertising.In January, eMarketer published 10 Ways Roku Is Growing Its Ad Business. It's an examination of the many ways it can make money from ads. In 2020, eMarketer estimates Roku's ad revenues will grow by 46% to $632.9 million.If we assume that Roku generates 6% of its overall revenue from outside the U.S., the company's international ad revenues in 2020 could amount to $38 million. That haul is hardly worth getting excited about.However, if the company's international business follows the growth path of its ad business in the U.S., the narrative changes. That's because U.S. ad revenues will have grown by 1,010% through the end of 2020. At that point, investors must take the potential opportunity seriously.Nobody thought Roku would get to $1 billion in annual revenue; yet, several analysts expect the consumer tech firm to hit this number by the end of fiscal 2019. That should do wonders for the Roku stock price over the long run. Smart TVs Key to GrowthWhile advertising is the main ingredient in Roku's pathway to GAAP profitability, smart TVs will also play a vital role.Smart TVs are the tenth way eMarketer sees Roku growing its ad business."TV makers like TCL, Sharp and Hitachi use Roku's software for their connected-TV products," wrote eMarketer contributor Ross Benes on Jan. 16. "The value lies in user acquisitions; the deals are more about Roku gaining adoption and getting people into the habit of using its platform than about the money Roku makes from the partnerships, according to Rosenberg [Scott Rosenberg, Roku's senior vice president and general manager of platform]."Here's the reality: Roku's streaming players and devices are becoming less critical as the company continues to make inroads with smart TV manufacturers.In 2018, approximately half of the smart TVs sold used an operating system like Roku's. In the U.S., of all the smart TVs that had a proprietary operating system, Roku accounted for 20% market share. That's second only to Samsung Electronics (OTCMKTS:SSNLF) at 33%. Why Roku Is UndervaluedRoku's operating system was built for TV, making it a much better experience. As it invests in international markets like Canada and elsewhere, manufacturers of TVs for sale outside the U.S. will gravitate to its operating system.Internationally, Roku accounted for just 4% of the Smart TVs in 2018, leaving lots of fertile ground ahead.As people outside the U.S. start using Roku's operating system daily, the opportunities for advertisers will also grow. The more TV advertisers realize that streaming ads are the better way to go, the more revenues Roku will generate. And that directly plays into the Roku stock price.In two years, the company's international business won't look anything like it does today. Before you pass on an expensive Roku stock price, might I suggest that you look to Netflix (NASDAQ:NFLX) for inspiration?If the next two years go as I think they will, $200 might be underselling Roku stock.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post Can Rokuas International Expansion Drive Roku Stock Higher? appeared first on InvestorPlace.
Samsung Electronics estimated its operating profit more than halved in the second quarter, amid growing concerns over US trade sanctions on Huawei and Japan’s export controls of high tech materials to South Korea. The poor earnings guidance comes as the semiconductor industry is buffeted by the slowing global economy, the US-China trade war and US export controls on Huawei.
The Competition and Markets Authority then said it would investigate how online platforms used customer data to generate advertising revenue, its impact on consumers and how it might harm competition. how, in order to increase the precision of targeted ads, the industry has often been enhancing the web data it receives from cookies, sending it to third-party companies which might be able to add offline data, gleaned from high street shops, or banks, to build up a detailed profile of a person’s potential worth to advertisers.
Samsung isn't about to leave the doldrums any time soon. The company reportedly asked Apple for compensation after its OLED display orders didn't meet minimum levels, although that hasn't been confirmed. While Samsung hasn't explained what dragged it down this quarter, its performance early in the year suffered primarily due to a drop in memory chip sales.
It is now just over two months since the South Korean electronics group cancelled the launch of the world’s first foldable smartphone after some reviewers said their screens had cracked or flickered, or failed altogether when a protective film was removed. At the end of May, the US retailer Best Buy cancelled all its pre-orders for the phone. “I think you guys have lots of questions,” joked Lee Jong-min, vice-president of Samsung’s mobile business, to investors in Seoul.