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The next wave of the Internet is already underway – here are seven companies poised to power this digital revolution.
Should investors consider adding Cisco to their portfolio? Jim Cramer weighs in TheStreet's new video segment, #AskCramer
Today we will run through one way of estimating the intrinsic value of Cisco Systems, Inc. (NASDAQ:CSCO) by taking the foreast future cash flows of the company and discounting them back to today's value. This is done using the...
Learn about Under Armour and how it differentiates itself in the competitive athletic apparel industry in light of Porter's Five Forces model.
Hedge funds are known to underperform the bull markets but that's not because they are terrible at stock picking. Hedge funds underperform because their net exposure in only 40-70% and they charge exorbitant fees. No one knows what the future holds and how market participants will react to the bountiful news that floods in each […]
Synamedia's near-term financial performance has been adversely impacted by continued revenue declines as well as by complications in the separation from Cisco. Moody's expects breakeven free cash flow over the next 12 to 18 months, with some possibility of a modest cash burn.
Under Armour Inc.'s North American president, Jason LaRose, will step down from his role effective April 30, 2019, the athletic company announced in a filing. Patrik Frisk, Under Armour's chief operating officer, will head up the North American business on an interim basis. Under Armour is scheduled to announce first-quarter earnings on May 2 before the opening bell. Under Armour shares have gained 8.2% over the last three months roughly in line with the S&P 500 index , which is up 8.8% for the period.
Eric Yuan started Zoom in 2011 after helping build WebEx, which Cisco bought for $3.2 billion. After Thursday's market debut, Yuan's stake in Zoom is worth $2.9 billion. In 2018, he was named Glassdoor's big company CEO of the year, with a 99% approval rating from employees.
Eric Yuan started Zoom in 2011 after helping build WebEx. His company is now worth $15.9 billion after its IPO, and Yuan owns about 20%.
Do you really want to pay 50 times last year's sales for Zoom , a video conferencing company, one that is second-banana in share to Cisco ? Does that make sense? The answer is no. And it is worrisome.
After pricing its IPO at $36 -- above a raised price range of $33 to $35 -- Zoom opened at $65.00 on Thursday morning and closed at $62.36. The first-day jump left Zoom valued at about $18.1 billion after accounting for outstanding stock options. Shortly after Zoom began trading, I had a chance to talk with CFO Kelly Steckelberg about Zoom's long-term strategy and post-IPO plans.
Check Point Software Technologies reported slim earnings and revenue growth that narrowly topped views for the first quarter. Shares of the firewall software maker fell in early trading.
A tireless evangelist for his company's cloud-based conferencing technology, Eric Yuan used Zoom video throughout the IPO process, as well as on IPO day. Here's what he and his CFO said about the experience of the past two weeks.
F5 Networks' (FFIV) fiscal Q2 results are expected to benefit from growth in its software solutions. However, margins are likely to be under pressure due to higher spending on cloud and security.
CalAmp (CAMP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Jason LaRose has worked at the Baltimore-based Under Armour since 2013 and led the sportswear maker's North America business since October 2016.
The premium on Twilio (NYSE:TWLO) continues to increasingly draw attention. Despite warnings about valuation coming from multiple quarters, Twilio stock has recovered quickly from all of its temporary pullbacks over the last 16 months. Consequently, this has taken TWLO stock to multiples that worry investors not typically concerned with value.With any path to higher stock prices becoming more unpredictable, investors should avoid this equity for now. Trading on Vision PremiumTwilio has come to dominate the platform-as-a-service (PaaS) market. Given that so many mobile apps rely on the company's product, the company appears poised to become one of the more essential tech firms. The upshot is that Twilio stock trades with what I call a "vision premium" -- that is, companies that bring cutting-edge technologies and trade on potential future earnings rather than the multiples of today.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTwilio's vision premium has taken its forward price-to-earnings (PE) to an astronomical 437 times earnings. As a result, both my InvestorPlace peers and I have cautioned traders not to buy at these levels. * 10 S&P 500 Stocks to Weather the Earnings Storm Admittedly, Twilio dominates the PaaS niche. Also, the fact that Twilio stock has become very expensive will not necessarily take the shares down. Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) moved higher for years despite supporting triple-digit PE ratios at times.My colleague Bret Kenwell calls TWLO stock a "buy on any pullback." He points to several instances where buying at near-term bottoms led to massive profits. This thesis may continue to prove correct. Voting, Weighing and Twilio StockUnfortunately, when a stock trades well into triple-digit multiples, "predicting" begins and ends with the limits of charting. Moreover, when looking at this, I find myself turning to a quote from Warren Buffett's mentor, Benjamin Graham."In the short run, the market is a voting machine, but in the long run, it is a weighing machine."The "weighty" factors which could affect Twilio stock extend beyond the fact that TWLO trades at about 23.4x sales and more than 28x its book value. We also trade in the 11th year of a bull market, making a stock selloff more likely. With no fundamentals to support its value, Twilio might bear the brunt of such a downturn.Also, traders should consider the history of past tech leaders. Cisco (NASDAQ:CSCO) lost about 90% of its value after becoming one of the more popular tech equities of the dot-com boom. Assuming a company survives such a stock loss, the effects of these high valuations can also last for decades. Cisco still has not recovered its 2000 high more than 19 years after the dot-com bubble reached its peak. Many high-flying tech stocks have and will continue to face similar situations. Competitive Threats RemainMoreover, while Twilio has become the dominant PaaS company, competitors such as Zendesk (NYSE:ZEN) and RingCentral (NYSE:RNG) do exist. These PaaS providers hurt Twilio stock last year when Uber announced that they would look at other PaaS companies. Twilio stock recovered when the company expanded its product and service offerings. However, TWLO could face further trouble if large, deep-pocketed cloud companies such as Microsoft (NASDAQ:MSFT) or Amazon decide to compete in this space. * 7 High-Risk Stocks With Big Potential Rewards As things stand now, Twilio stock trades at about 9.6% below its 52-week high. A move higher remains possible. Still, considering its situation, I see more factors that could bring about a pullback than inspire a recovery. Bottom Line on Twilio StockTwilio stock lacks a predictable path to further share price increases in the near term. Given that valuation has not influenced the price of TWLO, it could rise from these levels. For now, TWLO stock commands a vision premium, and the likelihood that it will dominate this up-and-coming industry drives this stock for now. Still, at some point, valuation matters. With forward PE ratios well into the triple digits, TWLO appears more likely to attract more weight than votes.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. 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 Avoid Twilio Stock As Long As Valuations Remain Stratospheric appeared first on InvestorPlace.
Including sales by the San Jose company's shareholders and private placements to underwriters and Salesforce Ventures, more than $950 million in Zoom stock could change hands in the offering.
Intel Corp.’s revenue may get hit on its decision to exit the 5G smartphone business after the settlement was announced. The revival of Qualcomm’s relationship with Apple eventually swayed Intel’s management to hang up its efforts to dominate the 5G smartphone modem business.
Recent acquisitions will significantly boost software-as-a-service revenue for the machine-to-machine communications leader.
How Are Cybersecurity Stocks Trading Compared to Valuations?(Continued from Prior Part)Stock returns Cybersecurity (HACK) stock FireEye (FEYE) has taken investors on a volatile ride over the last few years. The stock generated returns of -16% in the
Super Bowl winning coach Tony Dungy and his wife Lauren discuss their book ‘We Chose You’, as well as Russell Wilson’s new contract which made him the highest paid player in the NFL. Yahoo Finance’s Zack Guzman and Sibile Marcellus join them to discuss.