1.34k followers • 12 symbols Watchlist by Yahoo Finance
This basket consists of companies tied to modern and traditional romance in the US.
Much has been made about the loss of two of its most popular shows, but over time, losses such as these will become less important.
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be...
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be...
Ewan McGregor is reportedly in talks to reprise his role as Obi-Wan Kenobi in yet another Disney+ Star Wars show.
The landmarked James A. Farley Post Office, currently being redeveloped, is also a possibility, according to The Real Deal.
Universal Orlando Resort's annual fright fest is getting a little fancy this year with a new water show. This year's Halloween Horror Nights, which runs Sept. 6-Nov. 2, will debut a new attraction for guests called "Halloween Marathon of Mayhem." The new show will use the Universal Studios lagoon as a set highlighting all the various themes featured as haunted houses this year. Here's more from Universal on the new show: This year, Universal is debuting 10 new haunted houses, five scare zones and multiple other attractions.
Netflix (NASDAQ:NFLX) stock has slain many short sellers over the years. This was a direct result of its success in establishing a trend that is currently sweeping the globe. Even though Netflix stock is lagging the S&P 500 by ten points year-to-date, there is more upside in the stock from here. NFLX is a momentum stock that moves quickly -- blink and you miss it.Source: Shutterstock Thanks to Netflix, the entire world is now switching to delivering content over the internet. Streaming shows and news is now the preferred way to disseminate content. The days of cable are on their way out. In that, NFLX has the first-mover advantage so NFLX stock should continue to be a buy until most of the competitors that are currently chasing it, like Disney (NYSE:DIS), catch up and in a big way.Disney is the poster child of all companies that are chasing after NFLX, but in reality there are dozens of them. However, the addressable market is so large that there is room for all of them to prosper for the next decade. Even though Netflix management has had a few flubs, they recovered well from them, so this is a proven team.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, critics argue that they spend money like fools and they are right. NFLX's budget for content creation is astonishing. But for now, it's their ace in the pocket. The bullish thesis for Netflix stock, and the reason why Wall Street allows it to sell at such a high premium, is the fact that they use their content as a magnet to new subscribers. The global expansion is the large future reward for investors today. * 15 Growth Stocks to Buy for the Long Haul Buying NFLX stock here is not for the faint of heart. This is a stock that is very expensive. It sells at price-to-earnings ratio of 120 and 9 times sales. Moreover, there are armies of bearish experts constantly and publicly dissing the stock, which will continue to be a drag on it. How to Approach Netflix Stock TodayAlthough I am not a fan of their fundamental setup and its current format, I do see the future potential. NFLX still has some time left before it actually needs to dial back the spending. In other words, the top line has to grow fast enough to ameliorate the financial ratios and silence the critics much like Amazon (NASDAQ:AMZN) did a few years back.The Netflix stock chart also has clues. This week, the market fell off of cliffs and took NFLX with it to the point that it lost a short-term support level. In addition, it is now below the $300 per share number. This is always a psychological barrier, and to lose it without much fault of its own is disappointing.But a broken stock chart does not necessarily indicate a broken company, and that is the case here. Netflix is falling with the entire market because of a crisis of sentiment on Wall Street. We are amid a storm of geopolitical headlines and massive moves in the bond markets. These are gigantic and stocks in general go along for the ride.Netflix stock will find footing even though the bearish downside target from here could be as low as $260 per share. No, this is not a forecast but it's definitely a scenario that exists today.Since they don't ring bells, it's impossible to find a perfect entry point. If you already own NFLX shares and haven't sold them yet, don't do anything for the next few days and see what happens around this zone.If I'm looking for a long-term entry in NFLX stock, then it's useless to try to pick the absolute perfect tick to buy it. I can start a position and leave room to add to it overtime.Those looking to trade Netflix for the short-term should just use the charts and the trigger levels for that. There is no clear support level below, so the Thursday low is as good as any for a stop loss. On the upside, the $300 mark is the obvious pivot. But then there are several ones above that.The general pattern is a sharp descending wedge. Those usually end in a violent move. So as soon as there is a breakout from the descending trend line of lower-highs, that should invite momentum buyers. From there, I simply follow the levels one step at a time. * 7 Ways to Play Private Equity Without Being a Billionaire Trading actively during a storm of headlines is tricky. Most homework is held hostage to tweets, state media releases and Fed-head statements. So caution is more than warranted until we get relief on at least one of those fronts.For the long-term, the bullish thesis is still completely alive. We have full employment in the U.S., plus we have the commitment of the Federal reserve to cut rates, and the rest of the world is in full stimulus mode.Just yesterday we saw Mexico announce rate cuts. The European Central Bank also intends on adding to their stimulus there, so the whole world is committed to keeping this expansion going.These are uncertain times, so I suggest only risks what you can afford to lose. There's no shame in sitting this whole mess out. Cash is a position, especially when rates are so low.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 * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post The Bullish Thesis Behind Netflix Stock Is Still Strong appeared first on InvestorPlace.
Netflix will spend $15 billion on content this year alone—up from $12 billion last year. Some analysts started to sound the alarm about Netflix’s spending.
If Needham analyst Laura Martin is even only vaguely right about Walt Disney (NYSE:DIS), investors may want to step into DIS stock sooner rather than later.Source: Shutterstock Martin's exact words, posted in her note tom nvestors on Wednesday were : "We project DIS will win (and NFLX lose) the U.S. SVOD [subscription video on demand] battle."Martin went on to explain that "U.S. consumers have shown a reluctance to add to their three SVOD services. This implies that DIS's projected 20 million to 30 million U.S. subs [subscriptions] by 2024 will mostly come from Netflix's (NASDAQ:NFLX) 60 million U.S. subs."InvestorPlace - Stock Market News, Stock Advice & Trading TipsIndeed, the launch of Disney's robust streaming package in November could cause serious trouble for Netflix . Although Netflix's expected subscriber losses won't inherently translate into added profits for Walt Disney, the stock market may reward DIS stock all the same. * 10 Cheap Dividend Stocks to Load Up On And even if Disney's upcoming on-demand video package isn't wildly successful initially, it could set the stage for growth that could meaningfully boost Disney's bottom line in time. What Martin SaidAs Martin, the Needham analyst, noted, consumers are seemingly more likely to ditch one streaming-video service and replace it with another than to simply tack on more services.There's evidence to support the theory. One layer of evidence surfaced in May, when Hub Research determined that 24% of consumers felt they already subscribe to too many streaming options. A year ago, the figure was 14%, meaning that the trend is working against Netflix, and in some regards even working against Walt Disney and DIS stock. And there's no conclusive evidence that as many as half of Netflix's current U.S. subscribers will cancel their service after DIS launches its competing offering.Still, over one-third of the people surveyed by Hub Research conceded they would cancel one of their streaming video subscriptions if they chose to sign up for another. That bodes badly for Netflix stock.Additionally, Deloitte determined from data compiled in one of its recent surveys that 47% of U.S. consumers are frustrated by the expanding number of video-streaming services they feel like they have to sign up for in order to watch the programming they want.DIS is hoping to exploit that situation with a value-priced, quality-packed suite of options. Walt Disney to Offer ChoicesDIS has already revealed a piece of its penetration strategy that should make Netflix as well as players like Amazon.com (NASDAQ:AMZN) nervous. That is, DIS plans to offer consumers a choice.Disney's ESPN+ is already a standalone option, offering sports fans access to a great deal of sports at a price of only $4.99 per month. Hulu, now mostly owned by Disney, is available for $5.99 per month with ads or $11.99 per month for the ad-free version. Disney+, set to launch in November, will cost $6.99 per month. All three aforementioned services from Walt Disney -- ESPN+, Disney+ and Hulu -- will be offered as a bundle for $12.99 per month.Netflix, for comparison, starts at $8.99 per month for a package that's fairly limited. To watch the company's content on more than one device and in high definition costs a minimum of $12.99 per month.Although some consumers will pay for both video-streaming services, many will choose just one based on content quality and quantity.Netflix has a great deal of high-quality content but with franchises like Star Wars and Marvel plus all of Fox's and NBC's content, DIS is clearly going to be a contender as well. The Bottom Line on DIS StockThe concept of winning and losing in the video-streaming space isn't nearly as black and white as Needham's Martin made it out to be. She went on to explain that Disney's streaming options would provide Netflix with fierce competition, rather than vanquishing it. Moreover, she believes that NFLX is only vulnerable to DIS in the U.S. Netflix now does more business overseas, where Walt Disney doesn't appear ready to compete with a differentiated service.Still, the revenue generated by Disney's streaming platform could provide DIS stock with a positive catalyst, particularly if it takes a bite out of Netflix's dominance. Investors love late-bloomer stories as much as they love pioneers.As a result, the owners of Disney stock may not care if Disney+ doesn't turn an actual profit for years.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 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Any Dent Disney+ Makes in Netflix's Dominance Could Pump Up DIS Stock appeared first on InvestorPlace.
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.The earnings calendar turns to retail next week. And that might not be a good thing for the sector.To be sure, Walmart (NYSE:WMT) did post a strong Q2 report on Thursday, with raised full-year guidance leading WMT stock to rally 6%. But that followed a disastrous report from Macy's (NYSE:M), which cut its outlook and saw its stock plunge to a post-financial crisis low.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat split isn't a surprise to anyone who has followed the retail industry in recent years. Those companies with the scale to manage through a quickly changing environment have been able to at least survive, if not thrive. (Walmart stock, for instance, has roughly doubled from late 2015 lows.) Smaller operators, with few exceptions, have taken a beating. * 10 Best Stocks to Buy and Hold Forever Earnings reports next week seem unlikely to change that trend. But specialty retailers like Gap (NYSE:GPS) and department store operators Kohl's (NYSE:KSS) and Nordstrom (NYSE:JWN) will do their best to fight the tide. Meanwhile, three more leaders in the sector will try and keep pace, while a struggling tech giant attempts a turnaround of its own. Broad markets will struggle with their own external challenges, but retailers, in particular, have a big week ahead. Home Depot (HD)Source: Shutterstock Earnings Report Date: Tuesday, Aug. 20, before market openFiscal second-quarter earnings from Home Depot (NYSE:HD) will be closely watched. After all, Home Depot sits at the intersection of several of the fears rattling the market right now. Investors are worried that a recession is coming: Any weakness in consumer demand could be reflected in Home Depot sales.Increased -- and then delayed -- tariffs have amplified those cyclical concerns. Home Depot said after Q1 that it was working to mitigate the impact of those duties, but still forecast a potential impact of $1 billion annually.HD stock already has pulled back about 8% amid those worries. Any weakness in Tuesday morning's report could add to the declines.Meanwhile, rival Lowe's Companies (NYSE:LOW) follows on Wednesday. If both reports disappoint, that would be a signal that even two of the country's strongest retailers aren't immune to external factors. And that would be a big problem for the rest of retail, and maybe even the rest of the market. Target (TGT)Source: Mike Mozart via Flickr (Modified)Earnings Report Date: Wednesday, Aug. 21, before market openFor Target (NYSE:TGT), Wednesday morning's report will help answer which side of the retail divide the company sits. Is Target a real competitor to the likes of Walmart and Amazon (NASDAQ:AMZN)? Or is it not quite large enough, or strong enough, to completely determine its own destiny?Trading in TGT stock over the past few quarters shows that investors haven't quite figured out which side to take. Target stock touched $90 less than a year ago and was at $60 three months later. A 25% rally so far this year shows some confidence, while an ~8% drop in recent weeks (not coincidentally similar to that of HD stock) reflects the rising external risks.And so this seems like an important, and maybe even crucial, earnings report for Target. Walmart's blowout quarter sets the bar high. Target has tariff and macro issues of its own. The stock is cheap enough that it can rise if margins keep expanding. But it's expensive enough that it can fall if they don't. * 10 Cheap Dividend Stocks to Load Up On In short, the question is whether Target is a retail leader? Wednesday's report will help answer that question. VMWare (VMW)Source: Sundry Photography / Shutterstock.com Earnings Report Date: Thursday, Aug. 22, after market closeKey earnings reports next week go beyond the retail space. Software developer VMWare (NYSE:VMW) has an important report on Thursday afternoon. And it won't just impact VMW stock.VMWare earnings will move shares of Dell Technologies (NASDAQ:DELL) whose majority stake in VMWare is worth more than its current market capitalization. (Dell has earnings of its own, but VMWare numbers will be the big mover.) Meanwhile, the company's reported interest in Pivotal Software (NYSE:PVTL) could be a topic of conversation on the post-earnings conference call.But the Pivotal deal and Dell's potential plans for its VMW stake are just noise. VMWare simply has to stem the bleeding. The stock has dropped by 30% just since May. Here, too, cyclical fears are a factor, but soft fiscal first-quarter earnings in late May didn't help the cause. At 20x forward earnings, VMWare stock can rally if the company can deliver. At the moment, however, that seems like a big if.As of this writing, Vince Martin is long shares of Gap, Dell and is short call options in VMWare. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
(Bloomberg) -- Shopify Inc.’s scorching rally and Lightspeed POS Inc.’s successful trading debut this year are throwing the spotlight on who might be the next Canadian tech star to go public.A total of C$1 billion ($751 million) was invested in 142 venture capital deals in the first quarter, up 48% from a year earlier, according to the Canadian Venture & Private Equity Association. More than half of that was in tech and increasingly from U.S. investors.Here’s what the founders of some of Canada’s hottest tech firms are saying about the future of their companies, and the potential for initial public offerings:ClearbancClearbanc offers $10,000 to $10 million to startups to help fund their marketing campaigns on Facebook, Google and the like in return for a flat fee and a share of revenue.The Toronto-based investment firm, founded in 2015, raised $300 million in new funding led by Highland Capital Partners of the U.S., the largest disclosed VC-financing this year in Canada. That brings total funding to $420 million.Clearbanc plans to offer $1 billion in financing this year and is interested in funding parts of a business that could turn into a repeatable revenue stream--infrastructure, shipping and sales commissions.It’s expanding outside the U.S. and Canada, where there’s a less developed venture ecosystem and “banks are more conservative,” according to co-founder and chief executive officer, Andrew D’Souza.“We think that the fundamentals of the business, the market opportunity, justifies a large standalone business,” D’Souza said about the possibility of an IPO.WattpadWattpad Corp. may no longer be a startup but its ambitions just keep growing. Founded as a mobile-reading app, 12-year-old Wattpad now calls itself a “multi-platform entertainment company.”The Toronto-based company has provided content for one of the most re-watched movies on Netflix (“The Kissing Booth”), a Hulu series (“Light as a Feather”), and this year a Hollywood feature film (“After”), all through Wattpad Studios, launched in 2016.Last week it inked a deal with Penguin Random House in the U.K. to turn its online content, mainly created and read by young women, into books. That follows the launch of its own publishing imprint, Wattpad Books, in the U.S. in April.The company uses data from more than 80 million monthly active users to identify the best stories across its platform and turn them into content. It has launched a paid, ad-free version as well as exclusive content for a fee.Wattpad has raised $117.8 million from investors including OMERS Ventures, Tencent Holdings Ltd.’s capital arm, and August Capital Corp, and is generating revenue in “eight figures,” according to co-founder and chief executive, Allen Lau.As for an IPO, it’s “not what we spend time focusing on,” Lau said. “Our focus right now is on movies and TV shows, with our partners.”VidyardVidyard Inc. wants to be the YouTube of business videos. Its software allows companies to create personalized videos to engage with customers and use data from their viewing habits to analyze that engagement.Companies are expected to spend $103 billion annually in video-ad marketing by 2023, according to Forrester Research.Vidyard counts 1,200 businesses in over 170 countries as its customers, including enterprise customers such as Honeywell International Inc., LinkedIn and Citibank.“In terms of the next two to three years, we’re just focused on consistent, hockey-stick style growth,” says Devon Galloway, co-founder and chief technology officer at Kitchener, Ontario-based Vidyard.The company has raised $60 million to date from investors including OMERS Ventures, Inovia Capital and the venture capital arm of Salesforce Inc.Galloway said if Vidyard continues to grow as well as it has an IPO would certainly be on its path.WealthsimpleWealthsimple Inc., wishes to replace banks as a customer’s primary financial relationship, according to founder and CEO Michael Katchen.“We want to be a firm that demystifies money,” Katchen said in an interview in Bloomberg’s Toronto office. The investment-services company has more than C$5 billion in assets under management and 175,000 customers in Canada, the U.S. and U.K.The robo-adviser favored by millennials, is also targeting wealthier Canadians and has branched out into commission-free stock trading and savings products. Mortgages, life insurance and checking accounts could be next, Katchen said.Founded in 2014, WealthSimple is not yet profitable, but its backers are patient, Katchen said. These include Power Financial Corp., an investment arm run by the Desmarais family and Allianz SE.Katchen said he’s interested in an IPO but it’s still “a few years away.”(Updates with Clearbanc’s financing plan)To contact the reporter on this story: Simran Jagdev in Toronto at email@example.comTo contact the editors responsible for this story: Jacqueline Thorpe at firstname.lastname@example.org;David Scanlan at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In normal circumstances, off-price discount retailers like TJX Companies (NYSE:TJX) offer a straightforward investment thesis. Selling name-brand fashion and household goods far below their regular retail price, TJX stock broadly appeals to investors. Furthermore, the company's attractive rates create a moat against disruptive e-commerce stores.Source: Shutterstock That said, TJ Maxx stock took a beating starting from the middle of this week. With the shocking 800-point drop in the Dow Jones on Wednesday, virtually all companies saw red ink. Furthermore, TJX Companies faces an acute threat from the ongoing and escalating U.S.-China trade war.As everybody knows, TJX stock lives on profitability margins. Their business revolves around taking off-season or otherwise discounted goods and passing the savings onto customers. However, a protracted trade war risks common goods and apparel from suffering a price hike. Eventually, this translates to higher costs for TJ Maxx, which directly impacts their more price-sensitive customers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks Under $5 to Buy for Fall However, this circumstance most likely won't impact the upcoming TJX earnings report for the second quarter of fiscal 2020. Analysts are expecting a solid showing, in line with prior results. Still, recent macro-economic headwinds will impact how you approach TJ Maxx stock. Let's take a deeper look: TJX Earnings Should Beat, but Guidance Will Be KeyFor Q2, consensus estimates peg TJX earnings per share at 62 cents. This is in the middle of a narrow forecast spectrum, which ranges from 60 cents to 64 cents. In the year-ago quarter, the discount retailer produced an EPS of 59 cents, besting consensus of 53 cents. Therefore, a beat is well within reason, given the company's impressive growth trajectory.Speaking of growth, analysts forecast revenue to hit a consensus target of $9.9 billion. Again, the forecast range was very narrow, from $9.8 billion to $10 billion. In Q2 fiscal 2019, top-line sales came in at $9.3 billion. As with expectations for TJX earnings, it's not unreasonable to anticipate a revenue beat.Ordinarily, I'd expect TJX stock to jump both ahead of the print and after it. Fundamentally, TJ Maxx has done what few retailers have: offer a viable alternative to Amazon (NASDAQ:AMZN) and other online threats.More impressively, the underlining business for TJ Maxx stock doesn't lend itself to organic protection. This isn't Home Depot (NYSE:HD), where consumers must absolutely have the perfect product. Instead, we're talking about apparel and home goods, not exactly mission-critical stuff.Further, 44% of online consumers begin their e-commerce window-shopping on Amazon. Thus, Amazon has countless opportunities for spur-of-the-moment purchases. Yet TJX stock has performed very well up until recently due to attractive prices, rotating inventory, and powerful initiatives like targeted mobile ads.But because we have this nasty trade war, most retailers understandably face credibility questions. And that's why TJX stock won't have an easy go just because management hits all the right notes for the print. Instead, it's guidance that will count.How they will spin this is tough to predict. Like I said, TJ Maxx stock depends on margins which the trade war threatens. How to Approach TJX StockWhen strategizing your next move, it helps to adopt a practical approach. On one hand, the TJX earnings report will likely highlight the reasons why you're thinking about these shares. Additionally, TJ Maxx stock appeals to those who seek protection from a broader market downturn.Because no matter what happens in the economy, people need to buy clothes. This dynamic alone will make TJX stock incredibly relevant.Further, deflated consumer sentiment may actually help TJ Maxx at Amazon's expense. If belt-tightening occurs, consumers are less likely to pay for things like shipping or premium subscriptions. Instead, they'll hop into their cars and shop at brick-and-mortar retailers.But on the other hand, this market decline probably represents a sign of things to come. We've been riding the longest bull market in history. Inevitably, we'll have some kind of corrective action. And in this context, I believe TJX faces volatility risks.Therefore, I'd probably sit out doing anything rash prior to and immediately following the TJX earnings report. Let the markets fully digest these macro-headwinds, and then carefully buy into the discount.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 * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post TJX Earnings Will Beat the Print, but Will It Matter for TJ Maxx Stock? appeared first on InvestorPlace.
Disney (DIS) and Charter Communications extend a multi-year distribution agreement to feature TV content of the former on the latter's Spectrum network.
Netflix (NASDAQ:NFLX) stock has fallen as forces from both within and outside of the company weigh on the equity. The streaming giant has long benefited from a strategic vision that created and bolstered its industry. This has led to gains for NFLX stock of nearly 300 fold since its 2002 IPO.Source: Riccosta / Shutterstock.com However, this industry has now become more crowded. Netflix, once on the cutting edge of the streaming content industry, now struggles to remain relevant in the business that it created. Between the rising burden of content costs and the overall stock market pointing to a possible recession, Netflix stock appears poised to keep falling. The Long Honeymoon for NFLX Stock Has EndedIn a recent article on Netflix stock before it reported earnings, I urged investors to turn cautious due to the company's increased competition. Soon after, a disappointing report took NFLX down by about 10.3% in the following trading session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIts last earnings release saw it fall, but not because of earnings. Profits actually exceeded Wall Street estimates. It lost value due to the slowing rate of subscriber growth. The company reported 2.7 million added subscriptions when Wall Street had predicted an increase of 5 million. * 10 Cheap Dividend Stocks to Load Up On Subscriber growth will likely continue to suffer. With Disney (NYSE:DIS) starting its own streaming service, many of the site's popular programs transition from company asset to competition. Moreover, Netflix stock faces a growing threat from peers such as Amazon's (NASDAQ:AMZN) Prime Video, a new offering from Apple (NASDAQ:AAPL), AT&T's (NYSE:T) WarnerMedia and the streaming service from Comcast (NASDAQ:CMCSA).For years, Netflix stock commanded a premium valuation because it dominated the streaming industry it created. This decimated not only the video rental industry but also pay-TV. Now that the pay-TV outlets have established their own streaming platforms, Netflix's long honeymoon looks set to end.How much further this will bring Netflix stock down remains unclear. From a growth standpoint, this is not a case of a stock going from good to bad, but merely from great to very good. The forward price-to-earnings ratio has fallen to around 52. Profit estimates fell after the latest earnings report. Still, Wall Street forecasts 22% earnings growth this year and 73% next year. I have trouble labeling that valuation as "high" given these profit increases. Competitors Are Not the Only Threat to NFLXHowever, I see multiple compression continuing for other reasons besides the competition. The inverted yield curve that led to a recent market selloff points to a recession. This has served as a reliable indicator for decades. Investors have little tolerance for equities with high multiples in such trading environments.Furthermore, Netflix stock only remains profitable from a certain point of view. Massive content spending has made a key financial statement more like an "un-balance" sheet. The company spent $10.5 billion on original content over the last year. This is nothing new. However, in the previous year alone, long-term debt rose from $8.34 billion to $12.59 billion.This poses a tremendous burden on a company with only $6.11 billion in book value. Sadly, despite all of this spending, its original content budget remains smaller than that of Disney, NBCUniversal, and WarnerMedia.Deep-pocketed companies such as Disney and Apple can maintain this pace more easily than Netflix. Moreover, the falling stock price could lead the company to dilute Netflix stock more quickly to shore up its balance sheet. Given these pressures, I see only reasons to sell at these levels. Final Thoughts on Netflix StockIncreasing competition and pressure to spend on content will likely lead to more multiple compression for Netflix stock. The company continues to maintain high levels of revenue and profit growth. However, the company's rising peers have hurt Netflix in a more fundamental way. Rising debt levels indicate that Netflix may lose its ability to maintain the current pace of content spending. Despite expending $10.5 billion on original content, it lags behind many of its competitors.Moreover, the elevated stock price could lead investors to forget that Netflix is a $6.11 billion company with a $129 billion market cap. This points to a tremendous incentive to dilute Netflix stock to address the company's $12.59 billion in long-term debt.I expect Netflix to maintain a healthy growth rate as a company. However, NFLX stock looks poised to bear the costs of that growth. I recommend getting out now before these costs increase further.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 * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Sell Netflix Stock for What's Becoming An 'Un-Balance' Sheet appeared first on InvestorPlace.
The company has a history of spinning off large companies that stay successful after they separate from their parent. It also has a long-standing Denver connection.
It doesn't take a genius to point out iQiyi (NASDAQ:IQ) has been in a bearish trend. But looking forward and with earnings on tap, both off and on the price chart IQ stock's pain looks far from over. Let me explain.Source: Shutterstock iQiyi has been hailed as the Netflix (NASDAQ:NFLX) of China. But IQ stock actually operates a lot more like an amalgam of Netflix, Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube and Amazon's (NASDAQ:AMZN) Twitch. It sounds interesting, but the IQ story faces an uphill battle which it's unlikely to conquer.Off the chart, IQ stock has delivered large and indefensible losses which aren't going away anytime soon. The trend of producing original but very costly content has only continued to increase. In fact it absorbed a staggering 79% of iQiyi's revenue in Q1 and up 38% from the prior year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBottom line, competing in today's streaming video market is a serious threat in IQ stock's ability to reach profitability -- unless IQ stock miraculously produces a great deal more revenue growth than the company has so far. But don't hold your breath.With China's economy continuing to weaken and ad revenues from the company's YouTube inspired business shrinking, the reality of profitability for IQ stock is even further out of reach. And as InvestorPlace's Mark Hake points out, with a massive annual cash burn rate of 53%, iQiyi's difficulties are even more pronounced. * 10 Cheap Dividend Stocks to Load Up On And it only gets worse for IQ stock. The company has a couple of other big problems. iQiyi is being challenged by much larger, profitable and well-capitalized Chinese tech giants Alibaba (NYSE:BABA) and Tencent (OTCMKTS:TCEHY). Not only do these companies have the wherewithal to absorb losses to gain market-share, they're in position to stay the course, even if today's slower growth environment becomes a full-blown recession.Lastly, there's also IQ's price chart. It's our technical view iQiyi shares aren't in position to win over any fans, except perhaps bearish traders comfortable with shorting stock. IQ Stock Daily Chart Following a very brief respite which saw shares surge higher and unsuccessfully challenge the 200-day simple moving average earlier this summer, it has been all downhill for IQ stock investors. And right now, shares of IQ are setting up in a bearish pattern pointing at even lower prices.Specifically, IQ stock has formed a flag under price support which preceded the jump in share price and beneath the 76% retracement level. That's not good news for bulls. Moreover, with stochastics curling into a bearish crossover inside neutral territory, iQiyi is in position for shorting. Trading IQ Stock Gaining short exposure in IQ stock before the company reports next Monday looks approachable. But the possibility of increased earnings volatility, which can work against the position, needs to be respected. As much, and for those seeking a bearish position in front of the iQIYI report, I wouldn't recommend shorting shares outright. But that doesn't mean you can't trade IQ stock.Instead, I'd suggest using a slightly out-of-the-money bear put spread. One favored vertical of this type is the weeklys Sep 27 $16/$14 put spread for 50 cents. Unlike short stock, a bearish vertical spread can control and reduce risk to the debit paid and offer big-time profits in the event iQIYI stock trades aggressively lower.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post iQiyi Stock Will See Lower Prices appeared first on InvestorPlace.
(Bloomberg Opinion) -- In the latest twist in the fraught competition for the Department of Defense’s $10 billion cloud-computing project, the Pentagon Inspector General’s Office announced a new investigation into whether there have been improprieties or corruption in the contracting process thus far. This probe, described to me as a very significant undertaking by Pentagon insiders, will complement a review already being conducted by new Secretary of Defense Mark Esper.The cloud project is formally known as the Joint Enterprise Defense Infrastructure or, in a nod to “Star Wars” geeks, JEDI. It would provide a single managerial system and a single repository for storage of the department’s incomprehensibly vast data streams. As the controversy hit, the contract was reportedly about to be awarded, with the final competitors being Amazon Web Services Inc (the heavy, heavy favorite) and Microsoft Corp.The twin investigations were spurred by pressure from three sources: disgruntled competitors who felt they were out of the running; Congressional actors representing districts and states from where those competitors have a presence; and the Oval Office itself. President Donald Trump said in mid-July that he intended to review the JEDI contracting after receiving “tremendous complaints” about the process from “some of the great companies in the world,” including IBM, Microsoft and Oracle – each of which bid on the JEDI contract.None of this, other than direct interference by the commander in chief, is particularly out of the ordinary for big defense acquisitions, given the byzantine procurement process in the Pentagon. As a newly selected one-star rear admiral in 2000, I was assigned to manage a complex agency-wide telecommunications contract that included creating a new constellation of satellites. By the time it was finally awarded, I had long transferred out of the Pentagon. And in 2013, as I was a grizzled four-star Admiral about to finish up my career, I was still wondering why the satellite constellation wasn’t yet fully operational. The short answer is that at the nexus of big money, political influence and uncertain technology, delays are a certainty.All of this begs the questions of why the U.S. military is pursuing this system, and how it can be brought on line rapidly – by whomever eventually wins the contract.JEDI will be an absolutely vital part of America’s future warfighting capability, especially in the increasingly complex new 5G environment. At heart, the vast cloud would allow a much more efficient information-technology system, replacing the hodgepodge of thousands of hand-tooled, inefficient networks that exist today. This is especially critical for the military, where so many personnel transfer every two to three years, often taking with them a hands-on knowledge of an individual network or complex of software. For a vast organization like the Department of Defense -- the largest “company” in the world – JEDI’s efficiency at scale will be crucial to optimizing expensive resources and operating efficiently.It’s not just about efficiency, though: JEDI should vastly improve resiliency and security. Instead of individual networks and organizations backing up their information locally, everything is stored in a much more defendable cloud structure - just as your personal data and photographs likely exist in the Microsoft or Apple Inc clouds today. The data can be seamlessly transferred, even in the intense crucible of combat. Cybersecurity experts tell us that there is great strength in reducing the number of individual portals that can be attacked and overcome; streamlining and unifying the defenses of the entire department make sense. This reduction of “threat surfaces” is crucial.Finally, from an operator’s perspective, there is great allure in one-stop shopping to stream data (a sort of military Netflix,), to record and store it, to create simple systems to “patch” software, and to build an infrastructure that permits constant monitoring of the entire department’s networks. Lieutenant General Jack Shanahan, head of the Pentagon’s Artificial Intelligence Center, commented recently on the operational capabilities necessary for the emerging era of great power competition, with China in particular.“Imagine the speed of operations in a fight in the Pacific, where you just do not have time to figure out, ‘How do I get my data, clean my data, move it from point A to point B.’” Shanahan said. “If I’m a warfighter, I want as much data as you could possibly give me. Let my algorithms sort through it at machine speed. It’s really hard for me to do that without an enterprise cloud solution.” His comments were echoed by the department’s chief information officer, Dana Deasy, in a rare on-the-record co-briefing to the press they held last week.In order to move quickly to find efficiencies, create new resiliency, and provide a single point of contact for all IT operations, the Department of Defense needs to thoroughly but quickly complete these investigations. If there are real instances of malfeasance, they should be uncovered and the perpetrators punished forthwith. Frankly, Secretary Esper has an unattractive set of options, including starting the competition over; pressing forward to award despite the external pressure; or searching for some middle ground that may satisfy nobody. Whether he can power through all the sand in the gears here will be the first test of his leadership abilities, and will be among the most important he will face.In the likely scenario that all this smoke reveals not much fire but rather disgruntled competitors and political angst (and a strong component of anti-Amazon influence from the White House, where Amazon founder and Washington Post owner Jeff Bezos is despised), Esper should press through to a contract award as soon as is legally appropriate. Warfighting in the 21st century will be “brain on brain” combat, and a large, singular cloud structure is the gray matter the U.S. military needs.To contact the author of this story: James Stavridis at firstname.lastname@example.orgTo contact the editor responsible for this story: Tobin Harshaw at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.James Stavridis is a Bloomberg Opinion columnist. He is a retired U.S. Navy admiral and former supreme allied commander of NATO, and dean emeritus of the Fletcher School of Law and Diplomacy at Tufts University. He is also an operating executive consultant at the Carlyle Group and chairs the board of counselors at McLarty Associates.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Marriott is set to make significant changes to the way that its Bonvoy loyalty members pay for award nights with points. Starting in September, the program will move to a dynamic model that prices awards across three tiers as a function of demand. In the peak season or when a hotel is otherwise busy, members […]The post Marriott to Introduce Dynamic Pricing for Bonvoy Award Bookings appeared first on Skift.