tag:blogger.com,1999:blog-41800553756812736742024-03-13T06:28:35.146-04:00Twisted Nonsense InvestmentsThe following articles were written by Greg Gambone. His work appears on eHow, The Motley Fool, InvestorPlace, Seeking Alpha, Zacks, Chron, Yahoo, The Nest, and in other online and offline publications. Follow Greg using the social media icons to the right. Read and subscribe to his Flipboard magazine, "Twisted Nonsense Investments."Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.comBlogger898125tag:blogger.com,1999:blog-4180055375681273674.post-3134633838784132672017-06-17T11:41:00.000-04:002017-06-17T22:39:33.927-04:00Amazon.com, Inc. (AMZN) and Wal-Mart Stores Inc (WMT) Will Shred Costco<h2>
<i>Costco now fights a war on two fronts - against old foes Walmart and Sam's Club, but also against Amazon, now armed with Whole Foods</i></h2>
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<tr><td class="tr-caption" style="text-align: right;"><i>Source: <a href="https://www.flickr.com/photos/atomictaco/5095355117/in/" target="_blank">Atomic Taco via Flickr</a></i></td></tr>
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Early Friday morning, e-commerce juggernaut <b>Amazon.com, Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/amzn-stock-quote/" target="_blank">AMZN</a>) <a href="https://www.nytimes.com/2017/06/16/business/dealbook/amazon-whole-foods.html" target="_blank">announced plans</a> to purchase <b>Whole Foods Market, Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/wfm-stock-quote/" target="_blank">WFM</a>) in an all-cash deal worth $13.7 billion that will also see Amazon absorb Whole Foods’ debt. And while the deal sent a number of food-related retailers lower, I see <b>Costco Wholesale Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/cost-stock-quote/" target="_blank">COST</a>) as the biggest potential victim.<br />
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At least for the time being, Whole Foods’ retail stores will continue to operate under the same brand name, there won’t be any immediately noticeable differences for shoppers, and there are no plans to lay off Whole Foods workers, either.<br />
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But once the deal is complete and WFM is wholly in the Amazon fold, quite a bit is expected to change — and not just on the grocery front.<br />
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Whole Foods has struggled for quite some time with increasing same-store sales and boosting short-term profits. With Amazon’s plethora of resources behind it, WFM management should be able to more effectively work toward lifting sales figures. Additionally, AMZN is in the perfect position to use its influence and global logistics network to reduce in-store costs for consumers.<br />
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There’s a reason grocers hit the floor on Friday.</div>
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<a name='more'></a>Why Amazon Cares About the Grocery Business</h3>
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A <i>New York Times</i> report says the grocery business represents <a href="https://www.nytimes.com/2017/06/16/business/dealbook/amazon-whole-foods.html" target="_blank">“about $800 billion in annual spending in the United States.”</a> AMZN has already attempted to carve out a piece of that pie (pun intended) with its AmazonFresh service, which lets members place grocery orders online and schedule delivery, much the same way as they can when purchasing other items.<br />
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With the acquisition of Whole Foods, Amazon should be able to more easily deliver groceries to members — especially in locations where Amazon has yet to establish a strong enough presence. Currently, WFM operates approximately 460 grocery stores among the U.S., Canada and the U.K., giving Amazon more operational points in major cities and suburbs.<br />
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Also, consider the purchase of Whole Foods from another perspective: kingslaying.<br />
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One of Amazon’s most powerful e-commerce rivals is <b>Wal-Mart Stores Inc</b> (NYSE:<a href="http://investorplace.com/stock-quotes/wmt-stock-quote/" target="_blank">WMT</a>), the largest retailer in the world by revenues … and also the largest grocery retailer in the U.S. Heading into Friday, though, the narrative was less Amazon competing with Walmart on the ground, but instead the big-box retailer bringing the fight online. Consider Walmart’s $3.3 billion purchase of <b>Jet.com</b> last August — a move that has paid big dividends in the retailer’s digital growth already — and yesterday’s overshadowed announcement that it bought menswear specialist <b>Bonobos</b> for $310 million.<br />
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It’s unlikely anyone actually believes Walmart could ever knock Amazon off its pedestal, but being able to simply go punch-for-punch with Amazon online — combined with its brick-and-mortar dominance — cemented the idea that WMT would continue to be a stable force. And while AmazonFresh is growing, AMZN hasn’t been considered an immediate threat to Walmart’s top-flight grocery business.<br />
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The Whole Foods purchase improves Amazon’s odds and speeds up the timeline. In the course of a day, Amazon’s attempts to become the world’s biggest retailer (online and off) took a pivotal leap forward.</div>
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Enter Costco.</div>
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What About Costco?</h3>
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Costco doesn’t quite equal Walmart in the grocery business, the discount shopping club represents a massive presence in the U.S. Amazon Prime is constantly hailed for its growing membership, which sits at about 80 million currently … but Costco has amassed nearly 88 million members willing to pay to go to its physical locations for bulk discounts.<br />
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Amazon’s purchase of Whole Foods could result in more competitive costs for organic groceries, but it’s also likely that this buy will be used to advance the broader AmazonFresh business, making regular grocery delivery faster, more accessible and cheaper. That could result in a slow bleed of Costco members as they find increasingly better values — ones that would show up on their doorstep.<br />
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That’s what led Goldman Sachs to d<a href="http://www.cnbc.com/2017/06/16/goldman-downgrades-costco-after-amazons-deal-for-whole-foods.html" target="_blank">owngrade Costco from “Buy” to “Neutral” after yesterday’s announcement</a>. Goldman now sees a price target of COST stock to $176 — mere 5% improvement from Friday’s closing price — from its previous PT of $197 per share. The worry is the one two punch from the emerging Amazon-Whole Foods threat, as well as Walmart and its Sam’s Club warehousing division.<br />
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Goldman Sachs analyst Matthew Fassler says <a href="http://www.cnbc.com/2017/06/16/goldman-downgrades-costco-after-amazons-deal-for-whole-foods.html" target="_blank">“AMZN is likely capable of offering superior pricing and delivery competency vs. incumbents.”</a><br />
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Costco shares dropped more than 7% yesterday in the wake of the Amazon announcement and subsequent downgrades. And it’s very likely that COST stock will continue to drop — Amazon does, as we all know, have a nasty habit of destroying every market it enters.<br />
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<i>Article originally published on <a href="http://investorplace.com/2017/06/amazon-com-inc-amzn-and-wal-mart-stores-inc-wmt-will-shred-costco/view-all/" target="_blank">InvestorPlace</a> (6/17/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com1tag:blogger.com,1999:blog-4180055375681273674.post-43191196050058203762017-06-07T14:36:00.000-04:002017-06-07T16:25:11.554-04:00Facebook Inc (FB) to Pull WhatsApp Off IBM Cloud Servers<h2>
<i>Neither FB stock nor IBM stock will be affected by the transfer of WhatsApp</i></h2>
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According to a <i>CNBC</i> article this afternoon, social media juggernaut <b>Facebook Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/fb-stock-quote/" target="_blank">FB</a>) is making arrangements to <a href="http://www.cnbc.com/2017/06/07/facebook-planning-to-move-whatsapp-off-ibms-public-cloud.html" target="_blank">move the WhatsApp messaging service off</a> of cloud servers hosted by <b>International Business Machines Corp. </b>(NYSE:<a href="http://investorplace.com/stock-quotes/ibm-stock-quote/" target="_blank">IBM</a>) and onto its own bank of data centers instead.<br />
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However, the effects of this decision will likely be minimal for both companies, and negligible for FB stock and IBM stock as well, even though those effects will be in direct opposition to one another.<br />
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Earlier today, some other news outlets reported that WhatsApp is one of IBM’s five largest cloud service customers and described the messaging service as the “poster child” for the IBM cloud.<br />
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However, an IBM representative told me this afternoon that WhatsApp is not actually one of the company’s top five clients. She said:<br />
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Contrary to what some of the stories are saying, WhatsApp is not a “top 5” cloud client at IBM – not even close. We have many multi-million and even some billion dollar cloud clients, including US Army, Wal-mart, BMW, American Airlines, Lufthansa, Emirates, Workday, Chubb, AT&T, Wanda, Etihad, Maersk and many more.</blockquote>
So, losing the WhatsApp account could have a negative impact on IBM’s bottom line, but considering that list of other cloud clients it’s likely to be almost insignificant, at least from a financial perspective.<br />
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Facebook, on the other hand, stands to gain a bit from this decision. Apparently, <a href="http://www.barrons.com/articles/ibm-losing-facebooks-whatsapp-as-cloud-customer-says-cnbc-1496851437" target="_blank">“Facebook was spending nearly $2 million per month on the IBM cloud,”</a> according to an unnamed source for CNBC.<br />
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That means once the transition to FB’s own cloud servers is complete, the company could realize as much as $24 million per year in savings (not considering, of course, the potential costs associated with maintaining the WhatsApp data on Facebook-owned servers).</div>
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<a name='more'></a>Why Would Facebook Move WhatsApp Away From IBM?</h3>
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While the real reason for moving WhatsApp off of IBM’s cloud and onto its own servers has not been disclosed — actually, the legitimacy of this entire plan has yet to be confirmed by either company — there are myriad possibilities.<br />
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I can think of two simple reasons that would justify FB management’s decision to pull WhatsApp from IBM: cost and control.<br />
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Even though Facebook is the world’s largest, most popular social media titan with a market cap of $440 billion, keeping expenses in check is still a top priority. If the use of the IBM cloud has been costing FB tens of millions of dollars per year, and if the ability exists to shift WhatsApp to in-house servers, then the decision is a no-brainer.</div>
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No corporation, even gigantic ones like Facebook, will continue to spend that much money when they can just as easily do the job in-house.<br />
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Additionally, with WhatsApp being maintained on third-party cloud servers, there is an undeniable portion of control that has been sacrificed.<br />
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That’s not to suggest IBM has acted inappropriately in any way, but the mere fact that one of Facebook’s most popular properties — <a href="https://www.fool.com/investing/2017/04/06/how-many-users-does-whatsapp-have.aspx" target="_blank">WhatsApp has more than 1.2 billion monthly active users</a> — is in the possession of another company is a major deal, <a href="http://fortune.com/2016/12/13/zuckerberg-facebook-lawsuit/" target="_blank">especially if you’re a control freak</a> and the CEO of a multi-billion-dollar international corporation.</div>
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What This Means for FB Stock and IBM Stock</h3>
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Investors in both FB stock and IBM stock won’t see any immediate spikes or slumps, especially considering that a transfer of this magnitude — <a href="http://www.cnbc.com/2017/06/07/facebook-planning-to-move-whatsapp-off-ibms-public-cloud.html" target="_blank">“WhatsApp runs atop more than 700 high-end servers split between data centers in San Jose, California, and Washington, D.C.”</a> — isn’t something that can be completed overnight. Further, it’s unlikely that WhatsApp users will experience any significant effects, either.<br />
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The financial effects of the move will, however, likely be visible on both companies’ quarterly earnings reports in the quarter following the data transfer, as that will be when the cost-savings to FB and revenue loss to IBM would first become apparent.<br />
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Still, if the cost of using the IBM cloud for WhatsApp is only costing Facebook $24 million per year, those effects will be minimal when presented alongside every other line item on a quarterly report.<br />
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Simply put, the move shouldn’t have any impact, positive or negative, on either FB stock or IBM stock.<br />
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<i><b>EDITOR’S NOTE:</b> This story has been updated to correct an initial misstatement that WhatsApp is one of IBM’s top five cloud clients. </i><br />
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<i>Article originally published on <a href="http://investorplace.com/2017/06/facebook-inc-fb-pull-whatsapp-off-ibm-cloud-servers/view-all/" target="_blank">InvestorPlace</a> (06/07/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com29tag:blogger.com,1999:blog-4180055375681273674.post-44663006512466893652017-06-07T11:50:00.000-04:002017-06-07T14:25:25.795-04:00International Business Machines Corp. (IBM) Leads the Silicon Race<h2>
<i>IBM stock may be slow to respond, but it also has a healthy dividend</i></h2>
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<tr><td class="tr-caption" style="text-align: right;"><i>Source: Connie Zhou/IBM</i></td></tr>
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<b>International Business Machines Corp. </b>(NYSE:<a href="http://investorplace.com/stock-quotes/ibm-stock-quote/" target="_blank">IBM</a>) <a href="https://www.ibm.com/blogs/think/2017/06/5-nanometer-transistors/" target="_blank">announced Monday</a> that its research department has successfully developed the <a href="https://www.forbes.com/sites/aarontilley/2017/06/05/ibm-5nm-chips/#40b2a53d3c56" target="_blank">world’s first ever 5-nanometer chip</a>. What does that mean, though? <i>TechRadar.com</i> <a href="http://www.techradar.com/news/ibm-creates-a-chip-less-than-three-times-the-width-of-a-dna-molecule" target="_blank">describes it like this</a>: “In case you’re wondering how small that is in real terms, a nanometer is one billionth of a meter. A single blood cell is 7,000 nanometres wide.”</div>
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So, for the non-geeks, we’re talking about the tiniest microscopic chip ever — “a 5-nanometer device <a href="https://venturebeat.com/2017/06/04/ibm-research-creates-a-groundbreaking-5-nanometer-chip/" target="_blank">is just a few atoms thick.</a>” What’s more, this development has made it possible for IBM to jam more than 30 billion transistors onto a single piece of silicon the size of your fingernail. If you’re unfamiliar with the inner workings of electronic circuitry, transistors are essentially on-of switches.<br />
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The announcement was made at the 2017 Symposia on VLSI Technology and Circuits conference in Kyoto, where IBM presented its groundbreaking wafer and explained that it can deliver performance enhancements of more than 40% alongside a 75% reduction in power usage. <a href="https://www.ibm.com/blogs/think/2017/06/5-nanometer-transistors/" target="_blank">IBM said:</a><br />
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“Let that sink in while reading this article on a mobile device with 10 percent power left: 5nm chips would give you hours, not minutes, before needing to recharge. A future 5nm-chip-powered mobile device will last days longer than what’s in your hand right now.”</blockquote>
Developers went on to explain in excruciating detail the methodology used to create IBM’s 5nm chips, and how significantly it differs from the current 10nm processes. If you really want to know, head over to IBM’s announcement post on the company’s <a href="https://www.ibm.com/blogs/think/2017/06/5-nanometer-transistors/" target="_blank">THINK Blog</a>. Unfortunately, it’s a bit too comprehensive for me and my eyes started to glaze over as I read about nodes and FinFET transistors and silicon nanosheets.</div>
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What I was able to take away from IBM’s announcement post is that its 5nm chips are expected to be available within the next three-to-five years.</div>
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<a name='more'></a>What’s the Big Deal With a 5nm Chip?</h3>
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The development of the 5nm chip is monumental for the future of technology, as it opens the door for even more advanced applications that would not have been possible otherwise using today’s leading 10nm silicon. Essentially, the processes used to develop those 10nm chips has reached its maximum capacity.<br />
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<tr><td class="tr-caption" style="text-align: right;"><i>Close-up scan of 5nm transistors. Source: IBM</i></td></tr>
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According to <i>Forbes</i>, Mukesh Khare, the VP of semiconductor technology research at IBM explained that, <a href="https://www.forbes.com/sites/aarontilley/2017/06/05/ibm-5nm-chips/#67102b513c56" target="_blank">“Geometrically, FinFETs cannot scale anymore.”</a> So, basically, they’re already as small as they can get. Even if they were able to further shrink the current chips to 5nm, “the denser transistors on that architecture <a href="http://www.zdnet.com/article/ibms-breakthrough-worlds-first-5nm-chip-that-one-day-could-power-samsung-phones/" target="_blank">doesn’t boost performance because the closer fins don’t provide more current flow</a>.”<br />
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With a legitimate working 5nm chip, IBM has just positioned itself at the front of the pack. Competitors such as <b>Samsung Electronic</b> (OTCMKTS:<a href="http://investorplace.com/stock-quotes/ssnlf-stock-quote/" target="_blank">SSNLF</a>) and<b> Intel Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/intc-stock-quote/" target="_blank">INTC</a>) currently produce only 10nm chips holding approximately 10-15 million transistors. The new IBM chip is half the size and contains more than twice as many transistors.<br />
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For specific segments of the technology industry such as artificial intelligence, virtual reality, machine deep learning and autonomous vehicles, the ability to incorporate chips that consume 75% less power while performing 40% better will be extremely advantageous and serve to further increase the speed of developments in those fields.<br />
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Simply put, these new IBM chips should open the door to countless advancements in an array of major tech fields.</div>
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What This Means for IBM Stock</h3>
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Despite management’s announcement of what is truly a revolutionary leap forward in the design and manufacture of semiconductors, Wall Street hasn’t reacted, at least not yet. IBM stock has remained essentially flat, even as geeks across the world picked their jaws up off the floor and tech bloggers have flooded news feeds with excited commentary and speculation.<br />
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But just because IBM stock didn’t spike after the announcement does not mean that the company’s 5nm chip won’t benefit investors. Quite the contrary, actually. The chip not only demonstrates IBM’s leading position in the semiconductor industry, it also ensures that IBM will remain the dominant force for years to come.<br />
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It’s true that IBM isn’t typically the first company that comes to mind when the average investor thinks of microchips and semiconductors; instead, it has traditionally been Intel, both because of the company’s own advancements in silicon development technology and because of <a href="https://www.fastcompany.com/3004135/marketing-backstory-how-intel-became-household-name" target="_blank">extremely successful marketing techniques back in the 1990s</a>. While IBM has always remained a tech industry powerhouse, much of the company’s focus shifted away from consumer-oriented retail sales to business and enterprise-oriented sales.<br />
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Look at it this way — IBM was (and still is) akin to a sleeping giant, one that may now be waking up. This isn’t to suggest that management will shift focus back to consumer retail sales, though. Rather, IBM has simply been biding time while management made good on its <a href="https://www.forbes.com/sites/alexkonrad/2014/07/10/why-ibm-just-bet-10-of-its-research-budget-on-3-billion-next-gen-chips/#42e3a9962515" target="_blank">2014 promise to spend upwards of $3 billion</a> on silicon R&D. In fact, the specific technology (namely nanosheets) that allowed IBM to successfully develop its 5nm chips has been described by some as “new technology” or “a new direction,” yet the company has actually been working with nanosheets for more than a decade.<br />
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While the rest of the industry poured time, effort and money into refining FinFET methodology, IBM engineers had already realized the potential that could be unlocked with the alternative design of nanosheets.<br />
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So, the long-term outlook here is that IBM stock should definitely increase in value, particularly in a few years when its 5nm chips hit the street. Plus, IBM pays a healthy 3.94% dividend yield, or $6 per share, and the company has increased dividend payouts every year for the past 20 consecutive years. If you’re looking for a solid long-term blue chip, look no further than IBM stock.<br />
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<i>Article originally published on <a href="http://investorplace.com/2017/06/international-business-machines-corp-ibm-leads-silicon-race-5nm-chip/view-all/" target="_blank">InvestorPlace</a> (06/07/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com8tag:blogger.com,1999:blog-4180055375681273674.post-81183092624305393222017-05-25T11:03:00.000-04:002017-05-28T02:41:04.301-04:00Are Apple Inc. (AAPL) and Visa Inc (V) in Trouble With Apple Pay Lawsuit?<h2>
<i>AAPL stock barely flinched when news of the lawsuit surfaced</i></h2>
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<tr><td class="tr-caption" style="text-align: right;"><i>Source: iPhoneDigital (<a href="https://www.flickr.com/photos/iphonedigital/" target="_blank">Flickr</a>)</i></td></tr>
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Both Wall Street and consumers alike have become numb to breaking news stories involving the world’s gigantic corporations. It’s near impossible to scroll through the day’s business headlines or — gasp! — pick up an actual newspaper without coming across at least a handful of articles and stories describing how this company is suing that one, or this company stole trade secrets from that one, or somehow otherwise wronged somebody somewhere.</div>
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The technology industry is no stranger to lawsuits, either, so when news surfaced on Monday of the most recent filing against <b>Apple Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/aapl-stock-quote/" target="_blank">AAPL</a>), consumers shrugged their shoulders and Wall Street analysts shook their heads.<br />
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The <i>New York Times</i> first broke the story and explained the lawsuit filed by <b>Universal Secure Registry</b> CEO Kenneth Weiss against both Apple and <b>Visa Inc</b> (NYSE:<a href="http://investorplace.com/stock-quotes/v-stock-quote/" target="_blank">V</a>), which claims the two companies have <a href="https://www.nytimes.com/2017/05/21/technology/apple-pay-patent-lawsuit.html?_r=0" target="_blank">infringed on existing patents since the 2014 release of Apple Pay</a> and continue to do so without license, concern for or acknowledgement of Weiss’ legal standing.<br />
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<a name='more'></a>A small percentage of investors, it would seem, preemptively jumped ship immediately after seeing the headlines, which pulled AAPL stock down a measly 1% in the early hours of the trading day. However, Apple stock did not enter a nosedive and instead finished the day up a fraction of one percent.<br />
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What this implies is that AAPL shareholders aren’t concerned about the possible ramifications of a patent lawsuit involving Apple Pay. Why should they be, anyway? Over the years, Wall Street has seen so many patent infringement lawsuits against Apple that analysts and investors don’t even flinch anymore.<br />
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Even when pitted against similarly massive and formidable adversaries, AAPL has been successful in dragging out the legal process in these cases long enough for the issues to become stale and reach “old news” status, taking a back seat to the next scandal or gadget to capture the ever-shrinking attention span of the American public.</div>
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What Are the Accusations Against Apple and Visa?</h3>
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The <i>New York Times</i> story elaborated on the available details of the case, explaining that Weiss “received 13 patents for authentication systems that use a smartphone, biometric identification such as a fingerprint and the generation of secure one-time tokens to conduct financial transactions.” Back in 2010, he held meetings with V executives to discuss licensing his patents, and made (unsuccessful) attempts at arranging similar meetings with AAPL management.<br />
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According to Weiss, Visa signed a 10-year non-disclosure agreement in exchange for obtaining access to his research under the guise of cooperating to further develop it into a functional consumer-ready product. However, once V had been granted access to his technology, all communication ceased and he was unable to re-establish meaningful dialogue.<br />
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Simply put, as soon as Weiss handed over the keys to his revolutionary technology research, Visa went dark.<br />
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A few years later, upon hearing news of Apple Pay’s impending release, Weiss noted that the Apple Pay <a href="https://www.bloomberg.com/news/articles/2017-05-22/apple-visa-face-patent-infringement-lawsuit-over-apple-pay" target="_blank">promotional materials</a> “touted the same benefits that USR had introduced to Apple and Visa in 2010.”<br />
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According to USR’s attorneys:<br />
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“Just as USR disclosed to Apple and Visa that its patented technology eliminated the need to store or transmit payment-card account numbers, Apple bragged to its users that with Apple Pay ‘the credit card isn’t stored on the device.’ ”</blockquote>
Weiss was advised by his attorneys, the firm of Quinn Emanuel Urquhart & Sullivan — the same firm that represented <b>Samsung Electronics</b> (OTCMKTS:<a href="http://investorplace.com/stock-quotes/ssnlf-stock-quote/" target="_blank">SSNLF</a>) in similar patent lawsuits against Apple — to file suit, rather than attempt to negotiate or urge AAPL and V to arrange for a license. Considering the seemingly blatant manner in which Visa ignored and dismissed all of Weiss’ efforts to remedy the situation, the lawyers’ recommendations come as no surprise.</div>
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Bottom Line</h3>
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Given the lack of any relevant reaction from either AAPL or V stock after news of the lawsuit filing was released, I think it’s safe to assume that share prices will not be dropping as a result. Everybody knows that lawsuits, especially ones involving behemoth multinational corporations like Apple, can take years to reach a courtroom, if they even last that long.<br />
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Weiss’ complaint appears (at least on the surface to non-lawyer types like me) to have possibly substantial merit. But, since Apple Pay is essentially the culmination of the entire basis for the lawsuit, there is the chance that operations could be negatively impacted if this case ever actually saw the inside of a courtroom. <br />
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Any disruption in Apple Pay services, however small, could pose an unacceptably high degree of risk to the program’s continued growth, as well as AAPL stock and V stock. This is also why I fully expect this case to be settled long before reaching a trial date, and instead we’ll be reading news of a massive payout arrangement for Weiss.<br />
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<i>Article originally published on <a href="http://investorplace.com/2017/05/apple-inc-aapl-and-visa-inc-v-trouble-apple-pay-lawsuit/view-all/" target="_blank">InvestorPlace</a> (5/25/17)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-48519048396424787692017-05-02T11:45:00.000-04:002017-05-28T02:04:11.467-04:00Twitter, Inc. (TWTR) Stock Isn’t Done Running With Bloomberg<h2>
<i>TWTR stock jumped another 4% on Tuesday to continue a torrid weeklong rally. Could a UFC joiner be next?</i></h2>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://3.bp.blogspot.com/-bQoQe3dcWJY/WSpmkUMQwFI/AAAAAAABGTA/8UYkP29EUb4LHfAc-p2ml56-Rd66N1CnACLcB/s1600/Twitter_TWTR_Flickr_EstherVargas.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="460" data-original-width="555" height="331" src="https://3.bp.blogspot.com/-bQoQe3dcWJY/WSpmkUMQwFI/AAAAAAABGTA/8UYkP29EUb4LHfAc-p2ml56-Rd66N1CnACLcB/s400/Twitter_TWTR_Flickr_EstherVargas.jpg" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: right;"><i>Source: <a href="https://www.flickr.com/photos/esthervargasc/" target="_blank">Esther Vargas</a> (Flickr)</i></td></tr>
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<b>Twitter Inc</b> (NYSE:<a href="http://investorplace.com/stock-quotes/twtr-stock-quote/" target="_blank">TWTR</a>) is partnering with Bloomberg Media to launch its first permanent streaming channel, and Wall Street is downright giddy. TWTR stock has jumped by double digits in the past two days alone, including a 4% bump in Tuesday morning’s trade.</div>
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There are still a number of details that must be worked out, many of which will remain confidential, but the channel is expected to go live later this fall.<br />
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This round-the-clock Bloomberg TWTR channel will, apparently, be comprised of live news reports and coverage from five separate outlets, as opposed to simply a re-broadcast of other Bloomberg content. Justin Smith, Bloomberg Media CEO, <a href="https://www.wsj.com/articles/twitter-teams-up-with-bloomberg-for-streaming-news-1493600580" target="_blank">told the</a> <i>Wall Street Journal</i>, “It is going to be focused on the most important news for an intelligent audience around the globe and it’s going to be broader in focus than our existing network.”<br />
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<a name='more'></a>The announcement of the Twitter streaming video partnership came just shy of a week after Anthony Noto, Twitter’s COO and CFO, told <i>BuzzFeed</i> of the company’s endeavor to create <a href="https://www.buzzfeed.com/alexkantrowitz/twitter-wants-to-stream-live-video-programming-247?utm_term=.twxmQMqMM#.eqdlzvLvv" target="_blank">several 24-hour live streaming channels</a>. The goal is to make Twitter “a viable alternative for cord cutters,” and the deal with Bloomberg is only the beginning.<br />
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Apparently, TWTR also is looking to replace its sports coverage — streaming rights for <a href="http://investorplace.com/2017/04/amazon-com-inc-pads-its-prime-perks-amzn/" target="_blank">Thursday-night NFL games</a> were lost to <b>Amazon.com, Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/amzn-stock-quote/" target="_blank">AMZN</a>).<br />
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With the right content partners, Twitter’s hopes of evolving into a prime destination for news seekers and sports fans could be just what TWTR stock needs right now. After dropping more than 30% in 2016, shares of Twitter are now well in the black for 2017, up 12% and rising.</div>
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<h3>
Twitter Streaming News Is Only the Beginning</h3>
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It’s no secret that losing the NFL streaming rights to Amazon was a huge blow to Twitter’s fragile position, and Twitter stock suffered the ill effects of that loss.<br />
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However, once news of the company’s partnership with Bloomberg reached Wall Street yesterday, Twitter shot up more than 6% by the closing bell. Add in the gains since the company reported <a href="http://investorplace.com/2017/04/dont-be-fooled-twitter-inc-twtr-earnings-sucked/" target="_blank">first-quarter earnings figures</a>, and you’re looking at a 25% run for TWTR stock in just about a week.<br />
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<a href="http://investorplace.com/wp-content/uploads/2017/05/050217-twtr-stock-chart.png"><img border="0" height="483" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEjy_L9qcnwt691W5lyXrN9pe41f6RxdUA05yjbAWnkQkMTT8j2OdbXCsEVqpyZa-H0-CzQO9lLBujADGF9r9jMnXwsnUFJJnBRgsI_g7IcXeqSDWe-M8ZeyCsu-4D928nW1Ie1GJgaEZPoZcioujsUhUMGpkXhSR8Dlny6sV3UIYDHaUPE2gLiSYGLksI0ORA=" width="640" /></a><br />
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Now imagine how Wall Street will react if management is able to make a deal with the UFC, which is apparently one of the top picks for Noto’s plans to expand the microblogging site’s live content.<br />
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A successful deal between TWTR and the mixed martial arts media titan, especially if that arrangement includes live streaming of events, will be a much bigger draw for cord cutters and younger audiences — who typically tend to be one and the same — than if Twitter streaming was nothing but Bloomberg news and similar financial broadcasts. Let’s face it: There’s a huge difference between streaming investment reports and international news compared to streaming a UFC fight.<br />
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Even though a deal with the UFC <a href="http://mmajunkie.com/2017/04/could-the-ufc-stream-fights-on-twitter-the-social-media-giant-sure-seems-to-think-so" target="_blank">would not include Twitter streaming of pay-per-view events</a> (at least not for free), having a round-the-clock broadcast of related MMA content that’s intertwined with Tweets about those PPV fights, as well as freely available videos after the conclusion of the event, could work wonders for boosting TWTR membership figures.</div>
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<h3>
What This Means for TWTR Stock</h3>
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It seems pretty clear that Wall Street sees significant potential for Twitter, considering its international reach and reputation for near-instantaneous information and news sharing, hence the immediate spike for TWTR stock when news of the Bloomberg streaming partnership was announced.<br />
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So, even though many investors and analysts alike tend to view Twitter as social media’s red-headed stepchild, everybody agrees that the company’s 328 million monthly users represents something of a goldmine — if only Twitter can find a way to successfully and consistently keep ad revenue flowing in.<br />
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<i>Engadget</i> <a href="https://www.engadget.com/2017/04/26/twitter-is-gaining-more-users-losing-less-money/" target="_blank">summed it up nicely</a>, explaining that “User numbers are up, losses are down, but Twitter can’t yet make its advertising service work, and that’s a problem. The company saw ad engagement fall, as well as the amount of money advertisers spent with the service.”<br />
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This could all change, though, if the Twitter streaming deal with Bloomberg ultimately leads to continuing increases in TWTR’s user base. Of course, only time will tell, but considering the market’s reaction to the Bloomberg partnership, I’d call Twitter stock a buy.</div>
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Better to take up a position now, rather than wait to hear news of a deal with the UFC.</div>
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<i>Article originally published on <a href="http://investorplace.com/2017/05/twitter-inc-twtr-stock-isnt-done-running-with-bloomberg/view-all/" target="_blank">InvestorPlace</a> (5/2/17)</i></div>
<!-- Blogger automated replacement: "https://images-blogger-opensocial.googleusercontent.com/gadgets/proxy?url=http%3A%2F%2Finvestorplace.com%2Fwp-content%2Fuploads%2F2017%2F05%2F050217-twtr-stock-chart.png&container=blogger&gadget=a&rewriteMime=image%2F*" with "https://blogger.googleusercontent.com/img/proxy/AVvXsEjy_L9qcnwt691W5lyXrN9pe41f6RxdUA05yjbAWnkQkMTT8j2OdbXCsEVqpyZa-H0-CzQO9lLBujADGF9r9jMnXwsnUFJJnBRgsI_g7IcXeqSDWe-M8ZeyCsu-4D928nW1Ie1GJgaEZPoZcioujsUhUMGpkXhSR8Dlny6sV3UIYDHaUPE2gLiSYGLksI0ORA=" -->Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-25849512735626688012017-04-26T16:02:00.000-04:002017-04-27T15:31:17.777-04:00Microsoft Corporation (MSFT) to Battle Alphabet Inc (GOOGL) for Class Crown<h2>
<i>MSFT stock could get a boost from Windows 10 Cloud, but we won't know for a while</i></h2>
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<a href="https://4.bp.blogspot.com/-K9x6m0ZUO8Q/WQJG4MzUt9I/AAAAAAABD78/rVpqsyyzpa8FOWmwmIh8-DU5DiqwW6iFQCLcB/s1600/MSFT_Windows10Cloud.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="298" src="https://4.bp.blogspot.com/-K9x6m0ZUO8Q/WQJG4MzUt9I/AAAAAAABD78/rVpqsyyzpa8FOWmwmIh8-DU5DiqwW6iFQCLcB/s400/MSFT_Windows10Cloud.jpg" width="400" /></a></div>
Next week, <b>Microsoft Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/msft-stock-quote/" target="_blank">MSFT</a>) will host a spring hardware event in New York City to showcase its latest and greatest new devices, as well as unveil the Windows 10 Cloud edition of the company’s iconic operating system.</div>
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The interesting part, though, is not anticipation of a new device or expectancy of some revolutionary program rollout.<br />
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Rather, the focus is expected to heavily surround the Windows 10 Cloud OS and management’s <a href="http://www.windowscentral.com/what-we-expect-microsofts-spring-hardware-event-may-2nd" target="_blank">intentions to shift significant attention to the education market</a>.<br />
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CEO Satya Nadella will, apparently, be allocating a larger portion of the company’s resources to wage war against tech behemoth <b>Alphabet Inc </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/goog-stock-quote/" target="_blank">GOOG</a>, NASDAQ:<a href="http://investorplace.com/stock-quotes/googl-stock-quote/" target="_blank">GOOGL</a>) in the classroom arena. Both <a href="https://www.tcea.org/blog/classroom-smackdown/" target="_blank">Microsoft and Google each sport their own classroom services</a> that offer teachers and students alike the opportunity to learn, work and collaborate using a variety of tools designed to increase efficiency and cultivate a productive environment.<br />
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However, despite having equally robust and functional Classroom products, MSFT has struggled to gain ground against GOOGL since the official release of Microsoft Classroom in April 2016. Comparatively, Google Classroom has been around since August 2014 and, for the most part, it has been very well-received across the country by professors and teachers as well as students ranging from elementary school-age up through universities and grad schools.</div>
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<a name='more'></a>Why Google Has an Advantage in Classrooms</h3>
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Many investors have wondered why MSFT would be willing to spend such time, money and resources to get its software in front of elementary school-age children. Well, last year, shortly after the debut of Microsoft Classroom, <i>Fortune</i>’s Barb Darrow answered that question, <a href="http://fortune.com/2016/08/17/google-apps-classroom/" target="_blank">explaining</a>:<br />
<blockquote class="tr_bq">
Tech titans know that if they want to expand their customer bases, they’ve got to get ’em while they’re young. That’s why Google and Microsoft have targeted teachers and younger students with special editions of their bread-and-butter software packages.</blockquote>
The idea is if you learn to type on Microsoft Word or Google Docs, you’ll keep typing and working on one of those options for life. That’s the rationale behind the companies’ respective Google Classroom and Microsoft Classroom franchises.<br />
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With this in mind, the battle for dominance in classrooms across the country makes a lot more sense.<br />
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<b>Apple Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/aapl-stock-quote/" target="_blank">AAPL</a>), which has been battling Microsoft in classrooms across America since the release of its Apple IIe desktop computer in the 1980’s, was in a solid position to maintain top market share with the iPad release in 2010. Almost immediately, the iPad became a nationwide hit with teachers and students alike, and by 2013, Apple devices accounted for nearly half of all shipments to classrooms, while MSFT devices only accounted for 29%.<br />
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And so the war waged on, as it had for more than three decades prior, with AAPL and Microsoft vying for the attention of America’s pupils in hopes of establishing a lifelong brand loyalty by putting their devices in classrooms across the country. Meanwhile, all along GOOGL had been laying the groundwork for making further inroads into educational institutions by marketing Google Apps for Education, which integrated with Google Drive and Gmail.<br />
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GOOGL rather quickly disrupted what had traditionally been a solid duopoly — like it had done (and continues to do) with a number of other services — and rose to become the top dog, rocketing past the competition thanks to a few key elements that, together, were much more desirable for both students and educators.<br />
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While Apple and Microsoft focused on marketing their hardware, Google had realized that students and teachers were still using its cloud platform to create, share and collaborate, regardless of the device they used to access its cloud services, hence the introduction of Google Classroom.<br />
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With development of the functional, yet extremely inexpensive, Chromebook device, which provided for extremely easy access to the web-based applications that the bulk of students and teachers already used, it was no surprise when GOOGL amassed a 58% market share in early 2016.</div>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://4.bp.blogspot.com/-iRAzGrlZQKI/WQJFa16IF5I/AAAAAAABD7w/awLT1BTm8no9qCLnxTwBCmt4OSCr_tp1QCLcB/s1600/K12_OSshipments_2017_FutureSource.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="392" src="https://4.bp.blogspot.com/-iRAzGrlZQKI/WQJFa16IF5I/AAAAAAABD7w/awLT1BTm8no9qCLnxTwBCmt4OSCr_tp1QCLcB/s640/K12_OSshipments_2017_FutureSource.png" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><i>Source: FutureSource</i></td></tr>
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So, <a href="https://www.fastcompany.com/3062958/how-google-is-schooling-apple-and-microsoft-in-the-battle-for-americas-classrooms" target="_blank">as <i>Fast Company</i> put it</a>, “Caught on their heels in the U.S., and anxious that Google’s Chromebooks will soon repeat their success overseas, Apple and Microsoft are fighting to regain momentum. First, they need to convince educators that in a world of rapidly changing technology they can give both students and teachers a competitive edge.”</div>
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<h3>
Microsoft Has a Plan to Compete Against Google</h3>
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While it’s no secret that many consumers, investors and analysts alike frequently tend to view MSFT as “old school” and GOOGL as the better, more modern technology company. However, not everybody feels this way, and there’s no denying that Microsoft has the experience and resources to remain a major player in the tech industry. The question, though, involves finding the most potentially profitable areas for future development and growth of MSFT stock.<br />
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According to <i>Windows Central</i>, <a href="http://www.windowscentral.com/microsofts-push-education-right-move-time" target="_blank">“the timing is right for Windows 10 Cloud.”</a> Apparently, management has learned from the Windows RT debacle and has a new strategy in place to properly and successfully market Windows 10 Cloud as a viable alternative to Google and its line of Chromebooks.<br />
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If the company can gain traction and start chipping away at Google’s market share, that could translate into solid long-term support for MSFT stock. Unfortunately, it will be many months before anything concrete is available, and even those figures will just be preliminary. It could take at least a year before any meaningful earnings and revenue figures are released, which is what will ultimately be the driving force behind a change for Microsoft stock.<br />
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Of course, don’t expect Google to merely sit on its laurels, either. The company is no stranger to competition, and openly encouraged innovation is a unique part of the company culture. It’s less likely, though, that GOOGL stock will experience effects as powerful as MSFT stock, simply because Google’s structure does not need successful PC/tablet sales to remain profitable.<br />
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Keep an eye on the Microsoft Spring Hardware event next week, because if management can make an impressive display of Windows 10 Cloud, there’s a good chance that teachers and students will also be receptive.
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<i>Article originally appeared on <a href="http://investorplace.com/2017/04/microsoft-corporation-msft-alphabet-inc-googl-class-crown/view-all/" target="_blank">InvestorPlace</a> (04/26/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com4tag:blogger.com,1999:blog-4180055375681273674.post-39991563620525716372017-04-20T12:37:00.000-04:002017-04-21T07:40:16.731-04:00PayPal Holdings Inc (PYPL) Hopes Partnership Will Make It the King of Mobile Payments<h2>
<i>PYPL is No. 1 online, but not in-store. Partnering with GOOGL may fix that.</i></h2>
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<tr><td style="text-align: center;"><a href="https://2.bp.blogspot.com/-to6-ZJpCF-s/VRxMkGGNJSI/AAAAAAAARsk/ISROIE8vPRwOMm0cnnilL2kUDHqQFk7vgCPcB/s1600/PayPal_Google_Wallet_credit_debit_cards.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="300" src="https://2.bp.blogspot.com/-to6-ZJpCF-s/VRxMkGGNJSI/AAAAAAAARsk/ISROIE8vPRwOMm0cnnilL2kUDHqQFk7vgCPcB/s400/PayPal_Google_Wallet_credit_debit_cards.jpg" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: right;"><i>Source: Gregory Gambone</i></td></tr>
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Earlier this week, it was announced that <b>PayPal Holdings Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/pypl-stock-quote/" target="_blank">PYPL</a>) and Google parent company <b>Alphabet Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/googl-stock-quote/" target="_blank">GOOGL</a>, NASDAQ:<a href="http://investorplace.com/stock-quotes/goog-stock-quote/" target="_blank">GOOG</a>) will be partnering up to integrate PayPal’s mobile payment options into Google’s NFC-enabled smartphone payment app, Android Pay.<br />
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No specific details of the arrangements were revealed, but according to <i>Fortune</i>, “PayPal’s chief operating officer, Bill Ready, said that his company’s partnership with Google <a href="http://fortune.com/2017/04/18/google-paypal-android-pay/" target="_blank">will be implemented in the coming weeks</a>.”<br />
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Executives at both GOOGL and PYPL hope that the addition of PayPal as a funding source for Android Pay will serve to increase the number of smartphone owners who actively use Google’s digital wallet, while also making PayPal a more common choice for consumers making in-store purchases.
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<a name='more'></a>PayPal Dominates Online, But Not In-Store</h3>
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For years, PYPL has led the industry; last year, PayPal processed <a href="https://investor.paypal-corp.com/releasedetail.cfm?releaseid=1009339" target="_blank">more than 6 billion mobile transactions</a> worth more than $350 billion. As of December 2016, PayPal held a commanding lead in the mobile payments industry, with <a href="https://www.statista.com/statistics/284108/reasons-for-non-usage-of-digital-wallets-in-the-united-states/" target="_blank">76% of digital wallet users reporting that they used PYPL</a>.<br />
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The second most popular digital wallet service, <b>Amazon.com, Inc.’s</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/amzn-stock-quote/" target="_blank">AMZN</a>) Amazon Pay, trailed PayPal by more than 50 percentage points. And, not surprisingly, the mobile payment services offered by competitors Google and <b>Apple Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/aapl-stock-quote/" target="_blank">AAPL</a>) were used by only 14% and 12% of smartphone owners, respectively. <b>Samsung Electronic </b>(OTCMKTS:<a href="http://investorplace.com/stock-quotes/ssnlf-stock-quote/" target="_blank">SSNLF</a>) sat at the bottom of the ladder with a mere 6% of users claiming to actually use the company’s digital wallet.<br />
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Clearly, PayPal dominates the online payment arena. However, since the launch of Apple Pay in October 2014, and thanks to AAPL’s subsequent massive push to become the premier in-store digital payment option, PYPL has slipped to No. 2 on the <a href="https://www.statista.com/statistics/384921/digital-payment-methods-retail-america/" target="_blank">list of retailers that accept digital payment methods</a>.<br />
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Undoubtedly, this was a contributing factor in the company’s decision to partner with Google. Even though Android Pay is even lower on the list, with only 24% of retailers reportedly accepting the smartphone payment service, the idea is that, together, PYPL and GOOGL stand a much better chance of overtaking Apple and gaining some meaningful market share.</div>
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What This Means for PYPL and GOOGL Shareholders</h3>
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The partnership between PayPal and Google will likely have a more significant beneficial effect on PYPL stock than on GOOGL stock. Even though PayPal sits high atop the mobile payments mountain, shares of PYPL stock will be more greatly influenced as investors learn of the partnership arrangement. GOOGL stock, however, probably won’t react much.<br />
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Interestingly, the inverse is likely to be the case with respect to consumer and retailer use and acceptance of these mobile payment services. According to <i>Statista</i>, <a href="https://www.statista.com/statistics/612020/us-paypal-awareness-usage/" target="_blank">99% of online users in the U.S. are familiar with PayPal</a>. It stands to reason, then, that Android Pay has much more potential to grow in popularity as both companies promote their new partnership.<br />
<i><br />Article originally published on <a href="http://investorplace.com/2017/04/paypal-holdings-inc-pypl-stock-partnership/">InvestorPlace</a> (04/20/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com4tag:blogger.com,1999:blog-4180055375681273674.post-47423110187674747382017-04-04T15:08:00.000-04:002017-04-21T08:16:09.072-04:00Big Tech Goes to War Over Toshiba Corp (TOSBF) Flash Memory<h2>
<i>While Toshiba drowns in debt, sharks are circling the water</i></h2>
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Last week, shareholders of <b>Toshiba Corp (USA)</b> (OTCMKTS:<a href="http://investorplace.com/stock-quotes/tosbf-stock-quote/" target="_blank">TOSBF</a>) voted to approve the <a href="http://www.businessinsider.com/apple-amazon-google-in-bidding-war-for-toshiba-chip-unit-2017-4" target="_blank">separation of the company’s NAND flash memory business</a>, with the intention of attracting outside companies and initiating what amounts to, essentially, an auction of its most valuable asset.<br />
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In early February, <i>Barron’s</i> reported that Toshiba execs were apparently considering <a href="http://blogs.barrons.com/asiastocks/2017/02/14/toshiba-to-sell-the-entire-nand-business/" target="_blank">the sale of the NAND business</a> to offset the company’s debt. At the time, “Toshiba’s equity [had] dropped to negative $1.7 billion, so it needs to come up with at least that much cash to stay afloat.”<br />
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That negative equity was the result of a $6.3 billion write-down, which apparently stemmed from <a href="http://money.cnn.com/2015/07/21/investing/toshiba-ceo-resigns/" target="_blank">“accounting regularities”</a> and “overstated profits” of more than $1.2 billion and ultimately led to the resignation of the company’s chairman.<br />
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Initially, Toshiba attempted to auction off a 20% stake in its NAND business, but nothing came of that, likely because “the serious proposals probably all required the investor to get majority control of the business.”<br />
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With no alternative options, the proposal to completely sever and sell the flash memory business was put to a vote, with more than two-thirds of shareholders approving the proposal.</div>
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<a name='more'></a>International Ramifications of Toshiba’s NAND Flash Memory</h3>
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Toshiba’s NAND flash memory business has been described as the company’s crown jewel, and rightly so. In 1984, Toshiba <a href="https://toshiba.semicon-storage.com/ap-en/product/memory/nand-flash.html" target="_blank">invented flash memory</a> and in <a href="http://toshiba-mirai-kagakukan.jp/en/learn/history/ichigoki/1991memory/index.htm" target="_blank">1989 released NAND flash memory chips</a>. Simply put, NAND flash memory is <a href="http://whatis.techtarget.com/definition/NAND-flash-memory" target="_blank">“non-volatile storage technology that does not require power to retain data.”</a> This technology has become the international standard for temporary data storage (i.e., USB thumb drives, MP3 players and other devices where files are frequently overwritten).<br />
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Since offering a 20% stake in the business didn’t yield any viable bids, the company seemingly has no choice but to sell the entire unit. With flash memory being one of the largest pieces of technology found in everything from smartphones to automobiles to modern kitchen appliances, the owner of that business will have immediate influence on the global flash memory market. This thesis is supported by estimates from Nomura, which indicate that <a href="http://marketrealist.com/2017/03/why-is-toshibas-nand-business-rumor-important-for-micron-investors/" target="_blank">“global NAND sales could increase 51.2% year over year to $51 billion in 2017.”</a></div>
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The List of Bidders Is Huge</h3>
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As you can imagine, the number of companies that would love nothing more than to get their hands on Toshiba’s NAND business is massive. Companies from across the globe have lined up, with bids coming from private investors, investment funds, other chipmakers, as well as a number of tech behemoths.<br />
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According to <i>Business Insider</i>, there are currently <a href="http://www.businessinsider.com/apple-amazon-google-in-bidding-war-for-toshiba-chip-unit-2017-4" target="_blank">about 10 potential bidders</a> interested in Toshiba’s NAND business, including the Japanese government itself, South Korean chipmaker <b>SK Hynix</b>, <b>Broadcom Ltd </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/avgo-stock-quote/" target="_blank">AVGO</a>), <b>Western Digital Corp</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/wdc-stock-quote/" target="_blank">WDC</a>), <b>Micron Technology, Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/mu-stock-quote/" target="_blank">MU</a>), <b>Apple Inc. </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/aapl-stock-quote/" target="_blank">AAPL</a>), <b>Amazon.com, Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/amzn-stock-quote/" target="_blank">AMZN</a>) and <b>Alphabet Inc </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/goog-stock-quote/" target="_blank">GOOG</a>, NASDAQ:<a href="http://investorplace.com/stock-quotes/googl-stock-quote/" target="_blank">GOOGL</a>).<br />
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Not all of the bids have been made public, but it was reported that Broadcom offered approximately $18 billion, which is <a href="http://www.investors.com/news/technology/broadcom-joins-bidding-for-toshiba-chip-unit/" target="_blank">“at the high end of the expected range of $13 billion to $18 billion for Toshiba’s chip unit.”</a><br />
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Acquiring Toshiba’s flash memory business will allow the winning bidder to either design and manufacture its own memory chips, or gain influence — and profit — from the existing international ecosystem.<br />
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For example, Apple would gain the ability to create better memory units with increased storage capacity for future iterations of the iPhone and iPad. GOOGL and AMZN would be able to <a href="http://www.investopedia.com/news/apple-amazon-google-bid-toshiba-chip-unit-report-appl-amzn/" target="_blank">“reduce their dependence on external chip makers and ensure supply for their own data servers through in-house manufacturing.”</a><br />
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Existing chipmakers such as MU would gain “an immediate impact on pricing,” as well as increased market share.<br />
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Micron would have a chance to become the sole provider of NAND flash memory to companies such as Western Digital. Further, MU would have significant influence that could threaten WDC’s current advantage in the chip market.<br />
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For Western Digital, however, <a href="http://marketrealist.com/2017/03/why-memory-makers-could-be-interested-in-toshibas-memory-unit/" target="_blank"><i>Market Realist</i> explains that</a>:<br />
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“WDC would benefit only if a Japanese company, a financial company, or a customer like Canon, Foxconn, or Apple (AAPL) acquires Toshiba’s share. These companies—individually or in a consortium—would be silent partners and provide the necessary funding to build the new fab and maintain the other fabs.”</blockquote>
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What This Means for Investors</h3>
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Currently, this entire debacle regarding Toshiba and the sale of its NAND flash memory business is difficult to use to any real advantage. This is simply because there’s too much still left up in the air, and until a deal is finally announced there’s not much to work with.<br />
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There is, however, significant potential for volatility and upset in the technology sector, specifically the companies involved in making memory chips, as well as those that rely heavily on those components. That list is massive, and the fallout from the sale of Toshiba’s NAND unit has the potential to shake up more than a few existing business relationships.<br />
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So for shareholders of the major players currently involved in the bidding, the only thing to do is hurry up and wait. But keep an extremely close eye on how this story unfolds, as share prices are likely to change rather quickly — even if those spikes or slumps are short lived and reactionary.<br />
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<i>Article originally published on <a href="http://investorplace.com/2017/04/big-tech-goes-to-war-over-toshiba-corp-tosbf-stock/view-all/" target="_blank">InvestorPlace</a> (04/04/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-88611423857897012142017-03-29T08:40:00.000-04:002017-04-25T16:53:20.106-04:00Why Nvidia Corporation (NVDA) Stock Will Keep Jumping Higher<h2>
<i>NVDA stock is set to continue its impressive run up</i></h2>
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Earlier this month, <b>Nvidia Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/nvda-stock-quote/" target="_blank">NVDA</a>) announced the Jetson TX2, which is the latest iteration of the TX1, which NVDA describes as <a href="https://developer.nvidia.com/embedded/buy/jetson-tx2" target="_blank">“the world’s first supercomputer on a module.”</a> The company designed the Jetson module as a tool to assist developers in advancing and creating new technology. Additionally, in partnership with <b>Microsoft Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/msft-stock-quote/" target="_blank">MSFT</a>), Nvidia announced development of the <a href="http://wccftech.com/nvidia-tesla-p100-hgx-1-and-jetson-tx2-pascal-announced/" target="_blank">HGX-1 Hyperscale GPU Accelerator</a>, which promises improved performance and standardization for cloud-computing servers.</div>
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These tools will also serve NVDA stock investors (indirectly, of course), as they further the company’s rise to the top of the AI industry ladder.<br />
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<i>Android Central</i> described the Jetson TX2 best, <a href="http://www.androidcentral.com/nvidia-jetson-tx2-best-development-package-next-great-idea" target="_blank">saying</a>:<br />
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The people who will build this technology of the future will need the tools to do so. In 2017, NVIDIA is doing its part, and the Jetson TX2 is the embodiment of this idea.</blockquote>
Simply put, the Jetson TX2 is a mini supercomputer that can process massive amounts of data on the spot, which can be a huge advantage for technology developers who would otherwise have had to upload all that data to an online server for cloud computing.<br />
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<a name='more'></a>What’s more, NVDA’s Jetson TX2 is capable of “edge” machine learning, a term that refers to the ability of the module to process, interpret and analyze data without the need to first upload it to the cloud, then download the resulting information and details. The TX2 has served its purpose quite successfully and it has helped Nvidia achieve its goal of simplifying developers’ processes by reducing the number of steps required to garner important data.<br />
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As far as the HGX-1, NVDA <a href="http://wccftech.com/nvidia-tesla-p100-hgx-1-and-jetson-tx2-pascal-announced/" target="_blank">believes</a> that:<br />
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The HGX-1 hyperscale GPU accelerator will do for AI cloud computing what the ATX standard did to make PCs pervasive today. It will enable cloud-service providers to easily adopt NVIDIA GPUs to meet surging demand for AI computing.</blockquote>
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More Iconic Brands Rely on NVDA Than You Might Realize</h3>
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Historically, Nvidia has been known for its industry-leading graphics cards. But, NVDA stock is much more than a computer GPU maker. Sure, the company still produces some of the most advanced GPUs that make hardcore gamers drool, but graphics processors are actually capable of much more.<br />
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While high-end GPUs will, obviously, improve PC video quality and reduce or eliminate that annoying screen lag when you’re playing a first-person shooter game, they’re also used for a surprising number of non-visual applications.<br />
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For instance, <b>Alphabet Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/goog-stock-quote/" target="_blank">GOOG</a>, NASDAQ:<a href="http://investorplace.com/stock-quotes/googl-stock-quote/" target="_blank">GOOGL</a>) and <b>Tesla Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/tsla-stock-quote/" target="_blank">TSLA</a>) use Nvidia GPU technology in the development of their respective driverless cars. <b>Volkswagen AG (ADR)</b> (OTCMKTS:<a href="http://investorplace.com/stock-quotes/vlkay-stock-quote/" target="_blank">VLKAY</a>) and <b>Daimler AG</b>’s (OTCMKTS:<a href="http://investorplace.com/stock-quotes/ddaif-stock-quote/" target="_blank">DDAIF</a>) Audi brand have also been using Nvidia GPU units in their own driverless vehicle development projects. These companies <a href="https://blogs.nvidia.com/blog/2016/10/20/tesla-motors-self-driving/" target="_blank">use the NVDA Drive PX2</a> — which, according to <i>Forbes</i>, <a href="https://www.forbes.com/sites/tiriasresearch/2017/03/21/nvidias-jetson-tx2-takes-machine-learning-to-the-edge/#57b9201a57b9" target="_blank">shares the renowned Tegra Parker silicon as the Jetson TX2</a>.<br />
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Beyond just autonomous vehicles, though, Nvidia GPU devices have been used by medical scientists and pharmaceutical companies to investigate and better understand the effects of aging. Using GPUs made by NVDA, biotech companies such as InSilico employ AI to analyze large data sets and <a href="http://www.valuewalk.com/2017/03/heres-how-pharma-is-using-ai-deep-learning-to-cure-aging/" target="_blank">“emulate human brain function”</a> in an attempt to combat diseases related to old age and reduce the cost of healthcare.<br />
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Similarly, at its annual Open Compute Project summit earlier this month, <b>Facebook Inc </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/fb-stock-quote/" target="_blank">FB</a>) announced a cutting-edge AI server dubbed Big Basin, which features <a href="http://hothardware.com/news/facebook-big-basin-ai-platform-adopts-nvidia-tesla-p100-data-centers" target="_blank">“no less than eight Nvidia Tesla P100 GPU accelerators.”</a></div>
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Bottom Line on NVDA Stock</h3>
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All things considered, Nvidia stock’s meteoric rise in the field of artificial intelligence shows no signs of slowing. With the release of the Jetson TX2 module, coupled with the upcoming HGX-1 accelerator, NVDA stock has addressed — seemingly quite successfully — mobile/field R&D as well as the cloud computing needs of AI developers.<br />
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For Nvidia stock, this is a solid sign that the past year’s 213% gains will continue.
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<i>Article originally appeared on <a href="http://investorplace.com/2017/03/nvidia-corporation-nvda-stock-jumping-higher/view-all/" target="_blank">InvestorPlace</a> (03/29/2017)</i>
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Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-68615835041344648902017-03-28T10:02:00.000-04:002017-04-25T16:40:55.981-04:00Advanced Micro Devices, Inc. (AMD) Stock Gears Up for War<h2>
<i>The meteoric rise of AMD stock isn't over yet</i></h2>
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<b>Advanced Micro Devices, Inc. </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/amd-stock-quote/" target="_blank">AMD</a>) stock has quite literally skyrocketed over the past year, as shares of AMD are up nearly 400%, while the <b>Nasdaq</b> is up only 22% over the same period.<br />
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With the release of its Ryzen 7 processor line earlier this month, and the Ryzen 5 products slated for April 11, more than a few <a href="http://www.valuewalk.com/2017/03/amd-stock-soars-analysts-price-targets/" target="_blank">analysts on the Street have issued upgrades</a> and raised price targets for AMD stock.<br />
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According to <i>MarketWatch</i>, 11 of the 29 analysts providing recommendations call AMD stock a “buy” and 15 call it a hold.</div>
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<a name='more'></a>Why the Recent Spike for AMD Stock?</h3>
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For decades, the often-challenged (but undisputed) big dog in the CPU arena has been <b>Intel Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/intc-stock-quote/" target="_blank">INTC</a>). Today, the Intel Core i7 is considered by many to be one of, if not the top performing consumer desktop processor. But, now that the AMD Ryzen is available, tech experts have <a href="http://www.fudzilla.com/news/processors/42811-ryzen-to-compete-with-core-i7-7700k-too" target="_blank">conducted benchmark tests</a> that show the Ryzen equal to, and in some cases better than, the Core i7.<br />
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Further, AMD is preparing to face off against Intel on the enterprise side as well, having announced a partnership with <b>Microsoft Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/msft-stock-quote/" target="_blank">MSFT</a>) to <a href="https://www.smarteranalyst.com/2017/03/08/advanced-micro-devices-inc-amd-announces-collaboration-microsoft-advance-open-source-cloud-hardware/" target="_blank">develop a data center chip</a>, dubbed Naples. According to an AMD executive, <a href="https://www.smarteranalyst.com/2017/03/08/advanced-micro-devices-inc-amd-announces-collaboration-microsoft-advance-open-source-cloud-hardware/" target="_blank">“Next quarter AMD will bring hardware innovation back into the datacenter and server markets.”</a><br />
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So, AMD will simultaneously compete with INTC on two fronts, enterprise and consumer. According to Forbes, upward of 95% of the world’s servers are powered by Intel, but now is definitely the time that companies will be most open to consider switching from Intel to AMD. <a href="https://www.forbes.com/sites/aarontilley/2017/03/07/amd-readies-fight-against-intel-in-innovation-starved-data-center/#7afdbcdf384a" target="_blank">“For the first time in many years, AMD could pose a real threat to Intel’s server supremacy.”</a><br />
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This is exciting news for AMD stock investors, as it seems to alleviate some of the concerns about a potential correction in the relatively near future. At this point, AMD stock is still soaring and will continue to do so as the company chips away at Intel’s market share.</div>
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Bottom Line on AMD Stock</h3>
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The technology industry is perhaps one of the most competitive of all, with new startups appearing almost daily. The potential for shifting market share is often more fluid than in other industries, as innovation is the true king here. And in the tech sector, innovation is the lifeblood of any successful company.<br />
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To that end, AMD’s ability to remain on top is only as secure as its latest silicon creation. While the company has done fairly well remaining innovative on its own, there is even greater potential going forward with Microsoft’s help and involvement.<br />
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AMD stock price hasn’t been this high in more than a decade, and considering the state of the technology industry, particularly CPU development, this is one stock that has solid potential for longer-term growth going forward.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2017/03/advanced-micro-devices-inc-amd-stock-gears-up-war/">InvestorPlace</a> (03/28/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-29340382372921812232017-03-07T11:49:00.000-05:002017-03-09T11:04:45.404-05:00Apple Inc. (AAPL) Can’t Commit to Hollywood<h2>
<i>Investors have heard it all before, so don't expect AAPL to react much</i></h2>
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Rumors abounded last week as two executives from <b>Apple Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/aapl-stock-quote/" target="_blank">AAPL</a>) were involved in a series of <a href="http://nypost.com/2017/03/02/apple-execs-vying-for-original-movie-tv-deals/" target="_blank">closed-door discussions</a> in Hollywood, involving some high-ranking TV and film producers.</div>
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While few details of those meetings have been made public, journalists and analysts alike have speculated about a range of possibilities, including everything from a massive effort to make Apple TV a legitimate player in the streaming arena, to acquisition and partnership negotiations.<br />
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Eddy Cue, Apple’s Senior Vice President of Internet Software and Services, held meetings last week with executives from various film studios, including Sony Pictures Entertainment, the cinema division of <b>Sony Corp (ADR)</b> (NYSE:<a href="http://investorplace.com/stock-quotes/sne-stock-quote/" target="_blank">SNE</a>), and Paramount Pictures Corporation, a subsidiary of <b>Viacom, Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/viab-stock-quote/" target="_blank">VIAB</a>).</div>
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<a name='more'></a>Apple’s Endeavors in Hollywood Are Unclear</h3>
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Because last week’s meetings between Cue and film studio execs remain under wraps, the rumors regarding Apple’s future in the movie business are just speculation at this point. But those guesses aren’t mere shots in the dark, though, and many analysts have been taking cues from Apple’s previous industry activity.<br />
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For instance, the <i>Financial Times</i> reported last month that Apple <a href="https://www.ft.com/content/0842bc20-f3de-11e6-8758-6876151821a6" target="_blank">“has considered a range of acquisitions and targets including, most recently, Imagine Entertainment.”</a> That deal ultimately fell through, however, leaving Apple still waiting in the wings for a suitable cinematic opportunity. <br />
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Some speculated that Apple was considering an outright acquisition of <b>Netflix, Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/nflx-stock-quote/" target="_blank">NFLX</a>), but the outlay that would have been required was seemingly too great to even consider.<br />
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But Apple isn’t entirely absent from the television arena, as the company has plans underway to produce <a href="https://www.idropnews.com/rumors/apple-produce-abundance-original-tv-content-exclusively-apple-tv-expected-debut-year/29160/" target="_blank">“an abundance of original TV content exclusively for Apple TV, expected to debut this year.”</a> Plus, the company is reportedly attempting to create a hybrid service that ties together Apple Music and Apple TV, though many analysts are concerned that such a service would <a href="http://www.patentlyapple.com/patently-apple/2017/03/apple-still-in-the-hunt-for-a-transformative-acquisition-to-set-apple-tv-on-fire-prior-to-the-arrival-of-the-mobile-tv-revolu.html" target="_blank">not perform well</a> in today’s entertainment marketplace.<br />
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<i>PatentlyApple</i> opined, “The market is going to be so saturated with new TV services that Apple will have to do something rather dramatic for their new hybrid service to stand out,” but “Apple TV’s greatness has always been ‘just around the corner’ and has <i>never</i> really materialized.”<br />
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What’s confusing to some AAPL stock investors, though, is Apple’s seemingly mixed signals regarding the company’s intentions for the streaming movie and television space. One one hand, Senior VP Cue has clearly stated, <a href="https://www.idropnews.com/news/apple-svp-meets-hollywood-movie-executives/33395/">“We’re not trying to compete with Netflix or compete with Comcast.”</a><br />
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CEO Tim Cook purportedly <a href="https://www.macrumors.com/2017/01/31/tim-cook-original-tv-content/" target="_blank">verified the company’s current lack of direction</a>, stating:<br />
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“In terms of original content, we’ve put our toe in the water doing some original content for Apple Music, and that will be rolling out throughout the year. We’re learning from that and we’ll go from there.”</blockquote>
However, considering both last week’s meetings with top Hollywood film studio executives and the failed takeover negotiations with Imagine Entertainment, it certainly does look like Apple is trying its hardest to break into the streaming media niche. In fact, longtime Apple stock analyst Gene Munster predicted that <a href="http://loupventures.com/when-will-apple-win-its-first-oscar/" target="_blank">Apple will win an Oscar within the next five years</a>.</div>
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What This Means for AAPL Stock</h3>
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All things considered, with the current state of affairs regarding Apple TV, original content production and Hollywood film studio acquisitions, there hasn’t been much that’s legitimately concrete.<br />
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Sure, if we were talking about any other company, this myriad of rumors and speculation combined with executive statements to the contrary could be enough to cause some wild swings in stock prices. But, for AAPL stock, this doesn’t even move the needle.<br />
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The company has so many other revenue streams and products on which to focus that its film and TV floundering have basically gone unnoticed. Apple stock investors have been hearing about the upcoming Apple TV revolution for years, but nothing has materialized.<br />
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This current buzz of activity may have caught the attention of some, but until — or unless — management officially announces something groundbreaking, AAPL stock will remain unaffected.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2017/03/apple-inc-aapl-wont-commit-entering-movie-business/view-all/" target="_blank">InvestorPlace</a> (03/07/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-2269915668336295052017-02-08T12:47:00.000-05:002017-04-27T16:17:09.595-04:00Apple Inc. (AAPL) Is No Longer Top Dog in China<h2>
<i>AAPL stock may not be the top dog in China anymore, but Apple stock remains strong</i></h2>
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Earlier this week, research firm IDC released a report indicating that, for the first time ever, <b>Apple Inc.’s</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/aapl-stock-quote/" target="_blank">AAPL</a>) iPhone shipments to China have decreased significantly. According to the report, shipments of iPhones to China decreased last year to 44.9 million, a 23.2% decrease from 2015.<br />
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Apparently, Chinese smartphone makers, particularly <b>Oppo</b>, <b>Vivo</b> and <b>Huawei</b>, have increased market share in the region by offering <a href="https://www.bloomberg.com/news/articles/2017-02-06/oppo-huawei-widen-lead-in-china-as-apple-shipments-plummet" target="_blank">“higher-end gadgetry that appeals to consumers seeking Apple-like quality and innovation.”</a></div>
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This has led to an overall decrease in the AAPL market share in China, down to 9.6% from 13.6% in 2015, and a subsequent drop in revenue — Apple’s <a href="https://qz.com/904474/apples-quickly-losing-market-share-in-china-to-domestic-brands-oppo-vivo-huawei-xiaomi/" target="_blank">“fourth consecutive year-over-year dip in the region”</a> — by 11.4%.<br />
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This new situation is potentially disconcerting to a number of analysts and investors, as China has presented a fantastic opportunity for growth in years past.<br />
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<a name='more'></a>However, due to the challenges faced by American companies attempting to conduct business in China — namely, the Chinese government’s <a href="http://fortune.com/2016/04/19/china-demanded-apple-iphone-code/" target="_blank">overbearing regulation</a> and frequent demands for controversial <a href="http://www.washingtontimes.com/news/2017/jan/5/apple-concedes-chinese-demand-guts-new-york-times-/" target="_blank">app and product modifications</a> — coupled with the “ascendancy of cheaper but just-as-good local alternatives,” sales of the iPhone 7 were less than spectacular.<br />
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Some analysts have attributed the reduced demand for the iPhone 7 to a <a href="https://www.entrepreneur.com/article/288850" target="_blank">lack of innovation</a> and significantly higher product prices compared to other countries. This is potentially disconcerting for AAPL stock management and investors alike, since “<a href="https://www.wsj.com/articles/cheaper-rivals-eat-away-at-apple-sales-in-china-1485924305" target="_blank">China remains an important market for Apple</a>, as it contributes 20.7% of its revenue and is the location for the bulk its [sic] manufacturing facilities.”<br />
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It’s quite possible that AAPL stock will recover in China, and the lull in sales and Chinese-based revenue will reverse when Apple finally reveals its 10th-anniversary edition of the iPhone.<br />
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Even considering the recent drop-off in both market share and sales in China, Apple stock is still going strong. According to Strategy Analytics, AAPL earned 91% of global smartphone operating profits in the third quarter.</div>
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Bottom Line for AAPL Stock in China</h3>
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Of the 43 analysts providing recommendations to MarketWatch.com, 33 call Apple stock a buy and 10 call it a hold. The average target price for AAPL stock is $140.57, which represents a potential upside of more than 7% from Tuesday’s per-share closing price of $131.35.<br />
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Overall, Apple stock is still one of the best choices for your tech-centered investment portfolio. While the struggle for dominance of market share in China will undoubtedly be a long and bloody battle, AAPL has a history of producing some of the world’s most innovative and compelling products, and this reputation — and expectation from consumers and analysts alike — will ensure Apple stock remains on everybody’s short list.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2017/02/apple-inc-aapl-stock-top-china/" target="_blank">InvestorPlace</a> (02/08/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-47504759955761636032017-01-24T11:26:00.000-05:002017-01-25T15:08:28.161-05:00Intel Corporation (INTC) Stock Could Dominate With New Compute Card<h2>
<i>Intel stock has always been a good choice, now it's even better</i></h2>
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<b>Intel Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/intc-stock-quote/" target="_blank">INTC</a>) has been around for a very long time and it has been a mainstay in the technology industry, as well as one of the most recognized household names in consumer electronics since the late 1970s. INTC didn’t invent the computer, but it did develop a superior processor that was designed to be functional in almost any computer, regardless of who manufactured it.</div>
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With that, over nearly four decades, Intel has grown into a $173 billion company, giving early INTC stock investors returns in excess of 30,000%.<br />
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The company went on to manufacture a growing number of microprocessors and other types of computer chips, which today are found in countless pieces of electronic hardware.<br />
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It would seem that Intel stock has dusted off the old playbook, unveiling the Compute Card two weeks ago at CES 2017. The Compute Card, according to an INTC Newsroom press release, is intended to <a href="https://newsroom.intel.com/news/intel-unveils-intel-compute-card-credit-card-sized-compute-platform/" target="_blank">“transform the way compute and connectivity can be integrated and used in future devices.”</a><br />
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If things turn out as planned for Intel, the Compute Card has the potential to become another virtually universal component that can be integrated into a gigantic — and constantly expanding — selection of consumer electronics.<br />
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<a name='more'></a><i>The Next Web </i>believes that the Compute Card may have the potential to <a href="http://thenextweb.com/insider/2017/01/08/intels-credit-card-sized-compute-card-makes-old-devices-feel-new-again/" target="_blank">“revolutionize consumer technology by making your old — but still functional — tech feel ‘new’ again.”</a><br />
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INTC describes the Compute Card as “a full computer, including Intel SOC, memory, storage and wireless connectivity.” It is being designed as a modular component to be a universal fit for all future smart tech containing a standard slot.<br />
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The concept is surprisingly simple, yet extremely powerful. Manufacturers of smart devices will be able to stave off obsolescence and extend the lifespan of devices by making key components (i.e., processors, RAM and storage) upgradable via a new Compute Card from Intel.<br />
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So, rather than compete in the Internet of Things race by attempting to design competitive end-user consumer products, INTC management is maintaining its B2B approach with the Compute Card, leveraging Intel’s formidable silicon development resources and facilities.</div>
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What Does This Mean for Intel Stock Investors?</h3>
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Even before the unveiling of the Intel Compute Card, INTC stock has always been a relatively safe bet for the technology portion of your investment portfolio. Over the last year, Intel stock is up more than 15%, and over the past five years, it’s up more than 40%.<br />
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The fact that INTC stock pays a dividend that currently yields more than 2.8%, and has a 20-year CAGR of nearly 22%, makes it a logical choice.<br />
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For years, we’ve been hearing about the Internet of Things, and how today’s technology behemoths have been preparing for a worldwide battle for digital dominance and “smart” devices. However, the battle has already begun, whether you realize it or not; it has just been more of a slow evolution than a catastrophic explosion in the tech industry.<br />
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Intel’s major advantage over possible competitors in the machine-to-machine arena is it long <a href="https://newsroom.intel.com/news/intel-unveils-intel-compute-card-credit-card-sized-compute-platform/" target="_blank">list of global partners</a> such as Dell, <b>HP Inc </b>(NYSE:<a href="http://investorplace.com/stock-quotes/hpq-stock-quote/" target="_blank">HPQ</a>), <b>Lenovo Group Limited (ADR) </b>(OTCMKTS:<a href="http://investorplace.com/stock-quotes/lnvgy-stock-quote/" target="_blank">LNVGY</a>), and <b>Sharp Corporation (ADR)</b> (OTCMKTS:<a href="http://investorplace.com/stock-quotes/shcay-stock-quote/" target="_blank">SHCAY</a>). In addition, Intel is working with a range of regional partners like Seneca Data, InFocus Corporation, Contec DTx, TabletKiosk and Pasuntech.<br />
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With the support of these existing technology leaders working together to develop products that can take advantage of the simplified design, ease of serviceability and user upgradability of the Intel Compute Card, the likelihood of success for INTC — and the subsequent benefit for Intel stockholders — is about as close to a sure thing as you can get in this business.<br />
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According to Intel’s news release from last week, the Compute Card is expected to be available at some point this year. Additionally, the Compute Card is expected to contain Intel’s <a href="http://www.intel.com/content/www/us/en/processors/core/core-processor-family.html" target="_blank">7th generation Core processor</a>, which is the company’s latest line of silicon for faster responsiveness, 4K video handling, more efficient power consumption and top-level encryption.<br />
Bottom Line on INTC Stock<br />
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Overall, Intel remains a wise choice for the technology portion of your investment portfolio. Of the <a href="http://www.marketwatch.com/investing/stock/intc/analystestimates" target="_blank">39 brokers providing recommendations</a> for Intel stock, 22 call INTC a buy and 11 call it a hold. The average target price is currently just above $40, which represents a potential 8% increase over the current Intel stock price.<br />
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While it’s unlikely that the Compute Card will result in near-term meteoric spikes for INTC stock, if the Internet of Things modular component concept takes off, the benefit for INTC shareholders will be monumental.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2017/01/intel-corporation-intc-stock-could-dominate-compute-card/view-all/" target="_blank">InvestorPlace</a> (01/24/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com1tag:blogger.com,1999:blog-4180055375681273674.post-78450985944214178842017-01-18T10:14:00.000-05:002017-04-27T16:20:54.277-04:00Apple Inc. (AAPL) Will Hike App Store Prices … Because Brexit?<h2>
<i>The depreciating pound sterling has forced Apple's hand</i></h2>
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According to an email to developers, <b>Apple Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/aapl-stock-quote/" target="_blank">AAPL</a>) is making plans to raise prices in its U.K. App Store by approximately 25%. The price hike is, apparently, in <a href="https://www.theguardian.com/technology/2017/jan/17/apple-ios-mac-app-store-prices-rise-25-per-cent-following-brexit" target="_blank">response to the weakening pound sterling exchange rate</a>, which has been steadily dropping since June’s Brexit vote.</div>
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The price changes are expected to roll out to the App Store over the next week. Per <a href="https://www.theguardian.com/technology/2017/jan/17/apple-ios-mac-app-store-prices-rise-25-per-cent-following-brexit" target="_blank"><i>The Guardian</i></a>:<br />
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“Similar price increases are expected to hit other Apple Stores, including the iTunes Store for music and video and the iBooks Store.”</blockquote>
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This announcement comes on the heels of <a href="http://www.theverge.com/2016/10/28/13451616/apple-macbook-uk-prices-brexit" target="_blank">October’s unilateral 20% price jump</a> for AAPL hardware, including the company’s newest MacBooks, Mac Pro, and the iMac.</div>
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<a name='more'></a>Brexit Vote Pulled Down the British Pound</h3>
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After the Brexit vote, which occurred last June, the value of the British pound has depreciated approximately 18.5% against the U.S. dollar and is currently on its way to a <a href="https://www.bloomberg.com/news/articles/2017-01-15/pound-drops-to-3-month-low-as-may-reported-to-seek-hard-brexit" target="_blank">31-year low</a>. This devaluation of the pound, together with the U.K.’s 20% VAT rate, has led to price parity between the United States and Britain. In short, that means an app that once cost 99 cents in the U.S. and £0.79 in the U.K. will now cost £0.99.<br />
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Interestingly, Apple’s price increase is actually <i>higher</i> than the loss of value to the British pound. The question on the minds of many investors’ and analysts’ is: Are the price increases in the Mac and iOS app stores an indication that AAPL management believes the pound may fall further? Or is the Cupertino tech titan taking advantage of the volatile financial situation?<br />
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According to <i>Forbes</i>, Apple reported that total spending in its App Store was almost $30 billion, which generated <a href="http://www.forbes.com/sites/chuckjones/2017/01/06/apples-app-store-generating-meaningful-revenue/#130bef652e67" target="_blank">more than $20 billion in revenue</a> for developers last year, up more than 49% year over year. This means the App Store created more than $8.8 billion in revenue for the company.<br />
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It’s also worth noting that approximately 10% of the $28 billion or so in App Store sales resulted from subscriptions. The assumption among many is that Apple’s modified revenue-sharing agreement with developers, which reduced the revenue share split from 30/70 to 15/85 after one year, was largely responsible for the subscription revenue growth.<br />
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Additionally, the Apple TV App Store is assumed to have been a contributing factor as well, given that 2016 was the first full year that the platform was open to developers.</div>
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The Apple Store and AAPL Stock</h3>
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The bulk of revenue for AAPL’s App Store comes from the U.S. and Japan. However, last year, <a href="http://www.fool.com/investing/2017/01/10/5-facts-apple-investors-should-know-about-the-app.aspx" target="_blank">China surpassed the U.S.</a> as the largest download market for iOS apps in the first quarter, according to App Annie.<br />
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The meteoric rise of the iPhone in 2015 was followed by <a href="http://investorplace.com/2015/05/saturated-chinese-smartphone-sales-hurt-aapl-stock-iphone-6-sales/" target="_blank">sharp declines in iPhone sales in China in 2016</a>. Yet, revenue from the App Store in the China grew faster than in other regions, which is understandable considering the newness of iOS to Chinese consumers. The depreciation of the pound in the U.K., however, took away from otherwise impressive overall revenue figures for the App Store.<br />
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It shouldn’t come as a surprise, then, that AAPL management has chosen to institute a broad price increase in the U.K. But overall, the Apple Store price hikes won’t likely amount to much more revenue. Instead, they’ll prevent declines.<br />
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How U.K. iOS users will respond to these price hikes is yet to be seen. More than likely, there will be the expected mumbling and grumbling, but in the end consumers will have no choice but to pay the increased prices for apps. Developers will enjoy additional revenue for the same work.<br />
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AAPL stock investors, on the other hand, should be rejoicing.<br />
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Apple’s App Store already was expected to do extremely well this year, given the overwhelmingly positive response on New Year’s Day. So, the results of the Brexit vote on App Store prices, while irritating for iPhone owners, actually is a positive thing for Apple stock holders.<br />
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In the long run, however, the price hike is minor. Even though 25% is statistically significant, in the real world of apps that cost an average of 99 cents to a few dollars, 25% price increases aren’t really that dramatic.<br />
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Bottom line: Don’t expect any major negative fallout from this … but maybe a slight bump.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2017/01/apple-inc-aapl-app-store-prices-brexit/view-all/" target="_blank">InvestorPlace</a> (01/18/2017)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-14940202169904883932016-12-08T11:13:00.000-05:002017-04-27T16:25:06.233-04:00Facebook Inc (FB), Alphabet Inc (GOOGL) Shouldn’t Fear European Ruling<h2>
<i>The EU may consider legislation forcing tech giants like FB and GOOGL to respond quicker</i></h2>
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The European Commission recently released a report revealing that <b>Facebook Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/fb-stock-quote/" target="_blank">FB</a>), <b>Alphabet Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/googl-stock-quote/" target="_blank">GOOGL</a>), <b>Microsoft Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/msft-stock-quote/" target="_blank">MSFT</a>) and <b>Twitter Inc</b> (NYSE:<a href="http://investorplace.com/stock-quotes/twtr-stock-quote/" target="_blank">TWTR</a>) have thus far <a href="http://gizmodo.com/eu-to-facebook-and-twitter-crack-down-on-hate-speech-1789668384" target="_blank">failed to comply</a> with the provisions set forth in <a href="http://www.recode.net/2016/5/31/11821020/twitter-facebook-microsoft-google-eu-code-of-conduct" target="_blank">last May’s voluntary acceptance</a> of an online <a href="http://ec.europa.eu/justice/fundamental-rights/files/hate_speech_code_of_conduct_en.pdf" target="_blank">Code of Conduct</a> agreement.<br />
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According to the Code of Conduct, these tech behemoths vowed to implement additional measures aimed at identifying and removing blatantly hateful content, with “the majority” of user reports of such content reviewed and addressed within 24 hours.<br />
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Further, each company agreed to implement comprehensive and ongoing training for staff members tasked with addressing these reports, with focus on “current soceital developments” as they may relate to potential surges in hate speech.<br />
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Training was supposed to include and encourage participation and involvement by various “civil society organizations” whose goals were to promote tolerance and education.<br />
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Apparently, <a href="http://gizmodo.com/eu-to-facebook-and-twitter-crack-down-on-hate-speech-1789668384" target="_blank">that didn’t happen</a>.</div>
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<a name='more'></a>Where These Big Dogs Have Fallen Short</h3>
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On Sunday, Reuters reported that the <a href="http://www.reuters.com/article/us-eu-hate-speech-idUSKBN13T0XI" target="_blank">European Commission is disappointed</a> at the speed with which the majority of hate speech reports have been handled since the Code of Conduct was signed. Apparently, an average of only 40% of such reports were reviewed and addressed within the 24-hour window.<br />
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However, the Commission admitted that “after 48 hours the figure is more than 80 percent.” Still, that one extra day is seemingly unacceptable and has prompted the Commission to consider drawing up legisltation that would force FB, GOOGL, MSFT and TWTR to maintain the agreed-upon 24-hour timeframe for reviewign complaints.<br />
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No information has been released regarding possible specifics of the legislation, but European justice ministers are scheduled to meet later this week for a closer examination of the report.</div>
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Will This Change Anything for Users?</h3>
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Generally speaking, it’s not likely. Considering the sheer number of users that these companies have (FB has more than 1.2 billion, GOOGL has more than 2 billion, MSFT has 750 million and TWTR has 317 million), the relative number of complaints regarding hate speech that have been reported over the past six months is almost non-existent.</div>
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According to CNBC, <a href="http://www.cnbc.com/2016/12/05/us-tech-giants-facebook-illegal-hate-speech-face-new-eu-laws.html" target="_blank">“there were 600 notifications to the tech firms regarding hate speech.”</a> Only 316 of them were determined to have possible merit, and of those only 163 resulted in content being removed or deleted. No information was shared as to the origin of those 600 reports and whether they came from Facebook, Google, Twitter or Microsoft.<br />
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The Commission’s stance on the statistic is that these companies should have the resources and manpower to more efficiently handle such complaints. So, despite the vast majority of the reports being resolved, one way or another, within 48 hours, the Commission is adamant about enforcing the 24-hour review period.</div>
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Clearly, there isn’t a huge number of people making these kinds of complaints every day, and considering that only 28% of the complaints received were apparently a legitimate cause for action, there isn’t a massive push by consumers to crack down on instances of hateful content.<br />
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That’s not to suggest that there isn’t an awful lot of such content, but rather that users of Facebook Europe, Twitter and other social media services have gotten very good at avoiding, blocking, or otherwise ignoring those kinds of posts and the people who make them, thanks to extensive and comprehensive privacy features and blocking options available.</div>
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Bottom Line on Facebook and the European Commission</h3>
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At this point, there’s nothing to do except wait for the outcome of the justice ministers’ meeting later in the week.</div>
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We won’t know if legislation will be the likely outcome until the Commission can conduct a more thorough examination of related reports and subsequent meetings with representatives from FB, GOOGL, MSFT and TWTR.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2016/12/facebook-inc-fb-alphabet-inc-fb-shouldnt-fear-european-ruling/view-all/" target="_blank">InvestorPlace</a> (12/08/2016)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-39488893661670731702016-12-01T11:45:00.000-05:002016-12-05T05:42:55.088-05:00Can Tesla Motors Inc (TSLA) Use Solar Roofs to Sell More Cars?<h2>
<i>TSLA stock has a great opportunity to cross-promote with its solar roof</i></h2>
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After the successful completion of the deal to acquire <b>SolarCity Corp</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/scty-stock-quote/" target="_blank">SCTY</a>), Elon Musk announced that <b>Tesla Motors Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/tsla-stock-quote/" target="_blank">TSLA</a>) is officially entering the home building arena. According to Bloomberg, TSLA stock will begin offering revolutionary new solar-powered residential roofs sometime in 2017.</div>
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In a <a href="https://www.tesla.com/solar" target="_blank">video presentation</a> on the Tesla website, Musk stated that his company’s new roofs are expected to cost less than traditional roofs, and that “electricity is just a bonus.”<br />
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Fortune reported that much of the projected cost savings for homeowners is tied to the expectation that a new Tesla solar roof will be <a href="http://fortune.com/2016/11/18/elon-musk-tesla-solarcity-solar-roof/" target="_blank">“lighter and easier to ship, thus reducing costs on breakage and transportation.”</a><br />
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Bloomberg called the roofs “stunning” and described them as “a range of four solar roofing materials that look <a href="https://www.bloomberg.com/news/articles/2016-11-17/musk-says-tesla-s-solar-shingles-will-cost-less-than-a-dumb-roof" target="_blank">virtually indistinguishable from high-end terracotta, slate or slick modern asphalt shingles</a>.”</div>
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<a name='more'></a>Musk Will Incorporate Panasonic Solar Technology</h3>
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Through a partnership with <b>Panasonic Corporation (ADR)</b> (OTCMKTS:<a href="http://investorplace.com/stock-quotes/pcrfy-stock-quote/" target="_blank">PCRFY</a>), a company that has struggled to generate profit in the solar industry, TSLA and SCTY plan to manufacture the solar roof tiles in SolarCity’s Buffalo, New York, factory when construction is completed.<br />
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According to Musk, the Tesla solar roof tiles could incorporate <a href="http://fortune.com/2016/11/01/tesla-details-solarcity-deal/" target="_blank">“a lot of techniques from the automotive glass business,”</a> and that glass is “very cheap and very resilient.” Ideally, combining TSLA’s financial resources with expertise in the creation of increasingly efficient solar panels from SCTY and PCRFY has the potential to yield some extremely impressive residential roofing options.<br />
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Some analysts are concerned about TSLA’s ability to actually manufacture these revolutionary new roofing tiles in the large-scale quantities that might be necessary if Musk’s endeavor takes off. Additionally, there has been concern about the <a href="http://fortune.com/2016/10/17/tesla-panasonic-solar/" target="_blank">internal technology Musk will be using</a> to generate electricity from a Tesla solar roof; two years ago, SCTY acquired a small startup called Silevo, which had been developing new technology that apparently exceeded the efficiency of existing solar panels.<br />
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However, the Silevo panels hadn’t reached production stage, yet, and SCTY has not announced any advancements in their development. But, according to Fortune, SCTY stated that the Tesla solar roof will incorporate several components from all three companies — Tesla, SolarCity and Panasonic — and <a href="http://fortune.com/2016/10/17/tesla-panasonic-solar/" target="_blank">“integrate them into the new solar module that will be produced in Buffalo, NY.”</a></div>
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Can a Tesla Solar Roof Sell More Cars?</h3>
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While it wasn’t something directly mentioned or discussed by Musk, it’s hard to ignore the connection between TSLA’s dominant electric vehicle line and the creation of high-end residential solar roofs.<br />
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With more businesses and consumers looking to “go green” and reduce reliance on fossil fuels, Tesla and SolarCity are both in solid positions to excel in the years ahead.<br />
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That being said, it’s not a giant leap to imagine TSLA offering to add the proper electrical interface and infrastructure required to house a Tesla vehicle into a home being outfitted with a new solar roof.<br />
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On the east coast, for example, one of the largest obstacles to owning a Model S is a lack of charging stations. Owners must <a href="https://www.tesla.com/support/home-charging-installation" target="_blank">modify existing electrical systems in their homes</a> to allow for proper charging of such a vehicle.<br />
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Considering that the Tesla solar roof currently resembles modern high-end roofing materials, the demographic that would most likely be in a position to afford such a purchase might also likely be amenable to purchasing a high-end electric car. This possibility could be increased if incentives were added to solar roof purchases, making a new TSLA vehicle even more affordable.</div>
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What This Means for TSLA and SCTY Investors</h3>
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In the short term, there isn’t likely to be much in the way of an impact on SCTY or TSLA stock, as Musk’s recent announcement was just that — an announcement. There is, indeed, rather significant potential for shareholders if Musk can successfully manufacture his solar roof tiles in sufficient quantities and at affordable prices. However, none of this will happen until the construction of SolarCity’s new factory in Buffalo is finally completed.<br />
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Considering only the new solar roof project, shareholders of both SolarCity and Tesla stock should continue to hold their current positions.<br />
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But, once construction of the Buffalo factory is finished and manufacturing of the solar roof tiles begins, investors should keep a close eye on the sales and production numbers.</div>
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Bottom Line on Tesla and SolarCity</h3>
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A partnership between Tesla, the undisputed king of the electric automobile market, and SolarCity, the largest residential and commercial solar energy provider in the U.S., has the potential to be a match made in heaven, ultimately benefiting both companies and their respective shareholders — if Musk’s bold jump into the residential solar arena pays off.<br />
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Even considering the fact that the solar roof technology Musk intends to use hasn’t been as extensively tested as traditional solar cell materials and techniques, the companies involved — Tesla, SolarCity, and Panasonic — are an impressive force with extensive resources and experience in this industry.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2016/12/tesla-motors-inc-tsla-stock-solar-city-scty-roof/view-all/" target="_blank">InvestorPlace</a> (12/01/16)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-68926362738129594872016-11-30T15:35:00.000-05:002017-04-27T16:29:28.215-04:00Netflix, Inc. (NFLX) Reclaims Its Lead With Video Downloads<h2>
<i>NFLX stock is now even more secure thanks to downloadable videos</i></h2>
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This morning, <b>Netflix, Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/nflx-stock-quote/" target="_blank">NFLX</a>) announced a brand new feature: subscribers can now download movies and television shows for offline playback. There’s <a href="https://media.netflix.com/en/company-blog/downloads-make-it-even-easier-to-watch-netflix-on-the-go" target="_blank">no extra cost</a> for this added functionality, and it’s “included in all plans and available for phones and tablets on Android and iOS.” The Netflix download option isn’t currently available via desktop computer, though. The question is: Will this have a significant effect on Netflix stock?<br />
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According to the official announcement, NFLX implemented this change in response to user feedback. Apparently, the demand for downloadable movies and TV shows is quite significant.</div>
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<a name='more'></a>What’s the Catch for NFLX?</h3>
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At this point, there doesn’t seem to be one, unless you consider the fact that you can’t download every single video in the NFLX repository an actual <i>catch</i>.<br />
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Currently, the bulk of the Netflix download offerings are comprised of the company’s original films and shows such as <i>Stranger Things</i> and <i>Orange is the New Black</i>, but <a href="http://www.theverge.com/2016/11/30/13792376/netflix-offline-downloads-now-available" target="_blank">there are actually </a><a href="http://www.theverge.com/2016/11/30/13792376/netflix-offline-downloads-now-available" target="_blank">“a lot of other random choices”</a> across a seemingly wide range of genres, with more titles to come in the near future.<br />
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The ability to download videos for offline use may come as a shock to Netflix stock owners, considering management’s longstanding resistance to anything other than streaming. However, since NFLX has successfully established a presence in almost every single country, video downloads might possibly be an effort to increase subscribership in overseas locations with budding and improved internet connectivity.</div>
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Is Video Downloading a Game Changer for Netflix Stock?</h3>
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There’s no denying that NFLX stock is the undisputed king of the streaming industry. Even without Netflix downloads, one of the strongest competitors has been <b>Amazon.com, Inc. </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/amzn-stock-quote/" target="_blank">AMZN</a>) and its Prime Video service.<br />
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On the surface, a cursory glance might easily fool you into believing that AMZN actually offers more content than NFLX. However, this past spring, CNBC delved into the numbers and gave some rather eye-opening <a href="http://www.cnbc.com/2016/04/22/netflix-vs-amazon-estimating-the-better-deal.html" target="_blank">insight into how Amazon Prime Video really compares with Netflix</a>.<br />
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Taking into consideration the figures and statistics quoted by CNBC, it’s clear that Netflix is the obvious winner, and this was before NFLX downloads even existed. So, one of the biggest weapons in Amazon’s arsenal has been rendered all but useless now that management has implemented offline viewing capability for subscribers’ most popular content.<br />
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Expect a small bump in NFLX stock as news of the download feature spreads, but don’t expect anything meteoric. Even though video downloads aren’t really a game-changer for Netflix stock, they’re likely to have a more powerful impact on Amazon stock.<br />
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Granted, AMZN is most well known as the king of e-commerce, but the company has spent quite a bit in its efforts to take market share away from NFLX stock. This could lead to fewer Prime Video viewers, pulling the popularity of the service down even further.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2016/11/netflix-inc-nflx-reclaims-lead-with-video-downloads/" target="_blank">InvestorPlace</a> (11/30/16)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-3581609357649896112016-11-16T12:42:00.000-05:002017-04-27T16:36:32.485-04:00Nvidia Corporation (NVDA) Stock Will Get a Boost From IBM<h2>
<i>IBM and NVDA can revolutionize deep learning and artificial intelligence</i></h2>
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Earlier this week, news surfaced that a new high performance computing system is now available, and it is the culmination of a partnership between two tech industry powerhouses: <b>International Business Machines Corp.</b> (NYSE:<a href="http://investorplace.com/stock-quotes/ibm-stock-quote/" target="_blank">IBM</a>) and <b>Nvidia Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/nvda-stock-quote/" target="_blank">NVDA</a>).<br />
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According to <a href="http://venturebeat.com/2016/11/14/ibm-and-nvidia-team-up-to-create-deep-learning-hardware/" target="_blank"><i>Venture Beat</i></a>, “A new software toolkit available today called IBM PowerAI is designed to run on the recently announced IBM server built for artificial intelligence that features Nvidia NVLink technology optimized for IBM’s Power Architecture.”<br />
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This is potentially a very significant step forward for both IBM and Nvidia stock, as the deep learning arena is still relatively small, yet will certainly be a major factor in the future.<br />
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For the uninitiated, non-geek consumer, HPC and deep learning are, <a href="https://blogs.nvidia.com/blog/2016/07/29/whats-difference-artificial-intelligence-machine-learning-deep-learning-ai/" target="_blank">in layman’s terms</a>, the use of multiple pieces of high-powered computer hardware components together with software designed to analyze huge amounts of data.<br />
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Initially, software teaches the machine — referred to as “machine learning” — how to analyze and interpret the data so, later, it will be able to act independently (e.g., recognizing and understanding spoken words or identifying specific characteristics of an image) without the need for additional instructions.<br />
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One of the ultimate goals of die-hard deep learning enthusiasts is to further the development of a true artificial intelligence system.</div>
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<a name='more'></a>IBM Remains a Leader in the Deep Learning Arena</h3>
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While the concept of deep learning has existed for quite some time, the industry has not progressed as quickly as many had hoped, simply because the technology required to effectively process the utterly massive amounts of available data was just too weak. Too few companies and organizations possessed supercomputers with enough processing power to make headway.<br />
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One of the companies that did, however, was International Business Machines. As far back as the early 1950s, IBM was heavily involved in the development and teaching of computers to analyze data and make independent decisions based on their experiences. A notable example was IBM’s checkers-playing program written by Arthur Samuel in 1952, which eventually learned enough and evolved to the point it was <a href="http://www.alanturing.net/turing_archive/pages/reference%20articles/what_is_AI/What%20is%20AI04.html" target="_blank">able to win a game against a human champion</a> in 1962.<br />
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More than three decades later, IBM’s <a href="http://www.nydailynews.com/news/world/kasparov-deep-blues-losingchess-champ-rooke-article-1.762264" target="_blank">Deep Blue chess-playing computer beat world champion Garry Kasparov</a> in a six-game standard chess match in May 1997. Of course, it took IBM more than 12 years to successfully train and develop Deep Blue, but the match against Kasparov was a monumental leap forward for IBM in the AI and deep learning arenas.<br />
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Fast-forward to 2011, and IBM’s latest game-playing creation, Watson, beat Jeopardy!’s all-time (human) winner, Ken Jennings, who had previously won a record 74 games in a row. Watson wasn’t perfect, though, despite the massive teams of computer engineers and developers who created the <a href="http://www.businessinsider.com/how-big-is-watson-2014-1" target="_blank">bedroom-sized supercomputer</a>.<br />
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However, continued advancements in technology allowed IBM to shrink Watson down to the size of “three stacked pizza boxes” just a few years later.<br />
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Those technological advancements, which include not only making machines and computers faster, but smaller as well, have continued to be a focal point for IBM’s deep learning endeavors, not to mention the eventual commercial applications for Watson.<br />
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The company’s research and development efforts recently culminated in the creation of the <a href="http://spectrum.ieee.org/tech-talk/computing/hardware/ibms-braininspired-chip-tested-on-deep-learning" target="_blank">TrueNorth computer chip</a>, hailed as a giant leap forward in pushing the potential of artificial intelligence and deep learning capabilities.</div>
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Enter NVDA Graphics Processing Units</h3>
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In case you didn’t know, your computer’s graphics processing unit, or GPU, is actually capable of quite a bit more than merely displaying high-definition pictures and videos on your monitor. In fact, today’s high-end GPUs are frequently used for a <a href="https://www.lifewire.com/graphics-cards-3d-graphics-834089" target="_blank">multitude of tasks that often have nothing at all to do with videos</a>.<br />
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Nvidia is the undisputed leader in the GPU market, having recently pulled so far ahead of it’s top competitor, <b>Advanced Micro Devices, Inc. </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/amd-stock-quote/" target="_blank">AMD</a>), that it’s unlikely AMD will regain any significant amount of that lost market share. NVDA stock advanced to the front of the pack not just because its GPUs were reliable and extremely cutting-edge, but because they were affordable, too.<br />
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Nvidia took advantage of a series of AMD mistakes that led to delayed releases and poor hardware performance, and management has continued to push out new products that expand the boundaries of the semiconductor industry.</div>
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One such boundary has been deep learning, which NVDA has embraced with its <a href="https://developer.nvidia.com/deep-learning" target="_blank">Deep Learning SDK, software</a> that “provides high-performance tools and libraries to power innovative GPU-accelerated machine learning applications.”<br />
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In an effort to further the functionality of its continually improving line of graphics processors, the Nvidia SDK developed a flexible framework with which other companies and organizations can implement machine learning algorithms to improve the deep learning analytic capabilities of their own systems — of course, only available with NVDA’s own line of high-end GPUs.</div>
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IBM and Nvidia Stock: The Perfect Marriage</h3>
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IBM’s PowerAI software kit uses its own deep learning advancements and highest-performing servers, <a href="http://venturebeat.com/2016/11/14/ibm-and-nvidia-team-up-to-create-deep-learning-hardware/" target="_blank">leveraging NVDA’s latest GPUs</a> to “support new emerging computing methods of artificial intelligence, particularly deep learning.”</div>
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These two tech powerhouses together have the potential to make leaps and bounds in the fields of deep learning and artificial intelligence. This could be a boon not only for the technology industry and, later, the world, but for IBM and Nvidia stock investors as well.<br />
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It’s true that the capabilities and global applications using true deep learning are relatively small, but harnessing the resources and expertise of International Business Machines and NVDA should lead to significant forward progress.<br />
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Considering the sheer speed with which technology evolves on a general basis, combining the most advanced parts of these two technology big dogs is bound to result in some monumental outcomes.<br />
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For investors, this makes both IBM and Nvidia stock solid picks for long-term portfolios, which will ultimately benefit from both price appreciation and dividend growth. International Business Machines stock is up nearly 73% over the past ten years, and its historical dividend growth rate has been 20.4% over that same period.<br />
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NVDA stock is up a whopping 296% over the last decade, but didn’t begin paying dividends until 2012. However, since then, the Nvidia stock dividend has a 3-year CAGR of more than 71%.<br />
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With both International Business Machines and NVDA leading the deep learning race, it should be safe to assume that their partnership and cooperation in this field will help to secure the stocks of both companies.<br />
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Since this development was only recently announced, it’s unlikely that current IBM and Nvidia stock owners will see any notable increase in share prices, but they will as things evolve.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2016/11/nvidia-corporation-nvda-stock-boost-ibm/view-all/" target="_blank">InvestorPlace</a> (11/16/16)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-831881485984275692016-11-01T11:16:00.000-04:002016-11-03T14:10:41.752-04:00Alphabet Inc (GOOGL) Stock’s New Backbone: Artificial Intelligence<h2>
<i>As the AI space evolves, GOOGL is determined to remain on top</i></h2>
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Last week, Martin Abadi, a computer scientist and member of the Google Brain Team at <b>Alphabet Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/goog-stock-quote/" target="_blank">GOOG</a>, NASDAQ:<a href="http://investorplace.com/stock-quotes/googl-stock-quote/" target="_blank">GOOGL</a>), along with David Andersen, an associate professor of computer science at Carnegie Mellon University, published a <a href="https://arxiv.org/pdf/1610.06918v1.pdf" target="_blank">research paper</a> that describes how artificial intelligence entities “can learn how to perform forms of encryption and decryption, and also how to apply these operations selectively in order to meet confidentiality goals.”<br />
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In simpler terms, GOOGL created three separate AI entities and instructed two of them to pass secret messages back and forth while the third attempted to intercept and decode them.<br />
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When the encryption was broken, subsequent messages were secured with even more advanced methods.<br />
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The truly amazing part of the experiment was that “<a href="http://www.popularmechanics.com/technology/a23618/googles-ai-encryption/" target="_blank">the networks were not taught anything about encryption</a> before the game began, meaning that the strategies they came up with were entirely original.” That also means Alphabet researchers may never know exactly what kind of encryption methods were being used, and they probably won’t be able to crack it, either.</div>
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<a name='more'></a>Alphabet and the Competition in the AI Space</h3>
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The GOOGL Brain Team isn’t the only AI research team competing to develop the next revolutionary advancement in machine learning and automation.<br />
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<b>Microsoft Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/msft-stock-quote/" target="_blank">MSFT</a>), for example, recently created a brand new division to focus solely on AI, dedicating more than 5,000 employees to expand MSFT’s capabilities and commence in-depth research. <b>International Business Machines Corp.</b> (NYSE:<a href="http://investorplace.com/stock-quotes/ibm-stock-quote/" target="_blank">IBM</a>) has long been heralded as a pioneer in the AI space since the now-iconic Watson easily defeated two record-holding “Jeopardy!” contestants in 2011.<br />
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Additionally, a host of other massive tech-centric companies have demonstrated interest in furthering artificial intelligence capabilities, including <b>Facebook Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/fb-stock-quote/" target="_blank">FB</a>), <b>Amazon.com, Inc.</b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/amzn-stock-quote/" target="_blank">AMZN</a>), <b>Apple Inc.</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/aapl-stock-quote/" target="_blank">AAPL</a>), <b>Nvidia Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/nvda-stock-quote/" target="_blank">NVDA</a>) and <b>Tesla Motors Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/tsla-stock-quote/" target="_blank">TSLA</a>).<br />
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Not all of these companies have the same goals in mind as Alphabet, but the fact that each of these industry giants has allocated significant financial and human resources to research and development of AI is a crystal clear indication that artificial intelligence will play a huge role in the future of all businesses.<br />
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Presently, the only company with an AI focus that’s on a similar plane to the advancements described by The Google Brain Team’s latest research publication — and that could possibly be in a position to challenge GOOGL for dominance — is IBM. Both Alphabet and IBM have, at this stage, adopted a more broad approach to AI development, focusing on improvements in communication, transmission and related logistics.</div>
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Competitors, however, each seem to have a rather specific niche to which an AI system or methodology would improve existing processes. TSLA, for example, is focusing the bulk of its AI research on improving its already impressive autopilot technology; FB has been looking to develop better facial recognition capabilities and improve its AI assistant; AMZN continues to work on expanding the functionality of its own popular AI virtual assistant, Alexa.</div>
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What Does This Mean for GOOGL Stock?</h3>
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Other than a demonstration that’s more proof of concept than actual functionality, the AI encryption experiment by itself won’t do much to move the needle for GOOGL stock. However, the success of the AI secret messaging game has far-reaching implications, for both Alphabet and the world, and if Google continues to make new inroads into the AI space, GOOGL stock will definitely realize a benefit.<br />
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The power for Alphabet here is its access to near-limitless resources for researchers and developers, plus the fact that advancing technology in general is a solid cornerstone of the entire Google foundation. This is also a significant part of GOOGL stock’s long-lasting strength. Research at Google’s <a href="http://research.google.com/pubs/MachineIntelligence.html" target="_blank">Machine Intelligence division</a> states:<br />
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“Research at Google is at the forefront of innovation in Machine Intelligence, with active research exploring virtually all aspects of machine learning, including deep learning and more classical algorithms.”<br />
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It’s clear that Alphabet wants to remain a leader in the AI arena, a goal further evidenced by the company’s acquisition of <b>DeepMind</b> in 2014. According to the “<a href="https://deepmind.com/about/" target="_blank">About Us</a>” page on its website, “DeepMind is the world leader in artificial intelligence research and its application for positive impact.”<br />
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And, similar to the research paper released last week by members of the Google Brain Team, DeepMind is focused on “developing programs that can learn to solve any complex problem without needing to be taught how.”<br />
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As Alphabet continues to expand its efforts to further the AI space, GOOGL stock will benefit in the long run as these advancements are eventually refined for real-world application. Today, the process may seem slow and the results minuscule, but soon it will snowball on itself.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2016/11/alphabet-inc-googl-stock-new-backbone/view-all/" target="_blank">InvestorPlace</a> (11/01/2016)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-32774078462784148992016-10-28T12:12:00.000-04:002016-11-03T13:57:55.680-04:00Alphabet Inc’s (GOOGL) Alliances Won’t Help Android Pay Take Down PayPal (PYPL)<h2>
<i>Android Pay teamed up with Visa and Mastercard, as the service lags competitors in the digital payments realm</i></h2>
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Earlier this week, <b>Alphabet Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/googl-stock-quote/" target="_blank">GOOGL</a>, NASDAQ:<a href="http://investorplace.com/stock-quotes/goog-stock-quote/" target="_blank">GOOG</a>) announced an agreement with <b>Visa Inc</b> (NYSE:<a href="http://investorplace.com/stock-quotes/v-stock-quote/" target="_blank">V</a>) and <b>Mastercard Inc </b>(NYSE:<a href="http://investorplace.com/stock-quotes/ma-stock-quote/" target="_blank">MA</a>) to provide Android Pay users with much more flexibility and convenience in online purchasing, as well as at countless retail locations around the country.<br />
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The benefits of this agreement are expected to come to fruition early next year and will allow Android Pay users to more conveniently shop using smartphones and tablets on hundreds of thousands of new sites.<br />
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According to Google’s global head of payment products, a strategic partnership has been created allowing users to link their Masterpass and Visa Checkout accounts with the Android Pay app. </div>
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<a href="https://blog.google/topics/shopping-payments/android-pay-partners-visa-checkout-and-masterpass/" target="_blank">According to Google</a>:<br />
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“Visa Checkout and Masterpass users who link their accounts with Android Pay can look forward to easy and secure payments in stores and online with a simple tap.”</blockquote>
Some investors have wondered, though, whether Google’s new relationship with Visa and Mastercard will be received well enough to generate meaningful revenue gains, or if Google is just following suit to remain relevant.</div>
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<a name='more'></a>What About the Competition?</h3>
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Over the past few years, the digital payment arena has gotten significantly more crowded. Google Wallet existed for ages, but nobody ever really paid attention to it. <b>PayPal Holdings Inc </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/pypl-stock-quote/" target="_blank">PYPL</a>), however, was an early mover in the space. Even before it was spun off from <b>eBay Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/ebay-stock-quote/" target="_blank">EBAY</a>) last July, it was the most trusted and widely used online payment system in the world.<br />
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That all changed, however, when <b>Apple Inc.</b>’s (NASDAQ:<a href="http://investorplace.com/stock-quotes/aapl-stock-quote/" target="_blank">AAPL</a>) Apple Pay hit the scene in 2014 and took the market by storm. Much to the chagrin of Google Wallet and Android Pay developers, Apple Pay became instantly popular and essentially became the mobile payment industry’s paradigm virtually overnight, accepted by thousands of merchants at hundreds of thousands of locations worldwide.<br />
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Despite having been available long before Apple Pay, Google’s own Android Pay never gained much visibility or popularity, at least not enough to become statistically significant. However, that all changed, thanks to Apple Pay’s meteoric rise, actually, and Android Pay was suddenly in a spotlight that Alphabet was never able to find on its own.<br />
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Through it all, of course, PayPal was there, as it had always been, serving as a sort of anchor in otherwise rough industry waters. PayPal’s spinoff from eBay actually <a href="http://investorplace.com/2015/03/why-paypal-stock-will-thrive-paydiant-ebay/view-all/" target="_blank">served as a catalyst to further enhance and expand</a> the company’s capabilities and plans for future progress.<br />
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Those three competitors (Apple Pay, Android Pay and PayPal) all work on the same basic principle: users provide credit card and bank account information that is then encrypted or otherwise secured and used to complete purchases and other transactions both online or in physical stores. Each of the three operates as a middleman between the merchant and the consumer’s chosen payment method.<br />
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So, if all three serve the same function and — for the purposes of argument — work properly, what would motivate consumers to use one versus the other?</div>
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Will Alphabet’s Agreement With V and MA Prove Fruitful?</h3>
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Since Google’s revealing blog post earlier this week, a number of investors have wondered whether the newly-formed partnership with a Visa and Mastercard will have any effect on Alphabet stock, or if this is just GOOGL’s expected response to <a href="https://techcrunch.com/2016/06/13/apple-takes-on-paypal-with-apple-pay-on-the-web/" target="_blank">advancements by the competition</a>.<br />
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Unfortunately for AAPL and GOOGL stock, the use of Android Pay and Apple Pay is nowhere near as expansive as it could be, nor as commonplace as these companies would prefer, and one of the main reasons for that is PayPal’s longstanding position and reputation as the premier digital payment processor.<br />
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Per statista.com, <a href="https://www.statista.com/statistics/284108/reasons-for-non-usage-of-digital-wallets-in-the-united-states/" target="_blank">the most popular digital wallet</a>, according to consumers in the United States as of August 2016, is PayPal. Of all the digital wallet services used by consumers so far this year, 77% of respondents said they use PayPal. Apple Pay and Android Pay were nowhere near as popular, with only 12% and 8% of survey participants, respectively, having used either.<br />
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The bottom line for Alphabet stock and Android Pay is that the new arrangement with Visa and Mastercard may keep GOOGL’s digital payment service competitive with the other current frontrunners in the space, but there’s little to indicate that this will be a powerful enough draw to pull in new users.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2016/10/android-pay-alphabet-visa-mastercard-googl-v-ma/view-all/" target="_blank">InvestorPlace</a> (10/28/2016)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-46140772649643697562016-10-27T13:38:00.000-04:002016-11-03T13:46:41.136-04:00Salesforce.com, Inc. (CRM) Would Love to Buy Tableau … But Can It Afford to?<h2>
<i>CRM would need to finance an acquisition of DATA</i></h2>
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Wall Street is abuzz this week after it was discovered that <b>Salesforce.com, Inc.</b> (NYSE:<a href="http://investorplace.com/stock-quotes/crm-stock-quote/" target="_blank">CRM</a>) was never actually considering acquiring <b>Twitter Inc</b> (NYSE:<a href="http://investorplace.com/stock-quotes/twtr-stock-quote/" target="_blank">TWTR</a>). According to a <a href="https://www.scribd.com/document/328090024/5-20-2016-Board-Deck-v5-1#fullscreen&from_embed" target="_blank">confidential presentation discovered buried</a> within thousands of other email messages that were part of a hack carried out by DCleaks, CRM was evaluating more than a dozen publicly traded companies as possible takeover targets, but the <a href="http://www.wsj.com/articles/salesforces-m-a-target-list-excluded-twitter-1476834470" target="_blank">micro-blogging site TWTR wasn’t among them</a>.<br />
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What was on the list, however, was <b>Tableau Software Inc</b> (NYSE:<a href="http://investorplace.com/stock-quotes/data-stock-quote/" target="_blank">DATA</a>). Of all the companies CRM management has been considering as potential acquisitions, DATA seems to make the most sense.<br />
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Acquiring Tableau would do two things for Salesforce: incorporate DATA’s current technology and SaaS products and services to leverage the best components of each, while also eliminating a top competitor from the cloud computing arena.<br />
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The question, however, is less about why Salesforce would want to acquire Tableau or what synergies may exist, and more about whether current CRM and DATA shareholders would approve a merger.</div>
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<a name='more'></a>How Much Might DATA Cost to Acquire?</h3>
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Since there hasn’t been a formal announcement from CRM management regarding acquisition efforts, all we can do is speculate and hypothesize. With that in mind, let’s consider a possible purchase price for DATA.<br />
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The quick and easy back-of-the-napkin method is to assume a 20% premium over current market cap. Presently, Tableau’s market cap sits at $3.6 billion, so our cocktail napkin mathematics tells us that Salesforce could expect to pay about $4.32 billion to acquire its competitor. It’s simple, to the point, and doesn’t take into consideration any possible or likely concessions and negotiations. Still, it’s a — very — rough starting point.<br />
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Another easy way to get a rough estimate of DATA’s sale price is to examine the company’s enterprise value. Simply put, EV is a bit more comprehensive than just adding 20% to Tableau’s market cap, since that only considers common equity. EV, on the other hand, is <a href="http://www.gurufocus.com/term/ev/DATA/Enterprise-Value/Tableau-Software-Inc" target="_blank">“market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.”</a><br />
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As of this writing, the enterprise value for DATA stock is $2.8 billion. That means Salesforce could realistically expect to pay a price close to that to acquire Tableau.</div>
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CRM Doesn’t Have Enough Money</h3>
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Even if shareholders of both CRM stock and DATA stock would likely vote to approve the acquisition, Salesforce simply doesn’t have enough cash to make the purchase.<br />
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As of the quarter ending in July, Salesforce had just over $1.1 billion in cash on the books. If CRM was to acquire DATA for a total of $3 billion-$4.5 billion (based on the range from our cocktail napkin calculations above), management would first have to raise enough capital to complete the transaction.<br />
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And of course, that means debt — more than $2 billion worth of it.<br />
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CRM shareholders would have to consider the potential long-term value of the DATA acquisition alongside the negatives that come with carrying an additional $2 billion of debt, which would bring Salesforce’s total liability somewhere between $7.5 billion and $9 billion.<br />
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Ultimately, though, even a financed purchase of Tableau would likely be a wise decision with long-term benefits for Salesforce and CRM stock. These companies are currently two of the top competitors in the cloud computing arena, and a merger would create a sizable and formidable contender that capitalizes on their synergies.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2016/10/salesforce-com-inc-crm-stock-tableau-data-ipmedia/view-all/" target="_blank">InvestorPlace</a> (10/27/2016)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-44289189766735779862016-10-24T13:31:00.000-04:002016-11-03T13:36:01.421-04:00Alphabet Inc’s (GOOGL) Google TV Could Threaten the Entire Cable Industry<h2>
<i>Google TV should only exacerbate the culture of cord-cutting</i></h2>
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According to <i>Reuters</i>, earlier this week an agreement was reached between <b>Alphabet Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/googl-stock-quote/" target="_blank">GOOGL</a>, NASDAQ:<a href="http://investorplace.com/stock-quotes/goog-stock-quote/" target="_blank">GOOG</a>) and <b>CBS Corporation</b> (NYSE:<a href="http://investorplace.com/stock-quotes/cbs-stock-quote/" target="_blank">CBS</a>). Apparently, <a href="http://www.reuters.com/article/us-google-television-idUSKCN12J2F1" target="_blank">Google will be carrying CBS television content</a> on its yet-to-be-released streaming service.<br />
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If the few details revealed by <i>Reuters</i> are indeed accurate, Google will almost instantly become a dominant force in the streaming television space, and could eventually threaten the entire cable industry.<br />
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Google’s TV service is expected to launch at some point early next year. YouTube is the undisputed king of online video sharing, and Google has taken steps over the past few years to improve its subscription platform (e.g., <a href="https://www.youtube.com/red" target="_blank">YouTube Red</a>) and live streaming capabilities.<br />
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The presence of a bundle containing traditional television stations and content wouldn’t be much of a stretch for consumers to digest, and in fact could be extremely well-received.</div>
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<a name='more'></a>Google Is Already Involved in Streaming Television</h3>
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For years, Google has remained present in the streaming television arena, as the Chromecast has stood tall alongside competitors such as <b>Roku</b>, <b>Apple Inc.</b>’s (NASDAQ:<a href="http://investorplace.com/stock-quotes/aapl-stock-quote/" target="_blank">AAPL</a>) Apple TV, <b>Amazon.com, Inc.</b>’s (NASDAQ:<a href="http://investorplace.com/stock-quotes/amzn-stock-quote/" target="_blank">AMZN</a>) Amazon Fire TV and a myriad of others.<br />
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The current force to be reckoned with in the streaming television space is, without a doubt, Roku. However, Google’s Chromecast isn’t far behind, despite its less polished user interface and need for a computer or smartphone.<br />
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For the uninitiated, the Chromecast — currently in its second generation — is the culmination of years worth of research and development, trial and error on the part of Google’s development team to come up with an affordable, viable replacement for the standard cable TV set-top box.<br />
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This discussion, however, is less about hardware and more about content. There’s no denying that YouTube is the No. 1 most popular video sharing website in the world, by far. Google’s ownership of YouTube puts it in a uniquely powerful position — with more than 1 billion visitors to the YouTube website every day, promoting a new Google TV service wouldn’t present a problem in the least.<br />
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According to <i>Reuters</i>, Google’s skinny bundle TV program service will offer content from CBS as well as <b>Twenty-First Century Fox Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/fox-stock-quote/" target="_blank">FOX</a>), <b>Walt Disney Co</b> (NYSE:<a href="http://investorplace.com/stock-quotes/dis-stock-quote/" target="_blank">DIS</a>) and <b>Viacom, Inc. </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/viab-stock-quote/" target="_blank">VIAB</a>). Along with curated content from its own YouTube service, a Google TV package could be a surprisingly attractive alternative to paying <b>Comcast Corporation</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/cmcsa-stock-quote/" target="_blank">CMCSA</a>) hundreds of dollars per month for hundreds of channels you’ll never watch.<br />
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Streaming television shows and content online is nothing new. The current industry front-runner, Roku, has refined a crisp, interactive and intuitive user interface that tops the list. Google’s Chromecast, on the other hand, has almost no mentionable user interface at all and content is instead pushed to televisions from smartphones, tablets and the Chrome desktop browser.<br />
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At this point, it is unclear whether Google’s coming television service will include or incorporate a consolidated user interface, if content will be accessed via YouTube or a newly-designed website, or even if the service will be accessible through Roku, Chromecast or Fire TV.<br />
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While online services similar to what’s expected from Google TV already exist, none of them come close to being able to match the potential popularity and instant viewership that Google will enjoy right from the start. So, where others have struggled to build a fan base and increase exposure, the billions of viewers already hooked on YouTube make an overwhelmingly advantageous captive audience. </div>
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Google TV Could Kill Traditional Cable Providers</h3>
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It’s no secret that cable television providers are among the most despised of all companies. Comcast, for example, has historically been known as <a href="http://finance.yahoo.com/news/comcast-american-customer-satisfaction-index-221522924.html" target="_blank">the most hated company in America</a>, holding the record for the absolute lowest score ever obtained by the American Customer Satisfaction Index from 2008-2015.<br />
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That being said, people are always on the lookout for a valid excuse to leave Comcast.<br />
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If Google puts out a television service that is at least comparable to packages available from Comcast, the likelihood that a statistically significant percentage of current CMCSA customers will jump ship and sign up for a plan through Google is high. With the number of <a href="http://www.businessinsider.com/cable-tv-curbs-subscriber-losses-but-cord-cutters-continue-to-grow-2016-3" target="_blank">people cutting the cord increasing every year</a>, internet-based streaming television services are ever more popular, despite efforts by traditional cable providers to keep customers from leaving.<br />
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The truth of the matter is that the concept of television watching is evolving into an on-demand paradigm, with services like <b>Netflix, Inc. </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/nflx-stock-quote/" target="_blank">NFLX</a>) leading the way and cutting a new path. With the technological ability to stream virtually any program anywhere in the world at any time, the focus is now on convenience, reliability, ease-of-use and, of course, price.<br />
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Presently, there seems to be something of a lull in the storm and a tenuous balance exists, which arose only after traditional cable providers scrambled to create their own new bundles and discounted service packages. In the end, though, it won’t last, and when Google TV is finally available, it could arrive like a nuclear bomb that destroys the television industry and further endangers traditional providers.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2016/10/alphabet-inc-googl-stock-google-tv-ipmedia/view-all/" target="_blank">InvestorPlace</a> (10/24/2016)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-90772752262655829082016-10-19T12:40:00.000-04:002017-04-27T16:39:38.573-04:00Seagate Technology PLC (STX) Stock Is NOT a Contrarian Buy<h2>
<i>Seagate stock has been on a tear recently, but the rally is out of juice</i></h2>
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<b>Seagate Technology PLC </b>(NASDAQ:<a href="http://investorplace.com/stock-quotes/stx-stock-quote/" target="_blank">STX</a>) is expected to announce the results for the first quarter of its fiscal 2017 today. Ahead of that quarterly report, Wall Street has been buzzing with news that several analyst firms have increased target prices for STX stock, and some have raised ratings as well.<br />
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The concern, however, is that Seagate stock will not benefit investors in the long run. Management has <a href="http://www.seagate.com/about-seagate/news/seagate-technology-announces-preliminary-financial-information-for-fiscal-first-quarter-2017-pr/" target="_blank">reported margins and revenues that are above earlier expectations</a>, and claimed increased demand for computer hard drives.<br />
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<a name='more'></a>Concerns for the Future of Seagate Stock</h3>
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Despite the seemingly positive outlook portrayed in Seagate’s preliminary financial report, STX stock investors may still have cause for concern about the company’s long-term potential and stability.<br />
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Management described some bullish forecasts, but when you’re using relatively simple year-over-year comparisons it’s not difficult to make an otherwise struggling company appear financially sound.<br />
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STX spent almost $1 billion on buybacks in the year-ago quarter, yet share prices continued plummeting even in the face of a notably high dividend yield that peaked near 14% earlier this year and earned Seagate stock the title of <a href="http://www.forbes.com/sites/dividendchannel/2016/09/20/why-seagate-technology-is-the-top-dividend-stock-of-the-nasdaq-100-with-7-0-yield-stx/#cc8835480370" target="_blank">“Top Dividend Stock of the Nasdaq 100”</a>.<br />
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Management’s aggressive buybacks, however, have since slowed to a crawl as the company’s cash balances have been depleted. Not surprisingly, especially considering the company’s $4 billion of long-term debt, in the three quarters since the billion-dollar buyback, STX has spent a mere $100 million to further that effort.<br />
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It would appear, then, that management overspent in this regard and no longer has sufficient capital to sustain the current 7.2% dividend and make additional significant purchases.<br />
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Initially, the impressive dividend, together with management’s cost-cutting measures finally showing some positive results and last September’s buyback surge boosting the price of Seagate stock, investors began returning to the once-abhorred data storage specialist. This was further fueled by the low-interest-rate environment, and has since bumped Seagate’s P/E ratio to 43.</div>
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Bottom Line on STX Stock</h3>
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Since late June, the share price of Seagate stock has rocketed by about 70% to almost $35, prompting a number of analysts to raise ratings and increase price targets.<br />
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Some investors, however, are concerned about what will happen to the stock once management’s cost-cutting process is complete. What might the financials look like when sales and revenue are the primary focus, rather than cost-cutting and share buybacks?<br />
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This is especially concerning after reading management’s preliminary report that describes an expected increase in operating expenses due to <a href="http://www.seagate.com/about-seagate/news/seagate-technology-announces-preliminary-financial-information-for-fiscal-first-quarter-2017-pr/" target="_blank">“variable compensation related to better financial performance.”</a> So, it would seem, then, the company has had to spend even more money just to maintain.<br />
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Also, considering that the HDD market is undeniably shrinking, like it or not, and Seagate does not hold any significant leverage in the solid state drive, a growing disparity exists between STX and its closest rival, <b>Western Digital Corp</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/wdc-stock-quote/" target="_blank">WDC</a>).<br />
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Perhaps the most relevant difference between the two, however, is that WDC at least appears to be concerned about remaining relevant in the digital storage marketplace, while Seagate <a href="http://www.fool.com/investing/2016/10/06/3-tech-stocks-i-never-plan-to-buy.aspx?source=yahoo-2-news&utm_campaign=article&utm_medium=feed&utm_source=yahoo-2-news&yptr=yahoo" target="_blank">seems to lack a viable long-term plan</a>.<br />
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<i>Article originally appeared on <a href="http://investorplace.com/2016/10/seagate-technology-plc-stx-stock/" target="_blank">InvestorPlace</a> (10/19/2016)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-55422146949701039332016-09-30T11:55:00.000-04:002017-04-27T16:45:17.694-04:00Fitbit Inc (FIT) Charge 2 Demand Is Below Expectations<h2>
<i>It's probably too early to tell how good the Charge 2 actually is...</i></h2>
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Shares of <b>Fitbit Inc</b> (NYSE:<a href="http://investorplace.com/stock-quotes/fit-stock-quote/" target="_blank">FIT</a>) have been floundering this week, down over 11%. Management had been hoping for a continuation of the surge that’s been pushing Fitbit stock higher over the past three months. Expectations were that the official release of the Charge 2 tracking band would aid the rally.<br />
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Unfortunately for Fitbit stock, the release of the Charge 2 did not cause massive stampedes at local electronics retailers, nor generate anything worth reporting on the nightly news.<br />
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Instead, since Thursday’s opening bell, shares of FIT have given back a rather sizable portion of the 37% gains that Fitbit stock has earned over the past three months. Some <a href="http://fortune.com/2016/09/29/fitbit-shares-fall/" target="_blank">investors are concerned</a> that shares will continue to decline if the Charge 2 doesn’t start selling.</div>
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<a name='more'></a>Is Something Wrong With the Charge 2?</h3>
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Technically speaking, no, there’s nothing blatantly wrong with the Fitbit Charge 2. Since the release of the Fitbit Charge in 2014, management has garnered an overwhelming abundance of user feedback and technical data that developers could use to enhance and improve the next iteration of the company’s popular fitness tracking wearable.<br />
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However, opinions and experiences vary widely, especially when it comes to electronics, and the Charge 2 is no exception.<br />
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Some users, like Gizmodo’s Christina Warren, have called it <a href="http://gizmodo.com/fitbit-charge-2-is-the-best-fitness-tracker-period-1786720180" target="_blank">“the best fitness tracker, period,”</a> while others, like The Verge’s Lauren Goode, have described the Charge 2 as <a href="http://www.theverge.com/2016/9/28/13078652/fitbit-charge-2-fitness-tracker-review" target="_blank">“a promising fitness tracker, plagued by bugs.”</a><br />
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Again, with a near-infinite number of possible experiences and testing scenarios, and also considering that we’re talking about a wristwatch-sized computer that’s designed to track, measure and record the wearer’s heartbeat, precise GPS location, number of steps taken, distance traveled and even sleeping patterns, it’s not surprising to hear widely different feedback from early users.<br />
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Add to that the ability to display smartphone notifications, incoming calls and calendar event alerts, and you’re bound to run into a mountain of unexpected device behavior and even failure.<br />
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Looking at the bigger picture, though, despite mixed reviews and reports of non-working functions, it seems as if the Charge 2 has been able to deliver on most of the company’s promises.</div>
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What This Means for Fitbit Stock</h3>
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With the release of almost every brand-new gadget, there’s an expected “breaking in” period where early users report a high number of errors and non-functional features. That’s because development teams have a limited number of testing environments within which they can create worst-case scenarios to measure and improve a device’s performance.<br />
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However, real-life usage is almost never the same as laboratory testing, and given the sheer number of consumers wearing a Fitbit device, it would be impossible for the company to predict or plan for every hypothetical incident.<br />
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That being said, despite some early reviews stating the Charge 2 is a flop, it would be foolish for investors to act on a small number of early, possibly unsubstantiated claims against the new FIT tracker.<br />
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But, if widespread feedback about the Charge 2 continues to be predominantly negative, closing your position in Fitbit stock at that point might not be impulsive or unwarranted.<br />
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Quarterly sales figures for the Charge 2 may also play a crucial role in the future of Fitbit stock. It might be prudent to hold off on any major position changes until nearer the next FIT quarterly earnings report.<br />
<i><br />Article originally appeared on <a href="http://investorplace.com/2016/09/fitbit-inc-fit-charge-2-demand/" target="_blank">InvestorPlace</a> (09/30/2016)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0tag:blogger.com,1999:blog-4180055375681273674.post-26380247730233448992016-09-29T09:31:00.000-04:002016-10-05T14:03:27.851-04:00Facebook Inc: Facebook at Work Is Great for FB, Bad for Work<h2>
<i>Social media already costs employers billions in lost productivity</i></h2>
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According to <i>TechCrunch</i>, <b>Facebook Inc</b> (NASDAQ:<a href="http://investorplace.com/stock-quotes/fb-stock-quote/" target="_blank">FB</a>) is planning to reveal a modified collaborative network called Facebook at Work, aimed at enhancing communication between employees with a suite of messaging options and real-time video calling. When it debuts, the enterprise platform should add yet another layer to Facebook stock, which is up 23% year-to-date. <br />
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The Facebook at Work concept isn’t a new one, as rumors of such a product’s development have been tossed around for years.<br />
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However, apparently “a source close to Facebook” has just confirmed that the social media giant’s <a href="http://www.msn.com/en-us/money/other/facebook-at-work-is-launching-next-month/ar-BBwIHcm" target="_blank">enterprise platform is finally ready</a> and will be revealed within the next few weeks.<br />
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On the surface, using FB for effective communication and collaboration in a work setting may sound like the perfect idea. People are already familiar with the FB interface, so transitioning into the Work Feed shouldn’t be all that difficult.</div>
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But, it’s not the functionality I’m worried about, nor the ability of employees to learn to use Facebook features.</div>
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<a name='more'></a>Why the Platform Makes Sense for Facebook</h3>
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Considering that 1.7 billion people across the world already use FB, and 1.13 billion of them use it every day, I’m surprised the development of a dedicated enterprise platform hasn’t been completed sooner; FB already has all of the tools that an enterprise environment would need. Best of all, people already know how to use the thing.<br />
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Adding some enterprise-specific work tools or enhanced collaborative functionality would be a plus, but the basics that most corporate networking products offer are already present in Facebook’s ordinary everyday social media experience. So, in that sense, management could successfully present an enterprise-themed Facebook at Work platform with relatively minimal complication and development needs.<br />
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Convincing employers to adopt the platform shouldn’t be much of a challenge, either; it’s a lot easier to introduce a new collaborative paradigm when it’s based on, and connected to, an existing model that employees already use daily.<br />
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<a href="https://techcrunch.com/2016/09/27/facebook-for-work/" target="_blank"><i>TechCrunch</i></a> said it best:<br />
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“Facebook At Work’s biggest strength could be its familiarity. It should find onboarding users easier than many SaaS tools since people will already have a login, password, and know how to use it. That quick registration could help it leapfrog competitors that can often seem foreign or confusing compared to consumer software.”</blockquote>
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Why Facebook at Work Might Be Bad for Work</h3>
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It’s no secret that a ridiculously high number of people waste time at work. Every day, countless employees spend hours finding new ways to <a href="http://money.usnews.com/money/blogs/outside-voices-careers/2015/11/16/is-your-facebook-use-at-work-hurting-your-career" target="_blank">make it look like they’re working</a> than they do actually working. Included in the whole “pretending to work” conspiracy is also time carved out for checking FB and other social media sites, as well as playing games.<br />
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The problem of how to stop employees from sneaking onto Facebook during work hours has plagued employers for years, ultimately <a href="https://www.linkedin.com/pulse/20140915221534-21875070-social-media-cost-employers-billions-in-lost-productivity" target="_blank">costing billions of dollars per year</a> in lost productivity and lower quality.<br />
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As it stands, employees know that they’re not supposed to be on FB while at work. So, at least their visits to the social media site are brief and kept hidden from management. However, with Facebook at Work, companies will be giving employees the green light to turn on Facebook. This, I imagine, would make it even more challenging to spot someone who’s simply goofing off, given that Facebook will be on every computer screen in the office.<br />
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Further, we’ve all seen instances of private pictures accidentally made public on FB, or posts meant for friends being public by mistake. We’ve all laughed at those people, mocking their awkward and embarrassing Facebook Fails. There’s even a chance we’ve been that guy once or twice before.<br />
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If Facebook at Work takes off, the number of instances of accidental posts or incorrect sharing is sure to skyrocket.</div>
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Bottom Line for Facebook Stock</h3>
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There’s no avoiding the fact that people will undoubtedly make mistakes and embarrass themselves, not to mention waste even more company time and be less productive when Facebook at Work arrives in their own office. However, it will eventually settle down as more people become familiar with the platform and begin to properly navigate between personal and professional usage.<br />
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In the end, Facebook at Work will be a boon for Facebook stock as it takes hold as one of the leading enterprise collaboration platforms. With only a minor learning curve and a potential customer base in the hundreds of millions, the FB enterprise platform could eventually become another pillar on which the social media giant stands, rewarding Facebook stock investors with stability and solid growth once the platform rolls out.<br />
<i><br />Article originally appeared on <a href="http://investorplace.com/2016/09/facebook-at-work-great-fb-bad-work/view-all/" target="_blank">InvestorPlace</a> (09/29/2016)</i></div>
Greghttp://www.blogger.com/profile/11971838630176883183noreply@blogger.com0