Tuesday, March 15, 2016

Target Corporation: Will the Internet Power TGT Even Higher?

Target stock needs its e-commerce side to keep growing like a weed

Target Corporation (TGT) CEO Brian Cornell recently revealed some details about his plans to beef up the company’s online presence and spur increased e-commerce revenue.

And in the long run, this could help paint a more bullish picture for Target stock.

Last month, TGT reported fourth-quarter earnings, revealing 34% growth in e-commerce sales during the holiday shopping season. Investors were pleased with the results as a whole, sending Target stock more than 10% higher ever since.

Cornell’s decision to spend upward of $1.4 billion on improving the TGT website and mobile shopping experience clearly paid off, with full-year e-commerce revenue growing 31% over 2014. Sure, that’s not quite as well as he’d originally hoped, predicting 40% improvement. But Target’s 34% e-commerce growth in Q4 was more than quadruple the 8% increase reported by key retail rival Wal-Mart Stores, Inc. (WMT) and also ahead of the 26% increase reported by e-commerce big dog Amazon.com, Inc. (AMZN).

Cornell has said that TGT will spend approximately $2 billion in 2016 to further improve the company’s digital capabilities and make shopping online an easier, more pleasant experience for consumers.

Continued spending in this area could help TGT maintain steady e-commerce growth … but that doesn’t necessarily mean Target stock will benefit.

Thursday, March 10, 2016

Alphabet Inc: Google’s Project Fi Is Loose, Watch Out! (GOOGL, GOOG)

Google's wireless service boasts competition-killing features and rates

Alphabet Inc (GOOGL, GOOG) announced in an official blog post Monday that its Project Fi wireless service has exited the invitation-only beta period and the service is now open to everyone in the U.S.

Last May, after several years of rumors, speculation and debate, Google finalized arrangements to set itself up as a mobile virtual network operator.

Simply put, an MVNO is a reseller of cellular phone services, and in the case of Project Fi, customers will utilize a combination of network and data services from both T-Mobile (TMUS) and Sprint (S).

In this regard, Project Fi is the first MVNO to offer customers the benefit of simultaneous cell service from two of the nation’s top four carriers. Even better, the price for Project Fi is surprisingly low, and in most cases significantly less than comparable voice and data plans from other carriers.