|Day's range||191.70 - 192.20|
Stock futures added to gains Wednesday evening, with tech shares continuing their relentless march higher as overnight trading kicked off.
Another price-target increase drove Apple stock higher, and IBM is adding to its automation-software capabilities.
(Bloomberg) -- Some of Wall Street’s biggest stocks are coming off their best quarterly performance in years, and with the broader economy still grappling with the pandemic, analysts are starting to express some skepticism about high-profile rallies.The S&P 500 surged 20% in the second quarter, its biggest quarterly gain since 1998. While the superlative nature of the rally was partly a function of timing -- many components hit a bottom right before the end of the first quarter -- the move was fueled by tech and internet stocks, which outperformed the benchmark and have heavy weightings due to their massive market capitalizations.Apple and Amazon.com both gained more than 40% during the quarter, making it the iPhone maker’s best quarter since 2012 and Amazon’s best since 2010.On Wednesday, Deutsche Bank confessed it was “surprised at both the speed and magnitude of the rebound” in Apple shares, adding that the move “has us nervous.” Raymond James echoed this tone on Tuesday, seeing uncertainty surrounding Apple’s forecast given an expected delay in the iPhone 12, a product Nomura Instinet expects “will fall short of a supercycle.” Both Deutsche Bank and Raymond James still recommend buying Apple shares.Amazon remains a consensus favorite on Wall Street -- more than 90% of the firms tracked by Bloomberg recommend buying it -- but the degree to which the share price exceeds analysts’ average price target is near a multiyear high, suggesting that even bulls aren’t expecting much additional upside.Among other mega-cap names, Microsoft rose 29% over the second quarter, its best such showing since 2009. Both Facebook and Google-parent Alphabet notched their biggest quarterly gain since 2013, with Facebook up 36% and Alphabet up 22%, based on its Class A shares. Netflix rose 21% last quarter.All are at or near record levels, and the rallies will soon be tested as each member of the group is scheduled to post quarterly results before the end of the month, with Microsoft and Netflix reporting next week.Apple EstimatesFor Apple, the rally has come despite a more tepid view for its upcoming results. Wall Street expects third-quarter earnings, excluding some items, of $2.03 a share, a consensus that is down 6.8% from where it was three months ago. The consensus for revenue has declined 0.9% over the same period.While analysts debate whether the results will justify the recent gains, many of these names are seen as potential pandemic winners. Microsoft is expected to see stronger demand for its cloud-computing and workplace collaboration products as people continue to work remotely, while the e-commerce wave lifting Amazon and others is seen as outlasting the coronavirus’s impact on brick-and-mortar stores.Apple analysts also see a number of reasons to be optimistic for the long term, including the company’s services business, wearable products, and its stock-buyback program. “Overall, we believe the directionality and reasoning behind AAPL’s stock rise,” Deutsche Bank’s Jeriel Ong wrote. Still, the firm has “ambivalence at these levels.”Firms expressed a similar sentiment about Netflix, which has seen higher engagement during the pandemic. Rosenblatt Securities “struggle[s] to see the upside” from current levels given “uncertainty over how [long] this favorable environment will last.” Stifel continues “to grapple with the risk/reward profile given limited 2H visibility.”Imperial Capital downgraded the stock earlier this week, moving away from an outperform rating that it had held since starting coverage on Netflix about two years ago, according to data compiled by Bloomberg. Following the recent advance, Netflix “will begin a fairly extensive range-bound trend as other long opportunities emerge in the media space,” the firm said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- It’s official. TikTok has become a political football.The surging social media app, owned by Beijing-based ByteDance Ltd., is ensnared in the escalating tensions between China and its global rivals. Last week, India banned TikTok along with dozens of other Chinese apps, citing national security concerns. And on Monday during a Fox News interview, Secretary of State Mike Pompeo mentioned for the first time that the Trump administration is “certainly looking at” banning TikTok and other Chinese apps, warning of data-privacy issues. Trump echoed those statements on Tuesday.TikTok has said it keeps user data securely in the U.S. with backups in Singapore, and that it has never provided data to the Chinese government. In a further effort to calm stateside angst, TikTok hired former Walt Disney Co. executive Kevin Mayer this year as its chief executive officer.Still, there may be real national security implications stemming from a Chinese company owning a major American social network. ByteDance has been under review by the Committee on Foreign Investment in the U.S. for its 2017 purchase of lip-synching startup Musical.ly, which was popular in the U.S. And it's now said to be facing scrutiny from the Federal Trade Commission and the Justice Department over whether it has met its commitments to protect children's privacy in a previous settlement. But before the country takes the dramatic step of banning a Chinese competitor (particularly one whose users helped prank the U.S. president earlier this year), the White House should spell out its reasoning. Otherwise, the move looks like political bluster.Some have argued that TikTok should be banned in the U.S. because Facebook Inc.’s social media site is not allowed in China. But such tit-for-tat protectionism would be short-sighted policy. American companies should win in the marketplace through better innovation, not by government assistance. Over the long run, the domestic technology industry is far better served having vigorous competition—and TikTok is certainly that—which pushes U.S. companies to create better products. Plus, a TikTok ban risks Chinese retaliation against American companies inside its borders. The list of potential targets that generate a significant portion of their sales in China is long—including Apple Inc., Starbucks Corp. and Intel Corp.On a relative basis, TikTok isn’t an obvious target in terms of data collection. Its focus is sharing creative short-form videos, like dancing and lip-syncing. The app’s algorithm surfaces relevant content, using metrics like how many similar videos you watched. And compared to an app like Facebook, TikTok doesn’t require a large amount of data entry (at least not manually).There’s also the value of the app itself, which has become a global cultural institution. From my experience, TikTok tends to be less filled with hate and disinformation, and genuinely funnier than most other platforms. (Though its avoidance of controversial topics isn’t always beneficial.) The app is also surfacing new stars: For example, a relatively unknown chef in Philadelphia was able to attract millions of viewers to his cooking videos in a matter of days. And this McFarland family’s viral Dad dancing video landed the family ad deals with Taco Bell and Gillette.A ban might not make sense on a purely political level either. TikTok is regularly on top of the Apple App Store’s most downloaded rankings. According to Sensor Tower, it has been downloaded 165 million times in the U.S. EMarketer estimates there will be 45 million regular TikTok users in the country by year-end. Restricting access could enrage millions of voters (or future voters, anyway). To avoid that, the U.S. government needs to show the evidence it has for being concerned about TikTok. Otherwise, given what we know today, the flood of teen outrage that’s sure to follow any TikTok ban would be justified.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. He previously covered technology for Barron's, following an earlier career as an equity analyst.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Investing isn't just for wealthy people -- although the share prices of Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) might indicate otherwise. Two low-dollar options are penny stocks, which have been around as long as stock markets have, and fractional shares, which are a relatively new development in the financial industry. Fractional shares are a different thing entirely.
Logitech (LOGI) unveils a wireless illuminated keyboard, a multi-device Bluetooth keyboard and a wireless mouse for various Apple operating systems.
The House Judiciary antitrust subcommittee is very interested in what the quartet has to say about market dominance and competition.
Apple began the program last year in the United States after years of lobbying against state-level "right to repair" bills that would have compelled it to provide parts to independent shops. Apple has long maintained a network of authorized service providers such as Best Buy Co Inc to perform warranty work, but smaller shops had complained that the program was too costly to join because of high volume commitments, leaving them without access to genuine Apple parts or the software tools needed to perform some repairs.
Spotify (NYSE: SPOT) shares have soared following a string of podcasting deals. Bernstein analyst Todd Juenger downgraded Spotify's stock recently, believing the run-up in price isn't fully justified by its podcast investments. "We continue to believe it's unlikely Spotify will generate much earnings from podcasts," he wrote in a note.
(Bloomberg) -- Signal has become the most-downloaded app in Hong Kong after Beijing imposed a sweeping national security law on the city that stirred fears of curbs on civil liberties.The messaging app, endorsed by whistle-blower and privacy advocate Edward Snowden, provides end-to-end encryption to secure messages from being read by a third party as they travel between users. It has topped both Apple Inc.’s and Google’s mobile app stores, according to App Annie data.Hong Kong detailed on Monday unprecedented online policing powers under the new law, including warrants for “any action” necessary to remove content deemed in violation. But the nonprofit responsible for Signal said that it won’t cooperate with any requests for user data from Hong Kong courts -- joining tech giants like Microsoft Corp. in the wake of the law’s passage -- in part because it doesn’t collect any data to begin with.“We never started turning over user data to HK police. Also, we don’t have user data to turn over,” it wrote on Twitter.Signal’s privacy-first ethos includes the app’s deliberate ignorance of what its users are doing, which goes above and beyond the likes of Telegram, another secure messenger that’s been popular in Hong Kong amid protests against the Beijing government. Virtual private networks, designed to disguise a user’s digital footprints, also saw a big spike in downloads in May as plans for the national security law started to emerge from the Chinese capital.Read more: VPN Downloads Surge in Response to Hong Kong Security LawThe controversial law went into effect June 30 and has already had a chilling effect on free expression in Hong Kong. It forbids speech and actions that might be seen as encouraging secession from China, terrorism, subversion of state power or collusion with foreign forces. Private messaging platforms have become a refuge as a result, with Hong Kongers retreating to unmonitored forms of communication.(Updates with data from App Annie in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Let's see how these stocks are placed as we enter earnings season.
In the latest trading session, Apple (AAPL) closed at $372.69, marking a -0.31% move from the previous day.
(Bloomberg) -- Arm Ltd. plans to transfer its data and device-management business to parent Softbank Group Corp. to focus on its main semiconductor operations and accelerate growth.The Internet of Things Services Group was billed by Arm as a key initiative to expand into managing information from millions of new devices being connected to the internet.The change will put Arm in a stronger position to innovate in its central business “and provide our partners with greater support to capture the expanding opportunities for compute solutions across a range of markets,’ Arm Chief Executive Officer Simon Segars said Tuesday in a statement. The transaction will require board approval, the company said.The Cambridge, England-based company is one of Softbank founder Masayoshi Son’s biggest bets. He bought Arm in 2016 for $32 billion saying that the company’s technology, which was already at the heart of all smartphones, had greater potential to grow as connectivity expands to become part of most electronics.Arm sells chip designs and also licenses the fundamentals of semiconductors that are used by companies such as Apple Inc. and Qualcomm Inc. to create their own chips.Softbank’s founder has come under pressure as some of his other projects have unraveled or fallen well short of his bullish projections. In May, Softbank reported a record operating loss triggered by the writedown of portfolio companies at its Vision Fund arm. Many Vision Fund investments, including Uber Technologies Inc., tumbled in the wake of the global coronavirus pandemic, which has curtailed demand for ride hailing and other sharing economy services that Son has long favored.Son has said that he planned to cash in on his investment in Arm by returning it to the public markets once it had gone through a heavy period of investment to fuel new growth. The IoT business was part of this plan. Arm’s leadership argued that the difficultly in managing new devices and exploiting related data was holding back the adoption of technology such as building sensors and connected factory equipment.Softbank’s leader has been vague about when he might sell shares in Arm. In 2018, he said it would happen in about five years.(Updates with CEO comment in the third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In a bull case, Tesla shares could surge as high as $2070, says Morgan Stanley’s Adam Jonas — though his official call is still bearish with a target of $740.
The CEO of a company specializing in cleaning products for tech gear issues a warning.
Analysts are optimistic about Apple's post-pandemic performance, and Microsoft is reportedly interested in shelling out $4 billion to expand its gaming business.
Augmented Reality market booms with its increasing use cases. Companies like Microsoft (MSFT), Amazon and Facebook among others are putting strong efforts to bolster presence.
The recent green signals for the overall economy and Nasdaq bull run seems to have intensified the race to $2 trillion market cap, bringing Microsoft (MSFT), Apple (AAPL) and Amazon (AMZN) in focus.
Here we present five technology stocks poised to benefit from the growing adoption of digital payment solution especially amid coronavirus outbreak such as FB, AMZN & others.
With the stock market continuing its rebound from lows during the coronavirus market crash earlier this year, some companies' stocks have done more than recover -- they've soared to new all-time highs. Two notable businesses that have seen their shares skyrocket to record levels recently are Netflix (NASDAQ: AAPL) and Apple (NASDAQ: AAPL). Shares of Apple hit $375.77 at one point on Monday, marking a new all-time high for the stock.