|Bid||8.35 x 0|
|Ask||8.65 x 0|
|Day's range||8.29 - 8.65|
|52-week range||5.91 - 11.58|
|Beta (5Y monthly)||1.66|
|PE ratio (TTM)||14.24|
|Earnings date||29 Jul 2019|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||20 May 2019|
|1y target est||11.56|
Shares in Freni Brembo Spa (BIT:BRE) are currently trading at 8.27 but a key question for investors is how the economic uncertainty caused by Coronavirus will...
Shares in Freni Brembo Spa (BIT:BRE) are currently trading at 8.625 but a key question for investors is how the economic uncertainty caused by Covid-19 will af...
Shareholders might have noticed that Brembo S.p.A. (BIT:BRE) filed its quarterly result this time last week. The early...
What in the world are investors thinking right now? The coronavirus is crippling the global economy. And you can't stay healthy by simply betting on five big-cap tech stocks.
The coronavirus could lead to an increase of cable-cutters as 64% of U.S. households reported a lack of longterm interest in cable TV plans, according to a new survey.
(Bloomberg) -- Alphabet Inc. said in a regulatory filing that Chief Executive Officer Sundar Pichai was awarded $281 million in compensation last year, making him one of the world’s highest-paid executives.The vast majority of the package is stock awards, some of which will be paid out depending on Alphabet’s stock return relative to other companies in the S&P 100 index. That means his haul can become significantly smaller, or much bigger. Pichai’s annual salary was $650,000 in 2019, according to a proxy statement filed with regulators on Friday. The company has said that will rise to $2 million this year.The CEO’s compensation is 1,085 times the median total pay of Alphabet employees, the company also said in the filing.Pichai took over as CEO of Alphabet from Larry Page at the end of last year as Page and co-founder Sergey Brin stepped away from the company. Now, the 47-year-old executive will have to navigate Alphabet through the coronavirus crisis and economic recession. Pichai has already cut back significantly on hiring and investment plans for the year.This year, Alphabet’s board changed the companies it compares itself to when it decides how to determine compensation. It added Netflix Inc., Comcast Corp. and Salesforce.com Inc., while removing HP Inc. and Qualcomm Inc. Also on the list: Apple Inc., Amazon.com Inc. and Facebook Inc.Alphabet also disclosed the pay of David Drummond’s wife. Axios reported in September that Drummond, the company’s chief legal officer at the time, married another Google employee who once worked in his legal department. Drummond’s spouse was paid about $197,000 in 2019, the filing said. Drummond stepped down earlier this year.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) -- The home-fitness cycling company Peloton Interactive Inc. said it set a record Wednesday for the most people streaming a single live class, with 23,000 participating.The coronavirus pandemic has hit gyms and real-world cycling classes hard, but it’s been an opportunity for Peloton to sign up new customers as millions around the globe shelter in place. Just as Netflix Inc. is setting records for video streaming with 182.8 million subscribers, Peloton’s business seems built for a world where people need to work out at home.Peloton said in a statement Friday that it now has more than 2 million members worldwide. The shares surged more than 6%.The participation record came as the company’s head instructor streamed from her home. “This is the first time that Peloton has filmed classes outside of its two studios after the temporary suspension of streaming live classes from its studios in New York and London,” the company 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 like the 2012 euro crisis all over again, as Europe awaits a decision on Italy’s sovereign-debt rating from S&P Global Ratings after Friday’s market close. The country’s current BBB (negative outlook) is just a couple of notches above the junk-bond category, so there’s plenty of investor interest in what happens. Moody’s Investors Service will assess its rating, which is one notch lower, next week.It doesn’t make much sense that the finances of one of the world’s largest economies are beholden to Delphic judgments from commercial agencies.It’s unlikely that Italy will be cut to junk. Even if it is, the European Central Bank will keep buying Rome’s debt. But an eventual loss of the country’s investment-grade rating would matter. Many bond funds would have to sell Italian sovereign debt and other related credits. It could cause financial distress to the nation’s finances, and to the European Union.Surely we need a more realistic, and more flexible, rating system to avoid a credit shock during the Covid-19 crisis — which is no individual country’s fault.Both the U.S. Federal Reserve and the European Central Bank appreciate the dilemma and are making efforts to either purchase higher-quality junk-rated debt, or to accept it as collateral, but we need to change the way we rigorously evaluate credit risk. What’s the point of creating “fallen angels” — the name given to bonds that have dropped below investment grade since the pandemic struck — if the world’s biggest bond buyers then have to implement special measures to ignore the downgrades?S&P downgraded six times more companies in the first quarter of 2020 than it upgraded. Moody’s has taken negative rating action against nearly a quarter of the companies it classifies as speculative grade, largely because of the coronavirus. It expects the gap in creditworthiness between junk and investment grade to widen. This deluge needs to be managed before it overwhelms even the best efforts of the world’s central bankers.Credit ratings are too blunt an instrument right now, given the vast — and necessary — escalation of debt. The requirement of investment-grade bond indexes to only allow specifically rated bonds is an accident waiting to happen. A wave of more downgrades is coming.The agencies could help by adopting new methodologies to make it less binary for bond indexes and fixed-income funds when credit is downgraded. With so much debt being reclassified downward, we need a system that considers creditworthiness relative to other sovereigns and corporates, rather than looking at individual cases in an absolute way as we do now. With half of America’s investment-grade companies sitting in the BBB bucket (just above the junk divide) and more than 200 billion euros ($216 billion) of European credits close to the edge, there’s an overwhelming need to address this anomaly.The penalty for falling on the wrong side of the divide is too severe. It has a sizable effect on credit spreads (the difference between a bond’s yield and that of its benchmark), with a one-notch downgrade often being punitive. The average spread between junk BB-rated European credits and investment grade BBB stuff blew out to almost 400 basis points from an average of about 100 basis points at one point during this crisis.The credit markets themselves function pretty well in determining how a bond should be valued. Netflix Inc., for example, managed to achieve its lowest-ever yield Thursday for a $1 billion debt sale despite only having a relatively lowly BB- junk rating. That makes sense for a company whose business model is suited to people staying at home. Investor demand was more than 10 times what was on offer. On the flip side of the coin, Carnival Corp., the ailing cruises company, had to pay nearly 12% to raise funds in March despite being technically still investment grade. Investors know how to price this debt. In fairness, the ratings agencies can’t provide real-time credit validation when they rely on actual data rather than presumption. But they need to adapt to the changing reality of Covid-19 — and quickly.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.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.
Strategists weigh in on how much economic gloom the stock market has priced into up to now.
In this episode of 'Influencers', New York Public Library CEO Tony Marx joins Andy Serwer to discuss the library's action during the COVID-19 crisis and what the organization is doing to help close what Tony calls, 'the digital divide'.
The era of startups garnering sky-high valuations based on TAM (total addressable market) without a path to profitability was already nearing its end, but the pandemic is accelerating this shift.
(Bloomberg) -- Netflix Inc.’s monster subscriber growth in the stay-at-home era has prompted Wall Street analysts to boost their price targets following the streaming company’s first quarter results. But not all is positive.The Los Gatos, California-based company has warned investors that some of the virus-induced growth may be temporary and cautioned that a stronger dollar could reduce the value of its sales abroad. Content production could also soon take a toll on next year’s slate, it said.While shares initially rallied in extended trading Tuesday, the stock has since slipped 2.1% as of 12:06 p.m. in New York, bringing its year-to-date gain to 31%.The advanced warning poured cold water on Raymond James’s bullish view, spurring a downgrade to outperform from strong buy as “potential for positive estimate revisions and multiple expansion are limited until we observe post-Covid-19 retention rates.” The firm’s analyst Justin Patterson now poses the question of if the company is “too hot to handle.”New user growth of almost 16 million customers last period was aided by binge watching across the platform’s most popular programs, including the startling true crime series “Tiger King.” The customer growth generally prompted positive commentary among the largest brokers on Wall Street. But despite the “staggering growth,” Loup Ventures analyst Gene Munster said “unfortunately, the truth is people want to spend less time at home.”The company announced on Tuesday it is also planning to take advantage of low borrowing costs in the junk-bond market and borrow another $1 billion between dollars and euros. The proceeds will be used to fund content acquisitions and show productions. It could also provide more flexibility, analysts said.Here’s a summary of what analysts had to say.Goldman Sachs, Heath P. TerryBuy, price target $540 from $490Management’s assertion that outperformance was a function of subscribers being pulled forward and that net adds in the second half will fall is likely to prove overly conservative.The company will continue to benefit from word of mouth customer acquisition and growth in lower cost mobile only plans, as well as a significantly easier competitive environment.Wells Fargo, Steven CahallEqual-weight from underweight, price target $460 from $305Report demonstrates the unique value of Netflix in these even more unique times. “As long as hand sanitizer is sold out, NFLX should outperform, and execution is outstanding.”Prior bearish view was on valuation with concerns around long-term cash generation, “but frankly such long-term views are a bull market luxury.”Few businesses are growing right now, but Netflix is adding subscribers at a break-neck pace.Raymond James, Justin PattersonOutperform from strong buy, price target $480 from $415Netflix is a long-term winner in direct-to-consumer video, however, “we believe potential for positive estimate revisions and multiple expansion are limited until we observe post-Covid-19 retention rates.”Positively, the first quarter “was tracking above expectations before Covid-19. The U.S. and Canada (UCAN) returned to ‘pre-Disney+ launch’ levels and would have accounted for upside vs. prior guidance.”Bernstein, Todd JuengerOutperform, price target $504 from $487“Nobody knows how much is pull-forward versus incremental, but pull-forward itself is meaningfully [net present value] positive.”“Subscriber growth was driven more by gross adds than reduced churn” and contrary to belief, U.S. and Canada is not saturated.Evercore, Lee HorowitzIn line, price target $375 from $350“The key question from here: to what extent should 1H20 trends change perception of terminal value/earnings power?”“As good as 1H trends appear to be for the company in the midst of the coronavirus pandemic, a slightly more cautious tone was indicated for the back half of the year, as some Covid-related pull-forward begins to bleed off and as tougher content compares potentially weigh on 2H growth.”“This lumpy full-year view likely leaves momentum- oriented investors wondering how much more upside remains from here.”(Updates headline and intro, adds new analyst commentary.)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) -- Netflix Inc. said the explosive growth in subscribers it posted last quarter -- the strongest in its history -- may not last beyond the stay-at-home orders.Adding a record 15.8 million subscribers, Netflix benefited in the first quarter from an unprecedented health crisis, the global coronavirus pandemic. With billions of people stuck at home, the world’s largest paid online TV network experienced an explosive jump in customers in March, with many binge-watching “Tiger King” and “Love Is Blind” to ride out the quarantine.But there’s no telling how long the boom will last. Netflix expects the surge to come at the expense of growth in the months ahead.“Our guess is subscribers will be light” in the third and fourth quarter, Chief Executive Officer Reed Hastings said Tuesday on a call with investors.Netflix forecasts 7.5 million new subscribers in the second quarter -- a great quarter under normal circumstances. But investors, who sent the stock to new highs this week, may have wanted more. Though they initially bid Netflix shares up as much as 12% after the close Tuesday, the rally soon fizzled. The stock fell as much as 3.5% in New York trading Wednesday.“Like other home-entertainment services, we’re seeing temporarily higher viewing and increased membership growth,” the company said in a letter to investors. “We expect viewing to decline and membership growth to decelerate as home confinement ends.”While Covid-19 has been devastating to the global economy, video-streaming services like Netflix and YouTube have found a captive audience. The new Disney+ service surpassed 50 million subscribers in just five months, a faster pace than predicted. Three new video services, Quibi, Peacock and HBO Max, arrive this quarter and hope to have similarly rapid starts.Skeptics have said Netflix would lose customers to the new competition. But thus far, those fears have been unfounded.“What we’re seeing is people are cutting linear TV and adding Disney+ on top of Netflix,” said Nick Grous, an analyst at Ark Investment Management LLC, which owns the shares.What Bloomberg Intelligence Says“Netflix’s tempered 2H view of delivering fewer subscriber gains is driven by uncertainty surrounding the coronavirus pandemic as well as headwinds from production delays that will create tough comparisons, given the release of hit shows in prior-year periods. Still, a 1Q subscriber blowout and solid 2Q guidance established the service as a safe haven, confirming our view that Covid-19 will mean longer-term tailwinds for the platform as it accelerates the shift of consumers to streaming and away from linear TV.”\--Geetha Ranganathan, media analystClick here to read the research.The quarter’s results reflected two of Netflix’s strengths: breadth of programming and a global footprint.Months after releasing Oscar-nominated movies such as “The Irishman” and “The Two Popes,” Netflix cracked the code on tabloid-style documentary TV. “Tiger King,” about big-cat zoo owners, was the biggest new hit series for Netflix in the U.S. since “Stranger Things,” according to Nielsen.Meanwhile, “Love Is Blind,” a reality dating show, drew 30 million viewers in its first four weeks, Netflix said. A newer dating show, “Too Hot to Handle,” has been one of the most popular shows on Netflix since its release last week.Netflix also showed strong growth all around the world. Business in the U.S. and Canada picked up after a few sluggish quarters, with Netflix adding 2.31 million new customers in its biggest market. That was more than the prior three quarters combined. The company signed up nearly 7 million customers in Europe, the Middle East and Africa, the most of any region.The coronavirus had another unintended benefit for Netflix: its first quarter of positive free cash flow since 2014. Netflix produced $162 million in the first three months of the year. While the company had already vowed to narrow its cash burn in 2020, a worldwide pause in TV and movie production lowered costs in the quarter and will continue to do so this year.Production shutdowns could turn into a headache for Netflix depending on how long they last. Subscribers are accustomed to a steady flow of new content, and some of its competitors, such as Walt Disney Co. and AT&T Inc.’s WarnerMedia, have big libraries they can use to entice viewers. But Chief Content Officer Ted Sarandos said Netflix has finished production on most of its new programs for 2020.Prior to the earnings release, Netflix investors had sent the shares to record levels, making it especially hard for the company to sustain the rally -- even with blockbuster numbers. The stock had climbed 34% through Tuesday’s close, compared with a 15% decline for the S&P 500.“I understand the caution around the response to the stock,” Grous said, before adding, “But we’re not focused too much on quarter to quarter. We’re thinking about the long-term trend here, and that is explosive growth.”(Updates with shares in fifth 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.
(Bloomberg Opinion) -- The Covid-19 pandemic has brought out some ugly truths about modern-day ageism. A combination of the virus’s properties, an overwhelmed health-care system and systematic neglect have taken a brutal toll on the elderly.Unfortunately, it could get worse — if countries effectively automate ageism by allowing what has happened so far to dictate future decisions about care.This crisis has highlighted a shocking lack of concern about older people. As one journalist at the UK’s Daily Telegraph opined: “Covid-19 might even prove mildly beneficial in the long term by disproportionately culling elderly dependents." In the U.S., nursing homes are particularly vulnerable because the people who work there are so poorly paid that they must hold down multiple jobs, increasing the risk that they will spread the virus. The death count at such facilities is at least 7,000, but more are certainly coming from states such as Florida that have been slow to respond and report.Older people also lose out the medical personnel, inundated by coronavirus patients, must make difficult decisions on rationing care. In Italy, for example, hospitals had to refuse care to older patients — a practice that undoubtedly increased the mortality rate in that age group.In short, it’s fair to say that the death rate among the elderly is probably higher than it would be if only physiology were at play. Now consider what will happen if data scientists try to take this experience, bake it into predictive algorithms and apply them in places where the pandemic is still on the rise, or where it flares up as countries attempt to reopen.It’s possible they’ll recognize that they lack the information needed to build reliable algorithms. The data available are too deeply flawed to calculate overall mortality rates, let alone rates by age. It’s hard to even use other proxy data, such as internet searches for “fever,” to get a sense of the overall infection rate, because lockdowns have so radically changed peoples’ behavior that we're all staying home, drinking tea, watching Netflix and googling symptoms. Basically, we're acting sick.But I wouldn’t count on humility. Researchers have become far too accustomed to imagining that if they collect enough data — even if it’s incomplete or biased — the sheer volume will provide a more or less comprehensive view. It’s something that they’ve gotten pretty good at — for example, inferring your political party by looking at which articles you repost on Facebook. The flawed data we have will be seen as better than nothing.The resulting models will lack critical context and nuance. They won’t account for the likelihood of the patient surviving if they’d been given better treatment. Causation will be lost, creating a denuded description of the past — which, in turn, will skew against treating old people in the future.Suppose such a model were used to decide where to send ventilators. The scarce life-saving equipment would go to places where it saw high percentages of people likely to benefit. This might improperly tip the balance away from hospitals that serve large elderly populations, for example near The Villages in Florida, on the grounds that they’ll just die anyway.Although I’m focusing on older people, the same could apply to any number of disadvantaged groups, such as African Americans, fat people, prisoners. And it wouldn’t be new. A recent study, for example, found that a widely used health-care algorithm allocated inadequate resources to black Americans, because it relied on data from a history of discrimination, in which less money was spent on black patients than on white patients with the same level of need.In the scramble to model Covid-19 spread and fatalities, data scientists — and the officials who use their models — would do better to recognize and admit what they cannot do, rather than jury-rig something that could end up doing more harm than good.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Cathy O’Neil is a Bloomberg Opinion columnist. She is a mathematician who has worked as a professor, hedge-fund analyst and data scientist. She founded ORCAA, an algorithmic auditing company, and is the author of “Weapons of Math Destruction.”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.
There's been a notable change in appetite for Brembo S.p.A. (BIT:BRE) shares in the week since its annual report, with...