|Bid||157.88 x 1100|
|Ask||157.99 x 900|
|Day's range||157.59 - 159.50|
|52-week range||120.16 - 167.56|
|Beta (3Y monthly)||N/A|
|PE ratio (TTM)||131.24|
|Earnings date||2 Mar 2020 - 6 Mar 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||190.68|
(Bloomberg) -- As protests jolt Hong Kong business, organizations from Alibaba Group Holding Ltd. to universities are adapting by going digital, switching to video-conferencing app Zoom to conduct online investor briefings and virtual lectures.Zoom Video Communications Inc. joins a number of internet services that have taken off since the unrest began over the summer, from mobile messenger Telegram to work-at-home apps. In a financial hub that thrives on face-to-face deal-making and power lunches, Zoom helps fill a void created by transport disruptions and concerns about personal safety.Hong Kong’s business community leans on the app’s features, which include slide-sharing and support for up to 1,000 call participants, to carry on cross-border communications and with mainland China, where WhatsApp, Telegram and Google alternatives are banned. There’s a local version of Zoom that’s compatible, which is why the app’s downloads in Hong Kong soared 460% in November, after an escalation in protest violence first triggered a spike in September, according to researcher Sensor Tower.Read more: Zoom’s Eric Yuan, the CEO Who Made Videoconferencing Bearable“As schools continue to be in lock-down mode, we’ve had to move our lectures online to minimize disruption,” said Cheung Siu Wai, a professor at Hong Kong Baptist University, adding Skype has been another option.Now valued at $19 billion, Zoom’s shares have almost doubled since listing on the Nasdaq this year. It’s unclear how the spike in downloads may translate into revenue growth for Zoom, founded by Chinese emigrant Eric Yuan, who now resides in California.The company has various pricing tiers and recently added HSBC to a roster of paying clients that includes Uber Technologies Inc. and Zendesk Inc., underpinning 85% growth in revenue to $167 million in the October quarter. Representatives for the company, which is backed by investors including Salesforce.com Inc., Tiger Global and Qualcomm Inc., declined to comment on how the Hong Kong protests have affected its business.”With the periodic traffic disruptions, our colleagues have no choice but to use video-conferencing apps,” said Derek Chan, co-founder of Master Concept, a Hong Kong-based cloud service provider.To contact the reporters on this story: Carol Zhong in Hong Kong at firstname.lastname@example.org;Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- SoftBank Group Corp.’s massive investment in WeWork triggered a multi-billion-dollar writedown and a rare apology from founder Masayoshi Son. But one analyst argues the deal is likely to work in the end and SoftBank will have the “last laugh.”Chris Lane of Sanford C. Bernstein says WeWork can have a bright future if SoftBank overhauls the business plan and more carefully focuses on the evolution of the corporate office market. He likens WeWork’s business model to Starbucks’s, where branding, consistency and global scale give it an advantage over the competition.Lane argues WeWork can achieve profitability if it pulls back on extraneous areas and calms a frenetic pace of expansion to focus on filling up existing space. That will allow it to grab an estimated 8% of an emergent market for pre-fitted offices for corporate clients, almost like a white-label tech gadget or home appliance.“We think investors should think of the basic business as being similar to Starbucks,” Lane wrote in a 21-page research report. “While profitable, the scale of profits that can be generated from a single site is small. Starbucks as a corporation only makes sense if you plan to open thousands of outlets.”It’s a contrarian take on a WeWork deal that has been widely viewed as a fiasco. After SoftBank invested in the co-working startup, its planned initial public offering fell apart as investors balked at its enormous losses and conflicted governance. Son conceded “there was a problem with my own judgment” as he announced the writedown last month. SoftBank has put about $14 billion into a startup that’s now valued at less than $8 billion.The Japanese company’s shares are down about 30% from their peak in April. They were little changed on Friday.After discussions with management, Lane explains they see an opportunity for WeWork to move beyond the niche of providing space for entrepreneurs to offering flexible real estate for a broad range of companies. He calls this “managed space as a service” and compares it to “software as a service,” which is the way many companies now buy from Microsoft Corp. and Salesforce.com Inc. WeWork, Lane says, sees the potential to make $500 per month on memberships as “an on-going annuity,” far more than software generates.SoftBank named Marcelo Claure, the former chief executive at Sprint Corp., executive chairman of WeWork and put him in charge of the turnaround effort. Under his leadership, Lane says the company will be able to focus on profitability by stopping any incremental expansion, filling its existing space and slashing overhead by getting rid of expansion staff and non-core businesses. WeWork’s ability to gather data about office-use and optimize layouts -- while not entirely substantiated -- could prove disruptive to the industry, he added.He estimates that WeWork’s revenue will rise from $720 million a quarter to about $1.5 billion if it can push occupancy to 90% on its current portfolio. Once profitable, WeWork will once again try to go public, perhaps in 2023, and then raise additional capital to resume expansion, albeit more slowly than before.With a discounted cash flow model, Lane projects WeWork would have an enterprise value of $28.8 billion in 2025. That would make SoftBank’s 80% stake worth about $19.1 billion, roughly 40% more than the estimated $13.8 billion the company and its Vision Fund have invested.“We believe WeWork’s valuation is justified if you believe in the long-term, ‘office space’ will be a managed service outsourced to professionals – and that WeWork will be the leading global player,” Lane wrote. “Despite the huge embarrassment WeWork has been for SoftBank this year, we suspect SoftBank will have the last laugh when they bring the company back to market in a few years – bigger and profitable.”(Updates with shares in the sixth paragraph.)To contact the reporters on this story: Pavel Alpeyev in Tokyo at email@example.com;Takahiko Hyuga in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Salesforce.com Inc. gave a profit forecast that fell short of Wall Street’s estimates, signaling that the software maker’s big-ticket acquisition of Tableau and global expansion have spurred rising costs.Earnings, excluding some items, will be 54 cents to 55 cents a share in the current quarter, short of analysts’ average estimate of 62 cents. Shares declined about 2% in extended trading.Still, the expansion helped fuel company revenue growth. Sales gained 33% to $4.51 billion in the period ended Oct. 31, the San Francisco-based company said Tuesday in a statement. Analysts projected $4.46 billion. It was Salesforce’s first quarter of more than 30% year-over-year growth since July 2014.Chief Executive Officers Marc Benioff and Keith Block have made acquisitions a key part of the customer-relations software company’s strategy to increase sales, highlighted by the purchase of Tableau Software Inc., which generated $1.15 billion in revenue last year making analytics tools. The company also has forged partnerships with major cloud vendors such as Microsoft Corp. and Amazon.com Inc. to make its software more ubiquitous.Shares declined to a low of $156.25 in extended trading after closing at $161.57 in New York. The stock has climbed 18% this year.Profit, excluding some items, was 75 cents a share in the fiscal third quarter. Analysts, on average, projected 66 cents. Expenses were up 37% to $3.31 billion. The company held its annual user conference, Dreamforce, in November. Salesforce calls the event the world’s largest software conference, with 171,000 registered attendees this year.The company’s full-time workforce increased almost 39% from a year earlier to 47,677 as of Oct. 31, Salesforce said.Revenue from Sales Cloud, the company’s flagship product, grew about 15% to $1.17 billion in the quarter. The company leads the market for sales-tracking software, but growth rates have slowed down, prompting Salesforce to expand in other areas.Service Cloud sales increased 24% to $1.14 billion. The software maker offers this tool so companies can communicate with field employees and customers, a space where it faces increased competition from ServiceNow Inc. and others.(Updates with expenses in the sixth paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew Pollack, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Total revenue rose 33% to $4.51 billion, above analysts' estimates of $4.45 billion. The company, however, reported a net loss of $109 million, or 12 cents per share, in the latest quarter, compared with a profit of $105 million, or 13 cents per share, a year earlier.
President Trump's latest U.S.-China trade war comments that sent stocks tumbling. Salesforce (CRM) and Workday (WDAY) earnings previews. And why Nike (NKE) is a Zacks Rank 1 (Strong Buy) stock right now. - Free Lunch
Investing.com - Salesforce revenue guidance fell short of estimates after the bell Tuesday. That offset a beat on both the top and bottom lines as acquisitions helped boost growth for its most recent quarter.
Should investors take a chance on Cloudera (CLDR) stock, which is trading under $10 per share, heading into the release of its Q3 fiscal 2020 financial results on Thursday, December 5?
Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains takes a look at 3 large-cap tech stocks that investors might want to buy for December...
While Semtech's (SMTC) Q3 results will likely reflect the impact of soft demand in China, Huawei ban and competition, differentiated growth drivers and diversification might have aided its results.
When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far...
Two big economic reports will be on investor’s radars this week — the Institute for Supply Management (ISM) manufacturing data and the November employment report.
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The latest U.S.-China trade war news sent stock indexes to new highs. A look at some quarterly earnings results from Best Buy and others. And we close with why Zendesk (ZEN) is a Zacks Rank 1 (Strong Buy) stock right now...
Salesforce has created a customer solution that co-CEO Marc Benioff believes is the "holy grail" to connect brands and consumers.
Salesforce has formed a handle with a 166.44 buy point on a consolidation going back to late March. Salesforce has been a long-time leader but didn't really take part in the big software rally and its RS line has lagged. It's picked up some but not much. Earnings are late Monday.