|Bid||151.75 x 3100|
|Ask||151.80 x 1400|
|Day's range||150.27 - 151.87|
|52-week range||93.96 - 152.50|
|Beta (3Y monthly)||1.23|
|PE ratio (TTM)||28.63|
|Earnings date||28 Jan 2020 - 3 Feb 2020|
|Forward dividend & yield||2.04 (1.36%)|
|1y target est||160.38|
As stock market volatility continues, the blue-chip index is showing fluctuation. However, a closer look into the index reveals that not all stocks are erratic.
(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.
The latest U.S.-China trade war updates and some positive U.S. economic data. A dive into third quarter 2019 earnings and what to expect from Q4 and 2020. Plus, a look at why RH is a Zacks Rank 1 (Strong Buy) stock right now...
(Bloomberg) -- Qualcomm Inc. is under no illusions about how long it will take to make a dent in Intel Corp.’s dominance of the laptop market. But a new set of chips it’s offering will make it tougher to keep Qualcomm out of computers.San Diego-based Qualcomm, whose processors are the heart of most of the world’s high-end smartphones, is trying to carve out a niche for its technology with laptops that last more than a day on a single battery charge and are always connected to the internet. Current models, such as Microsoft Corp.’s Surface Pro X, cost more than $1,000. Qualcomm is now rolling out new chips that will allow PC makers to build machines that compete with budget systems retailing for as low as $300.“We were not confused. We knew this market would take a long time,” said Qualcomm product director Miguel Nunes. “We still understand it’s going to take longer.”More affordable devices will help, Nunes said. But Qualcomm and other interlopers need new ways to reach consumers if they’re to overcome Intel’s brand recognition and marketing spending. One thing that’s helping is the sale of Qualcomm chip-based laptops by mobile phone service providers. Like phones, they’re increasingly being offered on monthly installment purchase plans, making the devices more affordable, Nunes said. Carriers like the cellular component of Qualcomm chips which ties customers to their networks, he said.Corporations like the idea that the the machines they give to employees are always connected to the internet. Interest from that market has surprised Qualcomm. Knowing where the machines are and being able to update them all the time are advantages of a cellular link, Nunes said.Qualcomm’s attempts to get into PCs are part of a broader push to push mobile technology into devices outside of the smartphone market. Growth in smartphones has slowed as consumers have shown less interest in upgrading to devices that offer marginal improvements over existing models. Qualcomm is targeting PCs in particular where it believes chips based on mobile technology can offer huge improvements in battery life, promised but not delivered by Intel-based devices, and have them continually connected to the internet.“One of the challenges we’ve seen is that the computing industry was plagued by a lot of lies when you talk about battery life,” Nunes said. “Consumers don’t believe you.”Qualcomm-based devices go days without needing to be plugged in, he said. With coming fifth-generation networks, they’ll also get extremely fast data all the time, enabling them to take advantage of more powerful computing over the internet, he said.The company is holding its annual conference in Hawaii. It has introduced new 5G chips for mobile phones, including ones that will enable cheaper handsets from early next year, and a new offering for virtual reality and augmented realty headsets.To contact the reporter on this story: Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Molly Schuetz, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Amazon.com Inc. claims it lost a Pentagon cloud contract valued at as much as $10 billion because of political interference by President Donald Trump, according to the judge overseeing the case.Federal Claims Court Judge Patricia Campbell-Smith said during a court proceeding last week that Amazon’s lawsuit argues that the Pentagon didn’t award the cloud deal to Microsoft Corp. on the basis of a fair evaluation of the companies’ bids.“Plaintiff contends that the procurement process was compromised and negatively affected by the bias expressed publicly by the president and commander in chief Donald Trump against plaintiff,” Campbell-Smith said in a recording of a status hearing released Thursday by the U.S. Court of Federal Claims in Washington.The judge’s comments were the first public confirmation that Amazon cited bias by Trump as grounds to overturn the award to Microsoft. Trump has long criticized Amazon founder Jeff Bezos on everything from the shipping rates his company pays the U.S. Postal Service to his personal ownership of what Trump calls “the Amazon Washington Post.”The contract was awarded to Microsoft “despite what plaintiff characterizes as its depth of experience, superior technology and proven record of success in handling the most sensitive government data,” Campbell-Smith said.Amazon filed a lawsuit under seal with the court last month to formally protest its loss of the Pentagon’s Joint Enterprise Defense Infrastructure, or JEDI, cloud contract.For More: Amazon’s $10 Billion Pentagon Challenge: Proving Trump MeddledCampbell-Smith said Amazon is seeking to prohibit the Defense Department from proceeding without a new evaluation or award decision. The company is requesting that the Pentagon either reevaluate bids or reopen the procurement to allow for bid revisions, the judge said.Campbell-Smith also granted Microsoft’s request to intervene in the suit.In July, Trump stunned lawmakers and technology companies when he openly questioned whether the JEDI contract was being competitively bid, citing complaints from Microsoft, Oracle Corp. and International Business Machines Corp.Dana Deasy, the Pentagon’s chief information officer, said during his confirmation hearing in late October that to the best of his knowledge, no one from the White House reached out to any members of the JEDI cloud contract selection team.The Pentagon’s JEDI cloud project is designed to consolidate the department’s cloud computing infrastructure and modernize its technology systems. The contract is worth as much as $10 billion over 10 years and could offer the winner a bigger foothold in the burgeoning federal cloud market.(Updates with Amazon seeking new evaluation and decision from seventh paragraph)To contact the reporter on this story: Naomi Nix in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Sara Forden at email@example.com, Larry LiebertFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- U.S. Senator Elizabeth Warren is drafting a bill that would call on regulators to retroactively review about two decades of “mega mergers” and ban such deals going forward.Warren’s staff recently circulated a proposal for sweeping anti-monopoly legislation, which would deliver on a presidential campaign promise to check the power of Big Tech and other industries. Although the Trump administration is currently exploring their own antitrust probes, the proposal is likely to face resistance from lawmakers.According to a draft of the bill reviewed by Bloomberg, the proposal would expand antitrust law beyond the so-called consumer welfare standard, an approach that has driven antitrust policy since the 1970s. Under the current framework, the federal government evaluates mergers primarily based on potential harm to consumers through higher prices or decreased quality. The new bill would direct the government to also consider the impact on entrepreneurs, innovation, privacy and workers.Warren’s bill, tentatively titled the Anti-Monopoly and Competition Restoration Act, would also ban non-compete and no-poaching agreements for workers and protect the rights of gig economy workers, such as drivers for Uber Technologies Inc., to organize.A draft of Warren’s bill was included in an email Monday from Spencer Waller, the director of the Institute for Consumer Antitrust Studies at Loyola University Chicago. Waller urged fellow academics to sign a petition supporting it. He said Warren was working on the bill with Representative David Cicilline, the most prominent voice on antitrust issues in the House. Waller declined to comment on the email.Representatives for Cicilline and Warren declined to comment. The existence of the bill and Warren’s support of it were reported earlier this week by the technology publication the Information.In Washington, there is some support across the political spectrum for increased antitrust scrutiny of large technology companies. Warren positioned herself as a leader on the issue this year while campaigning on a plan to break up Big Tech. She has repeatedly called for unwinding Facebook Inc.’s acquisitions of WhatsApp and Instagram, along with Google’s purchase of YouTube and advertising platform DoubleClick.Read more: Warren Accuses Michael Bloomberg of ‘Buying the Election’It’s not clear when a bill would be introduced or whether it would move forward in its current form. Cicilline has said he would not introduce antitrust legislation until he concludes an antitrust investigation for the House Judiciary Committee in early 2020.Amy Klobuchar, a Senator from Minnesota who’s also vying for the Democratic nomination, has pushed legislation covering similar ground. Klobuchar plans to introduce additional antitrust legislation soon, according to a person familiar with the matter who wasn’t authorized to discuss the plans and asked not to be identified.Any proposal would face significant hurdles to becoming law, and Warren’s version could be particularly problematic because it promotes the idea that antitrust enforcement is equivalent to being against big business, said Barak Orbach, a law professor at the University of Arizona who received a draft of the bill. “The way I read it is that Elizabeth Warren is trying to make a political statement in the course of her campaign,” Orbach said. “It’s likely to have negative effects on antitrust enforcement, so I just don’t see the upside other than for the campaign.”The bill proposes a ban on mergers where one company has annual revenue of more $40 billion, or where both companies have sales exceeding $15 billion, except under certain exceptions, such as when a company is in immediate danger of insolvency. That would seemingly put a freeze on many acquisitions for Apple Inc., Alphabet Inc., Facebook, Microsoft Corp. and dozens of other companies. The bill would also place new limitations on smaller mergers.Chris Sagers, a law professor at Cleveland State University, said the proposal would serve as an effective check on corporate power. “I don’t think you’ll have new antitrust policy until Congress says the courts have incorrectly interpreted the statutes,” he said. “Someone has to do what Elizabeth Warren is doing.”(Michael Bloomberg is also seeking the Democratic presidential nomination. Bloomberg is the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.)To contact the reporters on this story: Eric Newcomer in San Francisco at firstname.lastname@example.org;Joshua Brustein in New York at email@example.comTo contact the editor responsible for this story: Mark Milian at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Google is facing a U.K. investigation into its $2.6 billion takeover of data company Looker Data Sciences Inc., opening up another front in the Alphabet Inc. unit’s ongoing battle with lawmakers.The Competition and Markets Authority on Thursday said that it issued an initial enforcement order, which prevents companies from integrating their services while the regulator carries out a early-stage review of the acquisition. The CMA has asked for comments on the deal by Dec. 20 before it decides whether to begin a formal probe.Google announced in June that it planned to buy U.S.-based Looker for its cloud unit, which lags far behind Amazon.com Inc. and Microsoft Corp. with just 4% of the cloud-computing infrastructure market as of 2018, according to the most-recent figures from analyst Gartner Inc. U.S. regulators cleared the deal in November.The U.K. review -- likely to focus on how Google plans to wield its power over data -- comes as Margrethe Vestager, the European Union’s Competition Commissioner, leads the charge into looking into how companies collect and use information. In August, she called tech giants “robot vacuum cleaners” sucking up valuable data in a way that can undermine competition.Vestager is currently investigating “the data business model” used by Google and others to collect information on how people use the web. She said the EU has posed “many questions to Google and others to get their views” and help the EU understand how the industry works, with a focus on contractual terms.Google agreed to buy smartwatch maker Fitbit Inc. for $2.1 billion. The tie-up, announced in October, has come under scrutiny from U.S. lawmakers.Though Google isn’t a leader in smartwatches or fitness trackers, regulators in the U.S. and elsewhere will likely have questions about what Google intends to do with the data Fitbit users have shared over the years, including intimate health and location information.\--With assistance from Jonathan Browning.To contact the reporter on this story: Giles Turner in London at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Peter Chapman, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - U.S. futures pointed to another day of gains on Wall Street, with belief in a near-term trade deal reviving again after Tuesday's shock comments by President Donald Trump.
(Bloomberg) -- U.S. antitrust enforcers have broadened their scrutiny of Amazon.com Inc. beyond its retail operations to include its massive cloud-computing business, according to people familiar with the matter.Investigators at the U.S. Federal Trade Commission have been asking software companies recently about practices around Amazon’s cloud unit, known as Amazon Web Services, said the people, who declined to be named because they weren’t authorized to speak publicly.The outreach by the FTC signals that the agency, which is already looking at Amazon’s conduct in its vast online retail business, is taking a broader look at the company to determine whether it could be violating antitrust laws and harming competition.The FTC and Amazon declined to comment. The agency’s scrutiny won’t necessarily result in an enforcement action against the company.AWS dominates the market for foundational cloud-computing technology that provides the storage and computing power needed to run applications. It is several times bigger than its next largest rival, Microsoft Corp.’s Azure, according to analyst estimates. Gartner Inc. puts AWS’s share at 48% and Microsoft’s at 16%.AWS accounted for 60% of Amazon’s operating income in the most recently reported 12 months. The unit’s profitability in recent years has helped keep investors happy even as the company continues to spend heavily to expand both its retail and cloud-computing businesses.Amazon also sells an array of products that run on top of those basic services, such as databases, machine-learning tools and data-warehousing products. It competes with hundreds of other software companies large and small that offer similar products.One issue the FTC could look at is whether Amazon has an incentive to discriminate against those software companies, which sell their products to clients of AWS, while at the same time competing with Amazon. The fear is that Amazon could punish the companies that work with other cloud providers and favor those that it works with exclusively.The dynamic echos that in Amazon’s retail marketplace, where third-party sellers depend on the platform to reach customers because of its size, but in many cases they also compete with Amazon’s own products. That’s a conflict that threatens competition, according to critics.The FTC’s Amazon inquiry is part of antitrust investigations sweeping across the technology industry. Federal and state authorities are investigating Alphabet Inc.’s Google and Facebook Inc. while the House Judiciary Committee is examining conduct of those companies as well as Amazon and Apple Inc.\--With assistance from Matt Day.To contact the reporters on this story: Dina Bass in Seattle at email@example.com;David McLaughlin in Washington at firstname.lastname@example.org;Naomi Nix in Washington at email@example.comTo contact the editors responsible for this story: Sara Forden at firstname.lastname@example.org, ;Jillian Ward at email@example.com, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Slack Technologies Inc. gave an upbeat quarterly forecast, demonstrating the software maker’s resilient growth despite intensifying competition from Microsoft Corp.Revenue will be $172 million to $174 million in the period ending in January, which would be 42% year-over-year at the midpoint, the San Francisco-based company said Wednesday in a statement. Analysts, on average, estimated $173.2 million, according to data compiled by Bloomberg.Chief Executive Officer Stewart Butterfield has sought to boost the number of paying customers for his company’s workplace messaging and workflow software, versions of which can be used for free. Slack, which had a direct listing on the New York Stock Exchange in June, is being challenged by Microsoft, the world’s largest software maker, which has a rival product called Teams that it sometimes gives to clients at no cost. Slack said it reached more than 105,000 paid customers in its second earnings report as a public company, fewer than the 106,700 analysts expected.“It was a great quarter for revenue growth,” Butterfield said in an interview. “We call out the enterprise growth specifically.”Competition with Microsoft has had a smaller effect on the business than some expected, he said. “There’s still a lot of market confusion and we’re going to have to work harder to dispel that. If you think about those concentric circles, there’s a lot where we don’t compete at all.”In the period ended Oct. 31, sales jumped 60% to $168.7 million. Analysts projected $156.2 million. Slack reported an adjusted loss of 2 cents a share for the quarter, compared with analysts’ estimates of 8 cents.The number of large customers grew 67% to 821 compared with a year earlier, slower than the pace in the fiscal second quarter, when the metric was 75%. For the first time, Slack disclosed that more than 50 customers are spending more than $1 million in annual recurring revenue on the company’s software.Shares gained about 2% in extended trading after closing at $21.66 in New York. The stock has dropped 17% since its initial public listing.Still, investors are wary about the competition from Microsoft. Slack said billings will be $745 million to $760 million in the fiscal year, the midpoint falling short of analysts’ average estimate of $754.3 million.Slack also announced that Chamath Palihapitiya, a venture capitalist and early investor in Slack, is stepping down from the board. Palihapitiya, who served as a director since 2017, will be replaced by Mike McNamara, former chief executive officer of Flex Ltd.Bloomberg Beta, the venture capital arm of Bloomberg LP, is an investor in Slack.(Updates with comments from CEO in the fourth 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, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.