55.59 0.00 (0.00%)
After hours: 5:11PM EDT
|Bid||55.51 x 1000|
|Ask||55.70 x 1100|
|Day's range||55.53 - 56.60|
|52-week range||39.71 - 62.60|
|Beta (5Y monthly)||0.78|
|PE ratio (TTM)||17.48|
|Earnings date||10 Dec 2020 - 14 Dec 2020|
|Forward dividend & yield||0.96 (1.68%)|
|Ex-dividend date||07 Oct 2020|
|1y target est||63.13|
(Bloomberg) -- ByteDance Ltd. pulled most of its TikTok traffic from the network of Fastly Inc., suggesting a crackdown by the Trump administration is forcing the Chinese technology giant to change its operations.Fastly runs a content delivery network that pushes data quickly around the internet so businesses can help consumers shop online or watch videos on apps and websites. ByteDance has used this service to deliver videos on its wildly popular TikTok app, making the Chinese company Fastly’s largest customer.San Francisco-based Fastly said on Wednesday that ByteDance “removed a majority of their U.S. and non-U.S. traffic from our platform” by the end of the third quarter.“Based on publicly available information, we believe this global traffic reduction was in response to the potential of a prohibition of U.S. companies being able to work with this customer,” Fastly added in a shareholder letter.TikTok has become embroiled in a political standoff between the U.S. and China and President Donald Trump has threatened to ban the app if it doesn’t work out a deal to be sold to a U.S. company. Oracle Corp. and Walmart Inc. have agreed to take a stake in a reorganized TikTok, but ByteDance is still working out the details.“We intend to fully support this customer unless and until we are prohibited from doing so,” Fastly Chief Executive Officer Joshua Bixby wrote in the letter to shareholders. “We are prepared to accept additional traffic from this customer if conditions enable it to return. However, if it becomes clear that we should no longer support this customer, we believe the reserved capacity for this customer can be reallocated over the medium- and long-term.”During a conference call with analysts, Bixby added that any ban of the TikTok app by the U.S. “would create uncertainty around our ability to support this customer.”Fastly reported results on Wednesday, too. The cloud-technology provider said it will lose 8 cents to 12 cents a share in the fourth quarter on revenue of $80 million to $84 million. Wall Street was looking for a loss of 2 cents a share and sales of $82.3 million, according to data compiled by Bloomberg.The company also said it generated 42% year-over-year revenue growth in the third quarter and experienced the second highest quarter of new customer additions in its history as a public company. “Our underlying business remains strong,” Bixby wrote.Fastly stock rose about 1% in extended trading, after closing at $71.61 in New York earlier on Wednesday.The company surprised Wall Street about two weeks ago by cutting its revenue forecast for the third quarter and noting that ByteDance was spending less on its services. Fastly shares have soared this year, but when the company cut its outlook, the stock plummeted 27%. It’s is still up more than threefold since January.Read more: Fastly Delivers a Harsh Lesson on Software’s Valuation Excesses(Updates with comments about ByteDance throughout)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.
The Zacks Analyst Blog Highlights: Microsoft, Tesla, AT&T, Apple and Oracle
(Bloomberg) -- Dire earnings results at SAP SE wiped out more than 35 billion euros ($41 billion) from the German software company’s market value in a matter of minutes, sending a warning to tech investors about the health of the business software industry.In a surprise release late Sunday, SAP, one of Europe’s largest tech companies, cut its revenue forecast for the full year and said it expected the fresh wave of Covid-19 lockdowns to hurt demand through the first half of 2021. The results caused shares to fall the most ever in a single day, according to data compiled by Bloomberg since 1989.SAP’s collapse caused the wider tech market to drop, with Europe’s Stoxx Technology index falling 7.6%, its biggest one-day loss since March. Shares of cloud-applications giant Salesforce.com Inc. fell 4.1% at 2:28 p.m. in New York. Oracle Corp. -- SAP’s main rival -- dropped 3.9%.“SAP is a bellwether stock for European technology and global software,” said Citigroup Global Markets analyst Amit Harchandani. “They have an insight into Fortune 500 companies and when SAP tells you they see headwinds, there will be some truth to the fact that some of the customers are challenged and don’t have the money to spend.”For some investors, SAP’s results have called into question the wider assumption that software companies will prosper during the pandemic, due to millions of employees working from home. Many of these companies, which deliver applications or services over the internet, have so far resisted the worst effects of a pandemic-fueled recession, and some have thrived while businesses operate remotely.Some major SAP clients may be reconsidering signing large contracts to update their software, as the pandemic continues to limit any global economic recovery. SAP has a wide range of products, many of which rely on winning and renewing major new deals for databases, as well as accounting, expenses or human resources software. Unsurprisingly, SAP said business travel had been particularly hard hit over the past quarter.Still, SAP has fared worse during the pandemic than many of its software peers. The company said in April that the virus had hindered new business, prompting worries that software vendors around the world might underperform. A few companies later weakened their forecasts, but most reported healthy growth. More recently, San Francisco-based Salesforce said in August that revenue climbed 29% to $5.15 billion in the previous quarter, and raised its revenue projection for the year.SAP’s poor results and weak outlook may suggest that a recovery for vendors of on-premise software -- based on a company’s own network rather than on the internet -- could take longer than anticipated, as clients continue to delay major IT upgrades, analysts at Citi wrote in a note Monday.Oracle, based in Redwood City, California, may be more affected than cloud-based providers since it offers database and financial-planning tools like SAP, and has a large base of customers who buy software for their own server farms. Last month, Oracle reported a return to sales growth in the previous quarter after years of largely stagnant revenue expansion, due to rising demand for its cloud-based products and falling interest in everything else. Oracle projected its sales would grow 1% to 3% in the current period.“The bigger surprise to us was the sharp deceleration in [SAP’s] cloud backlog numbers,” said Anurag Rana, analyst at Bloomberg Intelligence. “Given that Workday and Salesforce.com had good quarters with healthy pipelines, it seems that could be losing share to pure-play cloud vendors, which would make it hard for them to attain any meaningful recovery in the near-term.”Investors now have an anxious wait before the major U.S. cloud software providers such as Salesforce, Workday Inc. and Oracle announce earnings in December.(Corrects spelling of analyst in 10th 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.