Today, 9:03 AM
- Rather than chase surging stocks at fancy valuations, the team at Barron's looked for laggards when making its picks, writes Andrew Bary.
- The names, nevertheless, aren't exactly unfamiliar ones: Alphabet (GOOG, GOOGL), Apple (NASDAQ:AAPL), Citigroup (NYSE:C), Delta Air Lines (NYSE:DAL), Deutsche Telekom (OTCQX:DTEGY), Merck (NYSE:MRK), Novartis (NYSE:NVS), Toll Brothers (NYSE:TOL), Unilever (NYSE:UL), Disney (NYSE:DIS).
- Eight of these ten are trailing the S&P 500 this year, including the three European stocks (Deutsche Telekom, Novartis, and Unilever), and all of the names except Google sell for less than 20x 2017 estimates.
- At just 10x earnings, Toll Brothers, Citi, and Delta are better ways to play an improving economy than Caterpillar at nearly 30x.
- As for the "pricey" Google, it's an example of the Buffett maxim that he'd rather buy a wonderful business at a fair price rather than a fair business at a wonderful price.
- Barron's top picks for 2016 as a group are trailing the S&P 500 by more than 600 basis points.
Yesterday, 1:21 PM
- With AWS re:Invent 2016 wrapping up as the week comes to a close (view a comprehensive synopsis of the event's developments here), Amazon (AMZN -0.5%) appears in no way easing concentration on its cloud business. Rather, it's ramping on it as competition and potential for the segment moves further into play.
- In one slide presented by AWS CEO Andy Jassy, approximately 1,000 new capabilities are cited to be added to the unit's services every day, up from a 722 figure for the year prior.
- Additionally, an area of development opportunity observed and acted on this week comprised artificial intelligence, through the launch of Amazon AI. With Microsoft (MSFT -0.1%) and Google (GOOG, GOOGL) already directing attention this way, Amazon not excluded, projecting further distance between Amazon and its closest cloud rivals isn't unreasonable given the offensive it's waging in the field.
- N.B. Most recent (Q3) cloud revenues at Amazon come in at $3.231B (+55% Y/Y), for Microsoft, through the form of +116% growth (no declared figure) and at Google, as the greatest percentage of year-over-year growth across all segments (no declared figure).
Thu, Dec. 1, 10:55 AM
- Notable early (2%+ losses): Alphabet (GOOGL -2.25%, GOOG, -2%) Facebook (FB -3.4%), Twitter (TWTR -3.9%), Oracle (ORCL -3.3%), Salesforce (CRM -4.2%), VMware (VMW -3.5%), Alibaba (BABA -2.7%)
- 5%+: Qualcomm (QCOM -4.9%), Nvidia (NVDA -7%), Advanced Micro Devices (AMD -7.1%), Micron Technology (MU -5.5%), Twilio (TWLO -6.5%)
- 8%+: Cirrus Logic (CRUS -8.8%), Gigamon (GIMO -9.5%)
Thu, Dec. 1, 9:37 AM
- Bloomberg sources Apple (AAPL +0.2%) as developing a team of data-collection and robotics professionals to deploy drones in an effort to improve its mapping capabilities. The company currently drives vehicles around the world to collect data used in its Maps service.
- The drone initiative is said to enable survey of items like street signs, changes to routes and areas of construction.
- Indoor mapping is claimed in focus as well, with views of airport and other high-traffic building interiors cited to be under development. Similar indoor initiatives have already been underway at rival Google Maps.
- With Apple's Maps offering historically considered second-tier relative to Google's (GOOG, GOOGL) service, and the significance of mapping technology ever-increasing as integrations with ride-sharing, travel and other external apps rely heavily on it, attention and potential forthcoming improvements mark encouraging signs.
Thu, Dec. 1, 9:31 AM
- November monthly performance was: +0.62%
- 52-week performance vs. the S&P 500 is: -5%
- No dividends were paid in November
- Top 10 Holdings as of 10/31/2016: Apple Inc (AAPL): 4.78232%, Microsoft Corp (MSFT): 3.6545%, General Electric Co (GE): 2.09427%, Procter & Gamble Co (PG): 1.43859%, Exxon Mobil Corp (XOM): 1.36332%, Wells Fargo & Co (WFC): 1.34175%, Intel Corp (INTC): 1.2948%, Bank of America Corporation (BAC): 1.2811%, Pfizer Inc (PFE): 1.22767%, Alphabet Inc C (GOOG): 1.22159%
Thu, Dec. 1, 8:49 AM
- November monthly performance was: +3.54%
- 52-week performance vs. the S&P 500 is: -3%
- No dividends were paid in November
- Top 10 Holdings as of 10/31/2016: Apple Inc (AAPL): 6.80131%, Microsoft Corp (MSFT): 5.15024%, Exxon Mobil Corp (XOM): 3.74079%, General Electric Co (GE): 2.88197%, Procter & Gamble Co (PG): 2.47992%, AT&T Inc (T): 2.43052%, Wells Fargo & Co (WFC): 2.30872%, Amazon.com Inc (AMZN): 2.24391%, Facebook Inc A (FB): 2.2067%, Alphabet Inc C (GOOG): 2.16615%
Thu, Dec. 1, 4:27 AM
- A new batch of companies may soon be able to operate in Cuba if the Obama administration can persuade Havana to finalize agreements before Donald Trump takes office, WSJ reports.
- If the White House succeeds, Google (GOOG, GOOGL), General Electric (NYSE:GE), Norwegian Cruise Line (NASDAQ:NCLH), Royal Caribbean (NYSE:RCL) and Pearl Seas Cruises could all announce deals in the upcoming weeks.
Thu, Dec. 1, 3:00 AM
- A massive network of high-speed fiber optic internet is coming to 20 states over the next five years, according to an announcement from Altice (OTCPK:ATCEY), the cable company behind Optimum, Lightpath and Suddenlink.
- Altice's planned 10-gigabit per second connection far outpaces Google Fiber's (GOOG, GOOGL) current 1-gigabit per second connection, as well as Verizon Fios (NYSE:VZ).
- It also comes as Google scales back its own expansion plans for ultra-fast internet cables.
Wed, Nov. 30, 12:31 PM
- YouTube (GOOG, GOOGL) had first added support for 4K video in 2010. Millions of uploads in the resolution are cited to have been added to the platform since, marking the largest grouping of 4K vides available online.
- Live-streaming in 4K is now being added for 360-degree and standard video formats. 4K resolution displays 8M total pixels and images with 4x greater definition than 1080p.
- Example of the functionality to come tomorrow with broadcast of The Game Awards 2016.
Wed, Nov. 30, 9:20 AM
- Since August, at a rate of 13,000 devices per day.
- Reportedly targets devices running Android 4 (Jelly Bean, KitKat) and 5 (Lollipop) [combine for 74% of in-use Androids]. Fraudulent installation of apps from Google Play and ratings generated unknowingly by affected users alleged.
- Google (GOOG, GOOGL), in response to Check Point inquiry: "We appreciate Check Point's partnership as we’ve worked together to understand and take action on these issues. As part of our ongoing efforts to protect users from the Ghost Push family of malware, we’ve taken numerous steps to protect our users and improve the security of the Android ecosystem overall."
- Check Point breach tool
Mon, Nov. 28, 12:07 PM
- On estimates 5M-6M of the devices will sell during the term. For the final three months of 2016, projects 3M Pixels (GOOG, GOOGL) to move, generating sales of $2B.
- Comparatively, Apple (AAPL +0.1%) sold 212M iPhones in FY 2016 leading to $137B in revenue, and 45.5M in Q4, producing $28B. Morgan Stanley additionally forecasts 22%-25% gross profit margins on Pixel, depending on configuration, compared to an estimated 41% for iPhone.
- Notes ancillary profit potential for the Pixel involving greater monetization of users on the Android operating system resulting from distinct feature integrations (Google Assistant, Daydream) and other improvements the ecosystem will benefit from. Increased search monetization also considered on the tight association between the device, Android operating system and Google's search foundation.
Mon, Nov. 28, 11:09 AM
Fri, Nov. 25, 2:47 AM
- Google (GOOG, GOOGL) is nearing a settlement with Indonesian tax authorities for no more than $73M, almost five times less than the country initially sought.
- "Consider this tax amnesty for Google," declared Muhammad Haniv, head of the tax office's special-cases unit.
- The Alphabet unit declined to comment but in the past has said it had paid all applicable taxes and was cooperating with the government.
Wed, Nov. 23, 2:49 PM
- Analyst Jason Helfstein considers Facebook and Amazon among the most attractive of the group, though Outperform ratings on each are held by the firm. While sharp negative post-election reaction across the names is somewhat moderating, notes investor concern involving net neutrality, immigration, regulation and trade remain, resulting in below-premium trading levels.
- On Facebook, cites expected catalysts in ad monetization generated through video strategy, Instagram prospects and Dynamic Product Ads, and on Amazon, sees strength in holiday shopping season and Amazon Web Services.
- For Alphabet, observes YouTube momentum, growing ad budgets and holiday season opportunity among other catalysts. On Netflix, considers possible upside to held estimates.
- Since U.S. election (November 8) – (NASDAQ:FB) -2.9%, (NASDAQ:AMZN) -1.05%, (NASDAQ:GOOGL) -4.3%, (NASDAQ:GOOG) -3.9%, (NASDAQ:NFLX) -5.3%
- Last week: Piper Jaffray reissues Overweight position on Facebook, Amazon, Alphabet, Netflix
Wed, Nov. 23, 4:59 AM
- Google (GOOG, GOOGL) is expected to reach a potentially hefty tax settlement with the Indonesian government in the next few weeks, Reuters reports, in a move that could pave the way for more countries to aggressively pursue back taxes from internet firms.
- Separately, Indonesia's communications minister said Google's Project Loon is still awaiting clearance. The tech giant hopes to deploy balloons to deliver internet across remote areas of the country.
Tue, Nov. 22, 3:33 PM
- Looking at the top 50 hedge fund hotels, it's probably little surprise that Amazon (NASDAQ:AMZN) and Facebook (NASDAQ:FB) top the list, with Amazon making for a top 10 holding in 61 funds, and Facebook in 57.
- Rounding out the top 10 are Charter Communications (NASDAQ:CHTR), Alphabet (GOOG, GOOGL), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Yahoo (NASDAQ:YHOO), Allergan (NYSE:AGN), Bank of America (NYSE:BAC), and Priceline (NASDAQ:PCLN).
- Looking at another gauge - the percent of market cap owned by hedge funds - shows CommScope (NASDAQ:COMM) leading the way, with hedge funds owning 37%. Next is Dell Technologies (NYSE:DVMT) and Expedia (NASDAQ:EXPE) at 30%, and after that: Liberty Broadband (NASDAQ:LBRDK) at 24%, LinkedIn (NYSE:LNKD) at 21%, Constellation Brands (NYSE:STZ) at 20%, and Humana (NYSE:HUM) and WhiteWave Foods (NYSE:WWAV) at 19%.
- Previously: Goldman's list of shorts mattering most to hedge funds (Nov. 22)