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  • Apple: Does Samsung's Smartphone Market Share Gain Matter? [View article]
    "Considering how many times IDC data has been wrong I'm not sure why anyone would reference them."

    gpalermo64, like when in 2011 IDC said Windows Phone would overtake IOS by 2015. Ever since that I give IDC zero credibility regarding anything they say. The following is a quote from an article written in June 2011 by Keir Thomas of PCWorld and published in TechHive:

    "IDC predicts Android will have 43.8 percent of the market in 2015, followed by Windows Phone at 20.3 percent. Apple's iOS will trail at 16.9 percent. The future projections would be a significant improvement for Windows Phone, which will account for just 3.8 percent of the market by the end of this year, according to IDC's figures. "
    Apr 30, 2015. 11:08 AM | 6 Likes Like |Link to Comment
  • Apple beats estimates, guides in-line, ups dividend [View news story]
    Also look at Google, it missed on the top and bottom and went up over 3% the next day.
    Apr 27, 2015. 05:02 PM | 1 Like Like |Link to Comment
  • Amazon: The Situation Worsens [View article]
    Bill, I agree with your assessment completely. Since 2010 when Amazon earned over $2 a share and had revenue growth double the current growth rate, Amazon has been on a pretty steady earnings and revenue growth rate decline culminating in actual yearly earnings losses. The last few quarters, when looked at year over year, show significant declines in net margin and earnings. Every quarter like clock work analysts bring down earnings estimates to something Amazon can achieve or beat and when earnings are reported these same analysts and Amazon brag on the results or find some metric to focus on to present a positive picture. So for the first time in history we have a $200 billion market cap company that doesn't make any money and in fact loses money. And no one, investment firms and investors alike, seem to have any concern that this company cannot return profits despite the promises a few years ago that by now Amazon would have healthy earnings. For now, earnings estimates are being reduced again, and the beat goes on.
    Apr 27, 2015. 12:35 PM | 4 Likes Like |Link to Comment
  • Amazon.com: Here's How Much Drone Deliveries Would Cost Per Delivery [View article]
    Good analysis Paulo, I too think the costs would be prohibitive. I also believe that the safety and security issues related to drone delivery are being underestimated and would pose major obstacles to widespread acceptance of this technology. Many local communities will find the risks associated with drone delivery too severe to allow approval. Drones of the size capable of carrying 5 lb. packages will be ideal weapons for domestic and foreign terrorists and criminal nut cases. They can use them against government buildings, schools, playgrounds etc. With scores or hundreds of drones delivering packages how would you distinguish delivery drones from hostile drones and how would law enforcement be able to defend against the threat? Then there's the issue of pets and kids; my neighbor's toddlers grabbed onto my rear bumper as I stopped to pick up my mail. Would they try to grab a drone landing in their back yard? Would my neighbor's dog try to attack the drone? Even with a federal government green light to the technology many local governments will be reluctant to approve drones for these reasons. I believe the entire drone delivery issue is an Amazon stock pump scheme with no substance.
    Apr 23, 2015. 11:09 AM | 8 Likes Like |Link to Comment
  • Amazon: It's Time To Start Making Some Money [View article]
    Dave, anyone can grow, to grow and do it profitably is more a sign of a well run company. Walmart was able to do that when it was at the same stage Amazon is at now, same for COSTCO and Target. Amazon has built an empire, but the cost for the last several years has been the inability to make reasonable money. What's alarming is that they did make decent money back in 2010, when they were growing faster than now, but since then it's been all downhill. That leads me to believe that there is something else going on here substantively that prevents Amazon from making money. Until Amazon demonstrates that it can operate profitably over a sustained period of time the jury is sill out on whether this is a well run company or not.
    Apr 1, 2015. 07:58 PM | 8 Likes Like |Link to Comment
  • Apple Could Go Down In The Class Struggle [View article]
    "Any valuation of the shares, between now and some weeks after April 24, will be highly speculative, based mainly on anecdotal information."

    Dana, I don't think that Apple investors are valuing Apple between now and April 24 "mainly" on the Apple watch. It's a factor, but I think the stock's performance in the last quarter and guidance for the next quarter which will be reported later in April is by far the biggest factor. Then there's the likely dividend increase and increased stock buybacks. The first generation Apple Watch is not going to move the needle hugely no matter what it does sales wise. Remember the first generation iPhone sales? Who would have guessed what the future had in store for the iPhone. If Apple knocks it out of the park again when they report later in April the stock's valuation will not be a matter of speculation but one deserved through solid earnings and revenue growth, a nice dividend, and more stock buybacks.
    Mar 30, 2015. 10:41 AM | 1 Like Like |Link to Comment
  • Why Amazon Is Still Cheap [View article]
    bogus184 and Illuminati, in addition there's a major flaw in this whole assessment. When trying to value the various business segments of any company you need to know more than just revenue, you need to know the profit picture. Is the business segment turning a profit or is it losing money? For example, a business with $10 billion in revenue that has a 10% net margin would have a much higher valuation than a business with $10 billion in revenue that has a negative 1% net margin. Amazon will not reveal the profits or losses of individual business segments so any attempt at ascribing valuations to each segment is nothing more than guess work.
    Mar 17, 2015. 10:29 AM | 3 Likes Like |Link to Comment
  • Why Amazon Is Still Cheap [View article]
    InvestingInvestor, Amazon said they will be revealing AWS REVENUE starting next quarter. If they would tell us the profit/loss picture as well I'd be impressed but they were pretty specific when they said revenue.
    Mar 16, 2015. 10:22 AM | 3 Likes Like |Link to Comment
  • Why Amazon Is Still Cheap [View article]
    Jack, Amazon was very specific when they said they will break out AWS revenue numbers starting this quarter. There is no indication they will address AWS profits or lack there of. We'll see what happens, but I doubt there will be any mention of profits.
    Mar 14, 2015. 12:44 PM | 6 Likes Like |Link to Comment
  • Why Amazon Is Still Cheap [View article]
    "A recent Bank of America (NYSE:BAC) analysis of the Amazon Web Services cloud business found it to be worth $39 billion, assuming $8.6 billion in revenue for 2015 and a tech company multiple of 4.5 on those earnings. (Google (NASDAQ:GOOG) (NASDAQ:GOOGL) is currently valued at about 5.75 times revenue, so this is conservative.)"

    Dana, do you think the valuation of Google at 5.75 times revenue is influenced by the minor detail that Google has very healthy PROFITS? Amazon Web Services on the other hand probably has little or no profits. We don't know for sure because Amazon of course won't reveal AWS earnings, God forbid investors should be given such irrelevant information. Companies are not valued purely on revenue, so BAC using 4.5 as a multiple for AWS without knowing the profit or loss of the business is bizarre. For the same reason it is also impossible to say that the 4.5 multiple is conservative. In addition to revenue you need to know profits (or losses) and profit making potential to make a reasoned determination of valuation.
    Mar 14, 2015. 11:51 AM | 11 Likes Like |Link to Comment
  • Apple: Android Photography Is About To Take A Huge Quality Jump [View article]
    Paulo, I believe a very small percentage of people buy a smartphone because of the camera. Android phones can have the absolute best cameras in the world, they still run Android. Most iPhone users are not going to change teams and buy an Android phone because of a marginally better or even hugely better camera. They want the iPhone/IOS user experience, and the Apple ecosystem and customer focus, they are not concerned by specs. The iPhone 6 camera is without question one of the best smartphone cameras, way more capable than the vast majority of users need. I know you are trying to support your thesis that Apple and the iPhone is in trouble because of "market share" but this is just not the case and new Android cameras are not going to make a difference. Apple is killing it in the high end of the market and is dominating "high end market share", that's what counts, that's where the money is. Android has lost the battle and the war for the high end of the market; Android will continue to dominate the low end and if your assessment is correct they will dominate the low end with with great cameras, and most Android vendors will continue to scrap for profits and lose money.
    Mar 6, 2015. 02:46 PM | 4 Likes Like |Link to Comment
  • Apple: The New Battle For Smartphone Profit [View article]
    You don't get it. It's Apple's user experience, ecosystem, and customer support that attracts and keeps customers. New Android phones that copy the iPhone look or features and that may be "faster" or have "better cameras" are not going to entice iPhone users to switch teams. Samsung's S6 will compete with other Android high end phones; it will have little impact on Apple.
    Mar 6, 2015. 11:33 AM | 3 Likes Like |Link to Comment
  • Munster's Revenge: Amazon Forward PE Is Now 912 [View article]
    Allan, excellent article. I've long believed the analysts and investment firms that cover Amazon and pump the stock have looked at the company with rose colored glasses and been suspiciously out of touch with certain realities that even amateur analysts have been able to discern. That free cash flow is actually negative is one measure that most Amazon analysts seem to ignore. That gross margin/profits is inflated due to AWS and 3P being counted as 100% gross margin is another. That the $.45 earned last quarter was over 10% less than the earnings of the same quarter last year is another. (Usually declining earnings year over year is not a good thing.) Then there's the consistent declining future earnings estimates quarter after quarter, usually this is not a sign that a company is doing well. Yet, in the face of all of this, analysts and investment firms consistently raise their price targets for Amazon. Peculiar. So now we have a company valued at $180 billion that barely makes a profit one or maybe 2 quarters out of the year. Regarding that forward P/E of 912, my guess is Amazon will lose money for the year. This should result in analysts raising their price targets for Amazon to the 500s.
    Feb 25, 2015. 04:19 PM | 8 Likes Like |Link to Comment
  • Apple tops $132 after Barron's predicts further gains [View news story]
    DGM01, "Why is the company worth 40% more (or $300,000,000,000) more than it was 1 year ago?"

    Because earnings growth and revenue growth is much higher than 1 year ago, and in it's most recent quarter Apple earned over $18 billion-more than any other company has ever made in one quarter. To put that number in perspective, Amazon, which sells for over $370 a share, has made less than $2 billion in its 20 year history. Apple's performance and future prospects warrants its current price/value.
    Feb 23, 2015. 07:20 PM | 5 Likes Like |Link to Comment
  • Apple: Bears Resurrect The Commodity Bogeyman [View article]
    @barantos, you can build the best PC in the world, it still runs Windows and has all the user experience issues that Windows machines have. I was a dedicated Windows PC guy until 2008. I always had top of the line high spec machines. Weekly I had computer crashes, losing my internet connection and having to get into DOS to get it back, and other issues. I finally threw up my hands and decided to give Mac a try and I've never looked back. No more crashes, no more losing my internet connection, my user experience improved 1000%. When you talk about the quality of a PC being better than a Mac I say quality is a lot more than specs, the user experience is paramount.
    Feb 12, 2015. 11:08 AM | 3 Likes Like |Link to Comment
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