Does Palo Alto Pose a Real Competition to FireEye in Cybersecurity?
FireEye (FEYE) employs malware sandboxing technology to identify advanced security threats before they intrude and infect a network.
Why Is Morgan Stanley Optimistic about Apple?
According to a report from Apple Insider, Morgan Stanley expects Apple to offset the threat of longer replacement cycles with the iPhone Xs.
Morgan Stanley Investment Management Thrives in 2Q15
Morgan Stanley’s (MS) Investment Management segment reported a 7% increase, bringing total revenues to $751 billion compared to $705 billion in 2Q14.
Morgan Stanley’s Capital Position Remains Strong
Since the financial crisis of 2009, there has been intense pressure on US banks to raise capital levels to meet minimum requirements.
Morgan Stanley’s Strong Revenue Model
Morgan Stanley charges fixed fees and performance fees for asset management services, products and services, and administration of accounts.
Financials Overview for the Week of June 26–30, 2017
Major banking stocks rose after the Fed approved huge payout plans. Wells Fargo (WFC) rose 2.7% and Citigroup (C) rose 2.8%.
Lack of Rate Hike in September Leads US Stocks Down
The US Federal Reserve met on September 16 and 17 in one of the most anticipated monetary policy meetings in recent memory.
Factors That Will Drive Goldman Sachs’ Earnings in 2016
Goldman Sachs derives 16% of its revenues from the investing and lending business. So far, 2016 has been a rough year for the financial sector.
Morgan Stanley Posts Highest Profit Since 2007 in 1Q15
Morgan Stanley (MS) reported net income of $1.18 billion, or $1.18 per diluted share, the bank’s most profitable first quarter since the 2007 financial crisis.
Fund Flows to XLF Have Been Declining
Exchange-traded fund investors added almost $552.6 million on average to the Financial Select Sector SPDR ETF (XLF) in the last quarter. During the week ending September 25, the ETF witnessed outflows of $318.3 million.
How Wall Street Analysts Rate LyondellBasell ahead of 1Q18 Earnings
The analyst consensus target price for LyondellBasell is $116.82, implying a return potential of 8.5% over the closing price of $107.68 as of April 20, 2018.
Must-know: Determining a bank’s value
The first challenge is that banks are highly regulated and any change in regulations has a huge impact on the valuation of a bank—the second challenge is that it’s difficult to determine cash flow for a bank because both debt and reinvestment are difficult to calculate.
EU Equities Decline on Greece’s Woes in Week Ended May 29
EU equities outperformed other major markets in 2015 due to quantitative easing announced by the European Central Bank, a weaker currency, and rising exports.
Analysts’ Forecast for Marathon Oil after Its 2Q15 Earnings
Wall Street analysts gave target prices for Marathon Oil after its 2Q15 financial results. Evercore ISI gave Marathon Oil a target price of $23.
Must-know: Putting the price–to-book value ratio in perspective
We explored the most commonly used valuation metric for financial companies—the price-book value. We also understood the relation between price-book value and return on equity.
How Many Watches Should You Expect Apple to Sell?
Apple (AAPL) is all set to release its Watch on April 24. The product will launch in nine countries, which include the United States and the United Kingdom.
Tech Stocks: Two Chinese Giants Gained 10% Today
Today, two Chinese tech stocks have gained significant market value. Baidu (BIDU) and iQIYI (IQ) are trading 10% and 15% higher, respectively.
Banks That Look Riskier in the Brexit Aftermath
Banks with significant exposure to the United Kingdom and the European Union are the riskiest investments in a post-Brexit environment.
Morgan Stanley bullish about Apple Watch prospects
Morgan Stanley rationalizes that if only 10% of the 300 million people who carry iPhones buy an Apple Watch, 30 million units could be sold this year.
AMFQX: More Than 60% Exposure to Derivative Securities
AMFQX is an alternative mutual fund that seeks to generate positive absolute returns with a low correlation to the returns of broad stock and bond markets.
What’s Charles Schwab’s Valuation?
Charles Schwab (SCHW) has a price-to-earnings ratio of 20.80x on an NTM (next-12-month) basis.
Why Is the United Kingdom’s Stock Market Buoyant?
The iShares MSCI United Kingdom (EWU) rose 1.1% on Thursday, October 8. On Thursday, 82 stocks rose out of EWU’s 109 constituent stocks.
Market Participants Make a Beeline for 2-Year Floating Rate Notes
The US Department of the Treasury introduced two-year FRNs (floating rate notes) in January 2014. An FRN is a debt security. Its interest payment varies.
Behind IBM’s Stock Reaction to Its Latest Quarterly Results
IBM saw its shares fall 8.2% in April, after the firm reported its 1Q17 results. IBM reported revenue of $18.2 billion for 1Q17—slightly below the analyst estimate.
Should You Include Buckeye Partners in Your Portfolio?
Buckeye Partners’ (BPL) outlook looks positive from a long-term investment standpoint. At a broader level, ~54% of analysts rate Buckeye Partners as “hold.”
Will IBM Watson’s Foray into Financial Services Succeed in 2017?
IBM’s acquisitions to boost Watson Since its inception, IBM (IBM) has been betting heavily on Watson, its cognitive computing platform, to steer the company toward much-needed growth. As expected, Watson was IBM’s highlight in 2016 and is expected to be in 2017 as well. Considering IBM’s acquisitions to equip Watson in the healthcare space, namely […]
Inside the Analyst Ratings for Ingersoll Rand after the 2Q Results
Of the 23 analysts surveyed by Bloomberg, 15 gave Ingersoll Rand “buy” ratings, whereas nine gave “hold” ratings, and none gave “sell” ratings.
What Do Analysts Forecast for ExxonMobil?
Approximately 35% of analysts tracking ExxonMobil rate it a “buy” or some equivalent. Approximately 54% rate the company a “hold” or an equivalent, while 11% of the analysts recommend a “sell.”
Why Overall Demand Tanked for 2-Year Floating-Rate Notes
Overall, $13 billion worth of floating-rate notes were auctioned, the same as in February’s auction.
Morgan Stanley’s Expense Cuts Are Key Part of Recovery
Morgan Stanley’s 2Q16 earnings beat analysts’ estimates, as the bank reported considerably lower legal expenses.
T-Notes Auction: Poor Demand amid the FOMC Meeting
The overall demand fell for the seven-year T-notes auction because the FOMC meeting didn’t give any clarity regarding an interest rate hike in the future.
How Did US Treasury Auctions Fare Last Week?
The US Department of the Treasury’s 26-week Treasury bill, or T-bill, auction, totaled $26 billion last week.
Analyst Recommendations for COG After Its 3Q15 Earnings
We’ll discuss analyst recommendations for COG, following the release of its 3Q15 results. Wall Street analysts provided target prices for the next 12 months.
Why Salesforce Holds the Title of Most Innovative Company
In 2016, Salesforce has continued to report double-digit growth and was ranked as the most innovative company by Forbes for the sixth straight year.
Why US and EU sanctions on Russia are having a boomerang effect
These sanctions have mainly been issued against companies in Russia’s defense industry and energy industry, as well as important Russian banks and individuals.
Are Equity Markets’ Valuations Stretched?
The International Monetary Fund (or IMF) also warned that the downside risks to the world financial stability have increased over the past six months.
Morgan Stanley and Goldman have bigger bond exposure than Bank of America and Citi
Bond underwriting exposure could be risky for investment banking departments, as interest rates begin to rise and refinancing slows.
Could Hexadite Mark the Onset of Microsoft’s M&A Spree?
Believed to be the world’s largest cyberattack, WannaCry ransomware infected more than 230,000 computers in almost 150 countries.
Tesla’s Consumer Reports’ Reliability: Upside Ahead?
Yesterday, Consumer Reports’ survey put Tesla Model S and Model 3 back on the recommended list based on their improved reliability.
GS and MS Agree with Bridgewater about Peak Margins
Bridgewater isn’t alone in believing that most US companies (QQQ) are experiencing peak margins.
High Discount Margin: Highest Ever for 2-Year Floating Rate Notes
The US Department of the Treasury introduced two-year FRNs (floating rate notes) in January 2014. An FRN is a debt security. Its interest payment varies.
Why Did IBM Stock Fall after Its Fiscal 1Q16 Results?
Despite exceeding analysts’ estimates, IBM stock fell after the earnings announcement on April 18, 2016. It was IBM’s 16th consecutive quarter of revenue decline.
What GS Thinks about How Tesla’s Sales Growth Drives Earnings
Goldman Sachs estimated that Tesla Motors’ (TSLA) 2017 sales would rise 24%.
Why Danaher Is Relatively Immune from Growth Concerns in China
Organically, Danaher (DGR) has grown at a CAGR of roughly 10% in China over the last five years. Approximately 50% of the company’s revenues in China are derived from its Diagnostics segment.
Morgan Stanley’s Valuation and Target Prices
Morgan Stanley (MS) is trading at a forward PE ratio of 9.6x, which is ~16% lower than its five-year average PE ratio.
Are Analysts Getting Wary of the Run-Up in US Steel and Cliffs?
After Trump’s election win, most analysts are turning optimistic on the US steel sector, given his stance on protectionism and infrastructure focus.
How Have Equities Performed since the Brexit Vote?
Investors lost confidence due to the uncertainty surrounding the vote, which led to the expectation of the other member nations’ following in the United Kingdom’s footsteps.
EU Equity Valuations Improved on Strong Earnings
The MSCI Europe Index was valued at 14.9x on a one-year forward earnings basis in the week ending July 31, 2015. Valuations rose by 0.71% that week.
How Do Analysts Rate SolarCity ahead of 3Q16 Results?
Since the release of SolarCity’s 2Q16 results, three of the 15 analysts covering the stock lowered their price targets.
How Do Analysts Rate Sunrun ahead of Its 3Q16 Results?
Of the 11 analysts covering Sunrun (RUN) stock, nine analysts (81.8%) gave the company a “buy” rating. Two analysts (18.2%) rated it a “hold,” and there weren’t any “sell” ratings on Sunrun’s stock on November 4, 2016.
Understanding Banks’ Market and Reputational Risks
All banks face risks. Two key areas to understand are banks’ market risk and reputational risk. Here’s a summary of each type.
What Happened at the US Treasury Auctions in the Week Ending June 10?
It’s expected that the Fed may increase the interest rate soon, and 30-year Treasury bonds auction are closely watched by stock and bond investors.
Brexit Vote: How Did US Treasury Auctions React?
The US Treasury auctioned 30-year TIPS (VIPSX)(LTPZ) worth $5 billion on June 22.
Understanding a Bank’s Operational and Business Risks
Banks experience operational risk in all daily bank activities, such as a check incorrectly cleared or a wrong order punched into a trading terminal.
Why Morgan Stanley Prefers Emerging Markets over US Markets
Similar to other investment banks, Morgan Stanley (MS) doesn’t have high hopes for US markets in 2019.
Morgan Stanley Is Concerned about an Earnings Recession
Morgan Stanley’s chief equity strategist, Michael Wilson, is the most bearish on Wall Street regarding SPY’s projected target for the end of 2019.
Will Brexit’s Impact on IBM Be Minimal or Significant?
In 2016, IBM made two acquisitions in Europe, namely Aperto and Ecx.io, to boost its revenue growth in the digital agency and marketing space.
Morgan Stanley Stock Falls Despite Strong Q3 Earnings Results
What to Watch for in Morgan Stanley’s Q3 Earnings
Higher Provisions Weigh on Bank of America’s Q2 Results
Bank of America (NYSE:BAC) stock fell 3.1% in pre-market trading today after the company reported its second-quarter results.
Goldman Sachs Is Down 15%: What Will 1Q16 Earnings Have to Offer?
Analysts expect Goldman Sachs to post 1Q16 EPS of $2.48, which is 45% lower than the corresponding period last year.
European Equities Rise on Expectation of Further Stimulus
European equities rose as the ECB’s president hinted at further stimulus for the European economy amid falling commodities and a slowing global economy.
JPMorgan Chase’s Trading Declines across Offerings in 3Q17
CIB’s expenses fell 3% on a year-over-year basis to ~$4.8 billion, mostly due to lower employee compensation.
Morgan Stanley: Can Dividend Hikes Woo Investors in 3Q16?
Morgan Stanley boosted its dividends by 33% to $0.20 after it received conditional approval from the Fed’s 2016 stress tests in June.
What’s Keeping Netflix from Exploring More Content Genres?
Netflix said that although it would like to have something for every type of viewer, viewers will most likely use other streaming services in addition to Netflix.
BlackRock expected to benefit from fixed income ETFs
BlackRock benefited the most from the money in motion due to macro factors. Fixed income ETFs in 4Q14 attracted almost half of the total new funds in 2014.
Earnings Season Is Expected to Impact US Equity Valuations
The upcoming earnings season can help you understand whether the markets will see prolonged consolidation or upward movement from existing valuations.
Morgan Stanley’s Expanded Equity and Lowered Risk-Weighted Assets
Morgan Stanley has seen higher investment banking and trading revenues, as well as strong equity growth, due to its reduction of risk-weighted assets.
Investors Have Chosen to Stay Away from China ETFs
Since July, investors have withdrawn $639 million from the iShares China Large-Cap ETF (FXI).
US Stock Indexes Fell as Oil Prices Touched New Lows
Three US equity indexes—the S&P 500, the Dow Jones Industrial Average, and the NASDAQ—fell from January 12 to January 19 as the oil price rout continued.
Level III assets have declined sharply at major banks including C, MS, and BAC
A substantial decline in the Level III assets as a percentage of total equity at the major investment banks is good for shareholders and the condition of bank balance sheets.
Roku Stock Falls 17% Due to Morgan Stanley Downgrade
Shares of high growth tech stock Roku (ROKU) have fallen close to 17% at the time of this writing. The stock is trading in the red.
Uber Loses Its License in London: What Happens Next?
Uber lost its license to operate in London on November 25. London’s transport regulator, Transport for London, cited a “pattern of failures” by the company.
Wall Street Analysts’ Outlook Positive For Melco Crown
Morgan Stanley upgraded MPEL shares to an overweight rating in a research note issued to investors on January 5, 2015, with a revised target price of $28.
Bank of America: The second-largest US banking operation
Bank of America Corporation’s (BAC) banking operations are the second-largest in the United States by assets.
Merrill Lynch Wealth Management and U.S. Trust: Serving the rich
Bank of America’s Global Wealth & Investment Management segment controls the highest high-net-worth client assets, according to Barron’s 2013 ranking.
Is Bank of America investing in investment banking?
In 2013, Bank of America raised $700 billion for its clients and earned $6.1 billion in investment banking fees.
Analysts’ Optimism for US Steel Sector Gets Cliffs an Upgrade
Better fortunes for the US steel sector bode well for Cliffs Natural Resources (CLF), the only North American pure play iron ore pellet supplier.
Can Tesla’s Pickup Truck Turn Analysts’ Tide in its Favor?
Yesterday, Deutsche Bank (DB) bumped up its target price for Tesla (TSLA) by 12% after the company revealed the Tesla pickup truck on November 21.
Will Tesla’s China Gigafactory Give Porsche-Like Margins?
Recently, Tesla (TSLA) unveiled its first made-in-China Model 3 sedan from its Shanghai Gigafactory. It’s also now providing media test-drives.
Must-know: Why aluminum has become a hot investment
Aluminum has become a favorite for investors who want to diversify their portfolios. After the global recession, it’s emerged as a hard asset.
Tesla’s Real Competition: Automakers or Mega-Tech?
Tesla (TSLA) stock has been polarizing like no other. Analysts and investors have very strong views about the stock on either side.
Southwest Stock: Why Bernstein Has a Different View
Bernstein analyst David Vernon cut his rating on Southwest stock to “market perform” from “outperform.” However, he raised the target price to $61 from $58.
Apple Stock: Analysts Raise Target Price after Q4 Results
Apple (AAPL) shares are trading 1.7% higher in pre-market today. The company announced its fourth-quarter results on Wednesday after the market close.
Assessing demand fundamentals for the latest T-bond auctions
The 30-year T-Bond auction was a reopening of May’s 30-year bond issue. The underlying 30-year T-Bond was auctioned on May 8 at a coupon of 3.375% to mature on May 15, 2044.
Why new US sanctions target Russia’s energy sector
The U.S. has issued sanctions against two of Russia’s major energy companies—the sanctions prohibit new debt with more than 90 days maturity from U.S. institutions for OAO Novatek and Rosneft.
Why the price-to-book value ratio’s the most used valuation
The price-book value ratio is the ratio of the market value of equity to the book value of equity. Price stands for the current market price of a stock. Book value is the total assets minus liabilities, or net worth, which is the accounting measure of shareholders’ equity in the balance sheet.
Must-Know: Credit and Liquidity Risks in Banking
The top risks that every bank faces are credit risk and liquidity risk. We’ll look at the banks that managed this risk safely, and those that didn’t.
Cowen: Apple Sales Might Reach $90 Billion in Q1
According to an Apple Insider report, investment bank Cowen expects Apple to post sales of $90 billion in the first quarter of fiscal 2020.
NIO Stock: Woes Multiply, Survival Struggle Continues
A string of high-profile departures amid deteriorating fundamentals drove NIO stock down. NIO was trading with 4.6% losses at 9:50 AM ET today.
Amazon: Analysts Revise Target Price, Earnings Are a Concern
Amazon (AMZN) shares are trading close to 4% in early-market today. The company announced its third-quarter results on Thursday.
Ford Sees a Deutsche Bank Downgrade: More to Come?
Ford delivered solid third-quarter results, beating expectations on both the top and bottom lines. Its revenue and EPS were $33.93 billion and $0.34.
Morgan Stanley: Investor Highlights from Q3 Earnings
On Thursday, Morgan Stanley released its Q3 results, its highest Q3 results in the last decade. Its stock reacted positively and opened at $44.39.
American Express Stock Dips Despite Q3 Revenue Beat
American Express Company (AXP), the New York-based financial services company, released its third-quarter earnings on Friday.
Adobe, Workday, and ServiceNow Fall Due to Downgrades
Adobe (ADBE), Workday (WDAY), and ServiceNow shares have lost significant market value in early-market trading today. Adobe stock has fallen close to 4%.
GM Strike Negotiations in ‘Home Stretch’? Banks Weigh In
General Motors (GM) stock has been on a downtrend ever since United Automobile Workers called for a strike on September 16.
Why FedEx Inspires ‘Limited Confidence’ Says Bernstein
Another prominent Wall Street analyst cut his rating on FedEx this morning. Bernstein’s David Vernon downgraded the stock to “market perform.”
NIO Deliveries Impress, but It’s Not Out of the Woods Yet
NIO (NIO), China’s equivalent of Tesla (TSLA), released its third-quarter delivery report today. The company delivered 4,799 vehicles during the quarter.
BofA and Credit Suisse Differ on Equity Market
On October 1, Credit Suisse’s Suresh Tantia told CNBC that the equity market will rebound from the current levels. However, the S&P 500 declined by 1.2%
How NIO Is Failing Where Musk’s Tesla Is Thriving
NIO was once dubbed China’s Tesla killer. However, as it turns out, the company’s lower pricing hasn’t been able to sustain it.