Technology Select Sector SPDR® ETF
EA’s Packaged Goods Segment’s Revenue Contribution Declined in 3Q15
Electronic Arts’ (EA) Packaged Goods segment includes games created and published by the company for consoles, handheld devices, and PCs.
Why HP Sold Its 51% Stake in H3C Technologies This Month
On May 21, 2015, HP (HPQ) officially announced the sale of its 51% share in H3C Technologies to China-based Tsinghua Holdings subsidiary, Unisplendour.
Why Digital Media remains an integral segment for Adobe in 3Q14
The Digital Media segment of Adobe (ADBE) provides tools and solutions that enable individuals, businesses, and enterprises to create, publish, promote, and consequently monetize their digital content anywhere.
Why Oracle’s Marketing Cloud is integral to its growth
Oracle’s Marketing Cloud allows customers to run marketing campaigns and manage data related to those campaigns on web, social, mobile, and email.
Sprint’s liquidity must be maintained to fund capital investments
Sprint is cutting down on operating costs to manage high capital expenditures. But marginal cash flows aren’t alleviating Sprint’s liquidity concerns.
Oracle’s Value Proposition: A Peer Comparison
Oracle was trading at a forward EV-to-EBITDA multiple of ~8.6x on June 29, 2016.
What Can Go Wrong for Intel in Fiscal 2016?
Intel gained a lion’s share in the PC and sever space. However, IBM’s Power Architecture may challenge Intel’s dominance in the server market in the future.
Investors Park Funds in Large-Cap ETFs in July
In July 2015, investors poured approximately $23 billion in US ETFs with 50% of total investments in equity funds.
What Do Wall Street Analysts Recommend for T-Mobile?
As of February 11, 2016, ~78.6% of analysts surveyed have given “buy” recommendations for T-Mobile, 17.9% have given “hold” recommendations, and ~3.6% have given “sell” recommendations.
AT&T’s wireline margins expand slightly in 4Q14
Despite the decline in wireline revenue, the segment’s operating income grew marginally by ~1% year-over-year, or YoY, during 4Q14.
How SMAC provides growth opportunities for Symantec
SMAC has led to increased security concerns and more global spending on cyber security, which is expected to reach $71.1 billion in 2014.
You should pay particular attention to this valuation metric
I would pay particular attention to the Shiller P/E Ratio, which is a variation on the Cyclically Adjusted P/E or CAPE. This indicator is worth watching as it has historically correlated with long-term stock market returns.
Hewlett-Packard’s Split: Margins and Bargaining Power
Hewlett-Packard had significant bargaining power with chip makers—like Intel (INTC). It remains to be seen how the split will impact its bargaining power.
AQR Capital Increases Holdings in Apple
In 4Q14, AQR Capital raised its holdings in Apple (AAPL). AAPL constituted 1.46% of the fund’s fourth-quarter portfolio.
4 must-know facts about rising inflation and your portfolio
Recent readings have shown that inflation has stabilized, which is a good thing, but signs of an imminent acceleration in inflation are still scant.
Facebook Stock Is Dragging the Tech Sector Down
The Technology Select Sector SPDR ETF (XLK) fell ~2.6% on March 22, 2018.
Apple and IBM Introduce 3 New Apps for Apple Watch
Apple believes its partnership with IBM will help it penetrate the enterprise market. Building enterprise apps—and using IBM’s big data and analytics capabilities—is one way to provide better service to enterprises.
A Closer Look at NetApp’s High Cash-to-Debt Ratio
NetApp’s cash-to-debt ratio in 1Q16 was 3.33x—higher than the 1.36x industry median. Its operating income was -$26 million.
How Was T-Mobile’s Prepaid Customer Growth in 4Q15?
During the quarter, T-Mobile’s prepaid subscribers increased robustly by ~8.1% YoY to reach ~17.6 million.
Could Apple Beat Analyst Estimates Again in Fiscal 2Q16?
Apple (AAPL) is set to announce its fiscal 2Q16 results on April 25, 2016. Analysts and investors will be looking closely at the results, as Apple is one of the most popular companies in the technology sector.
Bernstein: Tax Reform Is Bullish for the Equity Market
Tax reform On December 2, 2017, the Senate passed Donald Trump’s tax reform bill, and on December 20, 2017, the House of Representatives passed the bill. Afterwards, the S&P 500 (SPX-INDEX) (SPY) rose to a record high. Richard Bernstein on tax reform In an interview with CNBC, prominent investor Richard Bernstein stated that tax reform could be very helpful for […]
Why Retailers Are Increasing Their Ad Spending on YouTube
Walmart, Target, Amazon, and Lowe’s were the four retailers in the United States that spent the most on YouTube video ads last year.
Why George Soros Compares Facebook and Google to Casinos
Billionaire investor George Soros recently shared his views on social media companies Facebook and Google.
Surface Hub is Microsoft’s Priciest Hardware Offering
Surface Hub features built-in advanced sensors, cameras, NFC, and microphones. Through the welcome screen, users can call or connect a personal device to display content on the screen.
IBM’s Value Proposition in the US Software Space
IBM was trading at a forward EV-to-EBITDA multiple of 8.77x on April 8, 2016. This was lower than Microsoft’s and Oracle’s at 10.22x and 9.10x, respectively.
Why investor sentiment can show overvaluation in US markets
While valuation is important, investors should also pay attention to sentiment. The goal is to gauge how – to steal a phrase – “irrationally exuberant” investors have become.
AT&T’s Value Proposition in the US Telecom Space
As of April 5, 2016, globally, AT&T was the largest telecom player by market capitalization. China Mobile (CHL) followed.
What does Intel’s revenue say about its growth prospects?
Intel spent ~$11.5 billion on R&D, or research and development, in 2014. This represents ~21% of its total revenue—compared to 19% in 2013.
Could the Zulily Transaction Get Competitive?
There’s a tender and support agreement between the founding members and Liberty Interactive. These Zulily shareholders have agreed to the Liberty Interactive tender offer.
How Payment Processors Are Performing amid Challenges in 2016
Payment processors are seeing major changes in 2016, including increased competition on pricing and the adoption of new technologies such as wearables.
Davidson Kempner Initiates Stake in Apple
In February 2015, Apple announced its 1Q15 results and once again beat all analysts’ estimates.
What Has Boosted Oracle Stock So Far in 2017?
Although UBS is wary of Oracle’s transition to the cloud, Oracle has managed to achieve high growth rates consistently in this space.
Intel leads the semiconductor market – good news for investors
According to Gartner, Intel (INTC) dominates the semiconductor industry. In fiscal year 2014, Intel’s revenue was $55.9 billion—a growth of 6% on a YoY basis.
Apple could report robust earnings in fiscal 1Q15
Apple (AAPL) is expected to announce its fiscal 1Q15 earnings on January 27. We believe Apple will once again beat analysts’ consensus estimates.
Microsoft Needs to Watch Apple in the PC Market
In 2Q15, Apple refreshed the MacBook Pro and the MacBook Air, and introduced the MacBook. MacBook Air and MacBook Pro now include Intel’s (INTC) Broadwell processor family.
Micron Targets 3D NAND to Raise Its Visibility in the NAND Space
Micron (MU) in its fiscal 3Q15 presentation stated that it plans to start volume production of 3D NAND by the end of 2015.
Verizon’s Focus on Broadband through Wireline
Verizon is managing the secular challenges of the pay-TV space by focusing on its broadband offering in FiOS.
Why Bulls May Be Betting on the Technology Sector
The technology sector performed strongly in May, helping the S&P 500.
Facebook’s Q4 2014 earnings: Expect revenue growth and more
Facebook (FB) is expected to announce its Q4 2014 earnings on January 28, 2015. In this series, we’ll analyze how the last quarter of 2014 could turn out.
Soros Fund Management’s Major Picks amid Trade War
Soros Fund Management’s top five buys in the second quarter were Invesco QQQ Trust (QQQ), Alphabet, eBay, Symantec, and Red Hat.
The Data Storage Market: What Does It Mean for EMC and Its Peers?
In May 2015, EMC announced its $1.2 billion acquisition of Virtustream, a company that operates its own data centers offering cloud services to customers.
Apple Should Pose the Biggest Threat to Fitbit
The Apple Watch is the biggest threat to Fitbit despite its being released only recently. In April, Apple released the Watch in nine countries.
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.
Must-know: Many investors fear stocks—is this good for markets?
Currently, the S&P 500 is giving year-to-date (or YTD) returns of more than 8%. It posted gains for seven consecutive quarters. The S&P 500 Index (SPY) closed at a new high 34 times in 2014.
After Microsoft R3CV Deal, Bank of Ireland Shared Blockchain Trial
On April 5, 2016, the Bank of Ireland (IREBY) stated that in collaboration with Deloitte, the bank has successfully finished a joint proof-of-concept blockchain trial.
Microsoft’s Purchase of Wunderlist Widens Its Mobile Presence
Since December 2014, Microsoft has been aggressive with its acquisition strategy, acquiring Acompli, HockeyApp, Aorato, Equivio, and Sunrise.
EMC’s Cash-To-Debt Ratio Is 1x: How Does It Compare?
Cash-to-debt ratio measures the financial strength of a company. EMC’s cash-to-debt ratio in 2Q15 is 1x, which is lower than the industry median of 1.4x.
System Software Subsector: Best Performer in HACK
From September 7–11, 2015, the technology sector performed immensely well, pulling all the sectors up. For HACK, System Software was the best performing subsector.
Citadel Advisors Starts a New Position in Altera Corporation
During 4Q14, Citadel Advisors started a new position in Altera Corporation (ALTR).
Paul Singer Increased His Holdings in NXP Semiconductor in 3Q17
Paul Singer, the CEO of Elliott Management, increased his holdings in NXP Semiconductor (NXPI) in 3Q17, according to a recent 13F filing report.
How a Rate Hike Could Affect High-Leverage Sectors
Industrials, utilities, and telecommunications have much higher leverage, as these sectors have massive capital needs.
Apple May Report Subdued Apple Watch Sales in 3Q15
Apple has tried its best to popularize the Apple Watch. A couple of months ago, Apple and IBM (IBM) added three new apps for Apple Watch.
AMD Warned that Its Margins Would Suffer in 2Q15
AMD also announced that its gross profit margin in fiscal 2Q15 would be 28%, as compared to the earlier guidance of 32%.
Overview of Motorola Solutions
Motorola Solutions has a market capitalization of $14.21 billion, and competitors Harris Corporation and Cisco have market capitalizations of $9.37 billion and $131.29 billion, respectively.
HP Names Steve Nigro Head of 3D Printing Business
On September 2, Fortune reported that Steve Nigro, HP’s (HPQ) senior vice president of imaging and printing, will take charge of the company’s 3D Printing business for the soon-to-form HP Inc.
Intel Generated YTD Stock Returns of -20.03%
Intel generated TTM returns of -16.66%, 9.26% in the trailing one month. It generated -20.03% YTD. Its share price fell by 1.53% in the trailing five days.
Dimensional Fund Advisors’ Major Holdings in Q3
Dimensional Fund Advisors’ top buys are Apple (AAPL), AT&T (T), Microsoft (MSFT), L3Harris Technologies (LHX), and Verizon Communications (VZ).
2020 Should Be a Challenge for These Five Tech CEOs
In this year-end review, we’ll look at five tech CEOs who have the challenge of bolstering or restoring market confidence in their companies in 2020.
Facebook Ready to Monetize Instagram—Are Users Ready?
Initially, Facebook had posted restrictions on the content being marketed on Instagram, and this made Instagram unique on social media.
Cisco Dominates Communications Equipment Space in HACK
In this series, we’ll compare the performance of companies in the communications equipment subsector such as Cisco Systems, Juniper Networks, Palo Alto Networks, and Radware, which are part of HACK.
Western Digital’s Volatile Stock Activity in 2015
In June 2015, shares of Western Digital (WDC) saw a 19% drop, which was driven by overall falls in demand in its global PC segment.
Micron’s Transition to 3D NAND Could Impact Its Near-Term Margins
At present 3D NAND is less efficient than 16-nm, but it is expected to surpass 16-nm in the future. Thus, Micron will see expansion in its gross margins from the NAND business.
Online advertising will outpace traditional advertising
Industry analysts expect online advertising to increase by 17% in 2014, as improving technology makes Internet advertising cheaper and more effective.
Why are we seeing more adoption of larger mobile data plans?
Although the Mobile Share accounts for AT&T have tripled from 4.8 million in 2Q13 to 14.6 million in 2Q14, 10 GB or larger data plans have increased by more than five times, from 1.4 million to 7.2 million, during the same period.
Why Did Oracle’s Software Segment Decline in Fiscal 4Q16?
In fiscal 4Q16, Oracles Software segment’s revenue fell by 3% to ~$7.6 billion. In 2016, it declined by 5% to ~$26.1 billion.
Facebook tries to grab some of YouTube’s video ad share
Facebook’s (FB) direct video uploads and autoplay video ads are garnering lot of attention from viewers as well as advertisers.
What was the key growth driver for AT&T’s wireline segment?
Adjusted revenue from IP-based strategic services grew by 14.3% YoY in 4Q14. Adjusted consumer wireline revenue increased by 2.4% during the quarter.
Microsoft Adds 6Wunderkinder GmbH to Its Portfolio
On June 1, Microsoft announced the purchase of 6Wunderkinder in a deal worth $100 million–$200 million. Berlin-based developer 6Wunderkinder created Wunderlist, a cross-platform to-do list application.
Verizon’s service revenue growth is slowing down
Verizon’s service revenue growth rate declined consistently over the past few quarters. Verizon’s year-over-year (or YoY) growth rate declined from 8.4% in 3Q13 to 4.8% in 3Q14.
Where Are Opportunities in the Current Economic Environment?
There are still pockets of value in US markets. Investors can look to the financial and technology sectors for opportunities in the current economic environment.
Why Antitrust Authorities Are Investigating Apple Music
It seems that Apple’s (AAPL) recent launch of its Apple Music subscription service hasn’t gone over well with antitrust authorities.
What Should Be The “Right Amount” of Cash Allocation?
If you’re preparing your portfolio for the short term, the allocation to cash should be high. As the horizon increases, allocation to cash should go down.
How the Latest Tariffs Could Affect US Businesses and Consumers
Both US (SPY) (IVV) businesses and consumers are expected to be negatively affected by the most recent round of trade tariffs.
Will the Technology Sector Keep Up the Blaze?
The information technology sector shined last year. A rapid increase in tech stocks and earnings growth contributed to the bull run.
Must know: Why AT&T’s wireline business continues to decline
In this series, we’ll discuss the main drivers behind AT&T’s wireline business. AT&T’s wireline business is as important for the company as its wireless business.
After Much Buzz, Microsoft Windows 10 Hits the Market on July 29
During its 2015 Build Developer Conference, Microsoft announced that Windows 10 will enable developers to port Google’s Android and Apple iOS apps directly onto the platform, which is expected to result in a far broader ecosystem.
Microsoft Plans to Boost Its Presence in the Hybrid Cloud Space
Microsoft (MSFT) completed the acquisition of BlueStripe on June 10, 2015. Technology players are aggressively aiming to expand their presence in the cloud space.
Spartan Renamed, Microsoft Edge Will Replace Microsoft’s IE
Microsoft Edge includes Cortana integration, digital ink annotation, and a built-in reading list. Although Edge will succeed Internet Explorer, IE will remain for enterprise and corporate customers.
Behind NetApp’s Focus on Strategic Solutions
NetApp CEO George Kurian has stated that the firm will focus on strategic solutions “that represent our pivot to the growth segments of the market.”
Why IBM’s Hardware Segment Suffered a Double-Digit Fall in 2Q15
IBM’s hardware segment’s contribution toward overall revenues is decreasing. In 2Q14, hardware constituted ~12.5% of IBM’s overall revenues, reduced to 9.6% of IBM’s overall revenues in fiscal 2Q15.
Open-Source Databases Are Set to Overtake Commercial Databases
The double-digit growth of open source databases is posing an additional threat to Oracle, which has a revenue share of 48.3% in this space.
How AddThis Will Strengthen Oracle’s Marketing Cloud Position
AddThis will be a part of Oracle’s Data Cloud and provide extensive market intelligence, which will boost Oracle’s presence in the marketing cloud space.
Goldman Sachs on Facebook: Annual Sales Growth to Improve 32%
Goldman Sachs estimated that Facebook’s annual sales growth could improve by 32% from 2016 to 2019.
Will the Financial Sector Continue Its Rally Next Month?
The financial sector has had a strong performance so far in September 2017. The Financial Select Sector SPDR Fund (XLF), which tracks the performance of the financial sector, rose nearly 4.4% on a month-to-date basis.
Micron Technology’s Lower Position in Point72 Asset Management
Point72 reduced its position in Micron Technology. It sold 4,792,200 shares during 4Q14. The shares accounted for 0.28% of the fund’s total 4Q14 portfolio.
Inside FIS’s Integrated Financial Solutions Segment
FIS’s Integrated Financial Solutions segment caters to North American banks and is the largest contributor to the company’s total revenues (~60%).
What Will Drive Growth in the Industrial Semiconductor Market?
The demand for industrial semiconductors will be driven by the LED (light-emitting diodes) lighting sector, security, energy management, and medical devices.
Why US Technology Stocks Have Outshone in 2017
Most investors are well aware of how fabulous tech stocks have been this year. As mentioned, the tech-heavy NASDAQ is up over 25%, while the Philadelphia Semiconductor Index, or SOX, is up over 37% this year.
The George Soros Fund Shares 13F Analysis
On November 14, The George Soros Fund Management LLC filed 13F. The firm’s total market value was around $3.6 billion at the end of Q3 2019.
Oracle’s Database Cost Is Its Best Defense in Open Source Space
Except for Oracle’s relational databases, all other databases—especially MySQL—are losing to NoSQL databases.
Why news feed changes led to Facebook’s lower organic reach
One of Facebook’s key strategies is prioritizing product development investments to create engaging interactions between its users, developers, and advertisers.
Did Druckenmiller and Buffett Get ‘Trumped’ This Year?
Druckenmiller and Buffett got “trumped” by the President’s economic policies this year. Incidentally, the US economy posted better-than-expected growth.
Apple buys Semetric to up its game in the music streaming market
With its purchase of Semetric, Apple is looking to enhance its Beats subscription service to better compete in the growing music streaming market.
Wireless growth opportunities for AT&T in Mexico
AT&T is currently focusing on Mexico, a growing mobile market. Mobile subscribers in Mexico were a significant 105 million in 2013.
Why Facebook’s Instagram acquisition is a future growth driver
Mobile use has been critical to Facebook’s user growth and engagement over the long term, and accordingly, it’s prioritizing mobile product development.
Does EMC Stock Hold Potential for Investors?
In its fiscal 1Q15 earnings release, EMC lowered its expectations. Now, it expects its revenue and EPS to be $25.7 billion and $1.91, respectively.
Western Digital’s Telling YoY Revenues in 4Q15
Western Digital reported 4Q15 revenues of $3.2 billion—a 10.11% decrease compared to 3Q15 and 12.59% lower than its 4Q14 revenues.
Apple iPhone’s average selling price well above the Android
In a recent consumer survey, Apple became the most gifted luxury brand in China ahead of other luxury brands such as Louis Vuitton, Gucci, and Chanel.
Could Apple Cost Warren Buffett a Fortune This Time?
Apple is continuing to lose investors’ confidence in the fourth quarter. Apple stock has fallen 24.3% sequentially as of December 13.
Microsoft’s Lumia smartphones target emerging markets
According to the IDC, smartphones’ penetration is above 50% in developed countries. It’s below 25% in many developing countries.