Author Archives: Ket Garden

by | August 4, 2016 · 9:00 am

LinkedIns report will be one of the last quarterly reports as a publically traded company

LinkedIn was a scary case earlier this year. In February, the stock plummeted more than 40% in just one single day! That made many investors a bit sceptical. Some investors had panic and sold with both hands. Some had a Hold strategy.

Those who was cold enough to hold saw the stock come back. Later on, the stock went up 46% in one single day. What happened? Investors jumped in on very good news. That day, Microsoft announced that it has agreed to acquire the professional networking platform in an all-cash deal worth $26,2 billion.

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Microsoft is paying $196 a share for LinkedIn, and LinkedIn`s official vote regarding the Microsoft acquisition will take place on August 19, 2016. Microsoft sold $20 billion in debt on Tuesday to fund the deal.

You cannot compare LinkedIn with Facebook but if you do, you will a different story with stagnant user growth. That being said, LinkedIn saw the largest growth in cumulative members since 2014 in the first quarter of 2016. It was up 19% to 433 million.

Talent Solutions and Marketing Solutions have remained LinkedIn`s strongest segments, which is growing 41% and 29% last quarter.

LinkedIns report on Thursday will be one of the last quarterly reports as a publically traded company after Microsofts bid last month.

Revenue is expected to come in at $902 million with an earnings per share of $0,81. This is an increase of 47% in earnings and 26% in sales compared to last year at the same time.

LinkedIn will report on August 4, after the market closes.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | August 1, 2016 · 10:57 pm

Tesla wants to sell solar panels, batteries, and electric cars under the same umbrella

Tesla is reporting Q2 this week, and big things have happened lately. On Monday we can see that Tesla`s share price is falling, so why is the shares falling this time? CEO Elon Mush have made a deal with SolarCity.

Tesla and SolarCity are both cash-burning companies, and the agreement to merge gives Tesla`s shareholders more risk. The shareholders at SolarCity will receive 0,11 Tesla shares for each SolarCity shares if the deal goes through.

 

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I used the terms «goes through» because the deal is not done yet. This is why investors should be cautious about this deal right now. The deal must be approved by a majority of shareholders in both firms.

Elon Musk and Tesla said on Monday that SolarCity and Tesla can offer residential, commercial and grid-scale integrated solar and energy storage products. These products will «improve the way that energy is generated stored and consumed,» Tesla said.

Tesla also said on Monday that combining Tesla and SolarCity could save $150 million or more in its first full year after closing.

The deal was first announced in late June, and this is a $2,6 billion deal. We have super-humans on this planet and Elon Musk is one of them. What is he thinking with this acquisition? He will try to create a company that sells solar panels, batteries, and electric cars under the same umbrella.

Tesla has spent a lot of time and money on producing its Model S and Model X cars, and now they are spending a lot of time and money on its Gigafactory outside of Reno, Nevada. Elon Musk has earlier said that he thinks Tesla and SolarCity could create a trillion-dollar company.

The deal is expected to be close in Q4 this year if the deal is approved by regulators and independent shareholders.

Tesla have underperformed the S&P 500 so far in 2016. While S&P 500 is up 6%, Musk`s company is down 4%. Tesla is down about $2% on Monday, while SolarCity have plummeted about $7%.

The company reported a loss of 48 cents in the same period last year, and analysts reports an adjusted loss of 56 cents this time, which is much more than last time.

The sales are expected to reach $1,60 billion in the quarter, compared with $1,20 billion in the same period last year, but they are still burning cash.

Tesla will report Q2 earnings on Wednesday after the market closes.

 

asphalt

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | July 28, 2016 · 12:00 pm

Google will earn billions on Pokèmon`s success

Google is expected to report earnings on Thursday 28, 2016, after market close. The report will be for the fiscal Quarter ending Jun 2016. The Google stock has skyrocketed since June this year, and this company never stop to impress.

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A couple of days ago we saw Apple go straight up after their earnings report. It is forecasted that Apple could see $3 billion in revenue over the next one to two years generated exclusively by Pokèmon Go.

So is it for Google.

The success of Pokèmon seems to give a huge bonus for both Apple and Google. Google Play are the base for any successful games running on Google`s platform, and so is it for the App Store at Apple.

The huge difference between Apple and Google are their system like iPhone and Android, but the amount of money consumers are spending on both platforms will benefit them both.

Nintendo jumped from 15,000 (TYO: 7974) in June to 32,000 on 19 July this year on their success Pokèmon Go. But it peaked at about 32,000. It plunged 14% yesterday on bad results. Earnings of $0,65 per share from a year ago plunge to a net loss of $1,93 per share.

Nintendo`s Wii U system also fell over 50% YoY. This is why Nintendo is going down and Google up.

Keep in mind that Nintendo is not the producer of the Pokèmon go app. Nor do they sell it.

The Pokèmon Company is a joint venture between Nintendo and two other Japanese companies, and they receives license fees from Pokèmon Go`s in-game purchases. Most of all these fees goes to former Google subsidiary Niantic Labs.

It`s funny when games like this has huge success. They will all profit from it, but for how long will the trend continue? Once it is over, it will drop like a stone.

We all know the story of fresh games like Mario, Zelda and Donkey Kong, and we also know that this is not the end of the gaming era. Nintendo are about to finish its next-generation video games console, code-named Nintendo NX.

Maybe Google will profit from that to.

EPS forecast for the quarter is 6,47 compared to $4,93 at the same time last year.

 

asphalt

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | July 22, 2016 · 9:00 am

From $4 to $20 billion in three years

Microsoft is a great company, and CEO Satya Nadella is doing something right. Last year he said that Microsoft will try to reach $20 billion in revenue for its cloud business serices in 2017. Their cloud business is Office 365 commercial, Azure, Dynamics Online and other cloud properties.

The company had $4 billion in revenue from its cloud business in Q4 2014, and reached $12 billion in the past quarter. The arrow goes straight up and their new goal is for fiscal year 2018 (July 2017 – June 2018).

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It seems like investors are impressed. They like what they see, and its shares jumped more than five percent after their earning report earlier this week. Microsoft is not so hot and trendy for investors anymore, but the tech giant is still running a great business.

We have seen a shift from mobile to cloud, and Microsoft is still innovative and thats why they are among the biggest companies in the world. Market cap is over $400 billion, and they are still growing. Thats impressive.

In their fourth quarter of the companys fiscal 2016, revenue from Microsoft Azure grew 102% YoY. Azures usage more than doubled in only one year.

Microsoft beat expectations, posting an adjusted profit of $5,5 billion on $22,6 billion in revenue. Their strategy on Windows 10 is a huge success and so are Office 365. The company is still among the biggest companies in the world.

 

asphalt

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | July 19, 2016 · 12:10 pm

Microsoft are near its peak in 1999

Microsoft is well-known for its operating systems and what its founder Bill Gates have done for the company from the early beginning, but that part of the company is not the best performing part anymore.

We all know that the PC business in declining as demand continues to wane. But Microsoft`s stock has increased. The stock peaked in 1999, and have never yet recovered. Until now. The stock is trading near its 1999 level.

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The focus has shifted from PC sales to its growing cloud business. Just like Google and Amazon, Microsoft are among the few leaders in the cloud business. Their cloud business includes Office 365, Dynamics CRM and Azure, and they all reported gains of over 5 percent last quarter.

Microsoft will report after the close on Thursday 19, and its expected to hear that CEO Satya Nadella will talk about their latest acquisition; LinkedIn. Whats interesting is to hear how they are planning to integrate LinkedIn into their core business, because investors are a little bit confused about the valuation of the company after the acquisition.

Other things to look for is how Microsoft`s business will be hit by Brexit, because about 7 percent of their business comes from UK alone. On top of that there is a strong dollar, so this is something that will have an impact to the bottom line for Microsoft.

The Estimize consensus is calling for earnings per share of 55 cents on $13,56 billion in revenue, which is 2 cents higher that Wall Street on the bottom line and nearly in-line on the top. Compared to a year earlier, this represents a 2 percent decline in earnings while sales could grow by 3 percent.

 

asphalt

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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