Category Archives: Stocks

S&P 500 has gained about 2,5% in the past three months while Alibaba has jumped nearly 30%

Alibaba is a Chinese company I have been following since the first day they went public. It is also a company I have been trading with long before it went public, and shares have skyrocketed since then.

The Chinese giant is expected to report earnings on Thursday and investors must expect to see strong growth.

 

 

Alibabas growth will come in from online sales and cloud. According to Chinas National Bureau of Statistics, Alibaba`s retail sales growth jumped 41% YoY in June from 30% YoY in June. E-commerce penetration reached 18,6% in June this year.

The E-commerce giant is expected to benefit from improved spending trends in China. China Commerce is expected to grow 38% to $4,9 billion, and cloud computing & internet infrastructure is expected to grow a whopping 106,5% YoY to $369 million.

Just like Amazon, cloud computing is a growth engine for Alibaba, which is a $1 billion revenue run rate for the company. The company is improving thanks to its target marketing and bigger push on its mobile site.

S&P 500 has gained about 2,5% in the past three months while Alibaba has jumped nearly 30%. Shares are up about 60% in just six months. That`s strong growth.

The FactSet consensus if for revenue of $7,1 billion, which is up from $4,6 billion in the year earlier period.

Alibaba is expected to report earnings on 08/17/2017 before market open. Get ready for higher earnings and strong growth.

 

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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New home sales came in strong in May and June and Home Depot will profit from it

Home Depot has been a great stock for many years and the shares has gone straight up since 2010. This tells us a lot about the market. It`s really good. Home Depot is a home improvement retailer. The company sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services.

New home sales came in strong in May and June this year which means people have jobs, wages and money. Just ask Home Depot.

 

 

Many companies have problems to compete with Amazon but Home Depot seems to do it well in this environment. But no brick-and-mortar player can take it all during the online retail competition. Home Depot saw that in July when Amazon and Sears found each other.

The stock Home Depot got hit last month by the news of the partnership between Amazon and Sears. It didn`t take much time for the stock to snap back and the same can happen during the next quarterly event.

Home Depot is expected to report earnings on 08/15/2017 before market open. The report will be for the fiscal Quarter ending July 2017. Earnings forecast for the quarter is $2,21. The reported earnings per share for the same quarter last year was $1,97.

 

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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Snap Inc is in free fall and can end up like Twitter without any usergrowth

The shares of Snap Inc was a success in the beginning of its IPO. Just like many other IPOs. But now, the story is different. Snap Incs stock has seen a big selloff for weeks now, and the price has fallen down to $13,65 after reaching a top of nearly $30 on high volume.

The market cap is $15,99 billion, which means the company has lost about $16 billion of market cap so far. To put that number in perspective: Twitter is worth about $12 billion. GoPro reached nearly $90, but now GoPro stocks is trading at about $10. Snap has lost about 10 GoPro companies. That`s a lot.

 

 

How can Snap survive in a market like it is today? Facebook is the biggest rival and they have more than 2 billion DAU`s while Snap has about 173 million. The question is why people should sign up to Snap when they know they have the same tools on Facebook?

This is what investors are looking for. How many DAU`s is it and are the number rising or declining? Quarterly revenues per user grew per user by 180% during Q1. People spend about 30 minutes vs 25 minutes it highlighted prior to its IPO.

Investors should know that there are a normal situation when an IPO stock is falling like Snap Inc. First of all, it is the lock-up expiration which means about 1,2 billion of Snap stocks will be available for sale in the near future.

Many Snap stocks are owned by VC`s and Executives, but it is a bad sign when insiders are selling their own stocks in their own company. On top of that you have short sellers. This is why Shares of Snap Inc fell about 23% in July. But not only that.

Profits are more important than users and users gives profits. Right now you shouldn`t mearsure the value of the company by users but by profit. If you do that, the stock will fall below $10 and end up similar to Twitter which is having the same problem; user growth.

Snap Inc was a bubble that burst with just 166 million DAUs compared to Instagrams 250 million. It`s funny to see that Snap is worth more than Twitter. How is that possible with only $150 million in revenue for the quarter?

Snap is also burning a lot of cash. They earn $150 million and spend more than $200 million.

Analysts are concerned about Snaps volatile growth and the fact that Snaps insiders would be able to unload some of their shares after a lock-up period expired at the end of July. Snap`s underwriter, Morgan Stanley, downgraded the shares from overweight to equal weight.

Snap Inc is expected to report earnings on Thursday, and investors need impressive results to be convinced about their marketing strategy in the future. A big surprise like that can also stop the negative sentiment at the moment.

Snap Inc will report earnings on 08/10/2017 after market close. Earnings forecast for the quarter is $-0,29 vs $-2,31 in May this year.

 

 

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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Most of Disney`s revenue comes from Media Networks with $5,9 billions in revenue but it is declining

I have always been a very big fan of Walt Disney. Not only because of the equities but all the work they have done. All the films and all the cartoon heroes. That`s what I call real big entertainment in first class.

Walt Disney is expected to report earnings on Tuesday 8 August and ESPN will be a key in the report this time. In May, we saw bad news from the ESPN segment and the shares has declined since the last report.

 

 

$1,1 billions of the revenues comes from Consumer products & Interactive media. $2 billions comes from Studio Entertainment and $4,3 billions comes from Parks and Resorts while most of Disney`s revenue comes from Media Networks with $5,9 billions in revenue.

But, sadly for Disney, the revenue from Media Networks is declining. The cable TV and broadcast networks have been hit hard and millions of subscribers have jumped over to on demand TV and live streaming.

Many people are cutting cords and spend more time and money on streaming services such as Netflix and Amazon Prime Video. According to Nielsen, ESPN has lost more than 13 million subscribers in recent years.

They had about 100 million subscribers in 2011 but today it is less than 87 million.

ESPN are facing sharp competition from Amazon Prime. Their flagship sports news program SportsCenter has dropped dramatically over the last decade.

Amazon outbid Sky Sports for the UK telecast right of all ATP events and is paying about £10 million per year for this deal. Amazon is also paying about $50 million for rights to stream 10 Thursday night games of National Football League.

This is why ESPN has been a worry for investors for a while. Advertising was also soft in Q1 (Disney`s F2Q). All this is why analysts are lowering their price target for the Disney stock. But Disney are taking steps to erase investors fears.

They have partnered with OTT players. They have also partnered with AT&T`s OTT service DirecTVNow. In addition; many Disney channels and ESPN are a huge part of the recently launched YouTube Live TV service and they acquired a 33% stake in the sports streaming site BAMTech.

ESPN and Turner Sports signed a new deal with NBA and they pay about $2,6 billion per year for that deal which is 180% more than last year. The competition in the market is pushing the prices up for many of the sporting events and this is squeezing the cable network segment.

Disney hiked ESPN subscriber charges including laying off hundreds of staff to control costs to meet the challenges. Rising costs and declining subscribers has decreased ESPNs income to Disneys profit. It`s nearly half of what it was only five years ago.

While ESPN is a big worry for investors, other segments are doing it very good.

Disney Inc will report earnings on Tuesday 8 August after market close. The report will be for the fiscal Quarter ending June 2017. The consensus earnings for the quarter is $1,53 while the earnings for the same period last year was $1,62.

 

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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Apple have a cash hoard of $250 billion and enough software know-how to build great self-driving car technology

Apple is a big company with a market cap of $783,07 billion, and most of its success is coming from its flagship iPhone. CEO Tim Cook in May noted a «pause» in iPhone sales but Apple is expected to come out with a new and expensive iPhone in a few months.

It will be a super premium tenth-anniversary iPhone costing $1,000 or more, but that will not help the sales of their iPhone at the moment. In addition, the pause could also be delayed. Maybe into a new fiscal year.

 

 

What is an electric car actually? It is a smart phone with four wheels, because there aren`t much difference from an electric car and a smart phone. And who can enter the auto industry better than Apple?

Apple have everything they need to design a brand new electric car. They have more than enough much-needed software know-how and the company is already working with car companies on CarPlay. They have $150 billion of net cash and $50 billion of free cash flows annually.

Apple compete with Google and Microsoft and it will be very disruptive when they all enters the car industry with its brand new electric cars.

Whats funny to see is that these companies are not car companies but rather software companies. It speaks for itself. Apple is a strong brand with many fans worldwide, and Apple Car can take a large share in the auto market.

Tim Cook said in June this year that Apple has autonomous car ambitions. Apple is working to build self-driving car technology, referring to the endeavor as “the mother of all AI projects”.

But it seems like Google are leading. In December, Google launched Waymo, wich is “a new way forward in mobility.” So far, they have more than 2 million miles of public-roadway testing for its vehicles.

What will happen if Apple buy Tesla? They could quickly become a leader, but Elon Musk laughs off the idea of Apple buying Tesla. But earlier this year, Musk said “Never say never to Apple buying Tesla”.

Apple have a cash hoard of more than $250 billion, and that is giving them the opportunity to spend some of it for acquisitions or buybacks.

We know that Elon Musk earlier this year had a meeting with acquisitions chief at Apple and news regarding this case would be a bomb in the stock market.

Apple Inc is expected to report earnings on Tuesday August 01 after market close. Earnings forecast for the quarter is $1,57 versus $1,42 for the same quarter last year.

 

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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