Category Archives: Stocks

Apple`s iPhone maker Foxconn is planning to go public on May 24

Foxconn Industrial Internet is planning to go public, and their IPO is expected to launch on May 24. Foxconn Industrial Internet, a subsidiary of the world`s largest contract manufacturer Foxconn, said it plans to raise $4,3 billion which is the biggest Chinese IPO in about three years.

With ten percent of its enlarged capital offered in the IPO, Foxconn industrial Internet would have a valuation of $42,62 billion at listing, and the Foxconn unit is offering 1,97 billion shares at 13,77 yuan per share on the Shanghai stock exchange.

Foxconn are making electronic devices, cloud service equipment and industrial robots, and they has signalled previously that they will launch projects in areas including manufacturing, industrial internet, cloud computing, and fifth-generation wireless technologies.

I said in one of my recent articles that smartphones will not be the big thing for the next hundred years. It doesnt stop here. This is probably why Foxconn want to go public, because most of its revenue is coming from Apples iPhones.

R&D is expensive but going public will give Foxconn more opportunities to expand into more cutting-edge technology. Will the Taiwanese company make the next generation of phones? Time will show.

Foxconn are making smartphones and cloud computing equipments and robots today, but what they want is to spend their 27 billion yuan to fund projects like artificial intelligence (AI) and fifth-generation wireless technologies.

Hon Hai Precision Industry Co will with its automated factory division give the company a better position in the tech supply chain.

The next generation of phones can become a part of us, and that intelligent operation systems will make us question what it truly means to be human.

Advertisements

Leave a comment

Filed under Stocks

The Roku platform allows users to personalize their content selection with cable television replacement offerings and other streaming services

Most people know what Netflix is, but few know what Roku Inc is. Well, few is probably not the right word because Roku Inc have 19,3 million active users (Fourth quarter 2017). A company that was founded in October 2002.

Roku was one of the hottest stocks last year and their shares skyrocketed from its IPO price of $14. The stock went straight up and peaked at $56 in December, but now the stock has plummeted. In other words; Roku is like Netflix in the beginning; Volatile.

Roku Inc is different from Netflix. Roku Inc operates television streaming platform. The company connects users to streaming content, enables content publishers to build and monetize audiences and provides advertisers with capabilities to engage consumers.

Its Roku platform allows users to personalize their content selection with cable television replacement offerings and other streaming services that suit their budget and needs.

Ad-supported channels available on the Roku platform include CBS News, Crackle, The CW Television Network and Vice; subscription channels include HBO Now, Hulu and Netflix, as well as traditional pay TV replacement services like Direct TV Now, Sling TV and Sony Playstation Vue; and transactional channels include Amazon Video, Google Play and Vudu. Its product categories include advertising, Roku TVs and streaming Players.

Netflix has an easier business model. Log in on their website and voila, you can watch your favorite movie. It’s a tech company. Roku is something different; it’s not a hardware company. You need one of their Roku boxes.

The Netflix application was revamped for the Roku 2 HD, Roku 2 XD and Roku 2 XS; the current models now provide the option of subtitles, when the program provides them.

The Roku box runs a custom Linux distribution called Roku OS. The first-generation Roku players first came with Roku OS 1.0. After that, Roku has continued to update the software with bug fixes, security updates, features additions, and many new interface revisions. In October 2017, the Roku software version 8.0 wa released.

The stock will continue to be very volatile and this is a high-risk, high-reward case. The report on Wednesday will be important for Roku`s long term growth narrative. The company expects to continue losing money this year aiming to operate near break-even on an operating cash flow basis.

Roku Inc is expected to report earnings on May 09, 2018 after market close. The report will be for the fiscal Quarter ending March 2018. Analysts are forecasting revenue to climb 27 percent to $127,55 million in the first quarter, up from $100,09 million from a year ago, while reporting a loss of $0,16 per share.

Leave a comment

Filed under Stocks

Disney said to Netflix that they are planning to launch a competing streaming site service next year

Im a big fan of Walt Disney. Thats why I not only look at their films, but also their stocks. Walt Disney is not alone in the film market, and one of their competitors is Netflix. But for how long? Last Fall Disney said they wanted to pull its own films from Netflix.

Disney said they are planning to launch a competing streaming site service next year. It will be a family friendly streaming site and a site for adults. We know that Netflix is producing its own films, but we also know how Disney is doing it. It is a production powerhouse. In other words; a big competitor in the future.

(Tchaikovsky`s music from the ballet “The Nutcracker” is one of my favorites. This fantasy film directed by Lasse Hallstrom is scheduled to be released by Walt Disney Pictures on November 2, 2018)

Walt Disneys market cap is 150,46 billion, while Netflix market cap is 138,10 billion. A big difference, but unfair to compare, because Netflix is a streaming company while Disney is so much more than that.

Walt Disney Company is an entertainment company. The company operates in four business segments, which is Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media.

The media networks segments includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations.

There is no doubt that the real big Champion in the streaming market is Netflix, but they will get a serious competitor in the future. The Fox deal will make Disney even bigger on top of its already great pool of media properties. A majority stake in Hulu will also help.

Disney will take control of Fox`s movie studios, TV studios, FX Network and National Geographic Channel. All this will help Disney to build a new streaming giant.

Disney agreed to buy the bulk of Fox for $52 billion in December of 2017. Included in the package deal was a 30 percent stake in online streaming service, Hulu, of which Disney already owned 30 percent.

Now with a majority stake in the company, Disney has the option to buy out the rest of the Hulu stock from Comcast and Time Warner or engage with all the players involved. There is no doubt that they can be a great production powerhouse.

Disney are jumping right into it with Hulu. On top of that they can start to build their own streaming site for children in addition to ESPN Plus, which is a subscription service for sports fans, that will launch this spring for $4,99 per month.

“I think the way to look at the revenue opportunities, as particularly as it relates to production, is to consider the fact that what we`re buying here is significant production capabilities and, with that, the talent to produce on our behalf,”┬áIger said to investors earlier this year.

Walt Disney Company is expected to report earning on 8 May 2018 after market close. The report will be for the fiscal Quarter ending March 2018. Earnings forecast for the quarter is $1,68, and reported earning for the same quarter last year was $1,5. Any earnings surprise?

Leave a comment

Filed under Stocks

The public cloud market is expected to reach $411 Billion by 2020 and one of the fastest growing cloud provider in the world is Alibaba

Alibaba Group Holding Limited has declined since March this year after recent trade war fears. It`s not fair if you look at the numbers. The company boasted a five-year CAGR of over 40 percent, and their revenue is primarily driven by core e-commerce.

Alibaba`s Market cap is $464,72 Billion, and that valuation is good if you look at their potential for growth like cloud computing which is growing fast. They are also expanding in the Indian market with good help from Softbank.

Softbank has already acquired many important startup companies in India, and India will be one of the most important markets for Alibaba in the future. Alibaba and their ally Softbank will therefore build its business on companies that is already operating in the Indian market instead of doing it all from scratch.

The online retail market in India is growing fast and Alibaba can grow in this sector despite the fact that they are late into the market. Alibaba led a funding round of $300 million in online grocer Big Basket at a valuation of $950 million.

But they have competitors. Amazon will invest over $5 Billion in Amazon India, and Valmart wants to buy about 80 percent stake in Flipkart. Valmart is willing to pay about $12 Billion. Alibaba will also earn from Softbank`s investment in rival online grocer Grofers.

Alibaba`s core commerce segment comprises marketplaces operating in retail and wholesale commerce in China, and international commerce. The Cloud computing segment, which comprises Alibaba Cloud offering a complete suite of cloud services, is in top gear.

Cloud computing is good for Alibaba as more and more businesses are shifting their servers and broadband subscriptions to cloud computing technology in order to streamline costs.

The public cloud market is expected to reach $411 Billion by 2020, and Alibaba with its ongoing initiatives is well posed to grab the growth opportunity. I have a good reason to belive that cloud computing will be one of Alibaba`s major growth drivers in the future.

Alibaba has expanded overseas to Singapore, Malaysia, Indonesia, Frankfurt, London, Paris, New York, San Mateo, Dubai, Seoul, Tokyo and Sydney. So far, they have more than 2,3 million customers worldwide.

In the last report, cloud computing segment increased 104 percent to US$553 million, and revenues from its core commerce segment were up 57 percent YoY to US$11,3 Billion.

Alibaba is probably the most shorted stock in the world in recent weeks after trade war fears, but their opportunity for further growth will probably exceed investors expectations. If so, Alibaba`s shares can easily jump to next target; $200.

Alibaba Group Holding Limited is expected to report earnings on May 4 before market open. The report will be for the fiscal Quarter ending March 2018. Earnings forecast for the quarter is $0,7 which is well below earnings for the same quarter last year of $0,39. Last quarter, Alibaba delivered a negative earnings surprise of 1,21 percent.

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.

Leave a comment

Filed under Stocks

More than 50% of Apple`s revenue comes from the iPhone sale and Service is a growth sector

More than 50% of Apples revenue comes from the iPhone sale, but for how long will that last? Its dangerous for a company like Apple to think it will last for the next hundred years, and that`s probably why CEO Tim Cook have targeted service as a growth sector.

Iphone is still a very important product for Apple and therefore it will be much talked about, but other products are also good and should be one the plan. Service revenue from iCloud, the App Store and Apple Music can all grow in the future.

We know the evolution of the mobile phone industry. The Swedish company Ericsson was hot during the 90s, before Finlands Nokia took over the throne, but it didn`t last forever. As you may know, Apple launched iPhone and have since then been the king of Smartphones.

Smartphones won`t last forever, and once those phones are “out”, Apple must be prepared and think fast. The way we use our phone as we know it today will change.

Apple`s market cap is $848,35 Billion and so far it has been a great ride for the last ten years. Their multi-hundred billion cash stockpile gives them a great opportunity to spend money on M&A, but also R&D.

Morgan Stanley thinks the company could increase the capital return program by $150 Billion. Earlier this year, Apple said it expects to pay $38 Billion taxes on what it plans to repatriate, implying it will bring back nearly all of its $250 Billion in overseas profits.

The Street are concerned about the iPhone X sale and total revenue based on higher selling prices. Service are growing about 20% YoY, but the revenue from iPhone X can be worse than investors like to think.

The newest generation of iPhones is not as good as the iPhone 7 has a year earlier. Maybe it is because of a stiff price or maybe consumers go for a cheaper phone?

Shares of Apple are flirting with 200 MA and after a jump of nearly 2 percent on Monday it will be interesting to see if the results on Tuesday will send the stock in the bullish territory or down again.

Apple Inc is expected to report earnings on 1 May 2018, after market close, and the report will be for the fiscal Quarter ending March 2018. Earnings for the quarter is $2,69 which is better than last years $2,1.

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.

Leave a comment

Filed under Stocks