Category Archives: Stocks

EU doesn`t like big tech

European Union doesn`t like big companies like Apple. Google, Facebook, and Amazon to name a few. They believe that companies should be small and compete with each other. The more competition, the better.

Now, Apple faces a possible hefty fine and may have to open its mobile payment system to competitors after EU`s antitrust regulators charged the iPhone maker with restricting rivals’ access to its technology used for mobile wallets.

EU`s Executive Vice-President Margrethe Vestager, in charge of competition policy, said on Monday: «Mobile payments play a rapidly growing role in our digital economy. It is important for the integration of European Payments markets that consumers benefit from a competitive and innovative payments landscape.»

«We have indications that Apple restricted third-party access to key technology necessary to develop rival mobile wallet solutions on Apple`s devices. In our Statement of Objections, we preliminarily found that Apple may have restricted competition, to benefit from its own solution Apple Pay. If confirmed, such conduct would be illegal under our competition rules.»

The investigation will now follow into suspected violations of EU antitrust rules. The European Commission and Margrethe Vestager think Apple is violating the block`s antitrust rules with its limits on rival providers of mobile wallets.

They believe that Apple «abused its dominant position» in giving a boost to its own contactless payments system.

I can only speak for myself, and I have an iPhone, but I use my Fitbit to pay with my Visa card. It`s easy, fast, and contactless. So, Apple didn`t have an advantage in my world. But the main reason is that Apple only accepts a Mastercard.

This is not the first time the EU is attacking U.S tech giants. A year ago, they attacked Apple`s handling of rival music apps. They also want major changes to the App Store and iMessage, as well as services from Google and Amazon.

Last year, Amazon was hit by the biggest ever European Union privacy fine after its lead privacy watchdog hit it with a $888 million penalty for violating the bloc`s tough data protection rules. Amazon said the decision is «without merit.»

In November last year, Google lost its appeal against a €2,4 billion EU fine over its shopping service. The Commission argued that Google had unfairly used its dominant search engine to redirect traffic to Google shopping.

Brussels claims Google began to systematically favor its shopping service in the results of its popular search engine, whose market dominance exceeds 90% in most EU countries. Google Shopping now routinely appears at the very top of search results.

Six years ago, I wrote an article about The European Commission, that said Irland had enabled Apple to pay «substantially less tax than other businesses over many years.» But the EU`s general court decided that the commission failed to prove that the Irish government had given the U.S tech giant a tax advantage.

In 2020, Apple won a landmark court case against the European Commission over the dispute concerning $14,9 billion in Irish taxes. And these are some of the few attacks on U.S tech giants.

Over twenty years ago, I can remember that Microsoft was attacked by rumors. Don`t use Windows, because it`s a virus in it. That will kill your computer, they said. Bill Gates was also attacked multiple times. Again and again. Today, we see the Marxist Media Mob use words like Oligarchs about the rich.

Sometimes, the EU should attack the rules. Not the companies.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com 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. Shinybull.com 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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When will Apple fall from the tree?

Apple is another company I have been following for about 30 years now, and this is another one that survived, along with Microsoft, the dot-com bubble. I bought my first mobile phone in 1992, and that was Ericsson from Sweden. I know the rest of that story and know that Apple can go the same way. But not today.

Apple`s revenue in the quarter ended in March, grew nearly 9% YoY, and the company continues to impress. The company said on Thursday that they have strong growth, and that is exactly what I have been wondering about in times of lockdown, covid-19, and distribution challenges that could affect the global demand for smartphones and computers.

The stock went up 4,52% on Thursday, but it went down -by 2,22% in after-hours of trading on Thursday. CFO Luca Maestri warned of several challenges in the current quarter, including supply constraints related to Covid-19 that could hurt sales by between $4 billion and $8 billion. Luca also said that the demand in China was being sapped by the Covid-related lockdown. CEO Tim Cook said that Apple was «not immune» to supply chain challenges.

Apple`s revenue jumped to $97,28 billion YoY. iPhone revenue was up 5,5% and jumped to $50,57 billion. EPS is $1,52.

Apple had a habit of beating Wall Street by 3% to about 8% since 2020, but this time they «only» exceeded the estimates by 0,51%. CEO Tim Cook said the financial performance was «better than we anticipated.»

When will the Apple fall from the tree?

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com 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. Shinybull.com 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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Microsoft beat Wall Street

Software Powerhouse Microsoft Corp beat Wall Street expectations for quarterly revenue on Tuesday. They have a strong demand for the software giant`s cloud-based services from the pandemic-triggered shift to hybrid work models.

Some companies lost big during the pandemic, but Microsoft profited big from it as individuals and organizations turned to products like Outlook and Teams workplace messaging app. People shifted their behavior as they were working from home during the pandemic.

But it seems like people loved the idea to work from home because after the economies opened up again, people and businesses tend to use a hybrid model of allowing staff to alternatively work from home. And that is strengthening Microsoft`s cloud services, including their flagship cloud offering Azure.

Microsoft reported revenue of $49,36 billion in the third quarter, compared with $41,7 billion a year earlier.

Net income rose to $16,73 billion, or $2,22 per share, in the quarter ended March 31, from $15,46 billion, or $2,03 per share, a year earlier.

«Continued customer commitment to our cloud platform and strong sales execution drove better-than-expected commercial bookings growth of 28% and Microsoft Cloud revenue of $23,4 billion, up 32% YoY,» Chief Financial Officer Amy Hood said in a news release.

For the current quarter, Microsoft expects to generate sales of $52,8 billion, based on the midpoint of its guidance. That matches Wall Street`s target for the June quarter. In the year-earlier period, it posted $46,2 billion in sales.

Microsoft stock fell 3,7% on Tuesday to close at 270,22 amid a broad market sell-off, but in after-hours trading (as I write this article), the stock is up 4,47%. It happened on a day were Nasdaq plummeted 3,7%, while Tesla went down 12,18%. I have been following Microsoft since the 90s, and this is one of the few that survived the dot-com bubble. This company continues to impress.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com 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. Shinybull.com 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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Elon Musk is “person of the year” 2021

He is the richest man in the world and does not own a house. He also has the biggest robot company in the world. He drives a car he created that uses no gas and barely needs a driver. He is the man behind SpaceX and dreams of Mars.

He`s a player in robots and solar, cryptocurrency and climate, brain-computer implants to stave off the menace of artificial intelligence, and underground tunnels to move people and freight at super speeds.

He is criticized by socialists and especially Elizabeth Warren who tweeted this on December 13; «Let`s change the rigged tax code so The Person of the Year will actually pay taxes and stop freeloading off everyone else.»

Musk tweeted this on Wednesday; «And if you opened your eyes for 2 seconds, you would realize I will pay more taxes than any American in history this year.» The fact is that Musk must pay a record-breaking $15 billion tax bill.

This is money that goes straight into the pocket of the Socialists who very often claim to «take the bill.» for something. But as you clearly can see, the money comes from entrepreneurs like Elon Musk.

The tax bill is probably the real reason he`s selling a large chunk of Tesla shares. But he can afford to do it because $15 billion in taxes is just a small part of his wealth. According to Bloomberg Billionaire Index, his net worth is $255 billion. In other words; he is on top of that list.

Elon Musk is the man who aspires to save our planet and get us a new one to inhabit; clown, genius, edgelord, visionary, industrialist, showman, cad; a madcap hybrid of Thomas Edison, P.T. Barnum, Andrew Carnegie, and Watchmen`s Doctor Manhattan, the brooding, blue-skinned man-god who invents electric cars and moves to Mars.

Tesla controls two-thirds of the multibillion-dollar electric vehicle market it pioneered and is valued at a cool $1 trillion. That has made Musk the richest private citizen in history, at least on paper.

The tech entrepreneur Elon Musk revealed earlier this year that he has Asperger`s syndrome while appearing on the US comedy sketch series Saturday Night Live (SNL). But Musk has spent a lifetime defying the haters, now, it seems, he`s finally in a position to put them in their place.

Many people are described as larger than life, but few deserve it.

How many of us truly exceed our life span? How many will make it into the digital textbooks our spacefaring descendants will study?

As Shakespeare observed in Julius Caesar, it`s far easier to be remembered for doing evil than doing good. How many will leave a mark on the world – much less the universe – for their contributions rather than their crimes?

A few short years ago, Musk was roundly mocked as a crazy con artist on the verge of going broke. Now, this shy South African with Asperger`s syndrome, who escaped a brutal childhood and overcome personal tragedy bends governments and industry to the force of his ambition.

To Musk, his vast fortune is a mere side effect of his ability not just to see but to do things others cannot, in arenas where the stakes are existential. «He was raised in a tough environment and born with a very special brain,» says Antonio Gracias, Musk`s close friend of two decades, who have held seats on the boards of Tesla and Space X.

99% of people in that situation don`t come out of it. Some small percentage come out of it with the ability he has to make great decisions under extraordinary pressure and the never-ending drive to change the course of humanity.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com 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. Shinybull.com 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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Consumer Spending in November and December could grow as much as 11,5% and hit an all-time high

The times we are living in are far from «normal.» But we cannot blame an invisible virus for all that is happening right now. The question for retailers now is how this holiday season will look like?

Online spending on Black Friday 2021 decreased for the first time ever. According to Adobe Analytics, online shoppers spent a total of $8,9 billion, and that is down a little bit from last year’s $9 billion.

It can be many reasons for the dip, but Adobe believes it can be caused by an uptick in early spending, as some stores started sales and promotions as early as October. Shoppers are also being strategic in their gift shopping, buying much earlier in the season and being flexible about when they shop to make sure they get the best deals.

Photo by Max Fischer on Pexels.com

Black Friday traffic in stores also dropped -28,3% from pre-pandemic levels. Cyber Monday did also have a bad day and dropped for the first time ever. Cyber Monday online sales drop -1,4% from last year to $10,7 billion.

Adobe expects the entire holiday season will see record-breaking e-commerce activity, as shoppers spread out their dollars over more days. Adobe anticipates digital sales from November 1st, to December 31st will hit $207 billion which would represent record gains of 10%.

FedEx forecasts Monday will be one of the highest volume e-commerce days of the 2021 holiday season as it prepares to deliver an estimated 100 million more packages than it did from Black Friday to Christmas in 2019.

According to National Retail Federation, the holiday season will be fine. Spending in November and December could grow as much as 11,5% compared with the same period a year ago. This is much higher than many retail analysts themselves had predicted.

Sales in November and December can hit an all-time high of between $834,4 billion and $859 billion. In other words; we`re on the path for a record holiday season. Omicron can destroy the holiday season, but it can also help.

Instead of taking a trip by plane to other places, consumers will spend their money on Target or Macy`s. That will boost consumer demand, helped by higher wages and inflation. A lockdown will increase online sales and put more pressure on FedEx. People want packages no matter what.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com 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. Shinybull.com 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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