Uber is offering 180 million shares for $44 and $50 and that will value the company at about $84 billion

The stock market is declining while the IPO market is hotter than ever this week. At least 15 IPO deals are expected to be priced this week and this is the biggest week since 2015. What most investors are focusing on now is Uber which is the biggest U.S company deal since Facebook in 2012.

Uber is finish with its roadshow in London, Boston and San Francisco, and the company is expected to price the sale on Thursday this week. The demand for the stock is strong and investors have put in orders for at least three times the amount of stock on offer.

Uber can raise as much as $9 billion and if that happen it will be the largest this year. It`s not clear what the price for stock will be but I think that the turmoil in the market at the moment will have an impact of the price range.

Uber is offering 180 million shares for $44 and $50 and that will value the company at about $84 billion. They have $11 billion in revenue and about $50 billion in gross bookings. Like Lyft, they have big operating losses.

Last year, Uber lost $3,03 billion in the 12 months through March. This is the largest loss ever for a U.S startup in the year before an IPO, and they have a lot of challenges.

More than 82% of the revenue comes from ridesharing while 13% comes from food delivery. Uber has a deal with McDonalds and used to get a 20% commission on deliveries. McDonalds renegotiatied the deal, and now Uber gets a 15% commission.

Chief Executive Dara Khosrowshahi is trying to sell Wall Street his vision that Uber will become the dominant force in all forms of transportation. But the competition is intense in many places around the globe.

China have its own Didi Chuxing while India has Zomato and Swiggy for food delivery. Didi is also in Latin America where they compete with Doordash, and all of them in the food delivery business.

Uber and Lyft drivers are planning a strike from 7 am to 9 am on Wednesday to protest their wages, their treatment as independent contractors rather than employees, and the lack of regulation governing the new sector.

Drivers have challenged the ride-sharing companies many times for refusing to deem them employees, which means they are responsible for maintenance of their own vehicles as well as gas and insurance, which greatly reduces the amount they can earn per hour.

Their competitor Lyft went public in April this year and entered the market with its IPO price of $72 per share. The stock soared on their debut but it came down again as IPO`s usually does, and now the stock is trading about 16 percent below its IPO price.

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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Tyson Foods will roll out a new burger and compete with Beyond Meat this summer

One of the fastest growing food companies in the United States rang the Nasdaq MarketSite bell in Times Square last week. Beyond Meat Inc offers a range of revolutionary plant-based meats. They build meat directly from plants.

“Today we become the first plant-based food company to list on Nasdaq, marking an important milestone in our mission of making plant-based meat accessible globally,” founder and chief executive officer of Beyond Meat, Ethan Brown said.

“With this progress we are one step closer towards becoming the generation that seperates meat from animals, unlocking the next era in the American story of innovation, disruption, and growth. We have always been a consumer driven brand and we are excited to invite the brand`s longtime fans and supporters to join in on our vision for the Future of Protein. Our goal is for people everywhere to have access to the health and environmental benefits of our delicious plant-based meats,” Ethan said.

Beyond Meat has received venture funding from Bill Gates, Leonardo DiCaprio, Biz Stone, the Human Society and Tyson Foods to name a few. The company began selling its chicken-free mock chicken products in Whole Foods across the US in April 2013.

In 2014 it developed a Beyond Beef product. The Beast Burger was available in February 2015. Beyond Sousage became available nationwide in January 2018, and People for Ethical Treatment of Animals named Beyond Meat as its company of the year for 2013.

The Beyond Burger contains 20 grams of protein and has no soy, no gluten, no cholesterol, and half the saturated fat of an 80/20 beef burer. However, it contains five times as much sodium as unseasoned hamburger meat and one dietician argued that the processing of the vegetarian ingredients could couase the loss of valuable nutrients.

Tyson Foods purchased a 5% stake in Beyond Meat in October 2016, but it sold its stake and exited the investment in April 2019, ahead of Beyond Meat`s IPO. Later on this summer, Tyson Foods will start to competed with Beyond Meat while they will roll out its own meatless products.

Their biggest competitor is Impossible Foods with their Impossible Burger. They announced that they were teaming up with Burger King to produce their own Impossible Whopper as a meny item. Not only that; even Ikea are jumping on this trend wagon.

Ikea said a plant-based Swedish meatball is already in the works and will be available early next year.

Americans are trying to cut down on their meat consumption and incorporate more plant-based foods in their diets and there is no doubt that plant-based foods gives people health benefits. Standard burgers are high in fat and cholesterol but plant-based foods are not.

Beyond Meat uses 100% natural ingredients while some of their competitors use genetically modified soy leghemoglobin. This ingredient has had a controversial history, with the FDA flip-flopping on whether it was safe for consumption.

The U.S meat substitute market is worth about $1,44 billion and by 2023, the market is expected to grow 74% ot $2,5 billion. Beyond apologized for shortages in 2017 and 2018, and Impossible Foods did the same last week, so it can be difficult for them all to meet the demand in the future.

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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Qualcomm will receive IP royalties even if the company face competition from Apple in the future

Qualcomm skyrocketed after they announced an agreement with Apple. CEO Tim Cook was asked about the agreement with Qualcomm during Tuesday`s earnings call and he said Apple is satisfied with the resolution.

Qualcomm is the world`s leading chip designer for wireless technologies, including 3G and 4G/LTE, and the company wants to be the leader in 5G as well. The agreement means that Apple could offer a 5G iPhone as early as spring 2020.

“Were glad to put the litigation behind us and all the litigation around the world has been dismissed and settled. Were very happy to have a multi-year supply agreement and we`re happy that we have a direct license arrangement with Qualcomm that was important for both companies. We feel good about the resolution,” Tim Cook said on Tuesday.

The settlement also included a chipset supply agreement, and Qualcomm is expected to provide the 5G chips that Apple will need to introduce 5G connectivity in its 2020 iPhones. After the agreement, Intel said that they are dropping out of the smart phone modem chip market entirely, and they have no plans to manufacture 5G chips.

Apple will be licensing 5G IP from Qualcomm and other license holders under the Fair, reasonable, And Non-discriminatory (FRAND) terms established by ETSI throughout the 5th generation of wireless technology.

If Apple develops and integrates its own modem technology in the future, Qualcomm will not lose on that, but still receive IP royalties even if the company face competition from Apple. So, licensing for the 6th generation will depend on Apple`s participation in future standards efforts.

Qualcomm does not have its own manufacturing facilities like Intel and Samsung. Their chips are produced by contract manufacturers such as Taiwan semiconductor Manufacturing Company (TSMC), or provide licenses to produce and use its intellectual property in smartphones.

Qualcomm has been on the market for a long time. So have Taiwan semiconductor manufacturing Company. TSMC was the world`s first dedicated semiconductor foundry and has long been the leading company in its field.

Qualcomm was created in July 1985 and have 35,400 employees. Net income last year was US$4,86 billion. The company is expected to report earnings on 01 May, 2019 after market close.

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`s growth from other products and services jumped 19% YoY

Apple Inc is expected to report earnings on Tuesday 30 April 2019, and the earnings is expected to come in lower than for the same quarter last year. It came in at $2,73 last year and they need more than iPhones to lift that number in the future.

The stock have jumped straight up so far this year and have a good momentum. More buybacks will make the stock go higher. We will probably hear more about that on Tuesday. Another issue is their revenue due to the drop in prices.

Analysts are expecting a 6,1% revenue decline and the street call for revenue of $57,44 billion with an EPS of $2,36. The earnings will be strongly helped by Apple`s massive buyback. But what about innovation?

Is it too early for Apple to talk about new foldable phones? We know that the iPhone sales dropped 15% YoY, but we also know that there is a strong growth for other products and services which jumped 19% YoY.

The iPhone account for 61,6% of the entire revenue but that wont last for ever. In addition, they have huge competition from Chinese companies on market that is changing very fast. Apples earnings at $2,36 would represent a 14% drop YoY.

Investors are positive and optimistic about Apple`s outlook in the long run, and they are looking at a 20% growth in their strategic shift to the service segment. Apple Inc is expected to report earnings on Tuesday 30 April 2019 after market close.

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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Waymo can increase Alphabet`s revenue in the future

Alphabet Inc is expected to report earnings on Monday 29 April 2019. Many people doesn`t know what Alphabet Inc is, but the all know what Google is. On August 10, 2015, Google Inc announced plans to create a new public holding company called Alphabet Inc.

Alphabet would be created to restructure Google by moving subsidiaries from Google to Alphabet, narrowing Google`s scope. The company would consist of Google as well as other businesses including X, Capital G, GV, Sundar Pichai and so on.

When Larry Page announced his plans to create the new holding company he described the planned holding company as follows;

Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. Fundamentally, we believe his allows us more management scale, as we can run things independently that aren`t very related.

The FANG stocks have mixed results since the last earnings. Facebook is up 11%, while Amazon is down 4% and Netflix is down 2%. What about Alphabet on Monday?

They have a great momentum and can beat earnings expectations also this time. Alphabet Inc were beating Wall Streets earnings consensus in all four quarters last year. alphabet Class A and C shares is up 15,5% and 15,4% last 12 months. Thats nearly twice as much as the S&P 500.

In Q4 last year, revenue grew 21,5% to $39,28 billion and EPS skyrocketed 31,6% to $12,77.

The reported earnings will be negative effected by a 1,5 billion euro, or $1,7 billion, fine imposed by the European Commission earlier this year. The European Commission said that Google engaged in anticompetitive practices related to agreements it had in place with Adsense for Search Partners.

Expect Google to appeal the ruling as it has done is similar cases.

Googles ad business is important for Alphabet Inc. It accounts for about 83% of Alphabets total revenue. But that will change very soon because they will earn money from other growth businesses like Vaymo and Google Cloud, their hardware and Google Play.

In January this year, they said in their press release that they will build «the world`s first factory 100% dedicated to the mass production of L4 autonomous vehicles.» L4 vehicle is a vehicle that can drive itself, and to reach that goal they have partnered with Magna International.

Waymos self-drivning systems into vehicles will include the Jaguar I-Pace. Thats something to really look forward to.

Alphabet Inc will report earnings on Monday 29 April after market close.

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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