Tag Archives: Facebook

43% of Morgan Stanley`s total revenue comes from wealthy individuals

You can clearly see how all the banks have different stories to tell, and the next bank to deliver earnings report on Thursday is Morgan Stanley. This is different from J.P.Morgan`s story. Morgan Stanley`s consensus EPS estimate is $1,16, which is -10,8% YoY.

The consensus Revenue Estimate is $10,02 Billion which is -5,6% YoY. 50% of Morgan Stanley`s total revenue comes from Institutional Securities. 43% of their total revenue comes from Wealth Management. 7% of total revenue is made from Investment Management.

There must be a lot of wealthy customers in Morgan Stanley`s portfolio, but wealthy induviduals is followed by financial services (brokerage, investment advisory, financial planning, insurance, securities-based loans etc) to medium-sized businesses and institutioons.

Morgan Stanley is headquartered at Broadway, Midtown Manhattan, New York and CEO James Gorman is not a big fan of Bitcoin, Libra or other crypto currencies. On Wednesday, we saw a Facebook hearings live from Capitol Hill and Mr Gorman is obviously not alone to be negative to crypto currencies.

In an interview with CNBC, he said “Psonally, I am not that exited about new exchanges for currencies or new forms of cryptocurrency. I`ve said this many times, an may be proven dead wrong about this. I don`t get it or see the need for another form of stored value. We have currencies and precious metals and reserve notes. Apparently, there`s a need there, right? But the fact that we are not in that doesn`t bother me at all,” Gorman said.

Fair value of the Morgan Stanley stock is about 20% higher than the current price. Citi upgraded Morgan Stanley to buy. Earning report will be released on Thursday before market open.

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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Facebook has partnered with Visa and Paypal and they will launch Libra on Tuesday

I have been watching Bitcoin and the cryptocurrency market for years now, and so far it has been a bumpy ride. Its not mainstream yet and it seems like Bitcoin is just for traders, and not a currency people around the world use to buy things with. But Facebooks Libra can be a gamechanger.

Mark Zuckerberg and his team is expected to provide details about its brand new cryptocurrency called Libra in a white paper set for release on Tuesday. Only a few trade with Bitcoin, but what do you think will happen if nearly 3 billion users on Facebook start to trade with Libra?

Facebook has partnered with companies like Visa, Paypal and Uber to name a few. They have all invested in the cryptocurrency and will help to oversee its use. Libra will be tied to several traditional fiat currencies in a bid to protect Libra from price volatility.

Bitcoin and the comming cryptocurrency Libra is not alone in the market. There are hundreds of other cryptocurrensies out there and there is more to come. What do you think will happen when Google and Amazon is joining the club?

Barclays analyst Ross Sandler predicted earlier this year that the digital currency could produce as much as $19 billion in new revenue in just two year for Facebook alone. It will be one of the most important milestones for Facebook in the history of the company.

Facebook can really help countries in need. Facebook`s Libra can provide a more stable market in areas with volatile currencies and unstable governments. It can be helpful for countries like Venezuela and other countries with ridiculous inflation.

Mark Zuckerberg`s brand new cryptocurrency platform could provide the embattled social media giant with a new revenue stream of historic proportions as it contends with a possible fedral antitrust probe and continued scrutiny over its data privacy practices.

Facebook`s long-awaited cryptocurrency payments plan will be exposed on Tuesday and analysts are bullish. This is a big and historic moment for Facebook and the world.

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 was a bubble but is now down to a normal level again

Snapchat was a big bubble when it went public in March last year. It went straight up to about $27, but the story has so far been a disaster. The stock has plummeted. It closed at $6,59 after the bell on Wednesday, down -3,37 percent.

Snap is losing money, and they still have negative user growth. Two things investors don`t like at all. The company will report earnings on Thursday 25, and the reported earnings for the same quarter last year was $-0,32.

If we compare Snap with Facebook and Twitter, the company is now down to earth again. But when it comes to popularity, Instagram is more popular among teenagers than Snapchat. A survey found that 85 percent of teens use Instagram at least once a month. 84 percent use Snapchat.

The company have 188 million Daily users and most of them is kids. Snaps CEO Evan Spiegel admitted the company rushed the redesign, and they didnt spend enough time to test the new platform. It all ended up with angry users.

Snaps market capitalization also fell by about $12 billion after a bad ad campaign with Rihanna. She used Facebooks Instagram to complain about the ad with Snap.

Snap need to report a growth in DAU`s to lift the stock again. A decline in their DAU can make the trend to continue. What we know so far is that this stock is very volatile and you can see how the stock jumped in February and June this year.

Snap Inc is expected to report earnings on Thursday 25, 2018, after market close. The report will for the fiscal Quarter ending September 2018. Earnings forecast for the quarter is $-0,27. Better than last years earnings at $-0,32.

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`s self-serve ads is finally ready to launch, but the drawback here is sliding ad inventory prices

Snap Inc is set to report second-quarter earnings after the market closes on Tuesday August 7. Historically, the company makes big moves in the wake of its quarterly reports. The average single-day price swing is about 24 percent regardless of direction.

Both Facebook and Twitter faces a challenging time. So do Snap Inc. GDPR pushed Facebook`s user counts down compared with the first quarter and that will also impact Snap Inc. Snap is a small company compared to Facebook, and they will not deal with the same level of scrutiny from lawmakers as Facebook.

EPS in March 2017 came in at -$2,31, but have since then been far better with -$,030 a year later. Analysts on average project Snap second-quarter revenue of $250,4 million, up from $182 million in the same quarter last year.

Facebook have the same tools as Snap and that is hurting their profit. Their biggest competitor is also Instagram which makes it difficult for them to be unique. But Snap launched the second version of its Spectacles product, sunglasses that let people take photos and video and use them within the Snapchat app.

This is also the only move that live up to its claims in the SEC filings that Snap Inc is a camera company.

Snap`s self-serve ads is finally ready to launch, but the drawback here is sliding ad inventory prices. Not good in the short run because Snap have only 191 million DAU`s, an increase of 4 million from the Q4 but below estimates of 194 million.

The company has also struggled with the impact of a product redesign in February that was widely criticized. That didn`t help the stock price that crashed to a record low on May 2 after it reported first-quarter earnings.

They missed views on revenue, user growth and several other key metrics, and analysts slashed price targets. The IPO was held in March 2017, and pricing shares were $17. It went up 2,5 percent on Monday and ended the session at $13,05. The stock is down 11 percent in 2018.

Will Snap Inc take a hit from the implementation of Europe`s GDPR (General Data Protection Regulation)? The same types of issues that led to big declines for Facebook and Twitter.

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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The European Union rose “only” 0,4 percent in Q1 of 2018

Last week I talked about America`s fantastic growth of 4,1 percent on quarter in Q2 of 2018, and this is only the beginning. It is no doubt; President Trump must be doing something right. But, what about the European Union?

GDP in the European Union rose «only» 0,4 percent on quarter in the first three months of 2018. Not much to write home about. But the growth have never been above 1 percent since the financial crisis in 2008.

The European Union reached an all time high of 1,30 percent in 1999 and that is right before the tech bubble burst. Since then it has been a dead fish, reaching an all time low of -2,60 percent in the first quarter of 2009.

At the same time we can see that the unemployment rate reached a record low of 6,80 percent in February of 2008, and that`s right before the financial crisis. It reached an all time high of 11 percent in February 2013, but in May this year it fall down to 7 percent again.

This isn`t good enough if we are living in a capitalistic world.

The European Union in Brussels are nothing more than unelected bureaucrats. Draghi and the ECB have, just like Japan and the U.S «printed» a lot of money, and will continue to do so. If they can`t turn around the ship, they need to consider a strong cheerleader.

European Commission President Jean-Claude Juncker had a meeting with President Trump last week. They were talking about trade, free trade and tariffs. Mr Trump`s goal is to make better deals so both the U.S and the EU can take more profit and prosper.

I think that the EU should be glad for that and they need to hurry up. The U.S is the world`s third biggest exporter, yet exports account «only» for 13 percent on GDP. Exports in the U.S reached an all time high of 215328 USD million in May this year, which is pretty impressive.

The EU has 28 member states and the biggest among them all is Germany (21 percent of total GDP), the United Kingdom (15 percent), and France (15 percent).

Exports of goods and services account for 46 percent of GDP while imports account for 42 percent, adding 4 percent of total GDP. But this is about to change. If the UK contribute with 15 percent of the total GDP in the EU, then what will happen to their growth after Brexit?

That being said; nor is the UK a success story. The British economy grew by 0,1 percent in the first three months of 2018 and well below 0,4 percent in the previous period. It is the lowest growth rate since a 0,1 percent contraction in Q4 2012.

The largest contribution to growth in the UK was from household spending at 0,2 percentage points. From the production side, the service industries made the largest contribution to GDP growth, followed by production.

Agriculture, the smallest component within the output approach of GDP made no contribution to growth to one decimal place, while construction deducted from GDP growth. The service industries increased by 0,3 percent.

Positive growth was recorded within all sub-sectors of the services industries; distribution, hotels and restaurants (0,1 percent vs -0,1 percent).

President Trump have repeatedly said that the EU have treated the US very bad. I have written many articles about that long before Mr Trump`s inauguration. The European Commission has fined Google €4,34 billion for breaching EU antitrust rules this month.

In May 2009, Intel was imposed with a 1,06 billion euro fined for abusing its market dominance on central processing units. Microsoft has been in trouble with the Commission on several occasions. In 2004, the Commission ruled that Microsoft had abused its market dominance.

In 208, the Commission fined Microsoft nearly 900 million euros for charging «unreasonable» royalty fees. In 2013, another fine of 561 million euros was imposed on Microsoft. This time for failing to comply with the Commission`s ruling that it had to allow users to more easily choose a prefered web browser.

The European Commission fined Facebook for 110 million euros in May this year in relation to its takeover of WhatsApp. Facebook acquired the messaging service in 2014 for $19 billion, but provided the Commission with misleading information about the acquisition.

In August 2016, the Commission ruled that tech giant Apple had received illegal tax benefits from Ireland worth up to 13 billion euros. Ireland was ordered to recover the unpaid tax from Apple, plus interest.

As early as 1966, British Politician Tony Benn said that «Communism run by commissars from Moscow did not work, and nor will capitalism run by commissioners in Brussels. Both deny people their right to develop in their own way.»

Now, under President Donald Trump, big companies like Apple are moving home to the United States with billions of dollars. Apple alone, are bringing in $230 billion. They will build new plants and a magnificent campus.

They will spend their money wisely and the money will be in the U.S. All this is possible because of Trump`s tax cuts and reforms. This is how you make growth.

 

 

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