Tag Archives: LinkedIn

Microsoft and Baidu plan to explore opportunities to deliver connected vehicle solutions

Microsoft is still among the biggest corporations, but far away so «hot» as the FANG stocks that everyone is talking about at the moment. With its market cap of $569,85 billion, Microsoft is still among the best and biggest companies.

Microsoft Corporations is expected to report earnings on Thursday after market close. The report will be for the fiscal Quarter ending June 2017. Earnings forecast for the quarter is $0,71 which is a bit more than last years earnings of $0,69 for the same quarter.

 

 

IBM is trying to give its cloud business a boost, but Microsoft`s open cloud format seems to be much better. A business that is giving Microsoft a huge upside. Azure and Xbox is two drivers for Microsoft at the moment, but there is more.

Who is talking about LinkedIn? Only a few. Reid Hoffman sold his «baby» to Bill Gates and Microsoft acquired the professional networking platform in an all-cash deal worth $26,2 billion in December last year.

Microsoft`s CEO Sataya Nadelia said at that time “The deal would bring together the worlds leading professional cloud with the worlds leading professional network.”

In addition; Microsoft wants to compete with Apple and Alphabet in delivering its self-driving car platform. They will collaborate with China`s search engine giant Baidu to use its Azure services for those self-driving cars.

Microsoft said in a press release on July 18, that Baidu and Microsoft plan to explore opportunities to deliver connected vehicle solutions and unique customer experiences that aim to digitally transform the autonomous driving industry.

Microsoft is focusing on cloud-connected car scenarios via its «Microsoft Connected Vehicle» strategy, and the company is aiming to get more vehicles to use their cloud services, like Office 365 and Azure, instead of using Microsoft itself inside cars via «Windows Automotive.»

Other Automotive brands are also interested in Microsoft`s cloud business. BMW and Volvo have both announced partnerships with Microsoft for its cloud-business car services.

Microsoft closed its previous trading session at $73,86 and is expected to report earnings on Thursday 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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LinkedIns report will be one of the last quarterly reports as a publically traded company

LinkedIn was a scary case earlier this year. In February, the stock plummeted more than 40% in just one single day! That made many investors a bit sceptical. Some investors had panic and sold with both hands. Some had a Hold strategy.

Those who was cold enough to hold saw the stock come back. Later on, the stock went up 46% in one single day. What happened? Investors jumped in on very good news. That day, Microsoft announced that it has agreed to acquire the professional networking platform in an all-cash deal worth $26,2 billion.

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Microsoft is paying $196 a share for LinkedIn, and LinkedIn`s official vote regarding the Microsoft acquisition will take place on August 19, 2016. Microsoft sold $20 billion in debt on Tuesday to fund the deal.

You cannot compare LinkedIn with Facebook but if you do, you will a different story with stagnant user growth. That being said, LinkedIn saw the largest growth in cumulative members since 2014 in the first quarter of 2016. It was up 19% to 433 million.

Talent Solutions and Marketing Solutions have remained LinkedIn`s strongest segments, which is growing 41% and 29% last quarter.

LinkedIns report on Thursday will be one of the last quarterly reports as a publically traded company after Microsofts bid last month.

Revenue is expected to come in at $902 million with an earnings per share of $0,81. This is an increase of 47% in earnings and 26% in sales compared to last year at the same time.

LinkedIn will report on August 4, after the market closes.

 

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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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Microsoft are near its peak in 1999

Microsoft is well-known for its operating systems and what its founder Bill Gates have done for the company from the early beginning, but that part of the company is not the best performing part anymore.

We all know that the PC business in declining as demand continues to wane. But Microsoft`s stock has increased. The stock peaked in 1999, and have never yet recovered. Until now. The stock is trading near its 1999 level.

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The focus has shifted from PC sales to its growing cloud business. Just like Google and Amazon, Microsoft are among the few leaders in the cloud business. Their cloud business includes Office 365, Dynamics CRM and Azure, and they all reported gains of over 5 percent last quarter.

Microsoft will report after the close on Thursday 19, and its expected to hear that CEO Satya Nadella will talk about their latest acquisition; LinkedIn. Whats interesting is to hear how they are planning to integrate LinkedIn into their core business, because investors are a little bit confused about the valuation of the company after the acquisition.

Other things to look for is how Microsoft`s business will be hit by Brexit, because about 7 percent of their business comes from UK alone. On top of that there is a strong dollar, so this is something that will have an impact to the bottom line for Microsoft.

The Estimize consensus is calling for earnings per share of 55 cents on $13,56 billion in revenue, which is 2 cents higher that Wall Street on the bottom line and nearly in-line on the top. Compared to a year earlier, this represents a 2 percent decline in earnings while sales could grow by 3 percent.

 

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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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Microsoft will integrate LinkedIn into Dynamics and Microsoft Office 365

LinkedIn is a small company compared to Facebook, and the stock had fallen out of favor after a cautious outlook earlier this year. The stock plummeted more than 40% in just one single day in February this year.

That was then. Now, the went straight up on good news, and the stock skyrocketed 46% in one day. Investors jumped in on the news on monday. Microsoft announced that it has agreed to acquire the professional networking platform in an all-cash deal worth $26,2 billion.

 

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Microsofts CEO Sataya Nadelia said The deal would «bring toghether the worlds leading professional cloud with the worlds leading professional network», and LinkedIns CEO Jeff Weiner will remain at the helm of the social network.

Microsoft is paying $196 a share for LinkedIn.

What company could be better than LinkedIn in terms of their position and opportunity for growth? The price Microsoft paid was fair, and this acquisition will make LinkedIn more valuable under Microsoft`s umbrella than a standalone company.

Microsoft is still one of the worlds biggest companies, and this acquisition was brilliant. Its not difficult to see what Sataya Nadelia is thinking. He will probably integrate LinkedIn into Microsoft Office 365 and Dynamics.

Marketers and professional networks will still use the platform and integrate it in their sales process. They will be more willing to pay for training and to keep on building marketing campaigns their new CRM.

Microsoft will improve the Dynamics CRM software and Office 365 enterprice offerings, and there is no doubt that Microsoft is interested in more market shares in the CRM business. They want to build out their Customer Relationship Management to compete with Salesforce.

A few weeks ago, Microsoft was the first bidder for Marketo which is part of the automated marketing space. And they have enough cash to buy them all. But they are not interested to spend some cash on this acquisition. They will make a loan to avoid a 35 percent tax bill.

Just like Apple last year. They have $180 billion overseas, but borrowed $6,5 billion to pay shareholders a dividend. We still have low rates, and that`s why we have seen a huge activity in M&A recently.

It would be stupid not to do that.

Many big tech companies have a lot of cash. Alphabet Inc, Apple, Microsoft and Facebook have hundreds of billions of dollars in cash and you can imagine their opportunities in the future. But I must admit it was a surprise that Reid Hoffman sold his «baby» to Bill Gates.

What I expected was to see Twitter in that position. Not LinkedIn. But for all I know, maybe Twitter is the next takeover? It`s beginning to be cheap with a market cap of about $10 billion. If this continue, the share price can drop down to about $5.

Twitter should sell before they are worthless. If Google or other media companies wants the platform, they can have it for almost «free» if they wait any longer.

 

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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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LinkedIn is bigger than Twitter

LinkedIn is another social media company coming out with a report on thursday. The stock has seen a bumpy ride lately and the question is whether the investor are long or short. LinkedIn is the world`s professional network and are a little bit bigger than Twitter.

Twitter`s market cap is $21,25 Billion , while LinkedIn`s market cap is $27,60 Billion. I`m not in doubt that LinkedIn will continue to grow in the long run. The concept look pretty solid and I think Reid Hoffman (founder) know what he is doing. He has been in this business since the beginning of the 90`s.

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The stock is trading at $208 on Wednesday 11 p.m New York time, and some investors expect the stock to jump up to $260 in the short-term. Higher estimates is $300, while lower estimate is $180. Earlier this year the stock peaked at $276.

CEO Jeff Weiner said that revenue had been cut to $670 million compared to analysts expectations for $712 million in the Q2 announcement. The reason was not related to slower growth, but to foreign currency headwinds. It was also related to cost for the integration of Lynda.com, and the stock plunged about 25% in one single day.

Last year LinkedIn acquired Bizo Inc, Newsle Inc and Bright Media Corporation.

LinkedIn has three product lines which is Talent Solutions, Marketing Solutions and Premium Subscriptions. All three product lines are sold through two channels. They have about 277 million members in over 200 countries.

Those of you who read my articles regularly know that I have talked about Twitters`s MAU`s, but LinkedIn is worse. They have fewer users and they spend less time on the platform. Among the top social media platforms, LinkedIn is at the bottom with only 9,8 minutes of usage per day.

Let`s face it. LinkedIn is not Facebook. Nor is it Twitter. It`s a different platform with a different consumer behavior. In fact, in this scenario, Twitter shouldn`t focus on users and try to be like Facebook as they do today. They should change their business model and be more like LikedIn. If not, sell or merge.

We know that most US millennial don`t check their Twitter accounts very often. So is it for LinkedIn. 47% check their Facebook account more than once a day. LinkedIn: 6% and Twitter: 23%. Despite that; LinkedIn is over 30% bigger than Twitter. That`s why I say Twitter should merge with Facebook as we know the business model today or simply keep the company and change their strategy/business model. 300 million users is not good enough. It should be a least 1 Billion.

More than 28% of people worldwide will use a social network regularly in 2015 and the audience will surpass the 2 billion mark this year.

Analysts expect EPS to plunge to $-0,32 from last years $0,1 per share. Wall Street forecast 6,67% negative EPS growth and EPS Q2 came in at $-0,30. In March 2015, EPS was $-0,18, but in December 2014, it was $0,12.

LinkedIn has underperformed over 19% the S&P 500 and as you can see the stock is in a downtrend right now. Analysts are forecasting earnings decrease of -786%, but I belive that LinkedIn will bounce back and continue to grow the coming years.

LinkedIn report after the bell on Thursday.

 

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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. UA-63539824-1.

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