Chinese e-commerce giant Alibaba reported revenue of RMB 93.49 billion ($13.93 billion) for the fiscal quarter ended March 31, 2019, marking 51% growth from the same period a year earlier.Revenue beat analyst estimates of $13.42 billion for the quarter as growth momentum maintained compared with 58% year-on-year growth during the same period last year.Revenue for the 2019 fiscal year ended March 31 totaled RMB 376.84 billion, an increase of 51% year on year, lower than the company’s forecast of more than 60%.Alibaba’s net income in the quarter ended March 31 was RMB 23.38 billion, an increase of 252% compared with RMB 6.64 billion in the same quarter of 2018.Meanwhile, the percentage of revenue cost compared with total revenue in the quarter increased to 60%, or RMB 55.61 billion, from 53% of revenue or RMB 32.50 billion, in the same quarter of 2018.“The increase in revenue cost was primarily due to our consolidation of Ele.me, as well as an increase of the cost of inventory and logistics from New Retail and direct sale businesses,” the company said in its announcement.
For its first quarter, Amazon reported Thursday a fourth straight record profit, reaching $3.6 billion, or $7.09 a share, trouncing analyst estimates of $4.72 a share and soaring past its year earlier income of $1.6 billion, or $3.27 a share.Revenue rose 17% to $59.7 billion, at the higher end of the company's guidance of $56 billion to $60 billion.The company expects to post $$59.5 billion to $63.5 billion in revenue in its current quarter, compared with $62.4 billion predicted by analysts polled by Yahoo Finance.Finance chief Brian Olsavsky said on a call with reporters Thursday that the huge earnings growth stemmed in part from lower-than-expected costs and squeezing more efficiencies from its warehouses.The world's biggest e-commerce company reported its latest numbers after going through a rough start to 2019.The company faced a wall of opposition from local activists and politicians for its HQ2 development project in New York, which was supposed to bring 25,000 new employees to the city.
Apple has laid bare the extent of the Chinese slowdown on its sales, saying its revenue in the country crashed a colossal $4.8 billion in the past quarter compared to the same period last year, with declines across iPhone, Mac and iPad.In a conference call with analysts, CEO Tim Cook was understandably keen to emphasise the upside for the company however, pointing to record quarterly Apple services revenue in Greater China – now home to 2.5 million registered iOS developers.“We [also] had record performance in large markets, including the United States, Canada, Mexico, Germany, Italy, Spain and Korea” he added.(Overall Apple posted quarterly revenue of $84.3 billion for its Q1 of fiscal 2019, a decline of five percent from the year-ago quarter.Full Disclosure: Apple Reveals Active iPhone Numbers for First TimeIn a first for the company, it disclosed its global active installed base of iPhones for the first time: 900 million devices “live” globally, up 75 million this year.
IBM is to buy Deutsche Telekom's ailing maniframe unit, according to multiple sources.A docket on Germany's competition authority website that appeared on New Year's Eve refers to an "acquisition" by IBM Germany of certain "assets of T-Systems International GmbH" in the "IT services" and "IT outsourcing" sector.IBM is reported by IT Zoom to have paid €860m for the business, currently housed in Deutsche Telekom's subsidiary T Systems.However, T-Systems told The Register: "This is not a sale of the business segment.""T-Systems will continue to offer the services in the market and supply them to the customers, while IBM will provide a share of the services."T-Systems is in the throes of a painful restructuring, reducing its footprint from 100 cities to just 10, and last June, boss Adel Al-Saleh confirmed that 10,000 would be shaved from the company's 37,000-person headcount.
Adding new feathers in its cap, the DSP Mutual Fund has formally stated the launch of DSP Healthcare Fund which is an open-ended scheme investing in the Indian healthcare and pharma sector.The NFO (New Fund Offer) was opened yesterday and will close on November 26.The fund would be predominantly investing in equity and equity-related securities of healthcare and pharmaceutical companies with some portfolio allocation to foreign securities.Reports suggest that DSP Healthcare Fund may be investing up to twenty-five percent in international healthcare, with an eye on the large US companies, and also giving the investors access to international diversification.The fund is to be managed by Aditya Khemka and Vinit Sambre and Jay Kothari have been designated as the fund manager for managing overseas investments.Constructing a positive outlook, Kalpen Parekh – President, DSP Investment Managers quoted “This is an interesting time for the Indian Healthcare sector.Despite disappointing earnings growth in FY18, many companies are at an inflection point and have the potential to be rerated as temporary disruptions get resolved.Indian investors can take advantage of the potential in the space with an added element of global diversification to manage volatility”.The launch of the new fund aims to promote three key growth areas – increasing demand, new export opportunities along with creating a conducive policy environment.
Market Looks for Safety in Pharma StocksAs investors look into defensive sectors in a market trading at high levels, pharmaceutical companies are back in trend.“We believe the current base reset lends itself to the creation of an environment conducive to bottom-up stock picking.” said Anmol Ganjoo, analyst, JM Financials.Shares of several pharma companies, such as RPG Life Science, IPCA Lab, Dr. Reddy’s and Wockhardt, have gained 20% to 50% in the past month.Sun Pharma and Cipla are top bets in the sector.Recently, several fund managers have started hoarding pharma stocks.Analysts have upgraded their ratings in several stocks, such as Divi’s Lab, Dr. Reddy’s Lab, Sun Pharma, Ajanta Pharma and Torrent Pharma in the past months.“From a stock price viewpoint, we now find Sun Pharma appealing, besides our defensive bet, Cipla, Also, Torrent Pharma, Alembic and Strides offer interesting entry points at current valuations.” said Ganjoo“The market has scaled to a new high without any strong earnings growth visibility.Under such circumstances, investors are looking at pharma stocks as a safe haven.” said Ajaj Bodke, CEO, Prabhudas Lilladher.“For the past couple of days, pharmaceutical companies like Sun Pharma, Dr. Reddy’s, Wockhardt Pharma, Aurobindo Pharma and Lupin have rallied due to a good amount of long formation.” said Sneha Seth, derivative analyst, Angel Broking.“Looking at the open-interest activity, we believe this space has further upside potential,” she added.Large pharma companies have remained under pressure in the past three years due to regulatory suspicions, the burden of sustaining historical growth rates on large bases and a stronger rupee among other factors.
Facebook is getting serious about monetizing WhatsApp after the social network reported sluggish earnings growth last Wednesday.WhatsApp has rolled out three new ways for customers to connect quickly with businesses: a shortcut button to immediately start a conversation, the ability to have businesses send you information like a boarding pass on WhatsApp, and real-time support, the company said today.At the same time, Facebook will now display ads of businesses that link out to WhatsApp.That means that businesses can purchase ads that lead people directly to an already loaded chat with the business on WhatsApp, and they can start talking from there.Businesses can respond to customers for free if they answer within 24 hours but Facebook will charge them for any response after 24 hours.It looks to be another way for Facebook to cash in on its many apps.
Analysts expect the pace of earnings growth in the technology sector to decelerate this year and into 2019.That's a key reason the sector could soon underperform the broader stock market, Citi's equity strategists say."Analysts' forecasts may be too low, but if they are in the right ballpark, such patterns may be disappointing to very long investors," Tobias Levkovich, Citi's chief US equity strategist, said in a note.Among his reasons for this caution was "a very substantive slowdown" in forecast earnings growth for the rest of the year and in 2019.This could dim the appeal of tech stocks, which many investors have bought because of their rapid earnings growth and upward momentum."We do not expect tech names to blow up since a major valuation gap is not in place as was the case in 2000," Levkovich said.
Last month, the extent of the pay differences between men and women working in the United Kingdom was revealed for the first time.Other interesting takeaway points were that men made up the majority of higher-paid jobs and received higher bonuses than their female counterparts.Despite talk of ‘male-dominated’ sectors and ‘female-dominated’ sectors, the Guardian found there was not a single sector where women were paid more than men.Less talked about was one of the main reasons why such a gap exists.Mothers returning to work are chronically underpaid and undervalued for their experience and ability.PwC’s November 2016 report into women ‘returners’ found that nearly two-thirds (65%) of returning professional women work below their potential salary level or level of seniority.
Samsung’s latest earnings report is a succinct lesson in hoping for the best and preparing for the worst.The actual news here is pretty positive, as the company reports a record operating profit, courtesy of high demand for its components and flagship handsets.But a statement tied to the news mentions “slow demand” no fewer than seven times, as the company looks to temper investor expectations, Those warnings largely revolve around the company’s display panel offerings and a perceived stagnations in the mobile sector in general.“For the second quarter,” the company writes in a statement, “Samsung expects the Memory Business to maintain its strong performance, but generating overall earnings growth across the company will be a challenge due to weakness in the Display Panel segment and a decline in profitability in the Mobile Business amid rising competition in the high-end segment.”The slow down, it seems, has already had an impact on the display side, though Samsung’s weathered much worse than this already.Keep in mind how the whole Note 7 debacle didn’t make a dent on the company’s profitability.
You put off buying any while figuring out the cloud, but now you're ready to spendFinancial Services colossus Morgan Stanley reckons on-premises hardware vendors are about to have their best sales season for a decade.The firm popped out a research note on Monday February 26th in which head of North American Technology Hardware Equity Research Katy L. Huberty said that while "every $1 of revenue growth for the largest cloud service has resulted in about $3 of revenue decline for the major legacy technology companies … several catalysts are converging to give IT Hardware a second life-and drive double-digit earnings growth in 2018."Huberty wrote that slow growth in enterprise hardware sales has been caused by businesses adopting cloud, but not because they've stopped buying on-premises kit forever.Instead, "enterprises have been putting IT Hardware spending on hold while they grapple with decisions around how, when and how much of their workloads to move to the cloud."Those decisions have now been made, she wrote.
Shares of Expedia fell Friday morning following disappointing earnings results.The company has invested heavily in marketing and technology, leading one analyst to believe that it is making a "painful but necessary transition" in order to improve its profits.This was the first full quarter for CEO Mark Okerstrom.Though shares of Expedia are plummeting following a quarterly earnings report that missed expectations, the company is undergoing a "painful but necessary transition" to higher earnings growth, according to a Jefferies analyst.Expedia's stock fell 14.29% on Friday morning to $105.45 a share."We believe that [management] is making the right investments to ensure [Expedia] grows its competitive moats," wrote Brent Thill of Jefferies.
Apple's slow quarter for iPhone sales may spell trouble ahead for the smartphone.The age of double-digit growth in iPhone sales may be nearing its end, according to UBS Analyst Steven Milunovich.But Apple has found ways to monetize its installed base through software and new accessories.The era of double-digit sales growth for the iPhone may be nearing its end.Apple is reaching a "defining moment," according to UBS Analyst Steven Milunovich, as demand for the iPhone — the device which catapulted the smartphone revolution and the company's earnings growth — slowed this past quarter.The slowdown suggests that the iPhone" supercycle" is dead.
Apple's stock slid on Monday morning on news that it plans to reduce its production targets for the iPhone X in the first three months of the year.A UBS analyst believes that the production slowdown will not halt the company's earnings growth due to the success of its other product lines and windfalls from the tax reform law.Apple expects to release its first-quarter 2018 earnings on Thursday, Feb. 1.Shares of Apple slipped after reports that the company informed its suppliers to halve their production targets for the iPhone X in the first three months of the year, according to the Japanese publisher Nikkei.Apple's stock was down 2.54% at $167.16 a share on Monday morning.The tech behemoth decided to cut its iPhone X production target to 20 million units from 40 million units on the heels of a slower-than-expected holiday sales season, Nikkei reported.
FAANG stocks could be a victim of their own success in 2018, says Morgan Stanley.The outperformance of the tech-focused group could leave it vulnerable to some trend reversals that could weigh on performance, according to the firm.All good things must come to an end.Which is why Morgan Stanley has already started brainstorming about what could derail torrid gains for scorching-hot tech stocks.The FAANG group — which consists of Facebook, Amazon, Apple, Netflix and Google — has crushed the broader market in 2017, buoyed by strong earnings growth and a momentum-chasing mindset from investors looking to buy stock in proven winners.And while Morgan Stanley isn't yet prepared to get outwardly bearish on FAANG heading into next year, it does note that there are some elements present that could slow the group's roll.
Fast-growing technology companies are carrying the S 500 toward its fifth consecutive quarter of earnings growth.Third-quarter gains have been broad, spanning companies from industrial stalwarts like Caterpillar Inc. to oil-and-gas giant Exxon Mobil Corp.But with around 98% of S 500 firms having reported results for the latest quarter, the technology sector is expected to post 20% growth in earnings from the year-earlier period, according to FactSet, trouncing the broader index’s expected earnings growth rate of 6.4%.Created with Highcharts 5.0.14Resurgent ProfitsCompanies in the S 500 have posted overall earnings growth since the second half of last year.THE WALL STREET JOURNALSource: FactSetNote: Q3 figure is a blend of reported results and analyst estimates.Created with Highcharts 5.0.14Profit DriverThe technology sector drove much of the S 500's earnings growth in the most recent quarter.THE WALL STREET JOURNALSource: FactSetNote: Excludes energy, which has a growth rate of more than 100% as it rebounds from a deep contraction.Created with Highcharts 5.0.143Q earnings growth rateTechnologyMaterialsReal estateHealth careConsumer staplesTelecomConsumer discretionaryIndustrialsUtilitiesFinancials-10%-50510152025
As much as the Chancellor tried to glam it up, today’s budget was packed full of nasty Brexit-based shocks.The headlines will of course be dominated by the huge slowdown in future economic growth, leaving those mythical Brexit sunlit uplands disappearing over the horizon like a mirage.Over the next half-decade, the UK’s GDP growth is predicted to dip sharply.Before the Brexit referendum, the Office for Budget Responsibility (OBR) was predicting 2.1% growth in 2020.Annual earnings growth has also been revised down over the next five years, adding to the Brexit squeeze already hitting workers in their pockets.But perhaps the cruellest truth revealed by this brutal Brexit budget was the extent of the lie behind the famous ‘£350 million extra for the NHS’ claim trumpeted so loudly by the Vote Leave campaign.
Apple's stellar earnings for the fourth quarter has investors happy with the performance of the company.After reviewing Apple's 10K, an RBC Capital Markets analyst sees multiple upsides in the numbers for the company.Apple's standout fourth quarter earnings report has boosted investor sentiment about stronger earnings growth in the next quarter.Amit Daryanani, an analyst with RBC Capital Markets, looked at Apple's 10-K and saw multiple tailwinds that could drive double-digit EPS growth in the next two years:The average selling price for the iPhone X, which can range from $999 to 1,149, should give the Silicon Valley company's profits a boost.Gross margins should benefit from Apple's service business, which Daryanani sees as growing at a faster-than-expected rate, and a better mix of its other higher-margin businesses.
Tech stocks have been an invaluable part of broader stock market strength in 2017, returning more than double the benchmark S 500.Tech companies have responded by reporting some of the best earnings growth out of any sector in the S 500.To hear skeptics tell it, the group, which was so crucial as major equity indexes ripped higher to new records for much of 2017, was getting overextended.And that was supposed to result in a sharp move lower not just in tech, but for the whole market.Back in August, investors sold more than $1 billion of tech stocks in one week, the biggest offloading since January 2016.Uncertainty was high even back in mid-July, when the traders were paying the biggest premium since 2008 for hedges against tech losses.
Shares of Sunny Optical Technology, mainland China’s largest manufacturer of smartphone camera modules and lenses, surged to a record high on Monday ahead of its report of hefty interim earnings growth.Sunny Optical’s shares rose 7.6 per cent to finish the day’s trading at HK$103.80, its highest close since the company was listed in Hong Kong in 2007.“Although global economic growth remains uncertain, the group remains optimistic about its future operations,” company founder and chairman Ye Liaoning said in a regulatory filing.Net profit for the six months ended June 30 rose 149.7 per cent to 1.2 billion yuan (US$180 million), up from 465.3 million yuan in the same period last year, due to higher gross profit and more stringent control of operating expenses.Gross profit, or net sales minus the cost of goods sold, climbed 109.5 per cent in the second quarter to 2.1 billion yuan from 987.9 million yuan a year ago.Total revenue advanced 69.8 per cent to about 10 billion yuan, compared with 5.9 billion yuan a year earlier, on the back of higher volume of smartphone and vehicle lens shipments, as well as increases in their average selling price.