Salesforce.com Inc. CRM 1.43 % over 17 years has built an $8 billion business selling software as a service delivered over the Internet.The company has been especially effective at selling new products such as its Marketing Cloud digital marketing and analytics service to its existing customers, said Credit Suisse AG in a report issued this week.Salesforce said it would bring in between $1 and $1.02 a share in adjusted earnings during 2017.The multibillion-dollar revenue stream makes Salesforce a mature cloud-computing business by some measures, but its core businesses are still growing at a rapid clip, said Brent Thill, an analyst with UBS.It doesn t feel like they re middle-aged or aging, he said.With adjustments, they totaled 24 cents, a penny ahead of analyst expectations.
After being the darling of Wall Street last year, Netflix hasn't had a pleasant 2016 in the stock market, which has brutalized it to the tune of -22% year-to-date.Hedge funds, in particular, have made big bets that Netflix will fall, according to a new report by Goldman Sachs.The report tracks the 2016 Q1 activity of 841 hedge funds, and shows that they have large short positions on Netflix.The report pegs the value of short interest at $3.4 billion as of April 29, representing a whopping 9% of float the amount of shares readily available for trading .International doubtsWall Street confidence in Netflix was shaken by its latest quarterly report on April 18, which showed strong results for the first three months, but put out an international subscriber growth estimate for Q2 that was well below Wall Street targets.After Netflix s 130-country launch in January, which put it in every major market except China, international subscriber growth has been the key metric on Wall Street s mind.It beat Wall Street expectations for Q1, adding 4.51 million subscribers internationally versus Wall Street estimates of 4.49 million.But a source of concern has been the small library of content that Netflix has in certain newly launched countries.And last month, UBS estimated that Netflix was seeing mixed results in its new markets, with some like India and South Africa doing well, and others lagging, like Russia and Turkey.Netflix's company narrative had focused on its compelling original content as a strength internationally, since the licensing is much simpler.The company will release 600 hours of original content this year, including 31 original shows.In its quarterly letter to shareholders, Netflix blamed some of the shortfall in its international-subscriber growth forecasts to issues related to last year s anomalous Australia/New Zealand launch.Additional reporting by Bob Bryan.NOW WATCH: Reruns on cable are not the same as the originals — check out these differencesLoading video...
Today, Netflix made an announcement seemingly tailored for these restless U.S. customers, touting a pay TV partnership with Disney, along with forthcoming titles that it will stream first or exclusively throughout the summer.The partnership with Disney allows Netflix, as of September, to offer Disney, Marvel, Pixar and Lucasfilm movies during the same window when cable networks like HBO would be allowed to air them, but after Blu-ray and DVD releases.Sarandos and Netflix then highlighted newer and classic films that will be available in its catalog this summer, including: The Big Short, Hotel Transylvania 2, Spotlight, Goosebumps, the Back to the Future trilogy, the Lethal Weapon franchise, Sixteen Candles and The Wedding Planner.Netflix also reminded users of a spate of forthcoming originals that had already been announced, including a Brad Pitt-starrer, War Machine, and Christopher Guest-directed Mascots.The company isn t just appealing to its existing customer base ahead of the Memorial Day weekend, when viewership on Netflix spikes.UBS and RBC Capital issued positive buy or hold ratings on Netflix today, the Street.com reported.
Before Patrick Archambault, there was Adam Jonas.Archambault raised eyebrows last week when he upgraded Tesla Motors Inc. to buy from neutral the same day it was announced that his firm, Goldman Sachs Group Inc., would co-manage with Morgan Stanley the sale of $1.4 billion in new Tesla stock.But Archambault s call, which the bank says was made independently of the underwriting team, is overshadowed by years of optimism lavished on the carmaker by Jonas, Morgan Stanley s lead auto-industry analyst.The last time Tesla sold shares, in August, the company hired Morgan Stanley as one of the lead managers of the $783 million offering, priced at $242 a share.A scandal in the early 2000s, following the dot-com roller coaster, caused analysts such as Henry Blodget, who was found to have opined about certain stocks differently in public than he did to members of his firm, to be barred from the securities industry.The wall between analysts and underwriters can sometimes make for odd timing.But they do disclose all of this, so buyer beware.Tesla has turned a profit in just one quarter and is diluting its stock to raise the money to get its Model 3 sedan to market.The top two forecasters from major banks, Colin Langan of UBS AG and Ryan Brinkman of JPMorgan Chase & Co., have price targets of $160 and $185, respectively.Jonas wields market influence.Within eight days, Tesla sold $360 million in stock with Goldman Sachs as underwriter and $600 million in convertible debt with both firms underwriting.Three months later, on Aug. 8, Jonas raised his target price again, to $149, when Model S sales exceeded expectations and the shares rose 14 percent in one day.
SigFig, the developer of tech-enabled financial advisory services products, has raised $40 million from the venture investment arms of a slew of big banks.The new round is a testament to the company s belief that partnering with large financial institutions is the best way to get better financial advisory tools into the hands of the investors who need them, according to chief executive Michael Sha.Apparently some big banks agreed with Sha s assessment… to the tune of a $33 million equity and $7 million debt round of funding.Meanwhile, Comerica Bank gave SigFig a $7 million debt facility.SigFig differentiates itself from asset management competitors like WealthFront and Betterment by billing itself as more of a full service shop for the financial services firms that still manage the bulk of America s wealth.The idea is not that we re building technology that is algorithmic money management, Sha says.
Interest in wealth management technology appears to be high after SigFig raised $40 million in a new financing round.SigFig plans to use the capital in order to support a major expansion of its team and platform as it scales its enterprise strategy of building investment technology for a wide range of financial institutions.UBS will provide financial advisors, product experts, and technologists to work with SigFig's digital experts.Mariano Belinky, managing partner, Santander InnoVentures, said: "The ongoing need for affordable, accessible financial advice continues to be an area of focus for the investment industry.The company has received a lot of interest since it was founded in 2011 having already secured deals with media partners CNN and USA Today in order to power portfolio trackers on their sites.According to an Accenture report, there is a growing number of businesses in the financial services market that are seeking to collaborate in order to integrate new technologies into their own operations.
SAN BRUNO -- In the wake of a deadly pipeline blast that leveled a San Bruno neighborhood, a batch of 100,000 emails from state regulators has raised fresh questions about the integrity of the Public Utilities Commission and how it oversees big power companies, a consumer advocacy group said Tuesday."Picker talks the talk, but he doesn't walk the walk, and Picker would rather get a limo ride to an exclusive meeting with a dozen Wall Street analysts," said Liza Tucker, an official with Consumer Watchdog.Six months after those meetings, Picker was appointed president of the PUC, succeeding former President Michael Peevey."A clear understanding of California's policy goals helps investors to better understand the utility and our policies that the utilities must follow," said Terrie Prosper, a PUC spokeswoman."This knowledge leads to investors charging utilities less, which leads to consumers paying less.Therefore, it behooves the CPUC to answer investor questions as long as it is not a violation of any rules.""These relationships come with a price tag," Tucker said.
Intel Capital is restructuring its investment team, but the firm has decided not to sell part of its venture-capital portfolio.In a blog post Thursday, Intel Capital President Wendell Brooks said the group has completed a review of its portfolio and despite what you may have read or heard, we are not planning any major changes to Intel Capital s portfolio.But Intel Capital, the venture capital arm of Silicon Valley chip maker Intel Corp. INTC 0.43 % , is restructuring to streamline its investment process and give startups wider exposure to Intel s business units, and departures are expected, Mr. Brooks said.Intel was working with UBS Group AG and considering selling a part of its portfolio in a sale that could have been valued at $1 billion in order to focus on areas most strategic to Intel.Since 1991, Intel Capital has invested about $11.7 billion in 1,445 companies in 57 countries, the company said.Intel Capital declined to answer questions on Mr. Brooks post.
Gaming laptops aren t exactly known for their portability and battery life but those are precisely the two areas Gigabyte has elected to focus on with its latest ultraportable, the Aero 14.Unveiled earlier today at Computex 2016, the Aero 14 packs a 14-inch QHD 2,560 x 1,440 IPS anti-glare display that s powered by a sixth-generation Intel Core i7-6700HQ Skylake processor 2.6GHz default, boost up to 3.5GHz alongside an Nvidia GeForce GTX 970M with 3GB of GDDR5 and up to 32GB of DDR4 2133 RAM.Other specs include a USB 3.1 Type-C connector, three UBS 3.0 connectors, a headphone jack, SD card reader, HDMI 2.0 and miniDisplayPort connectors, 802.11a/b/g/n/ac Wi-Fi, Bluetooth 4.1 LE as well as a sizable 94.24Wh battery which Gigabyte claims is good for up to 10 hours of use on a single charge.All things considered, the system measures 335mm W x 250mm D x 19.9mm H and tips the scales at 1.89 kilograms, or just under 4.2 pounds.The Gigabyte Aero 14 will be offered in three colors: black, green and orange.No word yet on how much Gigabyte plans to charge for the opportunity or when it ll be available to purchase.
See AlsoSymphony CEO: It's not a Bloomberg killer — it's an email killerMedia companies are banding together with Wall Street to take on BloombergHere's an early look at the messaging service Wall Street wants to displace BloombergLabour MEP Anneliese Dodds is calling for tighter regulation of new financial messaging platform Symphony and claims British and French watchdogs are currently investigating it.Dodds this week sent a letter which you can read in full below to Jonathan Hill, European Commissioner for financial services, and Steven Maijoor, head of the regulator ESMA the European Securities and Markets Authority , regarding what she claims is the "danger Symphony poses to regulation and transparency.It's the brainchild of Goldman Sachs, which last year acquired and rebranded Silicon Valley chat platform Perzo.Observers say the project is meant to lessen banks' reliance on Bloomberg after the company admitted, in 2013, that at least one reporter at Bloomberg News had used its terminals to monitor login activity in a bid to break news stories, The New York Times reported.At the time, editor in chief of Bloomberg News, Matthew Winkler, apologized for the error.Symphony CEO David Gurle told BI last year the platform is less like a Bloomberg terminal and actually more like a secure Slack, meant to do away with work email.Symphony got into trouble last year with the New York regulator over initial promises, since reversed, that it would delete data for clients."Symphony, which is reportedly worth $1 billion, has raised more than $160 million from investors including Google, UBS, Societe Generale, Goldman Sachs, JPMorgan, Bank of America, Citigroup, Credit Suisse, Deutsche Bank, and Wells Fargo.Dodds wants European regulators to force banks that use the platform to leave a decryption key with a third party, something the New York regulator has enforced.Dodds' office declined to comment further when contacted by BI this week.The FCA told BI it could not comment on Symphony but a spokesperson said that in general:Firms that are authorised by the FCA and use messaging platforms are subject to a range of FCA requirements including recording relevant conversations.French banks and other firms under its jurisdiction are subject to the same European record keeping requirements as the FCA outlined.Symphony declined to comment on Dodds' letter when contacted by BI this week but a spokesperson pointed to a blog post on the company's regulatory compliance features from last August and on its agreement with the New York Department of Financial Services.Here is Dodds' letter in full: 160525 Letter to Commissioner Hill Symphony 1 SEE ALSO: Symphony CEO: It's not a Bloomberg killer — it's an email killerDON'T MISS: The messaging service out to dethrone Bloomberg just raised $100 millionNOW WATCH: These are the best, highest-paying companies in AmericaLoading video...
Netflix surged up the Fortune 500 this year, rising 95 spots to No.Netflix saw the biggest gain in the tech industry besides Salesforce, which jumped 97 slots.Netflix was also the top-performing stock in the S 500 in 2015, but has had a rocky start in 2016.Netflix continued an aggressive worldwide expansion in recent months, simultaneously launching in 130 new countries in January and working toward the goal of universal availability for its catalog though as it stands, there are stark differences between countries .International subscriber growth is a key metric for Wall Street.Netflix has focused on creating compelling original content, which it has characterized as a strength moving forward, especially internationally.The company will release 600 hours of original content this year, including 31 original shows.Netflix will also see a revenue boost in the coming months from a gradual price increase on grandfathered accounts, which began in May.UBS pegs it at 3% to 4% of affected subscribers, though when surveyed, a much higher percentage of Netflix subscribers say they will cancel.This price increase will affect more than 22 million US Netflix subscribers, according to Netflix.NOW WATCH: 4 things you might have missed on this week's 'Game of Thrones'Loading video...
Bain Capital acquired Blue Coat for $2.4bn in May 2015 after the company was taken private in 2012 for $1.3bn by a consortium led by US private equity firm Thoma Bravo.The price in a registration statement with the US Securities and Exchange Commission is below several reports, which said Blue Coat was planning to raise $500m.Blue Coat provides advanced web security solutions for global enterprises and governments, protecting 15,000 organisations.The Blue Coat Security Platform helps in uniting network, security and cloud, protecting enterprises and their users from cyber threats, irrespective of their location, whether they are on the network, on the web, in the cloud or mobile.Blue Coat reported revenues of $598.3m in its fiscal 2016 which ended 30 April.Last December, Blue Coat signed a major worldwide agreement with Dimension Data to deliver its global managed cloud web security service.
Leaks from industry insiders and supply-chain analysis all pointed to this, and now a new report from an analyst that visited OLED factories says the same thing: OLED screens will be coming to iPhone in 2017.DON T MISS: Ultra-thin flat lenses could make smartphone cameras better than DSLRsThe report comes from UBS analyst Nicolas Gaudois via StreetInsider.According to him, Samsung will be the sole supplier of OLED screens for the 2017 iPhone, while LG is still in the running to produce screens the year after.But the overwhelming evidence is that someone is buying up a hell of a lot of OLED screens, and the only product that could reasonably need that much extra capacity is Apple.Samsung already uses OLED displays in its top-end smartphones, so it wouldn t be responsible for a sudden surge in demand.That makes for displays that are thinner no need for a separate light behind the screen , have more contrast, since only the necessary pixels will light up, and better battery life for the same reason.
The goal of hiring software is to avoid human pitfalls, suchas overlooking potentially strong candidates who may not seem desirable at first glance, said Matt Doucette, director of global talent acquisition at Monster Worldwide Inc."The best salesperson usually isn't the one peacocking, it's the mousy person in the corner who is sharp and asks the right questions," Doucette said.Some human resources experts say artificial intelligence tools and algorithms don't always capture the best people for a given job and could actually perpetuate existing biases.For example, if a company hired mostly white men who were the eldest children and left handed, an algorithm likely would predict such employees were the most successful, said Brian Sommer, a human resources industry analyst.It also is using the technology to ensure human reviewers don't overlook strong applicants.Goldman is using software developed internally to mine resumes for attributes that reflect desired qualities, such as teamwork, integrity and judgment, according to people familiar with the matter.Their answers are measured against the broader Goldman employee base.
"It's going to put pressure on organizations, without question," the veteran banker we spoke to said.The big banks are also seeing top performers leave for the corporate companies they advise.Here are some of the big moves in the past year:JPMorgan's Alejandro Vicente joined JAB Holdings.Morgan Stanley's Alban de La Sabliere joined the French drug maker Sanofi.JPMorgan's Henry Gosebruch went to AbbVie.Blackstone's chief financial officer, Laurence Tosi, went to Airbnb.Mergers-and-acquisitions activity is down significantly from the past couple of years too.But the phenomenon could also turn into a more permanent trend."Any banker with a brain … is saying to himself or herself, 'Do I need an exit strategy, and if so, what is my exit strategy?'"He also highlighted the taxing lifestyle of an investment banker, typically associated with long hours and tight deadlines.rather than being the CFO and having people present to you," he said.Investment banking as a whole has become a less attractive career option.Credit Suisse is giving bankers Friday nights off, UBS is giving bankers two hours of "personal time" a week, JPMorgan is relaxing its dress code, Morgan Stanley is offering vice presidents four-week paid sabbaticals, and both Goldman Sachs and Morgan Stanley are updating their performance reviews to give more qualitative and frequent feedback to employees.Whether or not that will be enough to stem the tide of departures remains to be seen.
For Apple, a week that started off with a triumphant display of new features of its operating systems is ending with the world s most-valuable company embroiled in a dispute over selling iPhones in Beijing.Before almost all Americans were awake Friday, the Beijing Intellectual Property Bureau told Apple it had to stop selling the iPhone 6 and iPhone 6 Plus in the city because the smartphones violated a patent held by Chinese phonemaker Shenzhen Baili.The dispute, which has been going on for more than a year, is over a patent covering the external design of Shenzhen Baili s 100C phone.However, Apple has appealed the order to halt iPhones sales, and said in a statement, As a result, the order has been stayed pending review by the Beijing IP intellectual property court.Gene Munster, an analyst who covers Apple for Piper Jaffray, said the clampdown on the two iPhones in question is more symbolic than anything, due to the timing of the move and when Apple is likely to release the next iteration of the smartphone.The bottom line is that the ruling is unlikely to have any impact on numbers because the iPhone 6 and 6 Plus model will be discontinued in September, Munster said.When Apple reported its fiscal second-quarter results in April, revenue from China totaled $12.5 billion, compared to the $19.1 billion that came from sales in the Americas.However, sales in China fell by 26 percent from a year ago, and the performance of the country was one of the main reasons given for why Apple reported a decline in year-over-year sales for the first time since 2003.UBS analyst Steven Milunovich agreed with Munster about the Chinese agency s ruling on Apple s immediate business, but said the decision highlights the tricky situation Apple faces when it comes to doing business in China.In May, Apple made a $1 billion investment in ride-sharing company Didi Chuxing, which is considered to be the top rival to Uber in China.Photo: The Apple logo displayed on a screen at Apple s annual Worldwide Developers Conference presentation at the Bill Graham Civic Auditorium in San Francisco on Monday.
Salesforce reportedly failed to win the bid to acquire LinkedIn, with the bid beaten by technology giant Microsoft for $26.2bn earlier this week.UBS Group analyst Brent Thill was quoted by The Wall Street Journal as saying that the deal would have been a boost for Salesforce.As of 31 March 2016, the software major had about $106bn in cash and short-term investments, whereas Salesforce held $2bn in cash and short-term investments as of the end of April.Salesforce competes with Microsoft in offering cloud-based software and services to businesses and the successful deal would have given the company a huge database of workers across the world to improve its web-based offerings that assist its customers to clinch sales deals.According to the market research firm Gartner, the market is currently dominated by Salesforce.com with a 19.7% share compared to Microsoft's 4.3%.Earlier this month, Salesforce agreed to buy Demandware, a US-based provider of enterprise cloud commerce solutions, for $2.8bn.
CUPERTINO -- Apple said Friday that it's doing business as usual in Beijing as the company appeals a Chinese governmental agency's ruling that banned the sale of some iPhone models in China's capital city.The Beijing Intellectual Property Bureau told Apple it had to stop selling the iPhone 6 and iPhone 6 Plus in the city because the smartphones violated a patent held by Chinese phonemaker Shenzhen Baili."Gene Munster, an analyst who covers Apple for Piper Jaffray, said the clampdown on the iPhones is more symbolic than anything, due to the timing of the move and when Apple is likely to release the next iteration of the smartphone.Apple historically holds an event in early fall to stoke enthusiasm for the newest iPhone ahead of the Christmas and holiday shopping season.Advertisement"The bottom line is that the ruling is unlikely to have any impact on sales numbers because the iPhone 6 and 6 Plus model will be discontinued in September," Munster said.UBS analyst Steven Milunovich agreed with Munster about the Chinese agency's ruling on Apple's immediate business, but said the decision highlights the tricky situation Apple faces when it comes to doing business in China.
Marcus Treacher, general manager of Ripple's London office told IBTimes: "We are actively working with some very big banks worldwide.I'm not sure if you remember the first Eurostar train that went to Waterloo - it went like 300mph across northern France and then 25mph chugging in to London because the tracks just couldn't cope."So we can rethink how money moves across borders; it goes by SWIFT these days, but essentially the same model is happening as the Medicis had back in the dark ages.Ripple rethinks the "postal service" existing today between the SWIFT MT messaging series of 100, 200, 300."When you have this kind of a postal service running back and forth between banks that therefore bridge countries, you have always got that latency; you have got that lack of clarity about who has got what and where a payment is and many bad things accrue from that fundamental set up.A fourth or a fifth player can also be added, who can be the notaries or the checkers or the approvers: the Ripple equivalent of miners to make sure that the transaction is solid.
Credit Tiffany LinBanks of the future will stop selling customers products they don't need and will focus on doing one product well, according to Starling Banks' Anne Boden.Speaking at WIRED Money 2016, Boden said: "Nowadays, we have the big banks with lots of products with lots of customer groups and lots of different channels trying to own the whole experience.Prior to founding Starling, Boden was CEO of Allied Irish Banks and head of Emea, global transaction banking across 34 countries for RBS and ABN AMRO.She has more than 30 years' experience in banking, having begun her career at Lloyds Bank, before moving on to Standard Chartered Bank and then UBS in Zurich.I found that nothing could be done for less than £30 million and less than 100 people."By not offering all the products to all customer groups, we can help people navigate their personal life," continued Boden.