/* Article Data (Server Side) article (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): How will US data companies suffer in the wake of the Snowden leaks? Link (s): http://folionation.squarespace.com/news/2014/8/1/how-will-us-data-companies-suffer-in-the-wake-of-the-snowden.html Thumbnail (s): DocumentDate_raw (n): 1406907060000 DocumentDate (s): August 1, 2014 DocumentDate_smart (s): Aug 1, 2014 DocumentKey (s): 1107-290734296785734947661-5VN4MCO250L8JRSNA31RNV1AVD ContentType (s): Article TrackingPixel (s): Content (s):

The NSA has been spying on US data companies and they’re losing business abroad. But how much?

Just over a year ago, the Edward Snowden leaked classified NSA documents detailing the agency’s PRISM program, which tapped directly into data of several American companies.

In its data collecting, PRISM targeted Verizon (VZ)Microsoft (MSFT)Yahoo! (YHOO)Google (GOOGL)PalTalk,YouTube (owned by Google), AOL (AOL)Skype (owned by EBAY), and Apple (AAPL).

In the time since, American tech companies have had growing fears that their lack of data security would besmirch their image abroad. And, not surprisingly, it turns out they were right to feel this way. 

According to a recent report from the New America Foundation, there is indeed a growing perception abroad that US-based cloud storage is unsafe—such a prevalent perception, in fact, that the report predicts that PRISM will “cost the cloud computing industry from $22 to $180 billion over the next three years.” It details how, according to a survey in January, 25% of surveyed British and Canadian businesses were pulling their data out of the United States. Susceptible American storage services include Amazon Web Services (AMZN), Dropbox and Microsoft’s Azure. Even more alarming, many such companies were eager to move their data elsewhere, even if it meant poorer performance.

The United States hosts the Goliaths of global cloud computing, and overseas companies that have been chomping at the bit to gain a chunk of cloud computing market share see this distrust as a marketing opportunity. Some of these foreign storage providers, like F-Secure—whose services are now being offered by companies like AT&T (T) and British Telecommunications (BT)—are touting the privacy of their storage. Companies like F-Secure have their data centers in the EU, where privacy laws aren’t as lax as in the US. 

To try to level the playing field, the European Commission is developing a public cloud infrastructure for public and private use for the region. What’s more, big Chinese companies like Chinanet (CNET)Shanda (GAME),Kingsoft (OTCMKTS: KSFTF), Alibaba (will have US IPO in 2014) and Huawei are investing in locally based cloud technology as well.

According to the New America report, several US-based tech companies, including Qualcomm (QCOM)IBM(IBM)Hewlett-Packard (HPQ) and Microsoft have reported a decline in sales in China in the time since the leaks. The German government is reportedly severing its contracts with Verizon because of their cooperation with the NSA, and in December Brazil gave a $4.5 billion contract to Saab (OTCMKTS:SAABF) over Boeing (BA), with the NSA taking the blame. The issue reaches down to smaller businesses as well, like Servint, a webhosting company that “reported in June 2014 that international clients have declined by as much as half … since the leaks began.” 

In the US, the future data security looks somewhat promising in light of new senate legislation that would better regulate bulk data collection by the NSA, although many feel the reform bill is only a first step toward security. While proponents of the bill hope that it will help restore trust in the Internet in the US, it would likely take some time to restore international confidence in US-based services.

Will greater proportions of the data market pull out of the US and take their business overseas? How well will US companies withstand losses? Take a look at the tools below to begin your analysis, and let us know what you think in the comments.

Click on the interactive chart to view data over time. 

 

1. Verizon Communications Inc. (VZ, Earnings, Analysts, Financials): Provides communication services. Market cap at $132.54B, most recent closing price at $46.23.

 


2. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $313.81B, most recent closing price at $37.69.

 


3. AOL, Inc. (AOL, Earnings, Analysts, Financials): Operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. Market cap at $3.45B, most recent closing price at $43.70.

 


4. eBay Inc. (EBAY, Earnings, Analysts, Financials): Provides online marketplaces for the sale of goods and services, as well as other online commerce, platforms, and online payment solutions to individuals and businesses in the United States and internationally. Market cap at $72.74B, most recent closing price at $56.30.

 


5. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $472.72B, most recent closing price at $527.55.

 


6. Amazon.com Inc. (AMZN, Earnings, Analysts, Financials): Operates as an online retailer in North America and internationally. Market cap at $161.82B, most recent closing price at $351.78.

 


7. Boeing Co. (BA, Earnings, Analysts, Financials): Engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. Market cap at $97.88B, most recent closing price at $129.59.

 


8. QUALCOMM Incorporated (QCOM, Earnings, Analysts, Financials): Engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. Market cap at $127.33B, most recent closing price at $75.43.

 


9. International Business Machines Corp. (IBM, Earnings, Analysts, Financials): Provides information technology (IT) products and services worldwide. Market cap at $196.75B, most recent closing price at $183.45.

 


10. Hewlett-Packard Company (HPQ, Earnings, Analysts, Financials): Hewlett-Packard Company offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Market cap at $57.06B, most recent closing price at $29.92.

 


11. AT&T, Inc. (T, Earnings, Analysts, Financials): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $171.02B, most recent closing price at $32.47.

 


12. BT Group plc (BT, Earnings, Analysts, Financials): Provides communications solutions and services worldwide. Market cap at $53.86B, most recent closing price at $68.83.

 


13. Shanda Games Limited (GAME, Earnings, Analysts, Financials): Engages in the development and operation of online games in the People's Republic of China. Market cap at $1.78B, most recent closing price at $6.66.

 


Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): DirecTV adds subscribers, misses on Q1 earnings Teaser (s): A DirecTV satellite dish sits on a roof in 2014 in New York City. (Andrew Burton, Getty Images). Satellite TV leader DirecTV (DTV) added 279,000 net new subscribers in the first quarter of 2015, including 60,000 in the United States, and those U.S. Source (s): USA TODAY DocumentDate (s): 40 minutes ago DocumentDate_raw (n): 1430832854000 Link (s): http://americasmarkets.usatoday.com/2015/05/05/directv-adds-subscribers-but-misses-on-q1-earnings/ DocumentKey (s): HTTPamericasmarkets.usatoday.com/2015/05/05/directv-adds-subscribers-but-misses-on-q1-earnings/ DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): European shares fall as Greek stocks slide Teaser (s): ... * Athens' ATG index down 4.4 pct worries over debt. * FTSEurofirst 300 falls, DAX down over 1 pct. * U.S. trade deficit rises. Source (s): Reuters DocumentDate (s): 44 minutes ago DocumentDate_raw (n): 1430832600000 Link (s): http://www.reuters.com/article/2015/05/05/markets-stocks-europe-idUSL5N0XW2JJ20150505 DocumentKey (s): HTTPwww.reuters.com/article/2015/05/05/markets-stocks-europe-idUSL5N0XW2JJ20150505 DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): JetBlue to Offer Amazon Movies, TV Shows on Flights Teaser (s): JetBlue Airways Corp. JBLU 0.95 % has partnered with Amazon.com Inc. AMZN 0.82 % to offer on-demand video streaming on flights starting later this year. Source (s): Wall Street Journal DocumentDate (s): 44 minutes ago DocumentDate_raw (n): 1430832600000 Link (s): http://www.wsj.com/articles/jetblue-to-offer-amazon-movies-tv-shows-on-flights-1430833041 DocumentKey (s): HTTPwww.wsj.com/articles/jetblue-to-offer-amazon-movies-tv-shows-on-flights-1430833041 DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] Headline (s): Disney kicks off big summer with big earnings Teaser (s): The Walt Disney Company (DIS) reported quarterly results that beat expectations on Tuesday with revenues of $12.5 billion. The earnings for the first three months of the year sent Disney stock up 2% to new all-time highs in early trading. Source (s): CNNMoney DocumentDate (s): 49 minutes ago DocumentDate_raw (n): 1430832321000 Link (s): http://money.cnn.com/2015/05/05/media/disney-2015-second-quarter-earnings/ DocumentKey (s): HTTPmoney.cnn.com/2015/05/05/media/disney-2015-second-quarter-earnings/ DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): UPDATE 2-Freddie Mac to hand $746 mln to US Treasury Teaser (s): (Adds comment by CEO, background). WASHINGTON May 5 (Reuters) - Government-controlled mortgage finance firm Freddie Mac on Tuesday said it will cut a check to the U.S. Source (s): Reuters DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1430830949000 Link (s): http://www.reuters.com/article/2015/05/05/usa-housing-idUSL1N0XW10N20150505 DocumentKey (s): HTTPwww.reuters.com/article/2015/05/05/usa-housing-idUSL1N0XW10N20150505 DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): Trade Gap in U.S. Swells to Six-Year High as Imports Surge Teaser (s): The U.S. trade deficit widened in March to the highest level in more than six years, fueled by a record surge in imports as commercial activity resumed at West Coast ports following a resolution to labor disputes. Source (s): Bloomberg DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1430829020000 Link (s): http://www.bloomberg.com/news/articles/2015-05-05/trade-deficit-in-u-s-swells-to-six-year-high-as-imports-surge DocumentKey (s): HTTPwww.bloomberg.com/news/articles/2015-05-05/trade-deficit-in-u-s-swells-to-six-year-high-as-imports-surge DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): Panera eliminates additives, joins healthy food trend Teaser (s): The difficult-to-pronounce preservative is on a lengthy list of ingredients that the restaurant chain has promised to eliminate from its food by 2016. Source (s): CNNMoney DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1430827875000 Link (s): http://money.cnn.com/2015/05/05/news/panera-eliminates-artificial-additives/ DocumentKey (s): HTTPmoney.cnn.com/2015/05/05/news/panera-eliminates-artificial-additives/ DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): Discovery profit beats on distribution revenue growth Teaser (s): (Reuters) - Discovery Communications Inc (DISCA.O), the owner of Animal Planet and the Discovery Channel, reported a better-than-expected quarterly profit, helped by growth in distribution revenue at its U.S. Source (s): Reuters DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1430827200000 Link (s): http://in.reuters.com/article/2015/05/05/us-discovery-results-idINKBN0NQ14320150505 DocumentKey (s): HTTPin.reuters.com/article/2015/05/05/us-discovery-results-idINKBN0NQ14320150505 DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): Wall St. set for lower open as trade data suggests GDP contraction Teaser (s): (Reuters) - U.S. stocks were poised to open lower on Tuesday, after two sessions of gains, as a surge in trade deficit in March suggested that economic growth contracted in the first quarter. Source (s): WHBL Sheboygan DocumentDate (s): 2 hours ago DocumentDate_raw (n): 1430826039000 Link (s): http://whbl.com/news/articles/2015/may/05/stock-futures-off-ahead-of-service-sector-trade-data/ DocumentKey (s): HTTPwhbl.com/news/articles/2015/may/05/stock-futures-off-ahead-of-service-sector-trade-data/ DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): Europe's Economic Growth Forecast Is Revised Up Teaser (s): PARIS - It may not be escape velocity yet, but the European economy is definitely picking up steam, an official forecast showed on Tuesday, as low oil prices, favorable foreign-exchange rates and central bank stimulus added momentum to a modest ... Source (s): New York Times DocumentDate (s): 4 hours ago DocumentDate_raw (n): 1430818199000 Link (s): http://www.nytimes.com/2015/05/06/business/international/european-union-economy-forecast.html DocumentKey (s): HTTPwww.nytimes.com/2015/05/06/business/international/european-union-economy-forecast.html DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] WSODIssue (s): |36276|72887506|205778 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Maybe Microsoft has a bright future after all Link (s): http://folionation.squarespace.com/news/2015/4/28/maybe-microsoft-has-a-bright-future-after-all.html Thumbnail (s): DocumentDate_raw (n): 1430254080000 DocumentDate (s): April 28, 2015 DocumentDate_smart (s): Apr 28, 2015 DocumentKey (s): 1107-290734296785735323225-5EMI5I7KC7NRTDURBR1AGLT5C0 ContentType (s): Article TrackingPixel (s): Teaser (s):

Microsoft may not be the it brand when it comes to computers, but the tech titan is staging a comeback.

Despite reporting lower licensing for Windows and Office, Microsoft (MSFT) is generating strength in other ways through growing sales of its server software and products, smartphones and tablets. The tech company’s stock shot up 10.5 percent on Thursday, April 23, after it released its third-quarter fiscal year 2015 earnings. Chances are good there’s more upside for the stock.

Sales for services and products related to the server market grew by 12 percent in the third-quarter. This increase offset the drop in Windows Original Equipment Manufacturer (OEM) licensing, which dropped 19 percent for the Pro version and 26 percent for the non-Pro Windows.

Hardware sales were strong by unit volume: Microsoft sold 8.6 million Lumia smartphones, which generated $1.4 billion in revenue. Surface tablet revenue grew 44 percent to $713 million.

Office 365, the cloud version of Microsoft Office, saw its subscriptions jump to 12.4 million. In the quarters ahead, investors should anticipate continued subscription revenue growth since the Office app has already reached 100 million in downloads. As users grow accustomed to quality apps like Outlook for email management and more features go up, sign-ups will likely rise

Thanks to the slow post-holiday months, the third quarter was a tough period for hardware sales. Yet, higher Surface sales suggest that Microsoft may win market share from Apple’s (AAPL) iPad. Surface has differentiating features from the rest of the tablets: its pen works very well with Office OneNote, and the tablet doubles as a laptop with a physical keyboard.

By comparison, Google (GOOG) isn’t really addressing the tablet market as effectively as it should. The last Nexus 7 refresh was in 2013, and the Nexus 9 is at the higher end of the consumer budget range. Further, Google Docs doesn’t have as nice a design as Office 365.

For now, Apple investors are showing little concern for competition from Microsoft. Apple’s stock is up over 50 percent in the last year:

Bottom line

Microsoft’s business is diversified. The company is shifting its revenue from software to cloud subscriptions. Hardware sales are growing by unit volume and revenue. The Surface refresh may appeal to a wider user base, which could mean higher sales. If Microsoft’s stock dips on investors’ profit taking (selling when a stock is high), it may be a good time to start buying shares.

Written by Chris Lau

Click on the interactive chart to view data over time. 

1. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $772.65B, most recent closing price at $132.65.

 

2. Google Inc. (GOOG, Earnings, Analysts, Financials): Builds products and provides services to organize information. Market cap at $189.20B, most recent closing price at $555.37.

 

 

3. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $388.54B, most recent closing price at $48.03.

 

 

 

(Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

11 (o): [object Object] WSODIssue (s): |45563793|68572657|73703934 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Is Wall Street done liking Facebook? Link (s): http://folionation.squarespace.com/news/2015/4/27/is-wall-street-done-liking-facebook.html Thumbnail (s): DocumentDate_raw (n): 1430156520000 DocumentDate (s): April 27, 2015 DocumentDate_smart (s): Apr 27, 2015 DocumentKey (s): 1107-290734296785735321471-47PDEKNJQTMUU54RL8RJT9S1BE ContentType (s): Article TrackingPixel (s): Teaser (s):

Facebook's earnings were pretty solid, but the stock has been falling since Thursday—what gives?

Facebook (FB) reported first-quarter earnings last week, and the social networking giant didn’t disappoint. User activity rose during the period, helping the company boost revenue by 41.6 percent year-over-year. So why have shares dipped since April 23?

During the first three months of the year, Facebook earned $0.42 per share on revenue of $3.54 billion. Revenue from mobile grew to 73 percent of ad revenue. Activity from mobile users also grew. Mobile MAUs was up 24 percent to 1.25 billion. 

Despite the growth, shares fell after Facebook released its earnings, probably due to investors' profit-taking (selling their Facebook shares to take advantage of the run-up). The stock is still pretty expensive, though, with a forward P/E of 31.17, which is higher than the S&P 500’s 18.50 and Weibo’s (WB) 27.26 but less than Twitter’s (TWTR) 63.29.

Investors might find Facebook's $228.9 billion valuation justified if they believe the company’s revenue and growth figures will keep up their pace in the next year and beyond.

Meanwhile, stock compensation was still high and GAAP (generally accepted accounting principles) earnings of $0.18 per share were down 28 percent from last year. GAAP income also fell to $933 million compared to $1.075 billion last year. After excluding share-based compensation and amortization of intangibles, non-GAAP income was higher in Q1 year-over-year.

Higher costs pose another risk for investors. In Q1, costs rose 57 percent to $1.7 billion. Much of the costs were due to stock compensation though higher marketing costs also contributed.

Facebook’s stock has performed very well for a while, but it may be time to exercise caution. Though purchases in Instagram and WhatsApp are proving successful due to strong usage, investments in virtual reality have yet to play out. Facebook remains a solid growth play, but investors who do not hold shares may want to wait for a drop before starting a position.

Written by Chris Lau

Click on the interactive chart to view data over time. 

1. Facebook Inc. (FB, Earnings, Analysts, Financials): Operates as a social networking company worldwide. Market cap at $228.96B, most recent closing price at $81.53.

 

 

2. Twitter Inc. (TWTR, Earnings, Analysts, Financials): Operates as a global platform for public self-expression and conversation in real time. Market cap at $33.26B, most recent closing price at $50.82.

 

 

3. Weibo Corporation (WB, Earnings, Analysts, Financials): Operates a social media platform for people to create, distribute, and discover Chinese-language content. Market cap at $3.49B, most recent closing price at $17.20.

 

 

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

12 (o): [object Object] WSODIssue (s): |4038937|36080611|197606|227524|231744 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Chipotle axes GMO ingredients from its menu Link (s): http://folionation.squarespace.com/news/2015/4/27/chipotle-axes-gmo-ingredients-from-its-menu.html Thumbnail (s): DocumentDate_raw (n): 1430156340000 DocumentDate (s): April 27, 2015 DocumentDate_smart (s): Apr 27, 2015 DocumentKey (s): 1107-290734296785735321466-5DISUQ37HUF77TN900GBG64QIR ContentType (s): Article TrackingPixel (s): Teaser (s):

GMOs are no longer available at Chipotle. But that's not the only healthy-ish shift happening in food today.

In a move that will make Food Babe happy and probably garner an eyeroll from Neil deGrasse TysonChipotle (CMG) announced Monday that it has removed all genetically modified ingredients from its menu. As The Wall Street Journal reports, this makes Chipotle the first major restaurant chain in the US to adopt a strict non-GMO stance. 

Chipotle's decision comes at a time when anti-GMO sentiment is spreading faster than Monsanto (MON) seeds. In 1999, according to a Gallup poll, only 27 percent of Americans thought genetically modified food was dangerous; as of 2014, 48 percent believed genetically modified foods "pose a serious health hazard."

Unlike the US, the EU heavily regulates genetically modified crops, though the European Commission ended a year-long block on imports last week when it authorized the import of 10 crops and two types of cut flowers. That's not to say that the EU is suddenly gung ho on GMO: Monsanto's maize MON810 is the only genetically modified crop being cultivated in the bloc. 

Chipotle's GMO-free menu isn't the only major shakeup happeining in the food space. McDonald's (MCD) is removing unfamiliar ingredients, including maltodextrin—a form of powdered starch—and sodium phosphates, from its grilled chicken sandwiches. Dunkin' Donuts (DNKN) is also trimming its list of ingredients and eliminating whitening agent titanium dioxide from its powdered doughnuts.

Pepsi (PEP) is ditching aspartame, an artificial sweetener, for sucralose aka Splenda, another artificial sweetener. And Panera Bread (PNRA) will be rid of artificial flavors, colors, preservatives and sweeteners by 2016.

McDonald's and Pepsi are revamping their menus in an attempt to fight declining sales. Dunkin' Donuts said its investors influenced the company's decision to stop using the whitener. And while Panera Bread has a history of voluntary changes—the Christian Science Monitor points out that the company posted calories on menu before it was mandatory—the latest move coincides with a growing conscientiousness when it comes to food quality.

Will these shifts help these companies boost sales? 

Click on the interactive chart to view data over time. 

1. Chipotle Mexican Grill Inc. (CMG, Earnings, Analysts, Financials): Develops and operates fast-casual, fresh Mexican food restaurants in the United States. Market cap at $19.79B, most recent closing price at $637.50.

Sales growth past 5 years at 22.00%.

Sales growth quarter over quarter at 20.40%.

 

2. Dunkin' Brands Group Inc. (DNKN, Earnings, Analysts, Financials): Operates, and franchises quick service restaurants worldwide. Market cap at $5.23B, most recent closing price at $54.03.

Sales growth past 5 years at 6.80%.

Sales growth quarter over quarter at 8.10%.

 

3. McDonald's Corp. (MCD, Earnings, Analysts, Financials): Operates as a foodservice retailer worldwide. Market cap at $94.70B, most recent closing price at $98.74.

Sales growth past 5 years at 3.80%.

Sales growth quarter over quarter at -11.10%.

 

 

4. Pepsico Inc. (PEP, Earnings, Analysts, Financials): Engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide. Market cap at $140.48B, most recent closing price at $95.17.

Sales growth past 5 years at 9.10%.

Sales growth quarter over quarter at -3.20%.

 

5. Panera Bread Company (PNRA, Earnings, Analysts, Financials): Operates, and franchises retail bakery-cafes in the United States and Canada. Market cap at $4.93B, most recent closing price at $184.36.

Sales growth past 5 years at 13.30%.

Sales growth quarter over quarter at 1.60%.

 

 (List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

13 (o): [object Object] WSODIssue (s): |4038937|83889|227524 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Repent! Avocado-geddon may be upon us Link (s): http://folionation.squarespace.com/news/2015/4/23/repent-avocado-geddon-may-be-upon-us.html Thumbnail (s): DocumentDate_raw (n): 1429818780000 DocumentDate (s): April 23, 2015 DocumentDate_smart (s): Apr 23, 2015 DocumentKey (s): 1107-290734296785735317565-1BJ2LPS96O3E9UF0R2OLC7EARU ContentType (s): Article TrackingPixel (s): Teaser (s):

Sorry, guys, the avocado—your favorite berry-you-didn't-know-was-a-berry—may be about to make itself scarce.

There are a lot of fun facts you could rattle off about avocados, both botanical and etymological. For example, it's a berry. Who knew. Its Nahuatl name, ahuacatl, means "testicle," since it grows in pairs. Post-Cortés, that word was mangled in a long game of Spanish telephone until it became the considerably less raunchy abogado, "lawyer"—although you're more likely to hear aguacate or palta, depending on where you happen to be. 

Then there are some not-so-fun facts. For one, 80 percent of the avocados in the US come from California, and California is pushing Dust Bowl status. And while it's no beef, which requires about 106 gallons of water per ounce to produce, the avocado is a thirsty foodstuff, requiring 9 gallons per ounce. 

Not that Latin America is picking up any of the slack. Peru's palta harvest, predicted to be a bumper crop, will be smaller than expected, and hail in Mexico means their aguacate haul might be meager too. 

For now, guacamole is still just an extra at Chipotle (CMG), but you've been warned. Frito-Lay higher-ups might be wringing their hands a bit, because no one wants a chip without guac anymore, but a loss to the division of PepsiCo (PEP) is unlikely to move the needle from an investor's perspective. Calavo Growers (CVGW), on the other hand, had better watch out. The company, which markets and distributes avocados, is up nearly 60 percent for the year, but clear, cloudless, rainless skies loom.

 

Click on the interactive chart to view data over time. 

1. Chipotle Mexican Grill Inc. (CMG, Earnings, Analysts, Financials): 1. Chipotle Mexican Grill Inc. (CMG): Develops and operates fast-casual, fresh Mexican food restaurants in the United States. Market cap at $19.91B, most recent closing price at $641.23.

 

 

2. Calavo Growers Inc. (CVGW, Earnings, Analysts, Financials): 2. Calavo Growers Inc. (CVGW): Calavo Growers, Inc. procures and markets avocados and other perishable commodities, and prepares and distributes processed avocado products in the United States and internationally. Market cap at $860.68M, most recent closing price at $49.75.

 

 

3. Pepsico Inc. (PEP, Earnings, Analysts, Financials): 3. Pepsico Inc. (PEP): Engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide. Market cap at $144.20B, most recent closing price at $97.28.

 

 

(List compiled by David Floyd. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.) 

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

14 (o): [object Object] WSODIssue (s): |36276|205778|260106|223839|264204 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Nuance: value play or trap? Link (s): http://folionation.squarespace.com/news/2015/4/23/nuance-value-play-or-trap.html Thumbnail (s): DocumentDate_raw (n): 1429806540000 DocumentDate (s): April 23, 2015 DocumentDate_smart (s): Apr 23, 2015 DocumentKey (s): 1107-290734296785735317229-7QT8TESQJQ0USH7UG7HRKMAH2F ContentType (s): Article TrackingPixel (s): Teaser (s):

The company behind Siri has struggled with low profitability. At low valuations, is it a compelling play or a trap?

Nuance Communications (NUAN) was once the rising star in the smart phone world. The speech recognition software firm supplied the engine that powered Apple’s (AAPL) Siri. But when shareholders realized the low profitability from its dealings from Apple, the stock responded. Nuance fell steadily from the $20 to $28 level and last closed at $14.26. Do shareholders have any hope?

Decent quarterly results

On February 5, Nuance announced first quarter earnings of $0.25 per share on revenue of $489 million. Both figures beat consensus estimates. Unfortunately, the firm did not demonstrate any meaningful growth nor did it supply a solid outlook.  In its prepared remarks, Nuance provided the following guidance:

·       Second-quarter revenue of $459 million to $475 million

·       Earnings of $0.22 to $0.26 per share

Both figures are below consensus, although not by much. Analysts had expected revenue of around $499.5 million on $0.27 per share.

For the fiscal year ending September 2015, Nuance thinks it will earn up to $1.18 per share.

New product

On April 13, Nuance announced PowerMic Mobile, making the firm a smartwatch app and health care software play.

Analysis

Nuance traded at $13.87 recently, which implies a forward P/E of just 11.75. This is inexpensive. The operational challenges Nuance facing are not insurmountable. If management progresses in improving performance, the stock could rebound.

At the current valuation, Nuance may attract a buyer, too. That the stock is down around 14 percent in the past year will not go unnoticed by a potential suitor. A company as big as Apple might show interest:

It’s also possible that a private equity firm will look at shaking up Nuance to boost the firm’s intrinsic value. Given that other firms in the mobile space like Microsoft (MSFT), OmniVision (OVTI) and Synaptics (SYNA) trade at much higher multiples, Nuance may eventually trade up to its potential, too.

It is not clear if Nuance is a value play or a trap. Until the firm executes more effectively, the stock is unlikely to move up.

Written by Chris Lau.

Click on the interactive chart to view data over time. 

1. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $749.18B, most recent closing price at $128.62.

 

2. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $352.64B, most recent closing price at $42.99.

 

 

3. Nuance Communications Inc. (NUAN, Earnings, Analysts, Financials): Provides voice and language solutions for businesses and consumers worldwide. Market cap at $4.64B, most recent closing price at $14.26.

 

 

4. OmniVision Technologies Inc. (OVTI, Earnings, Analysts, Financials): Designs, develops, and markets semiconductor image-sensor devices. Market cap at $1.56B, most recent closing price at $26.82.

 

 

5. Synaptics Inc. (SYNA, Earnings, Analysts, Financials): Develops and supplies custom-designed human interface solutions that enable people to interact with various mobile computing, communications, entertainment, and other electronic devices. Market cap at $3.29B, most recent closing price at $89.54.

 

 

(List compiled by Chris Lau. Monthly returns sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

15 (o): [object Object] WSODIssue (s): |42709|1607179|100104|215985 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Nokia nabs Alcatel-Lucent Link (s): http://folionation.squarespace.com/news/2015/4/22/nokia-nabs-alcatel-lucent.html Thumbnail (s): DocumentDate_raw (n): 1429717320000 DocumentDate (s): April 22, 2015 DocumentDate_smart (s): Apr 22, 2015 DocumentKey (s): 1107-290734296785735315712-1UQGKHTJTQK9U0H4ELRP32IIFI ContentType (s): Article TrackingPixel (s): Teaser (s):

Nokia has announced a planned $16.6 billion merger with Alcatel-Lucent. 

Nokia (NOK) just made a savvy acquisition. Previously known as a smart phone maker, the map software and networking hardware company is boosting its hardware division by merging with Alcatel-Lucent (ALU). The merger values Nokia €15.6 billion, around $16.6 billion. 

Aside from a brief rally that boosted share prices to $8.30, the downtrend in Nokia's stock is clear:

The market will take its time digesting the merger, which Nokia boasts will “create an innovation leader in next generation technology and services for an IP connected world.” There are risks in the short term. Most importantly, Nokia does not expect the merger will close until the first half of 2016, meaning neither company will not realize any cost savings until then.

Quarterly results due next month

Strong quarterly results might help these companies' shares. Nokia reports on May 5, Alcatel-Lucent on May 7. Either firm could miss expectations, as management may have been distracted in the last quarter negotiating the merger.

Another buyer unlikely

It is unlikely another buyer will emerge for Alcatel-Lucent. Cisco Systems (CSCO) already made an acquisition in the virtual appliance software space. Earlier this month, it announced it would buy Embrane, a software maker for load balancing and firewall solutions.

Ericsson Telephone Co. (ERIC) is another unlikely buyer. The firm’s market cap is $40 billion, but it already has a lead over both Nokia and Alcatel-Lucent in terms of market share.

Alternative investments

Investors might look for other alternatives to Nokia. These include Motorola Solutions (MSI), Juniper Networks (JNPR), Ciena Corp. (CIEN) and ZTE Corp. (ZTCOY), a Chinese firm.

Written by Chris Lau.

Disclosure: Author holds shares of Alcatel-Lucent

Click on the interactive chart to view data over time. 

1. Alcatel-Lucent (ALU, Earnings, Analysts, Financials): Provides products, solutions, and transformation services that enable service providers, enterprises, governments, and strategic industries to deliver voice, data, and video communication services to end-users worldwide. Market cap at $11.68B, most recent closing price at $4.03.

 

 

2. Cisco Systems Inc. (CSCO, Earnings, Analysts, Financials): Designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. Market cap at $146.45B, most recent closing price at $28.69.

 

 

3. Ericsson (ERIC, Earnings, Analysts, Financials): Provides communications equipment, professional services, and multimedia solutions to mobile and fixed networks operators worldwide. Market cap at $42.18B, most recent closing price at $12.79.

 

 

4. Nokia Corporation (NOK, Earnings, Analysts, Financials): Provides Internet and digital mapping and navigation services worldwide. Market cap at $29.24B, most recent closing price at $7.84.

 

 

(List compiled by Chris Lau. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

*/ How will US data companies suffer in the wake of the Snowden leaks?

How will US data companies suffer in the wake of the Snowden leaks?

The NSA has been spying on US data companies and they’re losing business abroad. But how much?

Just over a year ago, the Edward Snowden leaked classified NSA documents detailing the agency’s PRISM program, which tapped directly into data of several American companies.

In its data collecting, PRISM targeted Verizon (VZ), Microsoft (MSFT), Yahoo! (YHOO), Google (GOOGL), PalTalk,YouTube (owned by Google), AOL (AOL), Skype (owned by EBAY), and Apple (AAPL).

In the time since, American tech companies have had growing fears that their lack of data security would besmirch their image abroad. And, not surprisingly, it turns out they were right to feel this way. 

According to a recent report from the New America Foundation, there is indeed a growing perception abroad that US-based cloud storage is unsafe—such a prevalent perception, in fact, that the report predicts that PRISM will “cost the cloud computing industry from $22 to $180 billion over the next three years.” It details how, according to a survey in January, 25% of surveyed British and Canadian businesses were pulling their data out of the United States. Susceptible American storage services include Amazon Web Services (AMZN), Dropbox and Microsoft’s Azure. Even more alarming, many such companies were eager to move their data elsewhere, even if it meant poorer performance.

The United States hosts the Goliaths of global cloud computing, and overseas companies that have been chomping at the bit to gain a chunk of cloud computing market share see this distrust as a marketing opportunity. Some of these foreign storage providers, like F-Secure—whose services are now being offered by companies like AT&T (T) and British Telecommunications (BT)—are touting the privacy of their storage. Companies like F-Secure have their data centers in the EU, where privacy laws aren’t as lax as in the US. 

To try to level the playing field, the European Commission is developing a public cloud infrastructure for public and private use for the region. What’s more, big Chinese companies like Chinanet (CNET), Shanda (GAME),Kingsoft (OTCMKTS: KSFTF), Alibaba (will have US IPO in 2014) and Huawei are investing in locally based cloud technology as well.

According to the New America report, several US-based tech companies, including Qualcomm (QCOM), IBM(IBM), Hewlett-Packard (HPQ) and Microsoft have reported a decline in sales in China in the time since the leaks. The German government is reportedly severing its contracts with Verizon because of their cooperation with the NSA, and in December Brazil gave a $4.5 billion contract to Saab (OTCMKTS:SAABF) over Boeing (BA), with the NSA taking the blame. The issue reaches down to smaller businesses as well, like Servint, a webhosting company that “reported in June 2014 that international clients have declined by as much as half … since the leaks began.” 

In the US, the future data security looks somewhat promising in light of new senate legislation that would better regulate bulk data collection by the NSA, although many feel the reform bill is only a first step toward security. While proponents of the bill hope that it will help restore trust in the Internet in the US, it would likely take some time to restore international confidence in US-based services.

Will greater proportions of the data market pull out of the US and take their business overseas? How well will US companies withstand losses? Take a look at the tools below to begin your analysis, and let us know what you think in the comments.

Click on the interactive chart to view data over time. 

<p>Your browser does not support iframes.</p>

 

1. Verizon Communications Inc. (VZ, Earnings, Analysts, Financials): Provides communication services. Market cap at $132.54B, most recent closing price at $46.23.

 

2. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $313.81B, most recent closing price at $37.69.

 

3. AOL, Inc. (AOL, Earnings, Analysts, Financials): Operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. Market cap at $3.45B, most recent closing price at $43.70.

 

4. eBay Inc. (EBAY, Earnings, Analysts, Financials): Provides online marketplaces for the sale of goods and services, as well as other online commerce, platforms, and online payment solutions to individuals and businesses in the United States and internationally. Market cap at $72.74B, most recent closing price at $56.30.

 

5. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $472.72B, most recent closing price at $527.55.

 

6. Amazon.com Inc. (AMZN, Earnings, Analysts, Financials): Operates as an online retailer in North America and internationally. Market cap at $161.82B, most recent closing price at $351.78.

 

7. Boeing Co. (BA, Earnings, Analysts, Financials): Engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. Market cap at $97.88B, most recent closing price at $129.59.

 

8. QUALCOMM Incorporated (QCOM, Earnings, Analysts, Financials): Engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. Market cap at $127.33B, most recent closing price at $75.43.

 

9. International Business Machines Corp. (IBM, Earnings, Analysts, Financials): Provides information technology (IT) products and services worldwide. Market cap at $196.75B, most recent closing price at $183.45.

 

10. Hewlett-Packard Company (HPQ, Earnings, Analysts, Financials): Hewlett-Packard Company offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Market cap at $57.06B, most recent closing price at $29.92.

 

11. AT&T, Inc. (T, Earnings, Analysts, Financials): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $171.02B, most recent closing price at $32.47.

 

12. BT Group plc (BT, Earnings, Analysts, Financials): Provides communications solutions and services worldwide. Market cap at $53.86B, most recent closing price at $68.83.

 

13. Shanda Games Limited (GAME, Earnings, Analysts, Financials): Engages in the development and operation of online games in the People's Republic of China. Market cap at $1.78B, most recent closing price at $6.66.

 

Analyze These Ideas: Getting Started

Read descriptions for all companies mentionedAccess a performance overview for all stocks in the listCompare analyst ratings for the companies mentionedCompare analyst ratings to annual returns for stocks mentionedReal-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)

Dig Deeper: Access Company Snapshots, Charts, Filings

Verizon Communications Inc.(VZ, Chart, Download SEC Filings)Microsoft Corporation(MSFT, Chart, Download SEC Filings)AOL, Inc.(AOL, Chart, Download SEC Filings)eBay Inc.(EBAY, Chart, Download SEC Filings)Apple Inc.(AAPL, Chart, Download SEC Filings)Amazon.com Inc.(AMZN, Chart, Download SEC Filings)Boeing Co.(BA, Chart, Download SEC Filings)QUALCOMM Incorporated(QCOM, Chart, Download SEC Filings)International Business Machines Corp.(IBM, Chart, Download SEC Filings)Hewlett-Packard Company(HPQ, Chart, Download SEC Filings)AT&T, Inc.(T, Chart, Download SEC Filings)BT Group plc(BT, Chart, Download SEC Filings)Shanda Games Limited(GAME, Chart, Download SEC Filings)

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

Articles