Goldman Sachs downgraded GoPro (GPRO) to Sell from Neutral this morning, joining Citi, which began coverage of the stock on Friday, with a recommendation to sell the stock. CHALLENGES: GoPro’s core action camera market is saturated, while its new drone, Karma, is “disappointing” and inferior to competing offerings, according to Goldman analyst Simona Jankowski. Meanwhile, the company has to cope with a new competitor, YI Technology, that’s selling similar products for $100 less, she stated. Additionally, GoPro’s operating expenditures have risen significantly in the last two years and it has taken a number of res...
Written by StockNews.com Snap Inc. (NYSE: SNAP) has seen…[significant] share price gains since its debut last week, but most of Wall Street isn’t buying it one bit. Over the weekend, Barron’s published a heavily bearish exposé, noting the company’s valuation simply isn’t supported by any fundamentals: Snap investors better be more patient than Snapchat users. The company’s shares look ridiculously valued after surging 59% to $27 from an initial public offering price of $17 on Wednesday, giving the company a market value of $37.8 billion. That’s a stunning 93 times its 2016 revenue of $405 million. The parent of Snapchat, a...
Factory orders beat the Econoday Consensus estimate of 1.1% by 0.1 percentage points but the good news stops there. Aircraft orders which have a very long lead time skewed the results higher. Strength in aircraft orders is masking what is not a favorable factory orders report where the January headline rose a nearly as-expected 1.2 percent. When excluding transportation equipment, orders rose only 0.3 percent. And when looking at core capital goods (nondefense ex-aircraft) the results turn decidedly weak, at a 0.1 percent decline for orders which points to softness ahead for related shipments. And shipments were already in contraction in Janu...
For investors seeking momentum, ELEMENTS DJ High Yield Select 10 ETN (DOD – Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 79.5% from its 52-week low price of $16.04/share. But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed: DOD in Focus This is an ETN option and provides investors pure play to the 10 highest dividend-yielding securities in Dow Jones Industrial Average in equal proportions. It charges investors 75 bps in annual fees and has amassed only $52.3 million in its asset base....
Stocks are a little shaky to start the week, my watch list is most filled with red stocks trading lower. Nonetheless, I have managed to put together a decent list of about eighty stocks that are worth paying close attention to this week. Trading My Watch List With any of these, the key is going to be to use tight stop-losses. The market has had a fantastic run since the election, and while it still may run higher, you can still profit from that by keeping the stop-losses on your positions tight. If the market does indeed rollover here, then you don’t lose the profits that you have earned over the last four-plus months of trading. Th...
Something historic, if largely unnoticed, took place at the end of 2016: China’s banking system surpassed that of the eurozone, becoming the world’s largest by assets, which according to the FT is a sign of both of the country’s increased influence in world finance and its reliance on debt to drive growth since the global financial crisis. It is also a confirmation that when it comes to interwoven, “Too Big To Fail” financial systems, nothing compares to China and that the onus is on Beijing to keep its banks viable and solvent at all costs. Chinese bank assets, frequently discussed here and which are also the basis for Ky...
As BMO delves closer into Apple Inc. (Nasdaq:AAPL) and its iPhone installed base while Barclays sings the praises of the recent preannouncement from Micron Technology, Inc. (Nasdaq:MU), one thing remains clear for both companies: good things await. For Apple, with a steady iPhone installed base and a refresh cycle surrounded by a lot of buzz, one analyst predicts both near-term and long-term success. For Micron, though pricing remains a grey cloud lingering in the back half of the year, another analyst sees the pre-release as a sign to stay bullish on the chip giant. Let’s explore: Apple’s Next Few Years to Bring Strong Growth BMO analy...
On Tuesday, the BEA released the second estimate of 4Q GDP. While the 1.9% headline number was uninspiring, the 6.6% decline in exports was the primary cause. Personal consumption expenditures rose 3%, helped by a very impressive 11.5% rise in durable goods purchases. A 9% uptick in residential building along with a 1.9 boost in equipment investment contributed to overall investment increasing 9%. As this following graph shows, the huge Q/Q drop in exports more than offset the positive contributions from personal spending and investment: Also, note that an export decline of this magnitude only occurred in 3 other quarters over the last 5 ye...
Currency Last High Low Daily Change (pip) Daily Range (pip) USD/JPY 113.92 114.14 113.56 15 58 USD/JPY Daily Failure to test the February high (114.96) undermines the recent advance in USD/JPY, with the pair at risk of facing further losses over the days ahead as risk sentiment abates; the Nikkei 225 highlights a similar dynamic as the benchmark equity index fails to test the 2017-high (19,698), and the dollar-yen exchange rate may share a similar fate as it struggles to extend the higher highs & lows from the previous week. Broader outlook for USD/JPY remains constructive as Chair Janet Yellen joins her colleagues and argues a Ma...