Author Archives: Scalper1

Tesla Motors Better Watch Out For This Competitor

Loading the player… Luxury sports-car maker Aston Martin could soon be giving Tesla Motors ( TSLA ) a run for its money. This week, privately held Aston Martin said it’s partnering with China’s LeEco and California-based e-car developer Faraday Future to make its all-electric RapidE sports sedan concept a reality. The company says the car will head into production in 2018. Last September, Tesla CEO Elon Musk said his company’s $35,000 mass-market version, the Model 3, will begin production in about two years — that’s fall 2017. The Model 3 will be unveiled on March 31, with pre-orders starting then. At the low end of the market, Tesla is set to compete with General Motors ( GM ). GM’s Chevy Bolt is entering production in late 2016. Other companies, from BMW to Volkswagen ( VLKAY ), have their own all-electric models. Tesla shares fell 0.5% in below-average volume Friday, after reversing lower in the last session. The stock is now about 42% below its July high, reached just before the stock failed to break out of a cup-with-handle base. Meanwhile, Tesla chip supplier Nvidia ( NVDA ) gapped up to retake its 50-day line in Thursday’s session after issuing view-topping quarterly results late Wednesday. Nvidia shares climbed 1.7% Friday as they work on a base with a 34.04 buy point. Mobileye ( MBLY ), another Tesla tech partner, reports its quarterly results next Wednesday. Analysts expect the bottom line to jump 133%. Mobileye is trying to come off of a recent bottom near 23, trading 55% off of its peak reached last August. Mobileye rose 2% intraday Friday.

Yahoo Sets Panel To Seek Deals; Verizon Says No To ‘Falling Knife’

Yahoo ’s ( YHOO ) board on Friday formed a committee of independent directors to entertain offers for its core Internet business, if they come. One of the prospective buyers , Verizon Communications ( VZ ), this week said it does not want to “catch a falling knife,” referring to the state of Yahoo’s business. Private equity firms are said to be interested in Yahoo, but IAC/InterActiveCorp ( IAC ) has signaled it’s not in the running. Aside from forming a committee of independent directors to explore possible transactions, Yahoo on Friday announced that it will bring in Goldman Sachs, JPMorgan and PJT Partners as financial advisors, along with law firm Cravath, Swaine & Moore. Yahoo stock was up 2.5% in midday trading in the stock market today , near 30. Bloomberg reported earlier this week that activist investor Starboard Value, which has been pushing for changes, could wage a proxy fight at Yahoo. Yahoo dropped plans last year to spin off its stake in Alibaba Group ( BABA ). Executives have said they might create a separate company that would house Yahoo’s Internet business and its stake in Yahoo Japan, but a lot of options appear to be on the board for the struggling Internet company. Verizon has talked up its interest in buying some Yahoo assets “at the right price.” Verizon last June acquired AOL for $4.4 billion, including about $300 million in AOL debt. AOL’s Internet business had been improving, while Yahoo’s display advertising growth has slowed, but Yahoo has been focusing on mobile and other growth areas. UBS telecom analyst John Hodulik, in a research report Thursday, said Verizon seems in no rush, based on a meeting with AOL’s chief executive, Tim Armstrong. Armstrong told UBS that Verizon would need more information on the state of Yahoo’s business under due diligence, according to Hodulik’s report. “They’d have to start a process, share all the data regarding audience, distribution, monetization and talent,” Armstrong told UBS. “Everything at this point is theoretical. Assets with rapidly a growing number of users are very expensive. Even those with a stable number of users are expensive. That said, you don’t want to catch a falling knife. Hard to know until we get a look.”

Smartwatch Shipments Skyrocket In Q4, Passing Swiss Watches

Smartwatches surpassed Swiss watches in unit shipments for the first time in the fourth quarter, according to research firm Strategy Analytics. Global smartwatch shipments reached 8.1 million units in the December quarter, compared with 7.9 million Swiss watch shipments, Strategy Analytics reported Thursday. Shipments of smartwatches, led by the Apple ( AAPL ) Watch, surged 316% from 1.9 million in Q4 2014. Meanwhile shipments of Swiss watches fell 5% from 8.3 million in Q4 2014, the research firm said. “Global demand for Swiss watches is slowing down, and major players like Swatch ( SWGAY ) are struggling to find growth,” Strategy Analytics analyst Steven Waltzer said in a statement. Strategy Analytics Executive Director Neil Mawston concurred. “The Swiss watch industry has been very slow to react to the development of smartwatches,” Mawston said in a statement. “The Swiss watch industry has been sticking its head in the sand and hoping smartwatches will go away. Swiss brands, like Tag Heuer, accounted for a tiny 1% of all smartwatches shipped globally during Q4 2015, and they are long way behind Apple, Samsung and other leaders in the high-growth smartwatch category.” Smartwatches are growing rapidly in North America, Western Europe and Asia, the research firm said. Apple Watch captured 63% of the global smartwatch market in the fourth quarter, followed by Samsung with 16%. “Apple and Samsung together account for a commanding eight in 10 of all smartwatches shipped worldwide,” Strategy Analytics analyst Cliff Raskind said in a press release. Wall Street analysts estimate that Apple sold 4.9 million units of Apple Watch in the December quarter . Strategy Analytics estimates that Apple shipped 5.1 million units of Apple Watch in Q4. Apple is expected to unveil new Apple Watch software and wristbands at a media event next month. At the same event, Apple is likely to unveil a new 4-inch iPhone 5SE and iPad Air 3, according to 9to5Mac . It’s unknown when Apple will release a second-generation Apple Watch. But some are speculating that it could be soon because retailers are discounting many current Apple Watch models, presumably to clear out older inventory. The Apple Watch is being discounted by $100 at Best Buy ( BBY ), Target ( TGT ) and other stores. The entry-level Apple Watch Sport model is selling for $249, 29% off the regular price of $349. Image provided by Shutterstock .