Category Archives: oud

Stocks Rally as Tech and Financial Stocks Outperform

The Dow was set to close at its highest levels in six days as investors’ appetite for banking and technology stocks was rekindled by expectations for higher interest rates and strength in component stocks Apple ( AAPL ) and

Red Bull Gives GoPro Wings, But Camera Maker Still Low-Flier

GoPro ( GPRO ) stock soared as much as 8.9% Tuesday, after the maker of wearable action cameras announced a multiyear global partnership with energy drink maker Red Bull. GoPro stock was up 5%, near 9.75, in late-afternoon trading on the stock market today . But the stock is still down 46% this year, and it has a lowest-possible IBD Relative Strength Rating of 1, meaning it’s in the bottom 1% of stocks for performance in the past 12 months. The partnership includes content production, distribution, cross-promotion and product innovation, the companies said in a press release . As part of the deal, privately held Red Bull will receive equity in GoPro, and GoPro will become Red Bull’s exclusive provider of point-of-view imaging technology for capturing video during Red Bull sporting events and media productions. “This partnership is very strategic for GoPro,” GoPro founder and CEO Nick Woodman said in a statement. “While we’ve worked closely for many years, as official partners we’ll be able to more effectively help one another execute our shared vision and scale our respective businesses.” GoPro went public at a price of 24 in June 2014 and reached as high as 98.47 in October 2014. But shares have fallen on declining sales and concerns about market saturation and lower-cost competition in the action camera market. Red Bull will receive less than 1% equity in GoPro, or about 1 million shares, Piper Jaffray analyst Erinn Murphy said in a research report. “While this extends the consumer impressions of the brand globally, we believe GoPro still is battling some challenges with reinvigorating unit sales of its capture devices,” Murphy said. “On the heels of the delayed drone launch, tepid consumer demand for action camera products over the last few quarters and a soft Q2 guide from Best Buy ( BBY ) this morning (14% of GoPro sales), we are maintaining our underweight rating” on GoPro. GoPro’s partnership with Red Bull will run for 3-1/2 years. As an exclusive partner, GoPro also will become Red Bull’s aerial camera partner, a role previously filled by drone competitor DJI, Murphy said. GoPro is scheduled to launch its Karma flying-camera drone in time for the holiday shopping season. Chinese consumer electronics manufacturer Xiaomi is expected to introduce its first drone on Wednesday. Xiaomi’s Mi Drone is expected to cost about $610, more than 20% below a comparable product from market leader DJI, Bloomberg reported Tuesday . The Mi Drone also will record ultra high-resolution 4K video. RELATED: Best Buy Latest Retailer To Disappoint, Gives Soft Profit Outlook Drone Market Positive For AeroVironment, Not GoPro, Piper Says .

Amazon’s Push Into Business E-Commerce An $18 Billion Opportunity?

Amazon ( AMZN ) is pushing deeper into business-to-business e-commerce, which one analyst estimates could add $18 billion in company revenue by 2020. The B2B unit, Amazon Business , began as Amazon Supply in 2012. The initiative was rebranded in April 2015 and Amazon — which posted 2015 revenue of $107 billion — recently indicated it reached more than $1 billion in annual sales, with 300,000 customers. Bank of America Merrill Lynch analyst Justin Post estimates Amazon Business will reach gross merchandise volume of $3.5 billion this year, resulting in revenue of $3 billion. He anticipates GMV of $8 billion next year and revenue of $6.4 billion. By 2020, estimates Post, Amazon will hit GMV of $25 billion and $18.6 billion in revenue. “Based on recent management comments, Amazon Business appears to be ready for prime time, and we wouldn’t be surprised if Amazon invests in marketing to raise awareness as Amazon’s procurement systems improve,” said Post in a research note. According to market research firm Frost & Sullivan, the U.S. B2B market is expected to reach $1 trillion in sales by 2020, and $6.7 trillion globally. “We think B2B provides significant runway for growth, which could help Amazon sustain its growth rates and premium valuation for many years,” wrote Post. He has a buy rating on Amazon stock, and a price target of 840. Amazon stock was near 705, up more than 1%, in afternoon trading in the stock market today , after touching a record high above 722 on May 12. It’s an IBD Leaderboard stock. Amazon Business sells a broad line of goods, such as office supplies, tools, industrial equipment, tractor equipment and office products. Competitors in the B2B e-commerce sector include Staples ( SPLS ), HD Supply Holdings ( HDS ), Office Depot ( ODP ), Grainger ( GWW ) and Fastenal ( FAST ).