Category Archives: stocks

NetEase, Sina, Weibo Ready For China Earnings Closeup

Continuing a string of earnings reports from China Internet companies, NetEase ( NTES ), Sina ( SINA ) and Weibo ( WB ) are set to report first-quarter earnings after the close Wednesday. JD.com ( JD ), one of China’s largest Internet companies, posted mixed Q1 earnings early Monday and gave an outlook slightly short of views. Its shares were among many U.S.-traded techs that fell Monday after Chinese markets retreated overnight on renewed concerns about that nation’s economic recovery. JD, China’s largest online direct sales company, reported revenue of $8.4 billion, slightly above the consensus and up 48% in local currency year over year. But its Q2 guidance was slightly below consensus. China e-commerce giant Alibaba ( BABA ) reported fiscal Q4 earnings  last Thursday. Alibaba showed a 30% increase in revenue to $3.75 billion, beating the Wall Street consensus and marking the company’s highest growth rate in the past four quarters. China gaming company NetEase is expected to see earnings rise 55% in local currency to $2.29 a share, according to a poll by Thomson Reuters. Revenue is expected to jump 115% to $1.2 billion, year over year. NetEase stock, which is down 26% this year, was trading near 143.60, up 3%, during afternoon trading in the stock market today . NetEase is hitting resistance at its 50-day line Sina, which operates the largest Chinese-language Web portal, is expected to post a loss of 4 cents a share, swinging from a 4 cent profit year over year. Revenue is expected to rise 5% in local currency to $277.5 million. Sina stock, which hit a low this year of 39.58 on Feb. 11, was trading near 49.50, up 1%. Weibo, which operates a microblog site similar to Twitter ( TWTR ), is projected to show an 18% increase in revenue to $113.6 million. Weibo is projected to see earnings of one penny a share, vs. nearly break-even a year earlier. Weibo was a part of Sina before its IPO in 2014, and Sina remains a majority shareholder. Weibo this year hit a low of 12.09 on Feb. 21. Weibo stock was near 23.25, up 8%.

Google Has Raked In $21 Billion In Android Profit, Oracle Says

Alphabet ’s ( GOOGL ) Google has earned $21 billion in profit from more than 3 billion activations of Android-based smartphones, Oracle ‘s ( ORCL ) lawyer said in opening arguments in the second trial pitting the database maker against the Internet search giant. Oracle claims Google violated its copyright on parts of the Java programming language when it created the Android mobile operating system, now used in mobile phones worldwide. Oracle is seeking $8.8 billion in damages. Oracle lawyer Peter Bicks said Google has raked in $42 billion in revenue from Android-based smartphones, according to a Bloomberg report . Google “took a short cut, and it was at Oracle’s expense,” Bicks reportedly told the jury in San Francisco federal court. Oracle claims Google infringed on copyrights covering 37 Java application programming interfaces, or APIs — the critical shortcuts that allow developers to write programs to work across software platforms. Even if Google loses, analysts have noted its strong balance sheet. Google reported $75.3 billion in cash, cash equivalents and marketable securities in its Q1 earnings release. Android’s chief competition is Apple’s iOS software, used in iPhones and other Apple mobile devices. Unlike Apple ( AAPL ), Google has made Android open source and widely available to mobile phone makers, such as Samsung. Google says it should be able to use Java without paying a fee under the fair-use provision of copyright law. Oracle acquired Java when it purchased Sun Microsystems in 2010.

Apple ‘Gloom And Doom’ Has Reached ‘Extreme’ Level

Negative sentiment toward Apple ( AAPL ) stock has gone too far, Drexel Hamilton analyst Brian White said in a report Tuesday. “In our view, the ‘gloom and doom’ sentiment engulfing the Apple story has reached extreme levels and we believe the stock represents an exceptional value,” White said. He reiterated his buy rating on Apple stock with a price target of 185. “We continue to look forward to a new iPhone cycle with the iPhone 7 and new geographic opportunities (e.g. India), combined with longer-term opportunities that leverage its powerful ecosystem, iconic brand and deep financial resources,” White said. Still, White noted weakness in Apple’s supply chain in April, which is likely the result of the company’s planned $2 billion iPhone inventory reduction. Apple stock is down 12% year to date and down about 30% from its all-time high of 134.54, reached April 28, 2015. Apple was up 0.3% to near 93 on the stock market today . “We believe that Apple is extremely oversold,” White said. He predicted that the current quarter, Apple’s fiscal Q3, will mark a trough for sales and operating profit. He expects Apple’s financials to recover starting this fall with the iPhone 7 release. “In our view, the combination of a difficult year-over-year iPhone comparison and a tougher-than-expected macro environment are largely to blame for Apple’s recent challenges,” White said. “Moreover, the market gives Apple no credit for its expansive digital matrix across software, services and hardware that deliver a seamless experience for an installed base of 1 billion active devices.” Apple stock has been knocked down by worries about declining iPhone sales, a slowdown in China and a perceived lack of innovation. Apple’s last new product category was the Apple Watch smartwatch, which debuted in April 2015. Sales to date have been underwhelming. Apple Watch Study Finds Device Comes Up Short A yearlong study of Apple Watch early adopters by brand agency MBLM found users are conflicted about the wearable device. MBLM’s panel of Apple Watch users felt that the watch has not come close to achieving its potential and offers less value than they had hoped for. “The Apple Watch does not measure up for most people,” Mario Natarelli, MBLM’s managing partner, said in a statement . “For the device, which Apple claimed to be its most intimate, to be successful, we believe Apple needs to reach deeper and form stronger bonds with its users.” The biggest complaints about the Apple Watch include its dependence on the iPhone and lack of must-have applications. MBLM found little interest in the next-generation Apple Watch among its panel of users. “No one on the panel said that they would definitely purchase the next version of the Apple Watch,” the firm said. “Most feel that the updates will not be significant and the cost will not be worth it. However, some did mention that they might consider it if there is a trade-in program.” RELATED: When Tim Cook Gives A TV Interview, Apple Investors Should Beware How Many Watches Did Apple Sell Last Quarter?