Tag Archives: aapl

Facebook, Amazon Are Trying To Knock Down Google By Doing This

Loading the player… Amazon ( AMZN ) last week announced a YouTube-like product called Amazon Video Direct, and now Facebook ( FB ) is reportedly looking to launch its own video-centric service. According to a New York Post report over the weekend, the social media giant is “searching for fresh ways to work with the music industry.” Facebook confirmed it’s testing the use of pictures and videos in a slideshow format accompanied with music for a product called “Slideshow.” The product could potentially lure music video lovers and video creators away from YouTube. Shares are falling 1.1% to 118.44 in heavy volume, nearing the 117.09 buy point it initially cleared in the wake of its estimate-beating quarterly earnings report. IBD’s Take: Get a detailed objective analysis of Facebook and Amazon stocks, and how they stack up vs. rivals at IBD Stock Checkup Facebook came under fire last week after reports accused the influential site of bias against conservative stories in its Trending section. CEO Mark Zuckerberg is meeting with conservative leaders this week over the matter. Meanwhile, Google owner Alphabet ( GOOGL ) is finding support at its 200-day line, an area the stock was able to retake just recently, as it edged 0.6% higher intraday. The stock is still struggling after an attempted breakout past a cup-with-handle buy point failed in the wake of Alphabet’s quarterly report. Alphabet briefly became the largest publicly traded company last week but Apple is now back on top. Apple ( AAPL ) shares are up 3.4% in big volume on news that Warren Buffett took a $1 billion stake in the first quarter, rebounding from their trip below the 90 price level intraday Thursday. The stock is now about 29% below its all-time high reached in April of 2015. And Amazon is falling a fraction in quick turnover as it looks to hold above the 700 price level. Shares are extended 17% past a cup-with-handle buy point cleared not too long before Amazon’s quarterly report.

Federal Dig Snags Lam’s KLA Buy; Will China Cry Antitrust?

Chinese, Japanese and South Korean regulators could gum up Lam Research ‘s ( LRCX ) attempt to buy KLA-Tencor ( KLAC ) by following in the footsteps of the U.S. Department of Justice, which is asking for more information on the proposed merger, an analyst said Monday. Late Friday, the companies said the DOJ had sent a “second request,” digging deeper into Lam Research’s $10.6 billion plan to acquire KLA-Tencor. Only 2%-4% of merger proposals get a second request, Semiconductor Advisors president Robert Maire says. Of those, he says about a third go through as planned but the other two-thirds either get challenged by the DOJ or get a consent decree, which is approval with conditions. In the Lam-KLA deal, the likely concerns revolve around antitrust. Together, the companies would be close to matching the market cap of  Applied Materials ( AMAT ), which is No. 2 among makers of chip manufacturing equipment, behind ASML ( ASML ). Also, together they could pressure etch pricing for major players like Intel ( INTC ) and Taiwan Semiconductor Manufacturing ( TSM ), the latter an Apple ( AAPL ) supplier. Tokyo Electron and Hitachi ( HTHIY ), which compete against Lam in etch, might oppose having KLA continuing to inspect their tools and processes. “While not good news, a second request is certainly not a death sentence for the merger, but at the very least (it) means more time and money and scrutiny to get approval,” Maire wrote in a research note. The 30-day clock for DOJ approval has now been reset. ‘Kitchen Sink Of Information’ In midday trading on the stock market today , Lam Research and KLA-Tencor stocks were down nearly 2% and 1.4%, respectively, both near three-month lows. IBD’s 34-company Electronic Semiconductor-Equipment industry group was down a small fraction midday Monday. Maire says the DOJ could “ask for the kitchen sink of information.” “The (second request) is not just a simple test of overlapping product lines,” he wrote. “It looks at things like market concentration and anti-competitive issues. (Lam-KLA) would certainly have a large concentration of the overall market.” The chip industry is most concerned about KLA’s standing as an “impartial arbiter” of others’ tools, he says. “Will Lam dep and etch tools get an unfair advantage? An early look at results? A more complete look?” Maire asked. “(It’s) kind of a lot like insider trading.” Lam and KLA already have the go-ahead from Germany, Ireland, Israel and Taiwan, but they still needs a slew of other foreign approvals. This DOJ action can “snowball into a problem” if it becomes too costly, Maire says. Applied Materials and Tokyo Electron called off their merger in the face of strong regulator scrutiny. DRAM Slowdown Hits Lam The request further delays the merger’s close, Needham analyst Y. Edwin Mok noted in a research report, saying he expects the deal to close in Q4, as opposed to the companies’ target for Q3. Western Digital ( WDC ) closed its $19 billion SanDisk acquisition last week, a merger that was announced within hours of the Lam-KLA match-up. Neither Mok nor Cowen analyst Timothy Arcuri worry about the Lam-KLA deal getting approval, however. In his report, Arcuri called the second request “more procedural in nature.” “There is no overlap here, and certain big customers have been pushing these companies together for several years, especially around the issue of yield ramp in 3D,” he wrote. “We continue to see the deal closing in (the) August time frame.” Arcuri cut his price target on Lam stock to 85 from 93. Lam and rival ASML recently indicated minor timing delays for DRAM (dynamic random-access memory)-related shipments, he wrote. Lam has guided shipments up for the second half of the year, but Arcuri isn’t that confident. “Weakness for Lam seems focused on the memory side, with some signs of a less aggressive 3D Nand (flash) shipment cadence to Toshiba, seemingly due more to capital constraints at this customer rather than any fundamental change in the 3D Nand ramp itself,” he wrote. But Samsung, SK Hynix, Micron ( MU ) and Intel Dalian haven’t experienced any mirrored slowdown, he wrote.

Google Worries Mount Over EU Antitrust Fine, Oracle Case Outcome

The European Commission may hit Alphabet ‘s ( GOOGL ) Google with a $3.4 billion fine as early as June on grounds that the U.S. Internet giant favors its own shopping service in Internet searches. The European Union’s biggest antitrust fine to date was $1.45 billion, against chipmaker Intel ( INTC ) in 2009. The EU in 2013 also fined Microsoft ( MSFT ) $730 million for failing to respect an antitrust settlement with regulators. The most Google could be fined would be 10% of annual revenue under EU law, which would be roughly double the $3.4 billion fine. Google posted revenue near $75 billion in 2015 and reported $75.3 billion in cash, cash equivalents and marketable securities in its Q1 earnings release. The Sunday Telegraph first reported the antitrust fine. Google has not commented. The EU’s European Commission (EC) regulators in recent years have investigated other U.S. companies — including Amazon.com ( AMZN ), Facebook ( FB ) and Apple ( AAPL ) — over antitrust and privacy issues. If the EU fines Google, it would put U.S. regulators in the spotlight. The Federal Trade Commission in 2013 ended an investigation into whether Google abused its dominance in the Internet search market without bringing charges. The EU has opened up a separate probe involving Google’s Android smartphone software. Meanwhile, a copyright infringement case involving Oracle ( ORCL ) and Google is heading into its second week. 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. “If the EC does issue the ruling, Google is required to comply with the nondiscrimination ruling even while pursuing a possible court appeal, which could take three to five years,” said Paul Gallant, an analyst at Guggenheim Partners, in a research report. “This is not well understood by investors. “In addition, if Google refuses to comply — or if its revisions are deemed inadequate — it can be subject to an ongoing noncompliance fine  of up to 5% of its global annual revenues, pro-rated daily.” Alphabet stock was flat in early trading, near 724. Alphabet stock broke out of a cup-with-handle base at a 777.41 buy point on April 14, but it is now near the 7% to 8% decline where selling shares is recommended.