Tag Archives: technology

Amazon Vs. Alibaba: Cloud Computing & Infrastructure Growth

Online retail giants Amazon ( AMZN ) and Alibaba ( BABA ) have both seen massive growth in their cloud computing businesses over the past few years. Both Amazon Web Services (AWS) and Alibaba’s cloud computing and infrastructure segments have outpaced

Apple Supplier Broadcom: ‘Multiple Ways To Win’ On iPhone 7 Gains

Apple ( AAPL ) supplier Broadcom ( AVGO ) likely gained another 20% in iPhone 7 content on top of continued increases in Samsung Galaxy smartphones, giving investors “multiple ways to win,” Credit Suisse analyst John Pitzer said Thursday. Broadcom is slated to report Q2 earnings on June 2 after the market close. Pitzer expects in-line Q2 sales, but he sees a “significant EPS cushion” on cost-cutting and synergies related to Broadcom’s merger with the former Avago. In February, Avago completed its $37 billion acquisition of Broadcom, with the merged company taking the Broadcom name, in a deal the companies said gives the combined entity an enterprise value of $77 billion. For Q2, the consensus of 30 analysts polled by Thomson Reuters expects Broadcom to report $3.55 billion in sales and $2.38 earnings per share minus items, up 116% and 12%, respectively, vs. the year-earlier quarter. On Wednesday, fellow Apple supplier Analog Devices ( ADI ) reported year-over-year sales declines for fiscal Q2 and guided to another 5% sales dip for its July quarter. Pitzer expects Broadcom’s July-quarter sales view to likewise disappoint. But, like Analog Devices, Broadcom expects to grow its iPhone 7 content . Three months ago, CEO Hock Tan said Broadcom’s radio-frequency (RF) content in smartphones has increased by 20% every year, and that this year will be no exception. Tan’s view came before Apple reported its first-ever decline in iPhone sales, occurring in the March quarter. Pitzer sees Broadcom guiding to $3.39 billion in fiscal Q3 sales, below the consensus view for $3.72 billion. But he boosted his EPS-minus-items view to $2.64 from $2.51, matching the consensus model. For 2016 and 2017, he expects $11.16 and $12.86 EPS ex items, respectively. Wireless sales — including sales to Apple — have declined to 25% of total revenue from 50%. Less volatile data center sales now account for half of Broadcom’s revenue, he wrote. “Broadcom’s portfolio of businesses is significantly dampening the impact of any single headwind,” he wrote in a research report. “Broadcom can weather ‘isolated storms’ while maintaining the integrity of EPS upside.” Pitzer reiterated an outperform rating and a 180 price target on Broadcom stock. Broadcom shares were down 1%, near 142, in afternoon trading on the stock market today . RF rivals Skyworks Solutions ( SWKS ) and Qorvo ( QRVO ) were down a respective 1.4% and 0.4%. The trio fell amid fresh reports examining the effect slowing smartphone sales will have on chipmakers.

Amazon In Trouble? How Google Aims To Outsmart Alexa With Home

Loading the player… Alphabet ( GOOGL )-owned Google has unveiled its Google Home device, a virtual assistant designed to answer questions and complete tasks, geared to take on the increasingly popular Amazon ( AMZN ) Echo. The Google assistant made its debut at Alphabet’s developer conference Wednesday, after Consumer Intelligence Research Partners said last month that Amazon sold 3 million $180 Echo devices in less than two years on the market. Google is trying to position Home as a device with even more artificial intelligence capabilities, with the help of its own search platform built into the device. Google Home can change colors, and the company says it also has a learning algorithm to keep conversations going and get to know you better over time. The speaker won’t be released until the fall, and the company has yet to share a price tag. Fire TV Stick Vs. Chromecast But can Home overtake Echo? If we look at two other competing devices from the companies, the Amazon Fire TV Stick and Google Chromecast, the two were virtually tied with 22% of streaming media player sales in 2015, according to a Parks Associates report out Tuesday. The Apple ( AAPL ) TV, which captured 20% of sales last year, is Apple’s closest thing to a virtual assistant, with Siri voice commands. Amazon, Google and Apple aren’t the only ones focusing on making “smarter” products. Facebook ( FB ) has been testing a virtual assistant named M built into its Messenger app. And Microsoft ( MSFT ) recently unveiled a “Magic Mirror,” which uses facial recognition to determine your mood and which can display the weather, time, news and more. Chart Analysis Amazon breached its 10-day line Thursday morning after finding support there on Wednesday, but was little changed by the afternoon. Shares are 3% below their recent high and extended about 16% past a cup-with-handle buy point cleared a little over a month ago. Alphabet is breaching support at its 200-day line, falling 1%. Shares are 11% below their February peak and 8% below a cup-with-handle buy point from which the stock tried to break out before earnings. Apple is 29% below its all-time high reached over a year ago. Shares have suffered severe technical damage over that time and were dropping 0.5% Thursday. Facebook is dropping back below buy range from a cup-with-handle base buy point that it broke out of after an estimate-beating quarterly earnings report, slumping 0.7%. The stock is 3% below its recent high. Microsoft is dropping 1.2% after hitting resistance at the 200-day line on Wednesday. The stock is 11% below its December peak.