Trading the Uber and Lyft IPOs

Normally, individual investors have difficulty getting to hot IPOs. An IPO is an initial public offering. It’s when a company sells stock to the public. Sometimes, demand for the stock exceeds supply and that creates a hot IPO which is one that many investors wish they could buy into. Among the hot IPOs expected this year are offerings from the ride share companies Uber and Lyft. Uber could be worth more than $120 billion, according to experts, while Lyft could trade with a value of about $25 billon. But many of the gains will go to company insiders and early investors. When Uber and Lyf...
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Here’s Why Amazon Paid No Income Taxes for 2018

Amazon, according to the Institute on Taxation and Economic Policy, “nearly doubled its profits to $11.2 billion in 2018 from $5.6 billion the previous year and, once again, didn’t pay a single cent of federal income taxes. The company’s newest corporate filing reveals that, far from paying the statutory 21 percent income tax rate on its U.S. income in 2018, Amazon reported a federal income tax rebate of $129 million. For those who don’t have a pocket calculator handy, that works out to a tax rate of negative 1 percent. The fine print of Amazon’s income tax disclosure shows that this ach...
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How Google’s $13 Billion Spending Plans Affect the Stock

Google Inc. is planning to spend $13 billion this year on data centers and offices across the U.S., Chief Executive Sundar Pichai recently announced according to The Wall Street Journal. In a blog post, Mr. Pichai said the investments would give Google the capacity to hire tens of thousands of employees and create more than 10,000 new construction jobs in Nebraska, Nevada, Ohio, Texas, Oklahoma, South Carolina and Virginia. The new investments will give Google, a unit of Alphabet Inc., GOOGL -0.85% real-estate assets in 24 states, including data centers in 13 communities, he said. Mr....
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Twitter’s Plunge Could Be a Trading Opportunity

Twitter (NYSE: TWTR) has a market cap of more than $22 billion and is an important company. As one commentator recently noted, “Twitter makes and breaks careers. It makes and breaks lives. Perhaps most saliently, the platform shapes news cycles, which, in turn, shape how people see the world. Because journalists spend disproportionate time on the website relative to most of their audience, outlets increasingly amplify Twitter’s viral stories, and seemingly without questioning their broader relevance. It’s a pattern that distorts perception on both sides of the political spectrum, and everyw...
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FAANG Earnings: Bullish for Investors?

FAANG stocks have been the market leaders. This is the group of tech stocks that includes Facebook, Amazon, Apple, Netflix and Alphabet (parent company of Google). Recently, several of the companies released earnings and their results could have a significant impact on the short term trend of the stock market. Facebook Facebook (Nasdaq: FB) beat expectations. CNBC reported: “Here’s how the company did compared with what Wall Street predicted: Earnings: $2.38 per share, vs. $2.19 forecast by Refinitiv consensus estimates Revenue: $16.91 billion, vs. $16.39 billion forecast by Refin...
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Starbucks Could Deliver Gains With Limited Risk To Investors

Starbucks is an $80 billion company and has grown steadily over the years. It’s five year average growth in sales is 10.7% while the one year growth is reported at 10.4%. The consistency could make the stock attractive to investors. But, as always, the latest report can confirm or change opinions about a stock. The latest report from Starbucks seems to be bullish. CNBC reported, “shares of Starbucks rose … after the company reported better than expected sales and earnings growth … with customers spending more on their lattes and Frappuccinos." This move pushed the stock back towar...
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The Truth About Facebook

Facebook (Nasdaq: FB) is a company that grew into a market leader by creating a market. In 2010, the company was so well respected that a movie covered the company’s story. In “The Social Network,” viewers learned that “in 2003, Harvard undergrad and computer genius Mark Zuckerberg (Jesse Eisenberg) begins work on a new concept that eventually turns into the global social network known as Facebook. Six years later, he is one of the youngest billionaires ever, but Zuckerberg finds that his unprecedented success leads to both personal and legal complications when he ends up on the receivin...
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This Marijuana Giant Could Be the Best Bargain in the Industry

Marijuana is facing the possible end of prohibition and investors need to consider the possibilities associated with that. Under prohibition, marijuana became a multi-billion dollar industry. Its products were differentiated by quality but for the most part maintained the same form. Legalization opens up research and development opportunities. Already, marijuana is available in a variety of forms including edibles, oils and different strains targeting different ailments under medical usage. While small companies are exciting to invest in, large companies could be the key to the introduct...
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This Could Be the Best of the FAANGs

Apple has been in the headlines lately, but close readers of the news may have noticed Netflix (Nasdaq: NFLX) is also capturing attention. One reason is related to the important question of censorship by tech companies. The Associated Press noted, “Netflix faced criticism…from human rights groups for pulling an episode in Saudi Arabia of comedian Hasan Minhaj’s “Patriot Act” series that criticized the kingdom’s powerful crown prince. The American comedian used his second episode, released Oct. 28, to criticize Crown Prince Mohammed bin Salman over the killing of writer Jamal Khashoggi an...
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Apple’s Chart Flashes Important Signals for 2019

Apple (Nasdaq: AAPL) ended the year in an interesting position. Its stock was in a down trend. This reverses a long standing up trend in the stock. Recent lows, marked with a horizontal blue line in the chart, should offer support. But a break below that level could lead to a sharp sell off since that is an important and obvious technical support level on the chart. A break of that line could push the stock towards $100 a share, a price level that sounds impossible but could be within the realm of possibility in a bear market. Analysts expect the company to report earnings ...
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