Disney Seemed to Declare War on Netflix

Netflix (Nasdaq: NFLX) changed the way we watched according to many analysts. Since television began, broadcasters decided to make programs available for viewing. In the 1980s, viewers achieved some level of flexibility when it became possible to record shows to watch later. DVRs make recording even simpler. But viewers still needed to actively plan around the broadcaster’s schedule. They needed to record the show when it was broadcasted, or they missed it. Netflix changed that and offered viewers true on demand programming options. Shows were available when the viewer wanted them, no advan...
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Why Kraft-Heinz Fell, and Why It Will Rise Again

Big companies get into trouble all the time. Most of them are big enough to recover. Kraft-Heinz (KHC) is no exception. Right now, expectations at the company are low. That’s due to the company’s $15 billion write off of goodwill on its balance sheet. Goodwill is an intangible item, indicating how much the company paid to put together the merger versus what shares were priced at when the offer was made. It’s a standard accounting item—everything has to balance. It’s one that doesn’t impact cash flow or earnings. However, the write-down was an acknowledgement that the company wasn’t p...
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Tesla Could Finally Be Ready to Break Down

Tesla (Nasdaq: TSLA) is a company that is in the news quite a bit. The company CEO is one of the reasons that Tesla stays in the news so much. According to the New York Post, “Tesla CEO Elon Musk took the rare move of showing up to a court hearing Thursday over his tweeting, which the Securities and Exchange Commission claims is out of control. Lawyers for the SEC are asking [the judge] to hold Musk in contempt of court for violating an agreement he hammered out with the watchdog last year — and which the judge approved — to have his Tesla tweets monitored. … the SEC is asking for the...
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When – or Should—You Buy Lyft Shares?

Going public is a sign that a company has a proven and tested concept. While it may not be profitable yet, it plans to be. The process of going public involves filing paperwork for an initial public offering, or IPO. Ride-share firm Lyft just joined the ranks of publicly-traded companies last week with its IPO, beating out other ride-share company Uber. Initially priced at $72 per share, early trading saw shares rally to over $80, before falling under the IPO price and into the $60 range. What happened? All IPOs should ideally price shares high enough that initial investors can get o...
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What We Can Learn From Lyft

On Friday morning, Lyft (Nasdaq: LYFT) officially became the first member of Silicon Valley’s sharing economy companies to begin trading on the public markets. Investors were enthusiastic about the company. Initially, the ride hailing service planned to sell shares between $62 and $68. That was the price referenced in the initial regulatory filings. After making that filing, the company began its roadshow. The Process Built Excitement A roadshow is defined by Investopedia as “a series of presentations made in various locations leading up to an initial public offering (IPO). The roadshow i...
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Are Apple (AAPL) Shares a Buy Following their Event?

Nobody can replace the simplicity and genius that Steve Jobs brought to Apple. But Tim Cook is bringing in lower costs, more revenue opportunities, and ultimately higher profit margins for shareholders. That’s the key takeaway from the Apple event earlier this week. The tech company is adding a suite of services, from a credit card to a digital news subscription service to a video subscription service and so on. While many may have been hoping for some new, outside-the-box product, this is a great development for shareholders. The company has been long derided for coming out with sli...
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What $9 Billion In Fines For Google Tells Us About Facebook

The news was unsurprising. A regulator levied a large fine against a tech company, as NPR reported, “The European Commission is hitting Google with a fine of 1.49 billion euros (some $1.7 billion) for "abusive practices" in online advertising, saying the search and advertising giant broke the EU's antitrust rules and abused its market dominance by preventing or limiting its rivals from working with companies that had deals with Google. The case revolves around search boxes that are embedded on websites and that display ads brokered by Google. Those ads are powered by AdSense for Search —...
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Avoid Companies that Announce These Things

There’s more to actionable trading ideas than just earnings season. Companies often report extraordinary projects well outside their mandated reporting period. And by doing so, they can give investors some timely tips on when to buy—or when to avoid, or even sell, their company’s shares. For instance, a company reporting a new, lavish headquarters building may look like a great investment. They’re clearly growing and need the space, justifying the multi-million (or even multi-billion) dollar investment. But that’s also a sign that a share price is going to lag—or drop entirely. Even ...
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Apple Could Be the Next GE

Many investors seem to be on the lookout for the next big thing. They want to find the next Warren Buffett or perhaps the next Warren Buffett Stock.  They might be on the lookout for the next Microsoft, or the next Google, or the next Apple. While these are all worthy pursuits, investors should also consider looking out for the next disaster. For example, they could be on the lookout for the next General Electric (NYSE: GE). The stock suffered an extended sell off over more than two years. It’s important to consider what could have happened to avoid making the mistake of holding on t...
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Two Ways Companies Set Themselves Up For Future Success

Investing is a never-ending marathon, not a sprint. Yet Wall Street traders tend to rely heavily on trading opportunities centering on earnings season. Four times a year, a company reports earnings, as well as their guidance for future quarters. These days can see big swings in a company stock price—making it one of the best times to trade. But there are other developments the other 89 days of the quarter. And with so much focus on bottom-line earnings, more mundane announcements often don’t cause a rapid price move in shares. That’s good news—or bad news—for investors, depending on what’s...
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