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Month: August 2019

Top Tech Stock News: 5 Things You Missed This Week

Below is a review of tech stock news for the week ending August 30th: 1. The Trade Desk (TTD) President and CEO Sells $74.4 Million Worth of Shares The Trade Desk (TTD) President and CEO Jeffrey Terry Green recently sold 288,000 TTD shares at $258.27 per share for a total of $74.4 million. The sale was done on August 23. For context, The Trade Desk has a total market cap of around $11.28 billion, with each share traded at around $250.86. TTD specializes in providing self-service, online advertising solutions for businesses that want to manage their own advertising campaigns using…

Okta Earnings: More to Squeeze From Valuation?

Okta is fundamentally weaker than many analysts believe, making its booming stock priced to perfection. The company was early out of the gate for cloud-subscription IPOs in 2017, and the valuation has reaped the benefits of Wall Street’s enthusiasm for subscription models. However, a reasonable price to initiate Okta as a buy-and-hold investment is now in the rearview mirror, rendering it a momentum play. That will be important for investors when they review its earnings report for the three months through July after the stock market closes Wednesday. Okta’s stock dropped 10% on weakening guidance for both revenue and earnings per…

What Happened to Splunk Last Week? Earnings Review

Splunk Inc’s (NASDAQ: SPLK) shares are currently trading at $118.46 which represents flat gains over the past 12-months basis compared to the broader market returning flat gains over the same time frame. Second-quarter earnings were reported on Wednesday and the question of weakening cash flow is taking center stage. Splunk Overview Splunk is a hybrid cloud computing company that harnesses the power of artificial intelligence to offer data analytics solutions to a variety of organizations. The company is one of the leaders in the big data analysis and security space, which according to Statista is expected to grow from roughly $42 billion…

Tech Stock News: 7 Things You Missed This Week

1. Amazon Calls on India to Reduce Ecommerce Restrictions Amazon executive Amit Agarwal recently told Reuters that India needs to reduce red tape and encourage ecommerce if it is to overcome sluggish domestic growth. “There is so much opportunity to just let ecommerce thrive versus trying to define every single guard rail under which it should operate,” Agarwal said. Agarwal’s comment was directed at India’s latest ecommerce laws which limits Amazon and Walmart’s ability to operate in the country. Pushing back on these new legislations, he emphasized Amazon’s role in helping small and medium enterprises in the country by enhancing…

Beaten-down Nvidia is diligently preparing to pounce on its rivals

Nvidia’s stock went from unstoppable to nearly uninvestable in the matter of a few weeks last year and has not recovered.  The sudden drop in Nvidia’s stock price and a competitive ecosystem that’s hard to understand are two reasons the chipmaker has scared away growth investors, who have opted for momentum bets such as cloud-software companies. The fact that semiconductor companies are cyclical, and mired in the U.S.-China trade war, has further overshadowed Nvidia’s growth potential.  But the real story is that Nvidia is spring-loaded as its product offerings quietly gather strength in a market of enormous magnitude: artificial intelligence (AI). The path…

Uber and Lyft: Unprofitable Powerhouses

Ride-share earnings this week proved that if you lower the bar to the ground, any earnings performance can leap over it. Both companies reported staggering losses that were delivered with positive PR spins.  Lyft reported “record second quarter results” while losing roughly the same amount of money as previous years. Uber had an epic $5 billion loss that is closer to $1.3 billion adjusted. The second number only looks acceptable in the parallel universe where a $65 billion market cap company can report any losses at all, let alone $4 billion per year.  Likewise, Lyft looks digestible compared to its counterpart…

How to Pick Growth Stocks in the Tech Sector

“What makes a solid tech stock?” may be one of the most important questions an investor can answer. Over the last decade, tech companies started to penetrate the top ten list of global companies by market cap. Today, tech dominates this list with Apple, Microsoft, Google, Facebook and Alibaba. Not all tech stocks are winners, of course, with IBM and Yahoo flatlining over the past decade and Cisco unable to reclaim its valuation from nearly twenty years ago. This is why it is important to follow guidelines for individual tech stocks regardless of a broader bear or bull market. Basic…