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Month: September 2019

Top Tech Stock News: 6 Things You Missed This Week

  1. Tesla to Develop A Battery That Can Last for A Million of Miles Earlier this year, Elon Musk announced that Tesla was developing a power source that would allow electric cars to travel for up to a million miles. The claim seemed boastful at the time but now it seems that the Tesla founder was quite serious about his statements. Battery researchers from the Dalhousie University published a paper that described ‘A Wide Range of Testing Results on an Excellent Lithium-Ion Cell Chemistry to be used as Benchmarks for New Battery Technologies’ Among the key features of the…

Top Tech Stock News: 7 Things You Missed This Week (20-Sep-2019)

1. Amazon Altered Search Algorithms to Promote Certain Products Amazon.com Inc. reportedly altered its product search system to better feature items which are more profitable for the company. According to reports, Amazon had apparently optimized its search algorithm late last year, so that instead of showing the most relevant and best selling items, it will instead promote items which are most profitable to the company. The move to change the search algorithm was the result of several years of discussions with Amazon’s Seattle retail interests, which supported the changes, and the company’s California-based search team, who opposed it. Any changes…

The path to profitability for Uber and Lyft looks more like a dead end

The ride-sharing companies are subsidizing rides and overspending on technology, and soon their very business model may be upended in California. Ride-share company earnings prove that if you lower the bar to the ground, it’s easy to leap over. Uber UBER, -1.28%  and Lyft LYFT, +1.42%  each reported staggering losses recently, yet the reports were delivered with positive spins. Lyft released “record second-quarter results” while losing roughly the same amount of money as in previous years. Lyft’s improving loss guidance was meant to look attractive at $850 million to $875 million per year, compared with the $1.15 billion-$1.175 billion previously forecast. But that amount is higher…

How to pick long-term stock winners in cloud computing

Cloud software stocks suffered a reversal that has produced losses of close to 50% from record highs. The story for those stocks hasn’t changed, but the valuations have, and that could be a good thing for investors who know what they own. The biggest risk for investors in cloud stocks isn’t the losses that have pummeled prices over the past two weeks, but rather the big reversal that may scare them away from the sector. It’s painful to watch large declines in stocks, yet nobody wants to miss out on a potential 10-bagger either. When the market rewards, and penalizes,…

Top Tech Stock News: 7 Things You Missed This Week (13-Sep-2019)

Uber Announces New Layoffs Amidst Financial Difficulties Uber recently announced another round of layoffs this Tuesday. The multinational transportation network company plans to let go of 435 people from its product and engineering team, or 8% of the total workforce. The layoff was the result of Uber’s poor second quarter performance, which included around $5.2 billion in net losses. “While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization,” an Uber spokesperson said. The planned layoffs will not only affect Uber personnel in the United States, however.…

Top Tech Stock News: 7 Things You Missed This Week (6-Sep-2019)

1. Netflix to Change Its Service Model Netflix is changing its service model. Starting this October, the company will no longer release all of the episodes of certain TV shows in one go. Instead, they plan to release groups of episodes each week. Netflix executives hope that this new strategy will not only provide more value to their customers, it will also allow them to compete more effectively with Hulu, Disney+ and Apple TV. The idea behind the new model is that viewers benefit from watching shows that don’t spoil their own endings. By releasing chunks of episodes per week,…

Slack’s missteps have now made the stock a ‘buy’ at the right price

Slack Technologies is the fastest-growing software-as-a-service (SaaS) company of all time and a Silicon Valley favorite, yet the direct public offering (DPO) clearly did not go well for public investors. The shares WORK, +8.03%  opened at $38.50 on June 20, rose to $42 intraday, and have now sunk to a record-low of $26.25 in after-market hours leading into its first earnings report as a public company. The losses are at 36% from its intraday high, and that occurred when many cloud-software initial public offerings (IPOs) have enjoyed triple-digit returns since going public. So what went wrong? And, more importantly for growth investors, will…