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Category: Tech Stocks

Roku’s Stock Price: Will There Be Another Pullback?

Roku’s stock price is up by almost 500% over the past two years. Compare this to the S&P 500, which is up less than 25%. That’s 20X more returns than the average stock. The upward trend has not been on a straight line. Roku’s stock price has had four major drawdowns that average about 52%. Two of these drawdowns were greater than 60%. Being long a volatile company like Roku since its IPO is not easy, and it especially takes increased conviction to stay long Roku as we approach the end of the current cycle. However, for those that were…

Apple’s Stock Price is at Inflection Point

As Apple’s stock price powers to new highs, returning over 60% YTD and touting the highest market cap in history, now might be a good time for investors to reflect as Apple trades at resistance. With upwards of $260 billion in revenue, a profit margin of 22%, Apple is a cash-generating machine. It produces around $50-$60 billion in free cash flow annually, with reserves of over $100 billion. It is extremely kind to shareholders, with one of the largest buyback programs on the Street. In fact, Apple has spent around $120 billion in stock buybacks since the beginning of 2018,…

Roku Q3 Earnings: Choppy But Unshakeable Long-Term

Roku is a company that has proven nearly every bearish prediction wrong with consistent revenue growth despite being surrounded by steep competition and tech heavyweights in over-the-top media. Roku investors that have been long since its IPO have lived through three fifty-percent drawdowns. Therefore, the reaction to earnings this quarter was unlikely to phase anyone who has followed this stock for any length of time. I encouraged my readers to not be phased by market reactions when Roku was priced at $30, when it was priced at $60, and when it was priced again at $30. During that sell-off, I…

Apple is Not a Growth Company Anymore

I grew critical of Apple earlier this year when it became clear the company would decline in revenue year-over-year, yet investors and analysts alike continued to pump the stock. With yesterday’s earnings report, we have further confirmation that Apple is not a growth company anymore although it continues to trade at growth valuations. While many celebrated yesterday’s earnings report, there were notable signs of erosion. To start, Apple has lost $5 billion in revenue year-over-year, from $265 billion to $260 billion. This is despite having the “best fourth quarter ever,” according to Tim Cook. The truth is that the EPS…

Microsoft Stock Price: Technical Analysis

Unlike most tech stocks, Microsoft’s stock price has over 30 years of trading action to analyze. With more data to analyze, I tend to lean heavier on Elliott Wave theory to predict Microsoft’s future. stock price because of the many layers of wave patterns that will naturally unfold over time. This is a guest post provided by Technical Analyst, Knox Ridley This article will lean exclusively on Technical Analysis as we start from a monthly chart and zoom into a daily chart to reach the conclusion that Microsoft’s stock price may have some upside left in the trend, but a…

Microsoft Earnings Likely to Prove Cloud Isn’t Slowing Down

This week, Microsoft’s earnings will shed light on whether the fear over cloud valuations is warranted or not. Just last week, IBM results showed that its cloud segment grew by just 14%, boosted by its Red Hat acquisition. In more signs of trouble in the industry, Workday (WDAY) stock declined sharply last week after the company said that growth in its once-lucrative human capital management was slowing to 20%. This led to analyst cuts from Stifel, Deutsche Bank, and RBC. Morgan Stanley (MS) and Evercore ISI analysts have also rushed to downgradethe cloud industry ahead of the busy earnings extravaganza.…

Why no streaming company will be able to dethrone Netflix

Netflix critics see mountains of debt and bleeding free cash flow. Opportunists see a company with the world’s best track record for beating the odds in disrupting traditional media. For investors, it could be a costly mistake to be on the wrong side of that debate, as Netflix stock’s 52-week low is $231 and the high is $385, a sizable spread for a $125 billion market-cap company. In the two weeks that followed the streaming company’s second-quarter earnings release in July, Netflix shed $24 billion in market value. The Los Gatos, Calif.-based company releases third-quarter results Oct. 16. Investors are…

Governments won’t be able to stop Facebook and Google from abusive tracking on smartphones — but Apple could

Another day, another headline saying Alphabet’s Google and Facebook are being investigated for allegedly breaking privacy laws and engaging in anti-trust behavior. Google GOOG, +0.95% GOOGL, +0.98%  has been the subject of three antitrust investigations conducted by the European Union, resulting in more than $8 billion in fines. Now the company, which controls 31% of global digital ad dollars, will face the U.S. on anti-trust matters. A big question is if governments will be effective, as they may not understand how social-media and internet businesses operate. In April 2018, Congress tried to piece together how Facebook’s FB, +2.74%  platform works. It ended up being a disaster. Anyone who…

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,…