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PFE | Pfizer PFE Gains As Market Dips What You Should Know | Pfizer PFE closed the most recent trading day at 44 20 moving 1 57 from the previous trading session This change outpaced the S P 500 s 1 66 loss on the day Meanwhile the Dow lost 1 56 and the Nasdaq a tech heavy index lost 3 03
Prior to today s trading shares of the drugmaker had lost 1 11 over the past month This has was narrower than the Medical sector s loss of 1 89 and the S P 500 s loss of 2 43 in that time
Wall Street will be looking for positivity from PFE as it approaches its next earnings report date This is expected to be January 29 2019 The company is expected to report EPS of 0 64 up 3 23 from the prior year quarter Our most recent consensus estimate is calling for quarterly revenue of 13 73 billion up 0 18 from the year ago period
Looking at the full year our Zacks Consensus Estimates suggest analysts are expecting earnings of 3 per share and revenue of 53 40 billion These totals would mark changes of 13 21 and 1 62 respectively from last year
Investors should also note any recent changes to analyst estimates for PFE These revisions help to show the ever changing nature of near term business trends As a result we can interpret positive estimate revisions as a good sign for the company s business outlook
Based on our research we believe these estimate revisions are directly related to near team stock moves Investors can capitalize on this by using the Zacks Rank This model considers these estimate changes and provides a simple actionable rating system
The Zacks Rank system ranges from 1 Strong Buy to 5 Strong Sell It has a remarkable outside audited track record of success with 1 stocks delivering an average annual return of 25 since 1988 The Zacks Consensus EPS estimate has moved 0 43 higher within the past month PFE currently has a Zacks Rank of 3 Hold
In terms of valuation PFE is currently trading at a Forward P E ratio of 14 51 For comparison its industry has an average Forward P E of 14 56 which means PFE is trading at a discount to the group
We can also see that PFE currently has a PEG ratio of 2 19 The PEG ratio is similar to the widely used P E ratio but this metric also takes the company s expected earnings growth rate into account PFE s industry had an average PEG ratio of 2 01 as of yesterday s close
The Large Cap Pharmaceuticals industry is part of the Medical sector This group has a Zacks Industry Rank of 100 putting it in the top 39 of all 250 industries
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
Make sure to utilize Zacks Com to follow all of these stock moving metrics and more in the coming trading sessions |
PFE | Immunicum Collaboration And Supply Agreement Signed | Immunicum AB ST IMMUN has announced that it has signed a collaboration and supply agreement with Pfizer NYSE PFE and Merck KGaA Darmstadt Germany for the checkpoint inhibitor CPI Bavencio to be used in combination with ilixadencel in the Phase Ib II ILIAD study Bavencio avelumab is marketed by Pfizer and Merck KGaA and approved in the US and EU The availability of Bavencio at no cost to Immunicum in the ILIAD study potentially opens up European study sites which will be aided by the recent share issues
Icing on the cake
Building on a very busy summer which included stock issues and agreement on the ILIAD study protocol with the FDA Immunicum has now announced a collaboration and supply agreement with Pfizer and Merck KGaA for the CPI Bavencio avelumab to be used in combination with ilixadencel We had already removed the cost of CPI supply from our model but the endorsement by Pfizer and Merck KGaA makes expansion of the ILIAD study to European centres where CPIs are not readily available possible and thus recruitment of the Phase II portion could be faster than we had estimated Bavencio was approved by the FDA in March 2017 for metastatic Merkel cell carcinoma MCC and for urothelial carcinoma in May 2017 Bavencio was approved for metastatic MCC in the EU in September 2017 Before Immunicum s announcement the PD L1 monoclonal antibody was in 18 combination studies in 2017 four of which were immunoncology I O combination studies
To read the entire report Please click on the pdf File Below |
PFE | Pfizer revenue misses as demand falls for older drugs Prevnar | By Natalie Grover Reuters Pfizer Inc s N PFE quarterly revenue missed Wall Street estimates on Tuesday hurt by falling demand for its blockbuster pneumonia vaccine Prevnar as well as older drugs Sales of Prevnar declined 8 2 percent to 1 15 billion largely due to the timing of government purchases for the pediatric indication Sales of its copycat generics and biosimilars fell 13 5 percent in the quarter to 5 23 billion Pfizer s ambition of stabilizing this book of business looks some way off Berenburg analysts said in a note Revenue from its patent protected drugs rose about 8 percent to 7 67 billion in the quarter Sales of its key drugs including rheumatoid arthritis treatment Xeljanz and breast cancer treatment Ibrance beat analyst estimates However overall revenue fell to 12 9 billion in the second quarter from 13 15 billion below the analysts estimate of 13 08 billion according to Thomson Reuters I B E S These results show that Pfizer s growth drivers are still insufficient to drive meaningful sales growth against the backdrop of generic erosion Berenberg analysts said in a note Net income attributable to the largest U S drugmaker rose to 3 07 billion or 51 cents per share from 2 05 billion or 33 cents per share a year earlier Excluding items Pfizer earned 67 cents per share beating the average analysts estimate by a cent Looming patent expirations on Pfizer s sexual dysfunction treatment Viagra pain drug Lyrica and falling Prevnar sales has pushed analysts to prescribe deals to resuscitate the company s growth Over the next five years we project the potential for approximately 25 to 30 approvals of which up to 15 have the potential to be blockbusters Chief Executive Ian Read said in a statement on Tuesday Last year Pfizer acquired drugmaker Medivation for 14 billion and decided against splitting itself into two companies one housing its patent protected drug business and the other its generics business The drugmaker also narrowed its 2017 adjusted earnings forecast to a range of 2 54 per share to 2 60 per share It had previously forecast a range of 2 50 per share to 2 60 per share
The company s shares were marginally down at 33 10 before the bell on Tuesday |
PFE | Pfizer s stalled growth increases pressure for large deal | FiercePharma s John Carroll notes that Pfizer PFE 0 9 despite its impressive R D successes remains under pressure to do a megadeal to rekindle stalled growth evidenced by Q2 results that showed a 2 drop in revenues and a modest 3 rise in non GAAP earnings Management says it has 25 30 potential product approvals over the next five years including 15 that could achieve blockbuster status 1B in annual sales Half could be approved by 2020 Front and center is the company s cancer pipeline led by PARP inhibitor talazoparib acquired in the Medivation transaction It will need fresh offerings since Prevnar sales have softened and competition looms for Lyrica Ibrance is a winner up 67 in Q2 to 853M but more are needed Mr Carroll says the shortest path to growth is dealmaking Although rebuffed in its first attempt at a takeover AstraZeneca AZN 0 3 arguably remains a target considering its recent plunge after disappointing results on lung cancer candidate durvalumab Previously AstraZeneca may again become a takeover target if growth fails to materialize March 20 2015 Previously Pfizer set to abandon bid for AstraZeneca May 26 2014 Now read |
WFC | GLOBAL MARKETS Stocks hold up after Wells Wachovia deal | Europe stocks U S stock futures up on Wells Fargo deal
despite steep U S job loss
MSCI world equity index down 0 4 percent at 283 20
Washington s vote on bailout bill eyed
By Natsuko Waki
LONDON Oct 3 Reuters European stocks rose and Wall
Street was set for a firmer as a move by Wells Fargo to
buy Wachovia lifted investor spirits even as data showed
steep job losses in the U S economy
The U S economy lost 159 000 non farm jobs last month its
sharpest decline in 5 1 2 years Employment contracted for a
ninth straight month even before the labour market experienced
the full shock from September s series of bank troubles
However world stocks edged away from an earlier three year
low while government bonds pared gains as the two U S banks
unveiled the deal
The employment figures were weak in every important
dimension We ve seen weaker data in history but these look
pretty decisively to be the beginning of something worse said
Pierre Ellis senior economist at Decision Economics in New
York
The U S House of Representatives is to vote on a 700
billion bailout bill later in the day with calls echoing around
the world for passage of the bill which would allow the U S
Treasury to buy illiquid debt from U S banks
Justin Wiggs equities trader at Stifel Nicolaus Capital
Markets in Baltimore said Realistically the focus is on the
Wells Fargo Wachovia deal All indications suggest the
bailout bill is gaining speed in the House which is important
because if it doesn t pass it could get ugly
The FTSEurofirst 300 index was up 0 4 percent on
the day while MSCI main world equity index came
off its low earlier still trading down 0 4 percent
According to Standard Poor s all 52 world equity markets
declined in September resulting in a 4 1 trillion loss Since
January world equity markets have lost 10 5 trillion
The dollar on track for its biggest weekly gain in
16 years held near a one year high against a basket of major
currencies
Investors boosted their bets the Federal Reserve would cut
interest rates later in October The majority of them
expect a half point cut while there is a 14 percent chance of
an aggressive 75 basis point rate cut
The current Fed is still a bit worried that easy policy
will cause a surprising re acceleration at a too high rate of
inflation But those concerns are probably easing significantly
with these data and other markedly poorer economic data Ellis
said
The December Bund future was up 50 ticks Earlier
two year euro zone government bond yield hit a 6 1 2
month low of 3 25 percent 100 basis points below the benchmark
interest rate
Emerging stocks lost 2 1 percent hitting a
two year low
U S light crude rose 0 4 percent to 94 39 a barrel
while gold rose to 840 80 an ounce
Editing by Mike Peacock |
WFC | GLOBAL MARKETS U S bailout plan passes investors take profits | U S House of Representatives approves bailout plan
Bailout plan passage prompts U S stock profit taking
Wells Fargo buying Wachovia for roughly 16 bln
U S job rolls suffer deepest cut in 5 1 2 years in Sept
Releads with passage of U S bailout plan updates prices
By Daniel Bases
NEW YORK Oct 3 Reuters Investors cut into a global
stock market rally on Friday after the U S House of
Representatives approved a 700 billion financial rescue plan
taking profits in a classic buy the rumor sell the news
move
A U S dollar rally also fizzled but the greenback is
still on track for its best week in 16 years against a basket
of currencies and versus the euro since its launch in 1999
U S and European stocks had risen earlier ahead of the
expected passage of the legislation A 16 billion purchase of
troubled bank Wachovia Corp by Wells Fargo also helped to liven
up sentiment and offset the biggest drop in U S payrolls in
5 1 2 years
We re not seeing much of a rally though we expected a
sell the news reaction with the market selling off after a
brief run up The key will be if we stabilize by the end of the
day said Joe Saluzzi co manager of trading at Themis Trading
in Chatham New Jersey
We re still in the thick of this It is like turning a
cruise ship You can t do it on a dime he said
The House passed the bill by a vote of 263 171 U S
President George W Bush quickly signed the bill into law
concluding two weeks of legislative haggling in Congress that
has roiled and captivated global markets
An earlier attempt by the House on Monday to pass the bill
meant to underpin banks and other financial firms staining
under bad mortgage related assets had failed and sent stocks
careening lower
It was Wells Fargo s offer to buy Wachovia that gave a shot
of optimism to investors that business was still getting done
in the financial industry Stocks rose in Europe and put the
U S markets on solid footing at the open of trade Asia s main
stock markets had closed lower before the deal was announced
In the U S stock market benchmark indexes were up The
Dow Jones industrial average was up 10 75 points or
0 10 percent at 10 493 60 At its peak the Dow was up 313
points
The Standard Poor s 500 Index was up just 0 19
points or 0 02 percent at 1 114 47 giving up a 39 point
gain The Nasdaq Composite Index was up 1 24 points or
0 06 percent at 1 977 96
European share prices closed with solid gains before the
bill passed The FTSEurofirst 300 index closed up 3 01
percent on the day On the week the index lost 1 4 percent
MSCI s main world equity index erased earlier losses to rise
0 65 percent
Japan s Nikkei 225 index fell 1 94 percent to a
three year closing low for its worst week in more than a year
GRIM ECONOMIC DATA
As the world s focus has been on U S Congress new data
revealed America s economy continues to slow On Friday the
Labor Department reported 159 000 non farm jobs were lost in
September a ninth straight monthly contraction The
unemployment rate held at a five year high of 6 1 percent
We ve seen weaker data in history but these look pretty
decisively to be the beginning of something worse said Pierre
Ellis senior economist at Decision Economics Inc in New York
A second gloomy piece of economic data showed America s
dominant service sector economy barely grew in September
The Institute for Supply Management s non manufacturing
index came in at 50 2 marginally above the level of 50 that
signals expansion aided by a slight rise in new orders The
index was 50 6 in August
Government bonds which usually benefit from grim economic
data were overtaken by events and fell as stock prices rose
Benchmark 10 year U S Treasuries cut a near 1 point loss
in price to just 6 32 pushing the yield up to 3 64 percent
U S rate futures nearly price in a 50 basis point interest
rate cut at the Oct 28 29 Federal Open Market Committee
meeting to 1 5 percent Expectations has slipped a bit since
late Thursday
Euro zone government bond gains were wiped out by the stock
market rally The two year Schatz yield was flat at
3 316 percent
This week investors still sought the safety of the U S
dollar despite the turmoil created when the first financial
bailout plan was put to a vote on Monday
In the wake of the vote the euro was bought back rising
0 20 percent at 1 3843 from a previous session close of
1 3816 The U S Dollar Index is down 0 27 percent at 80 277
but still holding near a one year high against a basket of
major currencies
Emerging sovereign debt spreads gyrated along with U S
Treasury movements widening by 3 basis points while emerging
stocks lost 2 1 percent returning to an earlier
two year low
Gold prices fell 5 30 or 0 63 percent to 829 70 an ounce
U S light crude slipped 0 03 to 93 94 a barrel
Additional reporting by Ellis Mnyandu John Parry Nick
Olivari in New York Ros Krasny in Chicago Glenn Somerville in
Washington Natsuko Waki George Matlock in London Editing by
Chizu Nomiyama |
WFC | POLL Economists give Bernanke good mark on handling crisis | Fed s Bernanke s handling of financial crisis seen
superior to that of ECB s Trichet BoE s King
Financial crisis seen lasting at least another 6 12 months
58 of 69 economists say worst of market volatility over
U S automaker rescue package not seen essential
By Nigel Davies
LONDON Dec 17 Reuters Federal Reserve Chairman Ben
Bernanke has negotiated the most successful route among major
central bankers through a financial crisis that is set to linger
well into next year according to a Reuters poll of economists
The U S Fed chief was the first to recognise the scale of
the crisis that started in August 2007 that spread from houses
to banks to businesses and blew into the wider economy and opted
to begin cutting the federal funds rate in September
The Fed cut rates on Tuesday by more than expected to an
historic low a band between zero and 0 25 percent and
stressed it would employ all available tools to see off a
recession
The Fed s relatively quick policy action stood in contrast
to other central banks that only began to make sharp rate cuts
late this year after Lehman Brothers was taken off the map
economists said
But while the worst financial crisis in more than 80 years
is forecast to rumble on at least through the first half of
2009 the vast majority of analysts polled 58 of 69 said the
worst of market volatility was over
Bernanke was early in recognizing the potential impacts on
the economy from the housing and credit crisis which has
unfolded said Scott Anderson at Wells Fargo
The problem is the crisis even swamped what the Fed thought
were dramatic monetary policy moves he added
In a poll of over 70 economists in the U S and Europe taken
Dec 12 16 before the Fed cut rates Bernanke emerged with a
score of 7 out of 10 for his handling of the crisis since last
year his star rising since he was given just a passing grade
for his work in a February poll
Bank of England Governor Mervyn King was rated 6 out of 10
for his handling of the financial crunch But the lowest score
was given to once highly praised European Central Bank President
Jean Claude Trichet who notched only a 5 out of 10 score
Bernanke was criticised by some economists though for his
support of Treasury Secretary s Hank Paulson s TARP programme
and failure to stop the fall of Lehman
TRICHET UNDER FIRE
The most damning criticism in the poll was reserved for
Trichet particularly after the ECB hiked rates in July only to
reverse the decision three months later when the financial
crisis swung into a much uglier phase
At every stage the ECB has been a day late and a euro
short said Ethan Harris at Barclays Capital formerly chief
U S economist at Lehman Brothers
The low point was when they ignored the developing credit
crunch and tightened in response to a temporary rise in oil
prices
But some economists were at pains to highlight the different
approach taken by central banks The ECB was praised for its
swift response in trying to unblock money markets
The central bank consistently drew a distinction between its
monetary policy and measures to alleviate bunged up markets
quickly offering banks all the cash they need for six months at
fixed rates and accepting a wide range of assets in exchange for
central bank funds
AUTOMAKER BAILOUT NOT ESSENTIAL
Economists were relatively sure that the crisis is not going
to pass soon though it may not require a bailout of the U S
automaker industry for it to happen
The majority in the poll said it would last another 6 12
months the same answer given in September showing the crisis
is now rumbling on much longer than anticipated
A sizeable minority 25 said the crisis would last one to
two years or more with most believing the effects and
consequences will be felt for even longer
But they were not convinced it will take the U S government
to renegotiate a bailout package for the country s three main
automakers before a recovery could take place
Fifty of 73 said it was not essential for a recovery
No package would deepen the recession but a recovery would
still eventually take place just from a weaker starting point
A bailout would hasten the recovery said Benjamin Reitzes at
BMO Capital Markets
Polling by Bangalore Polling Unit Editing by Toby Chopra |
WFC | POLL Bond yields to slip before supply pressures them up | Major govt bond yields seen easing before edging up on
supply recovery
Interbank lending rates expected to ease in 2009
Some euro zone countries to face funding challenges
By Nigel Davies
LONDON Jan 27 Reuters Major government bond yields have
even lower to go in coming months as central banks grapple with
global recession but they will edge back up in the second half
of 2009 on debt supply indigestion a Reuters poll showed
Daunting funding issues and a widening gap that has opened
up this year between long term debt yields on German Bunds and
yields for smaller euro zone countries has shifted market
attention away from still tight money market conditions
But hundreds of billions of dollars in government spending
and more rate cuts from the European Central Bank and the Bank
of England should provide flint for the first sparks of recovery
later this year and along with it rising yields
A poll of around 50 fixed income strategists at bond dealers
who make markets across the U S euro zone Japan and the UK
found 10 year Bund yields should slip to 2 90 percent in the
next three months as the ECB cuts rates further but end the
year back around current levels of 3 20 percent
Bonds will remain well bid up to mid year as the ECB will
continue to cut rates and with such high uncertainty in the
markets said Giuseppe Maraffino fixed income strategist at
UniCredit explaining his forecasts for lower yields
In the second half a moderate recovery and supply factors
will put a slight pressure on bonds he said which will cause
yields trading near historic lows to move higher
But Maraffino said risks were to the downside and a more
moderate rise in yields should be expected if there are no clear
signs of economic recovery in the second half of the year
Yields on 10 year U S Treasury notes were also seen ticking
down to 2 50 percent in three months back to 2 60 percent in
six and up to 3 20 percent in a year according to the latest
Reuters poll
That is good chunk down on forecasts of 3 68 3 73 and 4 0
percent made last November before the U S Federal Reserve
hacked rates down to hover close to zero
Markets are awaiting news from the Federal Open Market
Committee at the conclusion of its meeting on Wednesday for any
indication on how much quantitative easing it intends to conduct
in coming months
Bank to bank lending was also forecast to improve this year
as interest rates fall further in the UK and euro zone and rates
remain near zero in the U S and Japan U S three month LIBOR
interbank lending rates were seen easing to 1 10 percent in
three months and a tad down to 0 90 percent in a year
Fed liquidity and credit facilities will continue to ease
pressure in the 3 month LIBOR market as the year unfolds though
any semblance of normality will remain elusive said Scott
Anderson at Wells Fargo
Three month money in the euro zone is also predicted to
slide steadily through this year but only gradually after the
ECB reaches a floor in its rate cutting cycle Money rates were
predicted to ease to 2 0 percent in three months 1 75 percent
in six and 1 60 percent in 12
EURO ZONE SPREADS TO STAY WIDE
The euro zone is expected to issue close to 1 trillion euros
in debt this year just under 10 percent of the size of the
economy This week saw the start of the first major auctions of
the year with indications there was much more appetite for
short term paper over longer term issues
Analysts in the poll identified Greece as being the euro
zone country that will face the hardest time attracting buyers
to its debt auctions this year Italy Ireland and Spain were
also predicted to face big challenges
The spread over 10 year Bunds on equivalent Greek debt stood
close to 300 basis points on Tuesday and it was well over 100
basis points for Spain coming after credit rating downgrades
this month
Those spread widenings indentify a clear fear in the market
that a euro zone member could pull out of the 16 nation bloc
There have been extreme distortions and valuations between
the old and periphery countries There have been some leads and
laggards and I m not sure it s justified said Andre de Silva
deputy head of fixed income strategy at HSBC
He said even if it was exaggerated markets were pricing in
around a 10 20 percent probability of a euro member withdrawing
For selective countries in particular Greece spreads have
gone too far he added
Polling by Bangalore Polling Unit Editing by Andy Bruce |
T | US Telecoms Giant AT T Now Accepting Crypto Payments via BitPay | United States telecom and media giant AT T NYSE T now accepting cryptocurrency for paying phone bills online according to an official press release on May 23 AT T will process bills paid in cryptocurrency using crypto payments platform BitPay
BitPay is a platform that converts cryptocurrencies to fiat and is used by over 20 000 businesses AT T is reportedly the first United States based business in the wireless network industry to offer bill payments with BitPay |
T | Crypto Recovers Telecoms Giant AT T Accepts Payments in Crypto | Investing com The crypto market recovered on Friday mid day in Asia with most major cryptocurrencies trading higher
Bitcoin added 2 20 to 7 834 6 by 12 54 PM ET 03 54 AM GMT With that said the coin has not been able to climb back to the 8 000 level since Wednesday after hitting a 10 month high at 8 287 2 in mid May
Like Bitcoin XRP gained 0 69 to 0 37636 and Litecoin rose 1 60 to 88 799
However Ethereum dropped 0 06 to 242 9
The total market cap went up to 244 5 billion from 239 5 billion the previous day
The news that excited the crypto advocates on Friday was U S telecoms giant AT T NYSE T will start accepting payments in cryptocurrencies the major U S mobile carrier to provide such option to customers
AT T will process online bills paid in digital coins through a platform called BitPay which converts cryptocurrencies to fiat currency The platform is said to be used by over 20 000 businesses
We have customers who use cryptocurrency and we are happy we can offer them a way to pay their bills with the method they prefer said Kevin McDorman vice president of AT T Communications Finance Business Operations
The move signifies a step towards wider adoption of cryptocurrencies
We ve met with executive teams at many Fortune 500 companies to explain to them how crypto works and we brain storm on how we can work together said Sonny Singh Chief Commercial Officer at BitPay |
T | Crypto Gains Bitcoin Nears 9 000 | Investing com Top cryptocurrencies traded in the green as the week opened in Asia with Bitcoin testing 9 000 without a clear market mover
Bitcoin was up 8 2 to 8 616 by 12 40 PM ET 04 40 GMT after reaching a fresh one year high of 8 820 3 earlier It has surged almost 70 this month and 140 year to date
Ethereum gained 7 07 to 265 01 XRP traded 6 72 higher to 0 40721 and Litecoin rose 10 32 to 111 72
CNBC and Bloomberg suggested that Bitcoin was supported by the fact that mainstream companies are embracing cryptocurrencies
Facebook NASDAQ FB is reportedly working on an internal project known as Project Libra and developing its own cryptocurrency Taiwanese phone maker HTC launched a phone with which users can store their digital coins Fidelity Investments is finalizing plans to buy and sell the digital assets for institutional customers U S telecom giant AT T NYSE T is going to allow customers to use payment processor BitPay to settle their online bills
Separately Swiss watchmaker Franck Muller plans to launch the Bitcoin storage watch Encrypto that could function as a cold wallet for the coin in collaboration with alternative assets investing firm Regal Assets
It takes two to tango The more merchants that accept crypto encourages more people to adopt it and use it David Tawil president of crypto hedge fund ProChain Capital told Bloomberg
With that said Bitcoin is still far from its all time high of over 19 000 in late 2017 |
T | Bitcoin Holds onto Gains as it Rises Above 8 600 | Investing com Bitcoin hit its highest level against the dollar in over a year on Monday holding onto overnight gains after increased activity in Asia pushed it above 8 700
Bitcoin jumped 8 5 to 8 702 30 as of 7 05 AM ET 11 05 GMT on the Investing com Index As usual there was no clear driver on the sudden price increase which happened during a half hour period during Asian trading hours Trading in the U S and U K are expected to be thin as markets are closed for public holidays
Bitcoin has had a resurgence this year gaining 140 so far It s on track to post its best month in nearly two years in May amid a spate of news indicating growing interest in digital currency from mainstream companies Still Bitcoin remains far below the 19 000 level that it reached in 2017
Facebook NASDAQ FB is reportedly creating its own digital coin although reports suggest this would be a stablecoin backed by U S dollars rather than computer power Elsewhere Fidelity Investments is finalizing plans to buy and sell digital assets for institutional customers while HTC has launched a phone that stores digital coins U S telecom giant AT T NYSE T is going to allow customers to use payment processor BitPay to settle their online bills although again there s no indication that it will price its services in anything other than dollars
Other digital coins were also higher with Ethereum up 6 9 to 266 39 and XRP gained 7 to 0 40928 while Litecoin surged 11 to 113 78 |
PFE | Pfizer PFE Stock Moves 0 38 What You Should Know | Pfizer PFE closed the most recent trading day at 44 11 moving 0 38 from the previous trading session This change was narrower than the S P 500 s daily loss of 1 97 Elsewhere the Dow lost 2 32 while the tech heavy Nasdaq lost 2 78
Heading into today shares of the drugmaker had gained 3 43 over the past month outpacing the Medical sector s loss of 1 15 and the S P 500 s loss of 3 33 in that time
Investors will be hoping for strength from PFE as it approaches its next earnings release which is expected to be January 29 2019 The company is expected to report EPS of 0 64 up 3 23 from the prior year quarter Our most recent consensus estimate is calling for quarterly revenue of 13 73 billion up 0 18 from the year ago period
PFE s full year Zacks Consensus Estimates are calling for earnings of 3 per share and revenue of 53 40 billion These results would represent year over year changes of 13 21 and 1 62 respectively
Investors might also notice recent changes to analyst estimates for PFE Recent revisions tend to reflect the latest near term business trends With this in mind we can consider positive estimate revisions a sign of optimism about the company s business outlook
Research indicates that these estimate revisions are directly correlated with near term share price momentum Investors can capitalize on this by using the Zacks Rank This model considers these estimate changes and provides a simple actionable rating system
The Zacks Rank system ranges from 1 Strong Buy to 5 Strong Sell It has a remarkable outside audited track record of success with 1 stocks delivering an average annual return of 25 since 1988 Over the past month the Zacks Consensus EPS estimate has moved 0 48 higher PFE is holding a Zacks Rank of 3 Hold right now
Looking at its valuation PFE is holding a Forward P E ratio of 14 77 This valuation marks a premium compared to its industry s average Forward P E of 14 76
It is also worth noting that PFE currently has a PEG ratio of 2 23 The PEG ratio is similar to the widely used P E ratio but this metric also takes the company s expected earnings growth rate into account The Large Cap Pharmaceuticals was holding an average PEG ratio of 2 at yesterday s closing price
The Large Cap Pharmaceuticals industry is part of the Medical sector This group has a Zacks Industry Rank of 38 putting it in the top 15 of all 250 industries
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
To follow PFE in the coming trading sessions be sure to utilize Zacks com |
PFE | Pfizer sells interest in Brazilian JV | Pfizer NYSE PFE was forced to take a large haircut on the sale of its 40 interest in Brazilian joint venture Laboratorio Teuto Brasileiro after failing to find interested buyers reports Reuters The exact terms of the eventual sale to Teuto founder Walterci Melo weren t disclosed Generic drugmakers have had a tough time in Brazil due in part to the weak local currency and broad economic conditions Now read |
PFE | FDA meets next week to discuss Pfizer s resubmitted AML treatment | An FDA Advisory Committee will meet next week to discuss the BLA resubmission for Pfizer s NYSE PFE Mylotarg a treatment for CD 33 positive acute myeloid leukemia that was pulled from the market in 2010 after patient deaths Pfizer now seeks approval for Mylotarg as a combo therapy with standard chemo and the original indication with differing dosage according to a Pfizer email to Bloomberg An FDA advisory meeting will take place July 11 with a PDUFA date in September Mylotarg was developed by Pfizer and Celltech but Pfizer has sole manufacturing and development responsibilities Source Bloomberg Now read |
T | Take 5 Good bets to win 101st PGA Championship | With a Par 70 course measuring 7 459 yards and featuring gnarly rough the winner of the 101st PGA Championship at Bethpage Black this week will need to drive the ball long and straight He will also have to cope with a partisan New York crowd expected to number around 60 000 fans daily Five good bets to hoist the Wanamaker Trophy come Sunday Lucas Bjerregaard Denmark 150 1 by Bovada com We ll go straight to our longshot pick The 44th ranked player in the world still isn t a household name but Bjerregaard s game is well respected by his peers He has also been playing more in the States this year including knocking off Tiger Woods en route to the semifinals of the WGC Dell Technologies Match Play in March Great odds on an emerging player with the downsides being two missed cuts in his past three events and little Sunday experience on the game s grandest stages Tiger Woods United States 11 1 Woods will have the crowd behind him and can t be counted out but he also hasn t played a competitive round since winning the Masters last month Few players understand the nuances of how to get around the Black Course better than the 2002 U S Open champion on the difficult track and his course management is second to none To be in contention on Sunday Woods must drive the ball well and convert the short putts that have nagged him at times as he has aged Tiger still gets our nod over world No 1 Dustin Johnson 10 1 who is tied for 74th on the PGA Tour in final round scoring 70 22 this season including several notable Sunday implosions Tommy Fleetwood England 28 1 Fleetwood is going to earn his major breakthrough sooner than later One of the world s elite ball strikers the Englishman hasn t cracked the top 35 in his past two majors but did finish second at last year s U S Open and has spent plenty of time on the first page of major leaderboards He also earned a T 5 at this year s Players Championship and is coming off a T 8 at the British Masters Brooks Koepka United States 10 1 Koepka has won three of the past eight majors and is a combined 47 under par in his past five PGA appearances including a record setting 72 hole score of 264 at Bellerive last year He lives for the major stage has more than enough firepower and is coming off a solid solo fourth at the AT T NYSE T Byron Nelson
Rory McIlroy 11 1 A two time PGA Championship winner 2012 2014 seeking his first major in five years no one has been more consistent in 2019 than the recently turned 30 year old Northern Irishman He has top 10 finishes in all but one of his nine starts this year and most important he is the best all around driver of the golf ball in the world If he can get even warm with his inconsistent putter this week McIlroy should be in line to capture his fifth career major Field Level Media |
T | Koepka leads PGA by 1 after course record 63 | Brooks Koepka said before the start of the 101st PGA Championship that he believes majors are easier to win because perhaps only 35 40 players begin the tournament with a legitimate shot of beating him The three time major champion and world s third ranked player backed up that statement with a course record 7 under par 63 in Thursday s first round in Farmingdale N Y Koepka s bogey free card on the demanding Black Course at Bethpage State Park included seven birdies none of which came on the course s two par 5s That was one of the best rounds I ve played probably as a professional Koepka said This golf course is brutal However he acknowledged that his round could have been even better and that Thursday s conditions lent themselves to low scoring While no one in the morning wave could get within four shots of Koepka s masterpiece New Zealand s Danny Lee used eight birdies to offset a pair of bogeys in posting a 6 under 64 in the afternoon The next closest competitor is England s Tommy Fleetwood who was one of the first players out Thursday and posted a 3 under 67 Another shot off the pace are Luke List Chez Reavie Pat Perez France s Mike Lorenzo Vera and South Korea s Sung Kang A star studded and deep group of players at 1 under includes world No 1 Dustin Johnson Rickie Fowler Phil Mickelson and Jordan Spieth who is attempting to become only the sixth player to complete the career grand slam Australia s Jason Day is also at 1 under They ll begin Friday tied for ninth place but staring a long way up at Koepka with 54 holes to play Koepka began his round with a 30 foot birdie putt on No 10 He would roll in six more birdies to throw down the early gauntlet as he attempts to defend his title and become the first player since World War II to win his first four career majors within a two year span He played Thursday s opening round with Tiger Woods who had a far more stressful time around the par 70 track Woods seeking his 16th major title double bogeyed the opening hole and added another double on No 17 to go out in 3 over 38 Woods blistered the opening portion of the front nine with a pair of birdies followed by an eagle on the par 5 fourth hole his first eagle at a PGA Championship since 2001 to get under par for the first time The rally stalled when his par putt on the following hole lipped out and Woods added more bogeys on Nos 7 and 8 to fall eight shots back of his playing partner The margin grew to nine when Koepka rolled in a lengthy birdie putt on his final hole while Woods made par from just off the back to complete his 2 over 72 Just make it Koepka told reporters when asked about his thought process on the final putt I think that was the only thing that was going through my head I had good reads on it all day The speed control was very solid I felt very comfortable with the putter after a couple of changes we made and very pleased with the way I putted today The course definitely tests every part of your game that s for sure Woods is playing for the first time since winning the Masters last month while Koepka is coming off a fourth place finish at last week s AT T NYSE T Byron Nelson He has now played 10 consecutive major rounds under par The rust showed for Woods who missed a pair of greens from inside of 100 yards and struggled with the speed of the greens He ll need a solid round Friday just to make the cut as will Rory McIlroy who also carded a 72 but only after rolling in his first birdie of the day at No 18 It wasn t as clean as I d like to have it for sure said Woods who admitted he skipped Wednesday s practice round because he was a little bit sick but felt fine Thursday Didn t get off to a very good start It was a good drive and ended up in a bad spot and I compounded the problem with trying to use the backboard behind the hole there and missing a putt I should have made And then found my way back around Got it back under par for the day and let a couple slip away with a couple bad putts and a couple mistakes at the end If Woods can take any positive away from Thursday it may be the fact that the past four PGA champions were outside the top 10 after the first round On the flip side he is chasing a man in Koepka who has posted six consecutive rounds in the 60s at the PGA Championship while shooting a combined 25 under par The scary part for the rest of the field is that Woods said that 63 was about the highest Koepka could have shot on Thursday with the way he was playing I didn t take care of the par 5s didn t birdie any of the par 5s Koepka said That was disappointing because I felt like you know those are holes you should be able to birdie And then the second hole today my 11th hole I missed about a 5 footer That would have been nice to shoot 60 I guess that would have been pretty good But Koepka also realizes that the number he posted on Thursday already limits the number of players in the field who have a realistic shot of catching him I wouldn t say there s very many guys Koepka acknowledged It tests every asset of your game You ve got to drive the ball straight It s long so you ve got to hit it far and really position yourself with some of these shots in You can t miss you can t take a shot off and that s what I love There s a fine line between 5 6 over and a couple under out here It s a fun golf course to play that s for sure Other notable finishers included Matt Kuchar Xander Schauffele England s Justin Rose and Spain s Jon Rahm at even par Bryson DeChambeau and Italy s Francesco Molinari 2 over Patrick Reed and Spain s Sergio Garcia 4 over and Bubba Watson 6 over
NOTES John Daly who has been permitted to use a cart during the tournament carded a 5 over 75 The Black Course is playing host to the PGA Championship for the first time after serving as the venue for the U S Open in 2002 and 2009 It will also be the host site for the 2024 Ryder Cup The Championship was moved to May for the first time since 1949 as part of the PGA Tour s schedule overhaul this season The 156 player field includes 20 club professionals led by Jason Caron and Ryan Vermeer at even par 70 on Thursday Field Level Media |
PFE | Pfizer PFE Stock Sinks As Market Gains What You Should Know | Pfizer PFE closed the most recent trading day at 42 99 moving 1 22 from the previous trading session This change lagged the S P 500 s daily gain of 0 63 At the same time the Dow added 0 68 and the tech heavy Nasdaq gained 0 64
Heading into today shares of the drugmaker had lost 3 89 over the past month outpacing the Medical sector s loss of 3 98 and the S P 500 s loss of 4 95 in that time
PFE will be looking to display strength as it nears its next earnings release which is expected to be January 29 2019 The company is expected to report EPS of 0 64 up 3 23 from the prior year quarter Our most recent consensus estimate is calling for quarterly revenue of 13 91 billion up 1 52 from the year ago period
PFE s full year Zacks Consensus Estimates are calling for earnings of 3 per share and revenue of 53 40 billion These results would represent year over year changes of 13 21 and 1 62 respectively
It is also important to note the recent changes to analyst estimates for PFE These revisions typically reflect the latest short term business trends which can change frequently As such positive estimate revisions reflect analyst optimism about the company s business and profitability
Research indicates that these estimate revisions are directly correlated with near term share price momentum We developed the Zacks Rank to capitalize on this phenomenon Our system takes these estimate changes into account and delivers a clear actionable rating model
The Zacks Rank system which ranges from 1 Strong Buy to 5 Strong Sell has an impressive outside audited track record of outperformance with 1 stocks generating an average annual return of 25 since 1988 Within the past 30 days our consensus EPS projection has moved 0 48 higher PFE is currently sporting a Zacks Rank of 3 Hold
Valuation is also important so investors should note that PFE has a Forward P E ratio of 14 51 right now Its industry sports an average Forward P E of 14 5 so we one might conclude that PFE is trading at a premium comparatively
Investors should also note that PFE has a PEG ratio of 2 19 right now This metric is used similarly to the famous P E ratio but the PEG ratio also takes into account the stock s expected earnings growth rate The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1 98 as of yesterday s close
The Large Cap Pharmaceuticals industry is part of the Medical sector This group has a Zacks Industry Rank of 69 putting it in the top 27 of all 250 industries
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
Make sure to utilize Zacks Com to follow all of these stock moving metrics and more in the coming trading sessions |
T | Nokia CEO sees possible benefits from Huawei tensions | HELSINKI Reuters Nokia HE NOKIA Chief Executive Rajeev Suri said on Tuesday the company could benefit from a U S clampdown on Chinese rival Huawei as the race to roll out 5G services heats up Asked about the regulatory problems facing Huawei he told investors Perhaps there is long term opportunity but more than that it s hard to say at this point Analysts expect Nokia and its Swedish peer Ericsson BS ERICAs to benefit from tensions between the United States and Huawei the largest supplier of mobile network technology Nokia last month reported a surprise quarterly loss after it failed to supply 5G telecoms equipment in time Suri acknowledged the company had been a little slow in getting 5G technology up and running citing merging its own technology plans with those of acquired Alcatel Lucent PA ALUA as a reason We are late in 5G by a few weeks to a couple of months Suri told the Finnish company s annual shareholder meeting Nokia said it has won one additional commercial 5G contract since it reported first quarter earnings in late April We are winning deals and rolling out some of the world s first 5G networks Suri said We now have 37 5G commercial contracts 20 with named customers including T Mobile AT T NYSE T STC and Telia and more than half of them include wider portfolio elements that our competitors cannot match he added Suri told investors he remained confident the company would reach its annual financial guidance Nokia repeated in April its forecast for 2019 underlying diluted earnings per share of 25 29 euro cents and non IFRS operating margin of 9 12
Shares in Nokia were up 1 9 percent in late trading in Helsinki |
T | How Trading Your Own Retirement Can Fleece Your Financial Future December 23 2019 | Maybe you re a seasoned investor and have a good track record with stock picking And you may have a robust retirement portfolio perhaps including some Zacks Top Retirement stock selections such as
OceanFirst Financial OCFC GlaxoSmithKline GSK and AT T T
If this sounds like you then here s a question With your background and skills should you manage your own retirement investments
Maybe if you re an exceptional investor who can expertly manage risk and keep up perfectly resolute emotional control in the face of market volatility Be that as it may for most investors there might be better ways to accomplish long term retirement investing objectives
Active stock trading requires a very different investing approach and risk reward mindset than investing for retirement
Managing Retirement Investments Stock Picking vs Diversification
While stock picking can potentially result in outsized returns its outsized concentrated risk can pose significant hazards for retirement investors
A study done by Hendrik Bessembinder of equity markets spanning nine decades revealed that only 4 of the best performing U S stocks produced all the market s increases The rest were flat the gains of the following 38 were offset by the losses of the bottom 58
Those numbers reinforce that even if you are an experienced and talented stock picker your chances of success over a long period are very slim
Is Successful Investing a Mind Game
Investors think they can make rational decisions but research shows that the opposite is often true A recent DALBAR study tracked investors from 1986 to 2015 and found that the average investor substantially underperformed compared to the S P 500 Over 30 years the S P 500 returned 10 35 but the average investor return was just 3 66
Importantly this period included the 1987 crash and big bear markets in 2000 and 2008 but also the bull market of the 1990s
This study suggests that one key reason for investor underperformance is trying to time volatile markets and that irrational behavior biases tend to compound investor mistakes
Interestingly even savvy traders tend to underperform because they can t help but allow emotions to drive investment decisions They may be overconfident and misjudge risk latch onto a price target or perceive a pattern that isn t there This behavior gap over the long term can be catastrophic with potential underperformance of hundreds of thousands of dollars sabotaging your retirement
The Bottom Line for Retirement Investors
Your retirement portfolio should be managed with a strategy of performance over decades not days weeks or quarters Most self directed investors tend to fall short when it comes to long term results
We re not saying you should not trade at all far from it If you enjoy trading perhaps you should put 10 of your investable assets to work in short term investments to seek alpha and outsized returns
However the major part of your wealth those assets reserved for retirement ought to be invested utilizing a more careful conservative risk management strategy to produce steady compounded returns so you can securely achieve your retirement objectives
Do You Know the Top 9 Retirement Investing Mistakes
Whether you re planning to retire early or not don t let investing mistakes derail your plans
If you have 500 000 or more to invest and want to learn more click the link to download our free report 9 Retirement Mistakes that will Ruin Your Retirement This report will help you steer clear of the most common mistakes like trying to time the market lack of diversification in your portfolio and many more Get Your FREE Guide Now |
PFE | EC investigating price hikes for older drugs Aspen Pharmacare targeted | Authorities in the EU are following the U S s lead in probing prescription drug prices particularly off patent meds that in many cases face limited competition Last month the European Commission launched an investigation aimed at South Africa s Aspen Pharmacare to determine if it made unjustified hikes in the price of five old cancer drugs If the company comes out on the short end of the inquiry it could face a fine of up to 10 of sales or 290M Drug industry spokesperson Adrian van den Hoven says The investigation may be needed to stop bad behavior however this should not lead to a set of fixed principles that are not adapted to different situations which then creates additional risks and which could increase the pressure on companies to withdraw important older medicines that patients need Italy s competition watchdog fined Aspen 5 5M last year over its cancer drugs British regulators slapped Pfizer NYSE PFE with 107M fine for its price hikes of an old epilepsy drug Pundits doubt that action will be taken against patented drugs since officials are sensitive about undermining innovation incentives ETFs BIB BIS CNCR ARKG GNRX PJP IHE XPH PPH XBI BBHNow read |
AMD | AMD Earnings 50 Sales Growth Earnings Quadruple Shares Fall 6 | Advanced Micro Devices NASDAQ AMD reported fourth quarter results on Tuesday evening and the graphics and system processor designer managed to exceed analysts estimates across the board The company set conservative revenue targets for the next quarter and fiscal year Here s a closer look at AMD s results and upcoming growth prospects
Advanced Micro Devices fourth quarter results by the numbers
Data source Advanced Micro Devices GAAP generally accepted accounting principles
These results were roughly in line with AMD s fourth quarter guidance where the company aimed for revenue near 2 1 billion and adjusted gross margin of roughly 44 Reported non GAAP gross margin stopped at 45 boosted by AMD s rising volume of chips produced via the more cost effective 7 nanometer manufacturing process
Sales rose 69 year over year in the computing and graphics division driven in roughly equal parts by the Ryzen CPU and Radeon gaming GPU products Average selling prices per unit increased in both of these product lines
The enterprise embedded and semicustom segment posted a 7 revenue increase boosted by double digit percentage growth in the data center market but held back by lower sales of semicustom chips The semicustom business is primarily driven by AMD s presence in the Microsoft Xbox and Sony PlayStation gaming consoles and both of these console families will launch brand new models for the 2020 holiday season As such fading sales of the current console generation are dragging AMD s semicustom revenue down The company will power the PlayStation 5 and Xbox Series X machines as well
What s next for AMD
Looking ahead AMD set its first quarter revenue guidance at roughly 1 8 billion 42 above the year ago period s result and just below the analyst consensus at 1 86 billion Full year sales should increase by approximately 29 to roughly 8 7 billion just a hair above the average Street view at 8 6 billion
Semicustom revenue will ramp up ahead of the new console launches in Q4 starting in the second quarter but heavily weighted toward the end of the year Other operations should follow AMD s normal seasonality apart from potentially stealing market share from larger rival Intel in the data center space as the year moves along
In terms of rate and pace of server share gain it is primarily for cloud customers said CEO Lisa Su on the earnings call I m quite encouraged actually by the strength of the pipeline that we see the number of customers that are engaged and then just you know how they re deploying So I think we re going at a good pace and we ll continue to accelerate that as we go through 2020
AMD s shares fell more than 6 on this report but the stock has still gained 150 over the last 52 weeks Call it profit taking call it a lack of razzle dazzle surprises but there was nothing fundamentally wrong with AMD s performance in the fourth quarter For high octane growth stocks like AMD a small earnings surprise isn t always good enough to sustain a skyrocketing share price
I m still impressed by Su s turnaround efforts transforming AMD from a perennial also ran to a legitimate Intel alternative in five short years Over that period AMD s shares have returned a market crushing 1 630 |
AMD | What You Need to Know About AMD s Earnings | Advanced Micro Devices NASDAQ AMD reported its fourth quarter results Tuesday evening and the numbers looked good Revenue and earnings soared and the company s guidance called for solid double digit growth in 2020
But AMD s guidance was a little problematic enough so to drive the stock lower on Wednesday Here s what investors need to know about AMD s results
1 Revenue soared
Thanks to a full slate of product launches throughout 2019 AMD managed to grow its fourth quarter revenue to 2 13 billion up 50 year over year Sales in the computing and graphics segment which includes PC CPUs and GPUs soared 69 to 1 66 billion
AMD launched its third generation Ryzen PC CPUs last July alongside its first graphics cards based on its Navi architecture Both product lines were home runs Ryzen essentially closed the performance gap with Intel chips and Navi made AMD competitive with NVIDIA in the graphics card market at price points below 400
AMD s EPYC server chips helped the cause as well but the enterprise embedded and semi custom segment was dragged down by game console chips With both Sony and Microsoft launching new consoles this year sales of current generation consoles have declined The segment posted 7 revenue growth with EPYC more than offsetting the weak semi custom business
2 Profits jumped too
AMD reported non GAAP adjusted earnings per share of 0 32 up from just 0 08 in the prior year period and 0 01 higher than analysts were expecting
Robust revenue growth was part of the equation Also contributing was an improved gross margin Adjusted gross margin was 45 up from 41 in the prior year period Operating expenses were another factor Adjusted operating expenses rose by 15 much slower than revenue The net result was a surge in the bottom line
3 Guidance for the first quarter wasn t that great
On the surface AMD s first quarter guidance seems pretty good The company expects to produce revenue of 1 8 billion plus or minus 50 million That s down 15 from the fourth quarter but up 42 year over year
Here s the problem The first quarter of 2019 was a disaster so the comparison is about as easy as it gets An oversupply of graphics cards wreaked havoc on AMD s results in the first quarter last year driving revenue down 23 on a year over year basis The expected 42 growth rate is far less impressive when put into context
Two years ago in the first quarter of 2018 AMD generated 1 65 billion of revenue So AMD s guidance calls for growth of just 9 from that higher figure Given all the new products AMD has launched since then the guidance is a little concerning
4 Solid full year growth expected
For the full year AMD expects to grow revenue by 28 to 30 driven by growth across all businesses AMD should be able to win market share in the PC CPU server CPU and graphics markets However for a stock that s valued at more than 70 times adjusted full year earnings that may not be enough to satisfy investors
AMD s results this year will also benefit from the launch of the PlayStation 5 and the Xbox Series X AMD chips power both new consoles so the company will get a revenue boost once those semi custom chips begin shipping The third quarter is usually the strongest for AMD s console chip business as inventory is built up for the holidays
AMD stock was down more than 6 on Wednesday afternoon as the market digested a somewhat complicated report The revenue and earnings beats were offset by so so guidance and a lofty valuation raised the stakes
AMD could outperform its outlook this year if it can turbocharge its market share gains but the stock may have gotten out ahead of what the company can realistically deliver |
AMD | Advanced Micro Devices Has the Stock Reached Its Peak | Chipmaker Advanced Micro Devices NASDAQ AMD cruised its way to the top in 2019 with the stock up nearly 150 Since the start of 2020 the chipmaker s stock continues to advance with its shares reaching an all time high of 52 81 in January
Propelling AMD s extraordinary growth in 2019 was its progress in gaining additional market share roughly 5 year over year from long term rival Intel NASDAQ INTC and a rise in its graphics card business Although these catalysts show promise the stock is trading lower after reporting fourth quarter earnings on Jan 28
What are the differences between a chip a processor and a graphics card A graphics card facilitates the display of images from computer data It s different from a chip or a microchip which is a wafer of semiconductor material that stores the processor and the memory unit called Random Access Memory RAM The processor is the central processing unit considered to be the brain of the computer
Not so flawless quarter
AMD narrowly topped Wall Street s earnings expectations to close out 2019 The chipmaker reported quarterly revenue of 2 13 billion 20 million higher than analysts estimates and adjusted EPS of 0 32 topping projections by 0 01
Although top and bottom line results were stellar a few segments of AMD s business missed estimates The positives came from its computing and graphics segment reporting revenue of 1 66 billion 160 million higher than analyst expectations This segment focuses on graphics cards and chips featuring products including Ryzen processors and Radeon graphics cards
Growth in this segment helped AMD offset lower revenues from its enterprise embedded and semi custom segment which had mixed results This segment contributed to 465 million revenue 142 million lower than projected This segment focuses on chips for servers and custom made chips including EPYC processors The key area of declining revenue from the semi custom sales were partially offset by the success in EPYC processor sales This breakdown shows that the chipmaker faces some difficulties in its enterprise embedded and semi custom business especially with sales of its semi custom product
With these difficulties presented investors may want to pay close attention to the outlook for clues on the trajectory of the stock
Light optimism in 2020
AMD expects revenue in its first quarter to be 1 8 billion plus or minus 50 million suggesting a 42 annualized growth from the prior year driven by growth in the computing and graphics segment from sales of Ryzen processors Radeon graphics cards and EPYC processors However this quarterly revenue target would represent a 15 sequential decline softened by semi custom revenue slowing as the company advances its next generation products as well as impacts from seasonality
This light forecast implies that the chipmaker may not successfully achieve its targets especially from a declining product line such as semi custom When considering the full year forecast AMD expects about 28 to 30 revenue growth over the prior year This growth rate seems like an achievable target for the chipmaker considering the successful year it just had reporting full year revenue of 6 73 billion thanks to increased sales in its computing and graphics segment
Competition is fierce
Investors should consider potential risks that could weigh on the stock s value AMD s major region of international business is China the chipmaker s largest market for desktop and notebook PCs An economic slowdown or imposed tariffs affecting China could create unfavorable risks for AMD
When considering the competitive landscape between AMD and Intel Intel dominates 82 of the market for desktop processors Although AMD has an 18 market share the company can win business and generate more revenue from companies focused on large data centers that use processors for servers
AMD shows strength over Intel in the development of smaller transistors with the chipmaker able to develop chips at seven nanometers while Intel failed to bring a 10 nanometer chip to the market The smaller the transistor the more efficient and faster the chip AMD s ability to develop chips with smaller transistors shows promise for the company longer term as it moves to focus on sales from PCs data centers and new gaming consoles
However Intel seems to be a better investment over AMD in the short term because Intel beat estimates for data center revenue by 13 8 in its Q4 2019 earnings Although the cloud and data center businesses are unpredictable Intel could possibly leverage its strengths over AMD s declining segments
With that in mind investors should consider the current valuation of AMD through its PEG ratio This metric provides an accurate valuation measure and investors should understand that a value of 1 is a perfect correlation between P E ratio and projected earnings growth A value greater than 1 implies overvaluation while a ratio less than 1 suggests undervaluation AMD has a PEG ratio of 0 99 implying that it s approaching overvaluation
To get a better sense of analyst expectations it s helpful to make a comparison of the trailing and forward P E ratios A higher forward P E implies that the market thinks the company is likely to see growth AMD s forward P E ratio a measure of share price relative to per share earnings is 31 05 When comparing this metric against its trailing P E 158 37 this suggests that the market expects AMD will see less growth compared to the prior year
In 2019 the annual results showed that gross margin a metric that measures efficiency toward making goods and services was driven by sales of key products such as Ryzen processors and EPYC processors While sales of these products will keep growing other business segments may offset revenue These financial metrics suggest AMD s stock could fall as its valuation is corrected
Peak position peak profits
Investors who currently own AMD may want to consider the short term risks and take some profits off the table The recent earnings report future outlook and current valuation offer clues to potential investors suggesting the stock may have reached its peak and is not an attractive investment for the long term
Investors should consider buying Intel because recent success shows it s a tech stock that s better positioned to capitalize on the data center business in the near term |
AMD | Why AMD Stock Has Further to Run | Advanced Micro Devices NASDAQ AMD stock has surged by more than 110 over the last 12 months as of this writing as the company continues to win business and grow revenue
Guidance that came in slightly lower than what analysts were expecting helped send the stock down 6 after the recent fourth quarter earnings report CEO Lisa Su blame slowing sales of GPUs as consumers await the release of the next generation of gaming consoles Since the new releases will begin in July this likely amounts to delayed more than lost revenue Rather than signaling that the rally has ended the sell off is more than likely a hiccup in a stock surge set to continue
The numbers
In the just reported quarter AMD beat earnings estimates by 0 01 per share as the company reported 0 32 per share in quarterly profits It also reported a 50 year over year increase in revenue and came in 20 million ahead of Wall Street s revenue expectations
As of now the forward P E measured with 2021 earnings estimates stands at 30 9 Taken by itself that may appear high However this is lower than chipmaker NVIDIA NASDAQ NVDA which trades at around 33 times earnings estimates But AMD stock remains more expensive than that of longtime rival Intel NASDAQ INTC which sports a forward P E ratio of about 13 75
Still when looking at expected profit increases Intel may appear less appealing Analyst estimates compiled by Yahoo Finance predict that Intel will grow earnings by an average of 9 06 per year over the next five years
This pales in comparison to the five year estimate for AMD which is at 36 29 Analysts also see a profit increase of 79 7 for the current year for AMD whereas the current year estimate for Intel is around 3 With this expected growth AMD s price to earnings to growth PEG ratio comes in at just over 1 13 according to Yahoo Finance when comparing the forward P E ratio to the five year growth rate Considering the massive profit growth expected in the near future this seems like a reasonable PEG ratio
Despite the stellar numbers in its earning report AMD stock declined by almost 6 following the release of results The company reported that it expects 1 8 billion in revenue in the first quarter Since analysts were aiming for 1 86 billion some investors sold However the company s estimate represents 42 revenue growth from the year ago level
AMD has spent most of its history playing little brother to Intel One of the few ways AMD still lags Intel now favors its investors
For the upcoming quarter analysts forecast revenue of 19 02 billion for Intel While that would mean 18 4 revenue growth it s still less than half of the expected growth rate of AMD s revenue AMD is starting from a smaller base so it s easier to see big jumps in its revenue
AMD grew into one of the better performing tech stocks over the last five years Despite a run up from a 2015 low of 1 65 to the roughly 48 per share price of today AMD remains about one fifth of the current size of Intel AMD s market cap stands at around 56 billion versus about 278 billion for Intel There is room to grow
AMD continues to win
As AMD stock fell below 2 per share many had left it for dead as it struggled to find its way following the end of the PC era
Under Su s leadership AMD became a viable alternative to what looked like NVIDIA s continued dominance in graphics chips Moreover it has taken a significant technological lead over Intel in the CPU race At CES AMD introduced the 7nm Ryzen 4000 chip This means yet another 7nm offering at a time when Intel only produces 10nm chips Smaller transistors tend to offer faster processing and higher power efficiency AMD has the potential to not only catch but possibly surpass Intel
The company signed some crucial contracts in 2019 Among its victories was winning the contract to power Sony s NYSE SNE upcoming release of the PS5 gaming console Microsoft NASDAQ MSFT will also use AMD chips in its Xbox console AMD also won a deal along with Cray a subsidiary of Hewlett Packard Enterprise NYSE HPE to power the world s fastest supercomputer which is expected to bring in more than 600 million
Is the stock a buy
Despite a substantial move higher over the last five years AMD stock still looks like a bargain from a PEG perspective Moreover its size compared to Intel implies the company could continue its growth Furthermore under Su s leadership AMD has not only caught its rivals technologically in many cases it has surpassed them
A slightly lower revenue forecast led to some selling of the stock However revenue should look up once Microsoft and Sony release their new gaming consoles Rather than running away investors should see this as an opportunity to buy into this juggernaut at a slightly lower price |
AMD | Outside the Box Why AMD s best days are behind it | Both Intel and AMD recently reported earnings that hit revenue and earnings estimates But AMD s numbers while good in some places weren t as good as they perhaps should have been and Intel s numbers were far better than most expected More importantly AMD
AMD 1 72
failed to capitalize on a perfect storm of opportunity when its chip making rival was wounded Now Intel
INTC 0 05
is back on track in the highly important data center and client computing businesses and all of the advantages AMD had in 2019 are gone That leaves it with only one way to go and that is down AMD s growth in two key areas has been underwhelming Last year AMD should have made significant gains in servers and PCs After all Intel had an interim CEO faced supply shortages and missed its target dates to launch a number of new platforms Meanwhile AMD came to market with 7nm chip variants for its client and data center Essentially AMD had the better chip technology and Intel in some cases couldn t even ship product But rather than run away with market share AMD made only a few small dents to Intel s business mostly in PCs And because Intel had periods where it couldn t deliver its newest products or products at all it begs the question of whether AMD had convinced PC buyers with its better technology or merely benefited from having supplies when Intel did not Meanwhile revenue in AMD s data center and embedded products which includes gaming consoles fell well short of analyst expectations The earnings call pointed to soft gaming console metrics which are bundled in the enterprise number as the reason but didn t mention the performance of the company s EPYC processors an important bet in winning more data center business Given the amount of energy AMD has put into EPYC as a highly capable competitor to Intel s Cascade Lake server chips I would have imagined AMD would have wanted to be very outspoken about the successes of that business The decision not to address this was at best strategic shortsightedness and at worst a sign that EPYC is grossly underperforming I believe EPYC has failed to make its mark and AMD investors should be concerned about the lack of metrics or attention to this in the earnings call Intel is no longer just a chip company Intel despite its struggles has had near flat revenue in client computing the past few quarters but has seen extraordinary revenue numbers in its data center business That unit beat analyst forecasts by 19 or 800 million in the past quarter Remember this is the business that was supposed to be hammered by EPYC Cloud providers and enterprise buyers were supposed to bail on Intel and OEMs like HPE Lenovo and Dell were building AMD versions that would supposedly eat Intel market share But despite the manufacturers bringing these versions to market it appears customers haven t budged And if they have AMD is keeping it oddly close to vest On the other side Intel investors should feel bullish after CEO Bob Swan s recent remarks All the significant concerns have been addressed The company s shortages in client CPU chips is ending its new 10nm chips Tiger Lake are becoming generally available to match AMD s new RYZEN solutions and the company is announcing enhancements across its data center products to better compete with EPYC Now Intel is shoring up production announcing lower pricing updating its data center chips introducing 5G PCs and expanding to be far more than a chip company It has significantly expanded its total available market with wide offerings in AI Network Memory Autonomous Vehicles Security and IoT a market more than four times the size of the PC CPU industry AMD only competes in a few of these areas and is really still just a PC and server chip company I believe Intel is now the firm better positioned to deliver the sales and profitability investors are looking for That s bad news for those holding AMD stock and many have yet to realize just how bad that will be Now read Therese Poletti Intel enjoys big rebound in cloud but the future is still hazy Daniel Newman is the principal analyst at Futurum Research Follow him on Twitter danielnewmanUV Futurum Research like all research and analyst firms provides or has provided research analysis advising and or consulting to many high tech companies in the tech and digital industries Neither he nor his firm holds any equity positions with any companies cited
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AMD | Rosenblatt blames VMware for AMD dip | AMD NASDAQ AMD shares are down 1 4 and Rosenblatt analyst Hans Mosesmann blames VMware s VMW 2 8 new pricing that doubles CPU licenses for those with over 32 cores
The analyst notes that AMD s server EPYC2 has 64 cores and Intel s Xeon goes to 28 cores
Mosesmann downplays the risk saying that the notion that the incremental buyer of EPYC2 will be swayed to use Xeon because of a more equitable pricing model for VMWare is ludicrous |
AMD | AMD raised on potential market share gains | RBC Capital Markets maintains an Outperform rating on AMD NASDAQ AMD and lifts the target by 10 to 63
Analyst Mitch Steves thinks that PC share gains will continue to move into the mid 20 percent market share range and he has higher conviction in servers through 2020 21
Upcoming catalyst AMD will host its Financial Analyst Day on March 5 and will likely provide gross margin and market share targets
AMD shares are up 1 3 pre market to 52 94 The company has a Neutral average Sell Side rating |
T | Golf South Korea s Kang bolts clear in Dallas with sparkling 61 | Reuters South Korea s Sung Kang shot a magnificent 10 under 61 in tough conditions to vault to a four stroke halfway lead at the AT T NYSE T Byron Nelson in his home town Dallas on Friday Kang said he could hardly move his body on an unusually cold May day in north Texas but notched six consecutive birdies en route to a 16 under 126 total at Trinity Forest Americans Matt Every 65 and Tyler Duncan 66 were equal second on 12 under with big gun Brooks Koepka 66 a stroke further back But former Dallas Cowboys quarterback Tony Romo will be benched on the weekend after carding 74 to miss the cut by 10 strokes I live in Dallas and I ve never seen the weather like this in May said 31 year old Kang I checked the weather yesterday and I knew it was going to be really cold and windy so I tried to prepare for how far the ball was going to go this morning and it worked out great It was so cold I couldn t really move my body but I missed it in the right spots where I needed to miss it World number 138 Kang has not had a decent result since a tie for sixth at the Arnold Palmer Invitational in March and is seeking his first PGA Tour win Koepka sounded up for the chase I don t need to catch him tomorrow but I feel like I m playing really well and I like my chances he said ahead of his PGA Championship defense next week Local Jordan Spieth also showed form before his next attempt for a career grand slam of majors Very pleased a beanie wearing Spieth said after his 67 left him nine shots behind Kang I improved on yesterday which already was a solid day I feel good on the greens One or two tee balls cost me a shot or two but all in all we had some very difficult conditions Spieth marveled at Kang s score What Sung is doing now is absurd given what we faced he said |
T | U S investor awarded 75 million in cryptocurrency crime case | By Gertrude Chavez Dreyfuss NEW YORK Reuters U S entrepreneur and cryptocurrency investor Michael Terpin won 75 8 million in a civil judgment against a 21 year old man who Terpin said was part of a scheme that defrauded him of digital currencies court documents showed on Friday California Superior Court last week ordered Manhattan resident Nicholas Truglia to pay Terpin the amount in compensatory and punitive damages one of the largest court judgments awarded to an individual in the cryptocurrency space and highlights crime in the sector Losses from cryptocurrency theft and fraud surged in the first quarter of the year to 1 2 billion or 70 percent of the level for all of 2018 cybersecurity firm CipherTrace said Terpin told Reuters late on Thursday he filed a civil complaint in January after three million tokens were stolen from his cellphone account in early 2018 At the time of the theft the three million tokens were worth 23 8 million according to a separate complaint filed by Terpin with U S District Court in Los Angeles in August In that complaint Terpin sued AT T NYSE T as his service provider Terpin s tokens were stolen when Truglia and other participants fraudulently transferred Terpin s phone number to their control This allowed them to reset passwords and access online accounts Truglia was arrested in November for six other crimes and law enforcement is continuing to investigate the case Terpin said he is preparing action against other gang members According to an affidavit by Truglia s former friend Chris David Truglia before his arrest lived a life of luxury including private jets sports cars and Rolex watches |
T | AT T s Mexico unit loses class action lawsuit to consumer watchdog | MEXICO CITY Reuters Mexico s consumer watchdog Profeco said on Friday it won a class action lawsuit against the local unit of U S telecommunications giant AT T Inc NYSE T for undue charges and poor service Profeco said that in 2013 it sued telecommunications operator Nextel which was acquired by AT T in 2015 for undue charges changing rates without informing customers and continuing to charge clients for services that had been canceled Nextel offered 4G technology on its website though it was proven in court the technology provided was inferior to what was advertised underscoring the use of abusive and false advertising to prompt consumers into mistakenly acquiring their services Profeco said in a statement Profeco said AT T Mexico s third largest mobile service provider must pay damages to its affected consumers plus 20 compensation and an additional 9 annual legal interest for the various undue charges It did not estimate how much that could mean AT T will have to pay The sentence is final after Mexico s Supreme Court rejected a prior appeal filed by the company
These trials began well before AT T entered the market as part of a class action suit presented against all wireless companies in Mexico including Nextel which we acquired in 2015 AT T said in a statement We continue working to serve our customers in better ways |
T | Mexico president says state will cover internet gaps others should stand aside | MEXICO CITY Reuters Mexican President Andres Manuel Lopez Obrador said on Saturday the government would bring internet to remote areas of the country and that current concession holders should stand aside if they cannot do the job In a campaign style speech to hundreds of supporters in El Nayar a municipality in the western state of Nayarit the veteran leftist said companies were not bringing internet to the remotest areas because they were only interested in profits With all due respect what are we going to say to the companies who have had the concessions and who haven t connected the country Stand aside because the government will have its company to connect all Mexicans with internet he said Lopez Obrador who has pledged to ensure the whole country has internet did not elaborate further and a spokesman for the presidency could not immediately be reached for comment Since taking office in December Lopez Obrador has sought to give a bigger role to the state in the economy causing nervousness among influential sections of the business community America Movil the company controlled by business tycoon Carlos Slim has long dominated the telephone and internet market in Mexico The company s principal competitors in telecoms are Spain s Telefonica MC TEF and U S firm AT T Inc NYSE T Last year the administration of Lopez Obrador s predecessor as president launched a wholesale national mobile network that it said would cut the costs of developing infrastructure for carriers particularly in rural areas with poor coverage A spokesman for America Movil did not immediately reply to a request for comment According to Mexico s national statistics agency as of 2018 74 3 million people in Mexico above the age of six used the internet in Mexico or 65 8 of that portion of the population
Around 18 3 million homes or 52 9 of the total had fixed or mobile internet access the agency said |
T | Golf Every grabs lead before third round halted at Byron Nelson | Reuters Matt Every came out firing after a lengthy weather delay and grabbed a one shot lead midway through his third round at the AT T NYSE T Byron Nelson in Dallas before play was halted on Saturday due to darkness Tee times at a saturated Trinity Forest were pushed back six hours due to inclement weather but that hardly bothered Every as he went six under through nine holes to reach 18 under par on the week before the horn sounded to end play This place is playing pretty easy right now said world number 472 Every Everybody is shooting the grass off of it and it s going to turn into a putting contest because there s no way this is going to dry out in one day Every who started the day four shots back of overnight leader Sung Kang of South Korea got off to a rousing start when he holed out for eagle from 97 feet at the par five first and then made four birdies over a five hole stretch from the fourth The soaked course opened the door for a birdie fest but Kang who matched the course record with a 61 on Friday was unable to take full advantage as he mixed two birdies with a bogey through nine holes to sit one shot back of Every American Morgan Hoffman who was one of just nine players to complete the round had the early clubhouse lead at 10 under after six under par 65 Brooks Koepka who next week will defend his PGA Championship title began the day five shots back of Kang and did well to birdie his opening two holes but made bogey at the par five seventh and went into the turn six shots off the pace Nicholas Lindheim who started on the back nine shot into contention with nine birdies over a sizzling 12 hole stretch to reach 12 under for the week He then made three consecutive pars before play was suspended
Third round action will resume at 8 30 a m on Sunday |
T | Golf Kang rallies to win maiden title in Dallas | Reuters South Korea s Sung Kang elevated his game on the back nine to claim his first career PGA Tour victory at the AT T NYSE T Byron Nelson in Dallas with a comfortable two stroke win on Sunday Kang started sluggishly playing even par through the first seven holes on a sunny day at the Trinity Forest golf club where scoring conditions were ideal But he birdied eight nine and 10 and settled down on the back nine as he regained the form that saw him shoot a second round 61 Momentum swung decidedly in the 31 year old s favor on the par four 15th when he sank a 23 foot birdie putt for the outright lead He held the advantage en route to a four under 67 for a 23 under 261 total Matt Every who had been neck and neck with Kang all day had a costly bogey on 15 and never threatened after that finishing tied for second with Scott Piercy at 21 under 263 An exhausted Kang said he decided to just relax and have fun despite a lack of sleep with Saturday s play suspended for darkness and the third round completed earlier on Sunday Yesterday we finished too late and I didn t get enough time to sleep I only slept about three hours he said When my turn came up I tried to really focus on it and it worked out great I am so happy right now Kang embraced his wife and eight month baby on the green after sinking the final putt a Mother s Day his family who live in the Dallas area will not soon forget The win is a breakthrough for Kang marking his first victory in 159 PGA Tour starts The success is also indicative of the rise of Koreans on the Tour In 2003 K J Choi was the only South Korean born player and today there are 15 The result was bitter for American Every who needed to win to qualify for next week s PGA Championship but encouraging for countryman Piercy who posted four bogey free rounds It was also a good week for world number three Brooks Koepka who had an eagle and four birdies in his bogey free final round to finish fourth on 20 under Koepka will look to keep the momentum when he defends his PGA Championship title at Bethpage Black in Farmingdale New York next week |
T | Ex Cowboys QB Romo fails to qualify for U S Open | Tony Romo failed Monday in his quest to qualify for the U S Open Three days after the former Dallas Cowboys quarterback missed the cut at the AT T NYSE T Byron Nelson in Dallas his third PGA Tour event Romo failed to move on at a local U S Open qualifier at TPC Craig Ranch in McKinney Texas He shot a 3 over par 74 on Monday four strokes higher than the cut line to advance Romo has played three PGA events via sponsor exemptions something the U S Open does not hand out The 39 year old retired NFL star has tried many times to qualify advancing to sectional qualifying in 2010 when he withdrew while still an active player in the NFL offseason
The current CBS NFL analyst told ESPN that he will try to play next in the Mid Amateur and Northeast Amateur over the summer He also hopes to play the American Century Championship at Stateline Nev in July a tournament he won last year Field Level Media |
PFE | These 1 Click Dividend Machines Yield 8 8 With 56 Upside | Certain closed end fund CEF investors are getting a little desperate for dividends It s tough to blame them for reaching for 5 6 and even 7 yields in a 2 to 3 world
But by grossly overpaying for funds they are risking too much capital to bank these payouts If you own any of the five popular funds I m about to call out you should consider selling them immediately
There are bargain replacements after all I m talking about funds trading as cheap as 0 88 on the dollar and yielding 7 2 We ll discuss specifics in a moment
First level income seekers can be greedy one minute and fearful the next We contrarians make our living and retirement by purchasing out of favor payouts and selling dividends that are too dear
Today there are funds trading for as much as 1 39 per share for just 1 in assets There are others selling at half that price for equivalent portfolios Here s why this happens and how we can capitalize on it
This Discount Premium as Margin of Safety or Lack Thereof
CEFs unlike their open end mutual fund cousins have fixed share counts This makes their prices subject to the animal spirit whims of the market for better or for worse
As usual despair is our friend When CEF investors throw in the towel the funds they discard can see their shares trade at discounts to their net asset value NAV This is basically free money for us
If a fund trades at a 12 discount to its NAV it means we re able to buy its underlying assets for just 88 cents on the dollar That s exactly the type of discount to intrinsic value that many successful stock market investors strive for
Plus savvy managers have ways they can force their own discount window to shut again Such as buying back their own cheap shares
On the other hand when CEF investors get greedy they actually pay premiums for funds Bad idea Let me show you why and give you five first level favorites to avoid
Don t Overpay A 9 Payer Returns Just 2 Annually
Doubleline Opportunistic Credit NYSE DBL has traded at a rich 8 average premium for the last three years as investors flocked to its high 9 yield and celebrity Bond God manager Jeffrey Gundlach An 8 premium means buyers paid 1 08 for just 1 in assets
How d that bidding war work out Not well with the fund returning just 7 over the entire three year period including the dividends
A Lackluster Total Return Just 7 in 3 Years
Income investors bought the generous dividend but lost most of it in price depreciation They made the same mistake as those who pay a high price to earnings P E multiple for a stock They simply got crushed when the multiple began to contract
Why The Premium Multiple Contracted
Unfortunately folks are still paying a 3 premium to get into this fund And that doesn t make much sense with sister fund DoubleLine Income Solutions Fund NYSE DSL trading for a 1 discount to its NAV Same brilliant bond guru same wide mandate way better price
My Contrarian Income Report subscribers smartly chose DSL over DBL in April 2016 The discount disparity was even larger back then making it extra lucrative to think contrarily
Price Matters DSL Returned 56 to DBL s 7
If we re looking for yield to provide us with retirement income without having to worry about share prices then we should generally fade premiums
4 More First Level Favorites for Mediocre Returns or Worse
You probably know the Bond King Bill Gross How about his successor Dan Ivascyn
When Gross left PIMCO a tide of cash followed him out the door But the flow of money quickly subsided when Ivascyn stepped to the plate and outperformed Gross himself PIMCO let the King walk because they had their next superstar in waiting
A money manager of Ivascyn s caliber will usually cost 2 annually plus 20 of profits And it d take a million bucks or two to get his attention
So it s understandable that investors would try to reach for Ivascyn and overpay for his fund That s exactly what happened with PIMCO Global StocksPLUS Income Fund NYSE PGP
In fact two more PIMCO funds round out our 5 most overpriced list If Ivascyn Co are at fault it s for being too good at what they do Sadly though investors who buy today are paying too much and likely to see their dividends eaten up by price declines or worse in the years ahead
4 More Popular Premiums to Avoid
Don t despair though While there is certainly some froth in CEF land there are still some dividend superstars to be had All we need is a bit of second level thinking
Contrarian Income Tip Buy Discounted CEFs as Rates Rise
Here s a little known secret that will help you identify funds that are unfairly discounted
Higher rates don t really hurt CEFs
The theory scares people because it sounds true Closed ends have the benefit of borrowing money at Libor to leverage up their returns Libor is tied closely to the Fed funds rate So the thinking goes higher Fed rates will end the cheap money party that benefits CEFs
Some funds today are selling at discounts to their NAVs on the fear that rate increases will hurt them But this lazy conclusion is wrong
In June 2004 Fed chair Alan Greenspan began boosting rates from then historic lows Over a two year period he increased the federal funds rate from 1 to 5 25 A dizzying pace by today s standards
How d CEFs perform Let s consider the tax advantaged Nuveen AMT Free Municipal Credit Income NYSE NVG which rose in harmony with Alan Greenspan s Fed Funds Rate
Fed Rate and Muni CEFs Rose in Harmony Then
And this rate hike cycle we can simply update the months and years to see a similar picture
And Now
Other types of CEFs were also able to perform well in the face of rising rates Here are three of the largest CEFs from the 2004 to 2006 time period
CEFs Beat the Market as Rates Rose Then
And Now
With rates once ticking up it s the perfect time to buy the few high quality funds that are still trading for discounts
But which ones
These 4 Cheap Funds are Dividend Conversion Machines
I ve found 4 lucrative Dividend Conversion Machines that let you buy blue chip stocks like Pfizer NYSE PFE for incredible 11 0 CASH payouts
Plus these funds all trade at a discount to the value of the stocks and bonds they hold today This is free money For example this fund which yields 7 2 by the way sells for just 11 71 and has a free 1 56 discount to NAV baked in
With these four amazing Dividend Conversion Machines you ll grab dividends of 6 8 10 and more for just 88 90 and 92 cents on the dollar
And thanks to these discounts these four yield kings are also set to explode with massive price upside too Remember the old DSL example we discussed earlier These one click investments boast similar lucrative setups today
I m talking 20 yearly price upside here on top of dividends of 8 11 and even higher
Just days ago I released the whole incredible story on these 4 Dividend Conversion Machines to the public for the first time including their names ticker symbols exactly how they work and how to buy hint you can grab these 4 incredible Dividend Conversion Machine straight from your brokerage account
Simply click here and I ll share all the details with you including full details on these 4 Dividend Conversion Machines and how to start their 6 8 and 10 payouts pumping into your account now
Disclosure Brett Owens and Michael Foster are contrarian income investors who look for undervalued stocks funds across the U S markets Click here to learn how to profit from their strategies in the latest report 7 Great Dividend Growth Stocks for a Secure Retirement |
PFE | Biotech Stocks From Breakout To Breakdown In One Week | Biotech stocks ran higher from May through to August There were a couple of set backs along the way but a strong move higher Large cap healthcare was looking good Companies like Eli Lilly and Pfizer NYSE PFE were climbing The Medical Devices field was also showing strength It seemed like a change of leadership in the stock market was upon us with healthcare taking the lead
After a short pullback in September Biotech stock prices were rising again into the end of the month and finished September at 3 year highs All looked well for the sector And then October started Of the first 7 trading days in October the Biotech Index has been down 6 of them including the last 4 A 6 drop in just over a week Is it time to panic
The pullback brought the Biotech Index ETF IBB back to its 100 day SMA It bounced the last time it touched there in June But momentum is weaker this time The RSI is making a 6 month low and pushing into the bearish range And the MACD is negative It has not dipped to negative since May when it was rising out of the April low
These alone do not state the case to sell Biotech yet Looking at the price action it has stalled in the move lower at the prior low from August creating a channel If it continues below the July dip there is likely trouble ahead as a double top would confirm Time to protect you Biotech and watch closely
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment I or my affiliates may hold positions or other interests in securities mentioned in the Blog please see my Disclaimer page for my full disclaimer
Original post |
PFE | European stocks mostly higher despite political tensions DAX up 0 27 | Investing com European stocks were mostly higher on Thursday despite ongoing U S political concerns and mounting uncertainty over the outcome of the upcoming U K general elections
During European morning trade the EURO STOXX 50 dipped 0 01 France s CAC 40 advanced 0 45 while Germany s DAX 30 gained 0 27
Investors remained cautious amid ongoing fears investigations into President Donald Trump s ties with Russia could hamper his administration s progress on promised stimulus measures
The Trump administration is under investigation by the Federal Bureau of Investigation and several congressional panels over alleged Russian meddling in the 2016 presidential election and potential collusion with the Trump campaign
Markets were also jittery after the latest YouGov poll released on Wednesday showed that Theresa May s Conservative Party is only 3 percentage points in front of the opposition Labour Party ahead of the June 8 election
Financial stocks were mixed as BNP Paribas PA BNPP dropped 0 56 and Societe Generale PA SOGN edged up 0 13 in France while Germany s Commerzbank DE CBKG and Deutsche Bank DE DBKGn declined 0 62 and 1 73
Among peripheral lenders Italy s Intesa Sanpaolo MI ISP and Unicredit MI CRDI lost 0 17 and 1 50 respectively while Spanish banks BBVA MC BBVA and Banco Santander MC SAN edged up 0 11 and 0 17
Elsewhere shares in Deutsche Telekom DE DTEGn dove 2 75 after the company said it is optimistic about the regulatory environment in the United States under the Trump administration
On the upside Linde AG DE LING jumped 1 22 as the company s merger with U S group Praxair NYSE PX seems more likely now that German labor opposition has started to waver
Vivendi PA VIV added to gains with shares up 1 55 after the Brussels competition regulator on Tuesday approved the French company s controversial plans to take de facto control of Telecom Italia MI TLIT on the condition that it sells its stake in broadcasting company Persidera
In London FTSE 100 gained 0 46 helped by DCC LON DCC whose shares rallied 1 46 after the energy and technology group said it completed the disposal of its environmental division to a private equity firm
Astrazeneca LON AZN was also on the upside with shares climbing 1 72 after its brand Neksium was acquired by U S drugmaker Pfizer NYSE PFE
Financial stocks were mostly higher as Lloyds Banking LON LLOY eased up 0 07 and HSBC Holdings LON HSBA rose 0 35 while Barclays LON BARC gained 0 69 The Royal Bank of Scotland LON RBS underperformed however with shares down 1 04
Meanwhile mining stocks were broadly lower on the commodity heavy index Shares in Rio Tinto LON RIO slid 0 31 and Glencore LON GLEN dropped 0 37 while rival BHP Billiton LON BLT declined 0 38
National Grid LON NG was one of the worst performers on the index as shares plummeted 2 98 even as the company insisted this week that it can cope with increasing amounts of solar energy used in the UK energy the technology set a new generation record last week
In the U S equity markets pointed to a steady to higher open The Dow Jones Industrial Average futures pointed to a 0 05 uptick S P 500 futures showed a 0 07 gain while the Nasdaq 100 futures indicated a 0 23 rise |
PFE | Pfizer and Astellas amend late stage study supporting expanded use of Xtandi top line data expected this year | Pfizer NYSE PFE and collaboration partner Astellas Pharma OTCPK ALPMF have amended the protocol for the Phase 3 PROSPER clinical trial assessing XTANDI enzalutamide for the treatment of non metastatic castration resistant prostate cancer CRPC The change reduces the target sample size to 1 440 from 1 560 and will enable the reporting of top line results later this year rather than 2019 XTANDI is currently approved in the U S to treat men with metastatic CRPC Pfizer is up a fraction premarket Now read |
AMD | Analysts praise AMD s business mix margins | Summit Insight Group upgrades AMD NASDAQ AMD from Hold to Buy after yesterday s Q4 report
The firm notes that the Enterprise Embedded and Semi Custom business posted a sequential revenue decline but expanded the gross margin to 45 thanks to a favorable product mix
Summit believes AMD gained significant PC market share last year and paired with 7nm server CPU sales will likely take shares from Intel this year at a higher than average margin
More action Wedbush maintains an Outperform rating and raises its AMD target from 51 50 to 75 citing the larger surprises of the business mix and implied conservatism in the FY outlook
AMD shares are down 6 8 to 47 07 The company has a Neutral average Sell Side rating |
T | Golf Koepka in the hunt at Byron Nelson ahead of PGA | Reuters Brooks Koepka did not get the luxury of seeing the full Trinity Forest layout before the opening round of the AT T NYSE T Byron Nelson in Dallas but that did not prevent him from shooting a six under par 65 on Thursday Koepka who will defend his PGA Championship title next week saw the back nine during a Tuesday practice round but did not get a chance to play the front nine as rain washed out the pro am event on Wednesday Undaunted the world number three took advantage of benign morning conditions to compile eight birdies that left him two shots behind American leader Denny McCarthy McCarthy also played in the morning on a day when the late starters battled more demanding weather in a northerly afternoon breeze Local hero Jordan Spieth who next week has a chance of completing the career grand slam of all four majors shot 68 in the afternoon Spieth has played the course hundreds of times and knows every subtle nuance Not so with Koepka Didn t see the front nine so I m pretty pleased with the way I played Koepka said It s a bit different when you re playing it blind Kind of don t know where you re going Relying a lot on the yardage book I never look at the book Koepka winner of three major titles in the past two years is using the Byron Nelson to tune up for the PGA Championship at Bethpage next week his preparation a contrast with most of the big names who are taking the week off I just want to strike the ball well he said Obviously the goal is to win but if you don t you just want to feel good leaving for next week McCarthy s 63 was even better than it might look at first glance because he double bogeyed his fourth hole before roaring back with 10 birdies I told myself I was going to be aggressive today and I wasn t starting off said McCarthy making his 43rd start on the PGA Tour The double bogey helped calm me down in a way I made a timid swing off the tee From there on I told myself I was going to play carefree and be really be aggressive
Australian world number 22 Marc Leishman withdrew before the round citing a back injury |
T | Golf Local hero Romo excites with early eagle before fading at Byron Nelson | Reuters Former Dallas Cowboys quarterback Tony Romo created some early excitement with an eagle at the AT T NYSE T Byron Nelson on Thursday but ultimately fumbled away his round to finish with a five over par 76 Romo playing as an amateur on a sponsor s exemption was two under through his first eight holes of the opening round of the PGA Tour event after chipping in from the edge of the green for eagle at the par five seventh But the 39 year old fell to earth like a quarterback in the clutches of a defensive lineman after a rocky back nine that left him two shots out of dead last at the Trinity Forest Golf Club I really hit some good shots and I m close Romo told reporters following his round I had a chance to be under par pretty easily there for a while And then two or three shots on the back nine cost me But that s golf A double bogey at the ninth hole set Romo back and after three pars he suffered another double at the 13th before dropping a single shot at three of his final five holes Now a leading TV football analyst Romo was drawing plenty of fan attention in Dallas where he played 14 seasons for the Cowboys For the day Romo hit eight of 14 fairways nine of 18 greens and needed 30 putts a part of his game he admitted he needed to improve I three putted like three times twice early in the round that s just nerves Romo said You just gotta putt Three putts add up I think that s something I ll go back and work on a little bit and I think that ll be better tomorrow Romo is gearing up for an unlikely attempt to qualify for the 2019 U S Open in June He will need an extremely low round Friday to have a chance of making the cut but at the very least will give himself 18 more holes of competitive experience
That s why you compete You compete to know how to practice Romo said And then you go practice and improve the next time you step out there |
T | Powerful Proof Anyone Can Invest For An Early Retirement December 17 2019 | Achieving the financial freedom to retire early a dream for most Making that dream a reality isn t as tricky as it sounds The secret is simple Save a lot more each month Sounds easy right Not so fast
Usually advisors advise 15 to 20 of total income saved every month as an objective yet in the event that you want to retire earlier you likely need to tighten that number up to 40 or half of your pay Not a discipline easily practiced when you review or consider that a substantial segment of your paycheck goes to basic non negotiable lifestyle needs But if you are willing to make some serious lifestyle adjustments and trade offs it s achievable
A generally new development called Financial Independence Retire Early FIRE has been created around this sacrifice and over save now to retire early idea FIRE supporters create exacting savings plans up to 75 of income and make related compromises like living in small homes walking to work every day prohibitive weight control plans etc This way might be unreasonably prohibitive for many yet the mentality offers a few takeaways that may merit consideration
To start stick with the essentials of long term growth investing Build a diversified portfolio of stocks with exposure to various styles sizes sectors and regions
To speed up the retirement investment cycle you can build a portfolio structured with more risk and the potential for higher returns It should in any case be adequately diversified to safeguard against sharper than normal market downturns that can be hard to recuperate from and that can ruin any opportunity to achieve your early retirement goal There are various strategies to diversify a portfolio and how you do so should be guided by your age your risk appetite your growth and income needs and your long term objectives
Once you ve begun saving at a higher rate and you have an investment plan put that money to work in your plan as quickly as you can Don t worry about finding the perfect time to invest simply put the money in and keep it in Let compounding work to help you grow your retirement savings at an exponential rate
Astute investors pick retirement growth stocks with low beta strong earnings estimates positive sales growth and expected future growth
Zacks offers investors useful rankings for lower risk growth stocks for retirement portfolios The following are a few selections that merit a closer look First Financial Corp THFF Oversea Chinese Banking Corporation Limited OVCHY and AT T T Earnings and revenue has seen growth of at least 5 or higher over the last five years with a beta of 1 or lower
Do You Know the Top 9 Retirement Investing Mistakes
Whether you re planning to retire early or not don t let investing mistakes derail your plans
If you have 500 000 or more to invest and want to learn more click the link to download our free report 9 Retirement Mistakes that will Ruin Your Retirement This report will help you steer clear of the most common mistakes like trying to time the market lack of diversification in your portfolio and many more Get Your FREE Guide Now |
PFE | Pfizer to update investors on oncology business June 9 | Pfizer PFE 0 8 will host a conference call with analysts on June 9 at 11 00 am ET to discuss its oncology business and review ASCO presentations Investors are invited to listen and view the webcast accessible on its website Now read |
PFE | FDA OKs expanded use of Novartis cancer med Zykadia | The FDA approves the use of Novartis NYSE NVS Zykadia ceritinib for the first line treatment of patients with metastatic ALK positive non small cell lung cancer NSCLC The agency first approved the ALK inhibitor in 2014 for the treatment of patients with ALK positive metastatic NSCLC who progressed on or were intolerant to crizotinib Pfizer NYSE PFE s XALKORI In the U S Zykadia has Breakthrough Therapy status for first line ALK NSCLC with metastases to the brain Now read |
PFE | Novartis warns of U S price pressure on Sandoz generics | By John Miller
ZURICH Reuters Novartis warned on Wednesday that price pressure on its generics drugs in the United States has intensified in the second quarter cutting into its Sandoz division s sales growth in the world s largest healthcare market
The Swiss drugmaker which is holding an investor event in Boston also said in a statement that it continued to review all options for its struggling Alcon eyecare unit
An update on the future of loss making Alcon which is among 50 billion in assets Novartis is considering unloading is expected by the end of the year
Novartis s Sandoz business whose 10 1 billion in revenue in 2016 made up a fifth of the company s total joins generics makers including India s Sun Pharmaceutical Industries and Lupin that have said revenue growth will be muted this year amid intensifying U S price pressure
The impact of U S pricing pressure and prior year launch timing is expected to have a higher impact on second quarter 2017 sales growth than in the first quarter Novartis said
Even so Novartis said it was leaving Sandoz s full year sales targets unchanged as it still sees the division s revenue broadly in line with 2016
Consolidation among drug distributors has hit generics makers ability to negotiate on prices while regulatory scrutiny has also made hikes tougher
Beyond the price squeeze Sandoz has also been hurt by the delay of a new generic version of Glatopa a copy of Teva s multiple sclerosis drug Copaxone due to a warning letter on a third party manufacturing site in Kansas run by Pfizer NYSE PFE |
AMD | Investors Shed AMD Stock After Soft Outlook | Advanced Micro Devices Inc NYSE AMD reported fourth quarter and full year 2019 earnings after markets closed Tuesday For the quarter the chipmaker posted adjusted diluted earnings per share EPS of 0 32 on revenues of 2 13 billion In the same period a year ago the company reported EPS of 0 08 on revenues of 1 42 billion Fourth quarter results compare to the consensus estimate for EPS of 0 31 on 2 11 billion in revenues For the full year EPS totaled 0 64 and revenues came in at 6 73 billion compared to 2018 totals of 6 48 in revenues and EPS of 0 46 Analysts were looking for EPS of 0 62 and revenues of 6 71 billion AMD stock is rose by 155 in 2019 Quarterly and annual results could indicate that last year s soaring growth is coasting to a halt div connatix margin bottom 1 5em div connatix img margin unset In its computing and graphics segment AMD reported revenue of 1 66 billion up 69 year over year and up 30 sequentially driven primarily by strong sales of Ryzen processors and Radeon gaming GPUs Operating income rose from 115 million in the year ago quarter and 179 million in the second quarter to 360 million In the enterprise embedded and semi custom segment revenue totaled 465 million up 7 year over year and down 11 sequentially The annual increase was driven by significantly higher EPYC processor sales partially offset by lower semi custom sales The sequential decline was attributed to lower semi custom sales partially offset by strong EPYC processor sales For the first quarter AMD expects revenue of around 1 8 billion plus or minus 50 million a decrease of approximately 17 sequentially and an increase of about 42 year over year The sequential decrease is driven primarily by negligible semi custom revenue which continues to soften in advance of the ramp of next generation products in addition to seasonality The year over year increase is being driven by strong growth of Ryzen EPYC and Radeon product sales AMD expects non GAAP gross margin to be approximately 46 in the first quarter of 2020 The company s CEO Dr Lisa Su said 2019 marked a significant milestone in our multi year journey as we successfully launched and ramped the strongest product portfolio in our 50 year history We delivered significant margin expansion and increased profitability as we gained market share with our Ryzen and EPYC processors Our focused execution and the investments we made in our high performance computing roadmaps position us well for continued growth in 2020 and beyond Analysts had forecast first quarter earnings at 0 20 per share and revenues at 1 86 billion For the full year revenues are seen at 6 71 billion and EPS is forecast at 1 13 AMD s slightly lower revenue forecast is chasing investors away AMD s shares closed at 50 53 on Tuesday up about 2 6 for the day but slipped about 2 9 in the after hours trading session to trade at 49 09 The stock s 52 week range is 19 05 to 52 81 The consensus price target for the shares was 43 33 before the report
By Paul Ausick |
AMD | AMD falls after soft revenue projection | AMD s revenue was somewhat below consensus Microsoft revealed a laptop containing an AMD chip in the quarter |
AMD | NewsWatch AMD stock slides as outlook falls below Wall Street view | MARKETWATCH FRONT PAGE Advanced Micro Devices Inc shares declined in the extended session Tuesday after the chip maker s outlook fell below Wall Street estimates and data center sales did not come in as well as expected See full story Coronavirus update Vaccine stocks retreat and airport screening expands to 20 U S airports A nearly weeklong rally for vaccine and diagnostics developers looking to capitalize on the coronavirus outbreak ended on Tuesday See full story My retirement income is 95 000 a year and I want a walkable affordable beach town to spend the winter Where should I retire This beach town cannot be on the West Coast See full story Nike sold out of Kobe Bryant gear online it wasn t pulled Now some Kobe sneakers jerseys and trading cards are selling for upwards of a thousand dollars on eBay and StockX See full story Ocasio Cortez slams Trump over his wealth test saying the American Dream isn t a private club with a cover charge New York Rep Alexandria Ocasio Cortez is no fan of the recent Supreme Court ruling See full story MARKETWATCH PERSONAL FINANCE Young adults women and low income families visited libraries the most and zoos the least See full story
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AMD | Advanced Micro Devices AMD Q4 2019 Earnings Call Transcript | Advanced Micro Devices NASDAQ AMD Q4 2019 Earnings CallJan 28 2020 5 30 p m ETContents Prepared Remarks Questions and Answers Call Participants Prepared Remarks OperatorGreetings and welcome to the AMD fourth quarter and fiscal year 2019 conference call Operator instructions As a reminder this conference is being recorded It is now my pleasure to introduce your host Laura Graves corporate vice president investor relations for AMD Please go ahead Laura Laura Graves Corporate Vice President Investor Relations Thank you and welcome to AMD s fourth quarter and year end 2019 financial results conference call By now you should have had the opportunity to review a copy of our earnings release and slides If you have not reviewed these documents they can be found on the investor relations page of AMD s website amd com Participants on today s conference call are Dr Lisa Su our president and chief executive officer And Devinder Kumar our senior vice president chief financial officer and treasurer This is a live call and will be replayed via webcast on our website I would like to highlight some important dates for you On the afternoon of Thursday March 5th we will hold our financial analyst day at our headquarters in Santa Clara California And our first quarter 2020 quiet time is expected to begin at the close of business on Friday March 13th Today s discussion contains forward looking statements based on the environment as we currently see it Those statements are based on current beliefs assumptions and expectations speak only as of the current date and as such involve risks and uncertainties that could cause actual results to differ materially from our expectations We will refer primarily to non GAAP financial measures during this call except for revenue and segment operational results which are on a GAAP basis The non GAAP financial measures referenced herein are reconciled to their most directly comparable GAAP financial measure in today s press release posted on our website Please refer to the cautionary statement in our press release for more information on risks related to any forward looking statements that we may make You will also find detailed discussions about our risk factors in our filings with the SEC and in particular AMD s quarterly report on Form 10 Q for the quarter ended September 28 2019 With that I will hand the call over to Lisa Lisa Lisa Su President and Chief Executive Officer Thank you Laura And good afternoon to all those listening in today 2019 marked another major milestone in our multiyear journey We delivered record annual revenue of 6 73 billion and significantly increased both gross margin and net income as we successfully introduced and ramped the strongest product portfolio in our 50 year history We grew clients and server processor annual revenue by 1 5 billion in 2019 driven largely by the strong demand for our seven nanometer Ryzen and EPYC processors powered by our Zen 2 processor core Looking at the fourth quarter we ended the year very strong with quarterly revenue increasing 50 year over year to a record 2 13 billion while also significantly increasing net income Turning to our computing and graphics segment fourth quarter revenue increased 69 year over year to 1 66 billion Ryzen processor adoption accelerated sharply in 2019 helping to drive significant double digit percentage increases in client processor annual unit shipments ASPs and revenue We ended 2019 with our highest quarterly client processor unit shipments in more than six years based on strong demand for Ryzen desktop and mobile processors In desktop we had a very strong holiday season as our second and third generation Ryzen processors consistently held top sales spots at the largest global e tailers and retailers We launched our Horizon 3950X processor and the 24 and 32 core versions of our third generation Ryzen Threadripper processors in November Our 16 core Ryzen 3950X processor is the world s fastest mainstream desktop processor while our latest Threadripper CPUs offer unmatched performance for the high end desktop market In January we expanded our leadership position in the ATDT market with the launch of our flagship 64 core rising Threadripper processor which is the world s highest performance desktop processor In mobile we had our eighth straight quarter of strong double digit percentage year over year revenue growth as we expanded the number of AMD powered laptops available for major OEMs We began shipping our Ryzen 4000 mobile processors powered by our Zen 2 core at the end of the fourth quarter These new processors double the performance per watt of our prior generation and deliver leadership single threaded multi threaded and graphics performance for thin and light notebooks While enabling the industry s first ultra thin laptops with eight cores Initial systems featuring the Ryzen 4000 processors are expected to launch later this quarter and more than 100 AMD based consumer and commercial laptops are planned for 2020 from Acer ASUS Dell HP Lenovo and other major OEMs In graphics fourth quarter unit shipments grew by a strong double digit percentage year over year driven by sales of our Radeon RX 5000 series GPUs featuring our new RDNA architecture We further expanded our portfolio of RDNA GPUs with the introductions of the 5500XT and 5600XT desktop graphics cards Highlighted by strong third party reviews that clearly established 5600XT as the most powerful gaming GPU available for under 300 We launched our Radeon 5000M mobile GPUs in the quarter as well and we are seeing solid design win momentum based on their strong performance and power efficiency The first laptops powered by the new GPUs are available now including the recently updated Apple Macbook Pro and we expect many more notebooks featuring our Radeon 5000M GPUs to launch throughout 2020 Data center GPU revenue increased sequentially driven by cloud VDI and game streaming deployments We announced a major update to our open source GPU computing software stack in the fourth quarter featuring performance optimizations expanded development tools and support for the most popular machine learning frameworks We continue making strategic software investments to make it easier for developers to tap into the full capabilities of our Radeon instinct accelerators for HPC and AI applications For the year data center GPU revenue grew by a strong double digit percentage as we continue to make progress growing our presence in this important part of the market Turning to our enterprise embedded and semi custom segment revenue of 465 million increased 7 year over year as EPYC processor revenue growth offset declines in semi custom revenue Semi custom sales continued to soften in the quarter in advance of the next generation console launches from Sony and Microsoft planned this year For 2020 we expect first quarter semi custom revenue to be negligible and the ramp of next generation semi custom products to start in the second quarter with revenue to be heavily weighted toward the second half of the year In server revenue grew by a strong double digit percentage as unit shipments and ASPs increased sequentially driven by demand for our second gen EPYC processors Our second gen EPYC processors are ramping significantly faster than the first generation as we see particular strengths for our higher core count models where our performance and TCO advantages are the most significant Cloud adoption with the largest providers continues to accelerate driven by the expanding use of EPYC processors to power their critical internal workloads as well as a significant increase in the number of AMD powered instances publicly available Shipments to cloud providers increased sequentially by a significant double digit percentage to support expanding build outs at Amazon Google Microsoft Oracle and Tencent Microsoft announced the availability of four new virtual machines and AWS announced two new EC2 instances powered by second gen EPYC processors In the enterprise Dell began shipping their full portfolio of servers powered by our latest epic processors We have doubled the number of EPYC processor platforms in market to more than 100 offerings in the quarter These new platforms are driving increased enterprise customer engagements broadening our sales pipeline considerably In HPC we secured multiple large wins in the quarter based on our unmatched performance and scalability highlighted by French German and U K national supercomputing center deployments as well as the San Diego supercomputing center We are pleased with the significant traction and momentum in our server business and remain on track to achieve our goal of double digit percentage unit share by midyear based on the growing demand for our second gen EPYC processors I am very proud of our 2019 accomplishments as the successful ramps of our latest Ryzen Radeon and EPYC processors resulted in record annual revenue and substantial increases in gross margin and net income I want to take a moment to recognize the more than 11 000 AMD ers around the world whose focus and determination enabled us to achieve these results We entered 2020 well positioned to continue gaining share across the PC gaming and server markets based on having an unmatched portfolio of leadership products spanning from desktops to laptops data centers and game consoles With more than 27 nanometer designs in production or development we are very excited about our next wave of products that can accelerate our growth in 2020 and beyond We are still in the early stages of our journey and remain focused on meeting our commitments as we establish AMD as the high performance computing and graphics leader Now I d like to turn the call over to Devinder to provide some additional color on our fourth quarter and full year financial performance Devinder Kumar Senior Vice President Chief Financial Officer and Treasurer Thank you Lisa and good afternoon everyone 2019 was an outstanding year for AMD Our competitive product portfolio and market share gains drove the highest annual and highest quarterly revenue in AMD s history We achieved our highest annual gross margin percentage and annual free cash flow since 2011 And we improved non GAAP earnings per share by 39 year over year In short we are very pleased with our financial performance Fourth quarter revenue was 2 13 billion up 50 from a year ago and up 18 from the prior quarter driven by strong sales of Ryzen and EPYC processors and Radeon GPUs partially offset by softer semi custom sales Gross margin was 45 up 360 basis points from a year ago driven primarily by sales of our leadership seven nanometer products Operating expenses were 545 million with increased investments in go to market activities and R D compared to 474 million a year ago Operating income was 405 million up 296 million from a year ago driven by revenue growth and higher gross margin Operating margin was 19 as compared to 8 a year ago Net income was 383 million up 296 million from a year ago and diluted earnings per share was 0 32 per share compared to 0 08 per share a year ago Now turning to the business segment results Computing and graphics segment revenue was 1 66 billion up 69 year over year driven by Ryzen processor and Radeon gaming GPU sales growth Computing and graphics segment operating income was 360 million or 22 of revenue compared to 115 million a year ago driven by higher revenue Enterprise embedded and semi custom segment revenue was 465 million up 7 from 433 million in the prior year The continued growth of EPYC process sales was partially offset by softer semi custom revenue EPYC processor revenue grew by a strong double digit percentage sequentially driven by robust shipments of our second generation EPYC processors EESC segment operating income was 45 million or 10 of revenue driven by EPYC processor sales compared to an operating loss of 6 million a year ago During the quarter we reduced gross debt by 524 million which resulted in a GAAP loss of 128 million These debt reductions result in an annualized interest expense saving of approximately 16 million Free cash flow was positive 400 million in the fourth quarter and cash flow from operations was 442 million Inventory was 1 billion down 6 from the prior quarter Fourth quarter adjusted EBITDA was 469 million compared to 152 million a year ago driven by higher quarterly earnings Now let me cover the full year results 2019 revenue was 6 73 billion up 4 year on year driven by strong growth in computing and graphics segment and sales of second generation EPYC process partially offset by a decline in semi custom sales Excluding semi custom revenue was up more than 20 year over year Gross margin of 43 was up 420 basis points from the prior year driven by our current generation of Ryzen and EPYC products Operating expenses were 31 of revenue as we increase go to market activities and investments in R D 2019 operating income was up 33 from a year ago to 840 million or 12 of revenue Net income was 756 million up 46 47 from the prior year Turning to the balance sheet I am extremely pleased with our progress on the strengthening balance sheet Cash cash equivalents and marketable securities totaled 1 5 billion at year end while gross debt was 563 million This represents our highest net cash position since the third quarter of 2006 Full year free cash flow was 276 million We reduced principal debt by almost 1 billion in 2019 and ended the year with less than 600 million of gross debt On a trailing 12 month basis adjusted EBITDA was 1 1 billion resulting in gross leverage of 0 5 times down from 1 9 times at the end of 2018 Now turning to the outlook for the first quarter of 2020 We expect revenue to be approximately 1 8 billion plus or minus 50 million an increase of approximately 42 year over year and a decrease of approximately 15 sequentially The year over year increase is expected to be driven by strong growth in Ryzen EPYC and Radeon product sales The sequential decrease is driven primarily by negligible semi custom revenue which continues to soften in advance of the ramp of next generation products in addition to seasonality In addition for Q1 2020 we expect non GAAP gross margin to be approximately 46 non GAAP operating expenses to be approximately 580 million non GAAP interest expense taxes and other to be approximately 18 million and the first quarter diluted share count is expected to be approximately 1 22 billion shares For the full year 2020 we expect revenue growth of approximately 28 to 30 driven by strength across all businesses We expect non GAAP gross margin to be approximately 45 non GAAP operating expenses to be approximately 28 of revenue and a non GAAP tax rate of approximately 3 of pre tax income In closing we had an excellent fourth quarter and an excellent 2019 Our full year financial results highlight the strength of our business model I look forward to what we have installed for 2020 as we expect to further expand and ramp our leadership portfolio of high performance products to drive revenue growth gross margin expansion market share gains and financial momentum With that I ll turn it back to Laura for the question and answer session Laura Laura Graves Corporate Vice President Investor Relations Thank you very much Devinder Operator we re ready to begin polling for questions Questions Answers OperatorCertainly Operator instructions One moment please while we poll for questions Our first question today is coming from Vivek Arya from Bank of America Securities Your line is now live Vivek Arya Bank of America Merrill Lynch Analyst Thanks for taking my question and congratulations on the strong growth and execution Lisa for my first one you mentioned the goal to get to kind of this double digit market share in servers by the middle of the year I m just wondering how the visibility is around in achieving this target What s driving it Is it just more instances at existing cloud customers And as part of that do you also have a share target for exiting this year Lisa Su President and Chief Executive Officer Yeah Vivek thank you for the questions So look we are very pleased with how Rome is ramping We ve been in market now four to five months and the visibility that we have is with the cloud guys we have visibility to the public facing instances as well as what they re doing in terms of internal workloads And what we see is just the breadth of the overall workloads that they re using Rome with is expanding And then on the enterprise side you know with the full portfolio of our partners HPE Dell Lenovo and the ODM partners you know we see just a significant increase in the overall enterprise pipeline that we have for Rome So we re very focused on continuing to grow share in the data center market and we feel good about our mid year market share targets In terms of our market share targets Vivek I think we ll talk a little bit more at our financial analyst day about some of the longer term targets But certainly for 2020 we re very focused on growing our overall data center share Vivek Arya Bank of America Merrill Lynch Analyst Thanks And for my follow up Lisa how should we interpret the impact of capacity shortages at your main competitor Have you seen any benefit from that If not why not And then kind of Part B is Intel did say that they plan to expand capacity later this year and they ll focus it more on the PC client side and try to reclaim market share What effect will that have on the pricing in the market And does your full year outlook kind of bake any potential impact of that competition Lisa Su President and Chief Executive Officer Yeah So when we look at the PC market we finished 2019 very strong in the overall PC market both mobile and desktop I think that s primarily on the strength of the product portfolio and the expanding customer platforms that we have There are some discussions about let s call it pockets of shortages But you know as I said before I don t believe we ve been on this steady increase in market share now for the last eight quarters and we believe we ve gained share in Q4 as well so I think what we see is just the portfolio getting a lot stronger As we go into 2020 I think we are again enthusiastic about our products In addition to the Zen 2 based desktop products we ve added Zen 2 now in the notebook portfolio and we ll have that for the full year of 2020 So I think our outlook expect growth in all businesses including the PC business And we remain very focused on expanding our market presence in both consumers as well as commercial PCs Vivek Arya Bank of America Merrill Lynch Analyst Thank you Miss Lisa Su President and Chief Executive Officer Thanks OperatorThank you Our next question is coming from Toshiya Hari from Goldman Sachs Your line is now live Toshiya Hari Goldman Sachs Analyst Hi Congrats on the strong results and thanks for taking the question Lisa this may overlap a little bit with the next question but I was hoping to better understand some of the key assumptions behind your full year guidance For both your PC business as well as the server business can you talk to some of the TAM assumptions that you re making in the market share assumptions for the full year And then I ve got a quick follow up Thank you Lisa Su President and Chief Executive Officer Sure Sure So let me talk first about the market and then talk a little bit about how we re seeing the full year So if you look at the PC market I think the you know discussion so far has been let s call it 2020 flat to maybe down slightly There have been some concerns raised about the second half of 20 perhaps be a weaker than normal seasonality just due to some of the enterprise refresh cycles that are strong in the first half We re viewing it as flat flattish maybe down very slightly That being the case back to the comment I made with Vivek I think we feel very good about our product portfolio and especially when we look at sort of our notebook share and our relative opportunity to gain market share The strength of our Ryzen 4000 series products is significantly stronger than previous generations and the platforms are also significantly broader so we feel good about that In the data center market again I would say that the growth of computing continues You know from our standpoint we see it as a good market environment for data center in both clouds as well as enterprise When we look at our full year revenue guide of approximately 28 to 30 for the year the highest growth you know from a percentage standpoint will obviously be server just given the expectations in that market But we expect all of our businesses to grow nicely in 2020 and that s just you know again based on where we are in the product cycle and the visibility that we have with customer design wins as well as just overall competitiveness Toshiya Hari Goldman Sachs Analyst Great And then I had a quick follow up on gross margins One probably for Devinder You guys are guiding Q1 gross margins to 46 and then 45 for the full year I appreciate your semi custom business is at a low point in Q1 and a ramp in Q2 and more so in the second half it s probably dilutive to corporate margins But if you can kind of walk through some of the puts and takes from a gross margin perspective for the year that would be helpful And then related to that if you can compare and contrast the gross margin profile of your semi custom business going into the next cycle versus the past cycle product cycle that would be helpful Thank you Devinder Kumar Senior Vice President Chief Financial Officer and Treasurer Yeah let me start and then Lisa can chime in Overall from a margin standpoint you got it right We are guiding to the 46 in the Q1 quarter And then the semi custom business as we ve said typically is lower than corporate average So as that product ramps in the second half obviously will have an impact on gross margin The guide for the year is at 45 so we feel good about that having ended 2019 at the 43 level And from a puts and takes standpoint it s certainly product mix And then Lisa talked about the business is ramping and growing in 2020 with the 28 to 30 growth in revenue Data center as we ve said before is above corporate average The client gross margin is around corporate average and some graphics And then the semi custom business has below corporate average gross margins And that mix of revenue as it ramps throughout the year will obviously have an impact on a quarterly basis From an annual standpoint we feel pretty good with the guide at 45 in particular with the seven nanometer products ramping as we get to the year And that obviously benefits the gross margin Semi custom business Lisa you want to chime in on the difference between generation to generation Lisa Su President and Chief Executive Officer Yeah No I think as you said Devinder the semi custom margins tend to be below corporate average on a gross margin basis Although on an operating margin basis given the contribution from our customers for the R D is actually quite good As it relates to generation to generation the way to think about it is in the first year of a console ramp you would expect the margins to be on the lower side and that s you know that s true no matter what just because you re just starting the product ramp and you should expect that the margins will get better as that ramp continues over time Toshiya Hari Goldman Sachs Analyst Thank you for the color OperatorThank you Our next question is coming from Matt Ramsay from Cowen Your line is now live Matt Ramsay Cowen and Company Analyst Thank you very much Good afternoon Lisa I wanted to just start with a question about the I guess comparing and contrasting it a little bit maybe a little weaker than we had some of us had modeled And I guess due to the console stuff for Q1 in the guidance versus a really strong so 28 to 30 growth for the year Maybe you could just sort of lay out the year a little bit at a high level And just how you guys are sort of thinking about it coming together from the point of Q1 Thanks Lisa Su President and Chief Executive Officer Sure So with that we re pretty excited about 2020 It s a strong year for us certainly with you know the expectations of being around 28 to 30 revenue growth We do expect all of our businesses to grow I think relative to the Q1 guide if you look at Q1 as an absolute number it is up over 40 year on year even with semi custom revenues you know very low in Q1 And so that should give you an idea of the strength of the rest of the business From a sequential basis Q4 to Q1 it s what we said on the call There is some bit of normal seasonality just as we are consumer focused in our PC portfolio So you expect that that would go down from Q4 to Q1 And then we do have the factor that the semi custom profile when we re doing a product transition has the revenue very low in Q1 You know it starts ramp in Q2 but it s very heavily weighted in the second half of the year So you should think about semi custom for this year again it s a ramp year so it s a little bit different that over 80 of the revenue for semi custom will be in the second half of the year compared to the first half of the year So overall we think a very strong year A little bit of reprofiling of revenue particularly as it relates to semi custom And you know we look forward to executing it Matt Ramsay Cowen and Company Analyst No thanks for that As a follow up I guess for both of you but maybe for Devinder just a couple of little pieces For me it looks like on the operating expense side you re going to be up in the neighborhood of mid 20s for the full year in the annual guidance that you outlined Maybe you could talk a little bit about the focus of that Is it branding and marketing in the PC and server spaces as you grow or is it in other areas in R D And then secondly I think you guys had disclosed the data center revenue mix So GPU plus server in prior quarters And if you have that number handy that would be really helpful Thank you Devinder Kumar Senior Vice President Chief Financial Officer and Treasurer Yeah let me take the second one first You know data center it s as you know we said in the past mid teens of revenue And this quarter it is around the same mid teens of the total revenue And I ll point out that it is record revenue in the quarter so that s pretty good And we feel pretty good about that having mid teens revenue in the data center combined server and data center GPU on revenue of 2 1 billion As far as opex is concerned you know our guide for the year is about 28 of the revenue guide that we provided And you are right fundamentally the investments are you know R D and go to market and obviously the business is growing So obviously there s investments needed to go ahead and grow the business from an absolute standpoint but we feel we can manage it to about 28 of our revenue overall for the year Lisa Su President and Chief Executive Officer Matt the only thing I ll add to that is for the data center revenue particularly in Q4 it was very heavily weighted toward server CPU just given some of the lumpiness of the data center GPU revenue Matt Ramsay Cowen and Company Analyst Thank you both Congrats OperatorThank you Our next question is coming from Mark Lipacis from Jefferies Your line is now live Mark Lipacis Jefferies Analyst Great Thanks for taking my question I had one for Devinder and one for Lisa For Devinder the I think it s impressive that the cash that you generated 10 years ago you were at 4 billion in net debt Now you re net cash positive I didn t think back then we d expect you to be here But how should we think about capital structure going forward And the and for the 400 million 440 million in cash flow from operations I had a challenge reconciling it Can you share the biggest two or three sources of cash And then for Lisa the last time AMD had a product cycle in servers I think you were gaining once you hit 5 share you started to gain share at two or three or 4 400 basis point clip per quarter How should you know what is the right kind of cadence or pace of share gains in servers this cycle And maybe you could just talk about structurally what gates your ability to or the pace of your ability to gain share Is it capacity from your suppliers is it your own engineering support infrastructure or is it your customers testing and importing workloads If you could give us a framework to think about that I think that would be helpful Thank you Devinder Kumar Senior Vice President Chief Financial Officer and Treasurer Yeah let me get started Mark You do have a long memory and so do I I do remember the days when we had the challenge on the balance sheet And one thing we feel good as we end 2019 is the strength of the balance sheet and in particular the net cash position We haven t been in many many years as we pointed out in the prepared remarks You know From a capital structure standpoint the priority is investing in the business The revenue is growing significantly in 2020 is what we re projecting at 28 to 30 over 2019 And also we want to invest in the roadmap the go to market and everything that s needed when the revenue ramps as significantly as it is going from year over year so that s really the allocation priorities From a viewpoint of where the 440 million comes from you know higher revenue especially when you look at the revenue in Q3 and Q4 of 2019 compared to the first half of the year We did go ahead and buy the inventory to go ahead and support the higher revenue And as you know when you sell that revenue in particular when it ramps up you know as it did on better margins it generates the cash and that s why you have the 440 million plus operating cash flow from an overall standpoint Lisa would you Lisa Su President and Chief Executive Officer Yeah So Mark as it relates to you know just server rate and pace I think the most important thing for us is when we look at you know from time of announcement or time of shipment to you know how customers actually deploy and trying to shorten that cycle So when I look at the difference between let s call it Rome and Naples we ve seen that time to deploy actually significantly shortened with Rome And so in terms of rate and pace of server share gain it is primarily for cloud customers It is having them deployed not just you know sort of a set of instances but ensuring that they get fully built out across all regions in the world and also adding additional workloads So it s just you know time is what I would say And then as it relates to enterprise customers I think the platform coverage that we have with Rome is significantly broader than it was with Naples And so I m quite encouraged actually by the strength of the pipeline that we see the number of customers that are engaged and then just you know how they re deploying So I think we re going at a good pace and we ll continue to accelerate that as we go through you know 2020 Mark Lipacis Jefferies Analyst Thank you OperatorThank you Our next question is coming from Stacy Rasgon from Bernstein Research Your line is now live Stacy Rasgon Bernstein Research Analyst Hi guys Thanks for taking my question I had first a question on gross margin especially in Q1 You said consoles are negligible Gross margins are 46 so that suggests that that 46 is basically indicative of the business as it stands without consoles So does that represent kind of the peak of the business on the current mix I m a little surprised it s not higher given all the new products in aggregate we re supposed to have gross margins in excess of 50 and most of the mix today should be new products So I guess how do we think about the Q1 gross margins in the context of that And what are the drivers that take it higher from here Is it basically just server mix or is there something else that can help with that Thank you Devinder Kumar Senior Vice President Chief Financial Officer and Treasurer Let me get started and Lisa can add But you know Stacy as we talked about product transitions the 46 guide in Q1 we recently introduced the next generation notebook products And as product transitions go you still have legacy product that you sell before you get you know converted over to the new technology and the new generation products The desktop products were ahead of that from that standpoint and that did benefit our margin in the 2019 timeframe And you are right the console being negligible revenue in Q1 of 2020 it does benefit and then the margin is 46 And from an overall standpoint for the year it is 45 and that s because the semi custom business which is lower than corporate average does come back And as Lisa said earlier we re expecting 80 of that in the back half of the year But by that time also the new generation products and the other businesses including data center and client reramping all on seven nanometer and that should help the gross margin to offset some of the impact that we have on the semi custom business Stacy Rasgon Bernstein Research Analyst Thank you Oh go ahead Lisa Su President and Chief Executive Officer No that s OK Stacy I was just going to add to what Devinder said So we don t expect the client notebook mix to fully cut over to the new seven nanometer products until later in the year And in terms of you know opportunities to improve margins it is definitely product mix So higher mix of server as well as higher mix of let s call it Ryzen 7s and Ryzen 5s versus some of the legacy products Stacy Rasgon Bernstein Research Analyst Got it Thank you For my follow up if I sort of squint at the second half it seems to me you re probably guiding it implicitly call it 800 million to 1 billion over the second half of 2019 How much of that do you think is consoles versus non consoles because it s not hard to get a console number especially in the beginning of a ramp that s not that far off that number which doesn t leave all that much room to ramp the rest of the business So is this just conservatism or what else are you expecting here How much of that second half do you think is consoles versus non consoles Lisa Su President and Chief Executive Officer Well I think as I perhaps answered to one of the earlier questions when I look at the full year at 28 to 30 you know sort of revenue growth expect server to be significantly above that and then the rest of the businesses are all going to grow nicely And so you would expect significant double digit growth in the client business as well as you know in the semi custom business and overall we see the aggregate of it to be a very strong year So it is not all console weighted if that s what you re asking Stacy Rasgon Bernstein Research Analyst OK Wouldn t you get that just from the nature of the ramp that we saw in 2019 we ll be doing the compare already I guess that s why I m trying to sort of normalize second half to second half I think we get strong double digits in second half versus second half growth across all the businesses Lisa Su President and Chief Executive Officer I would say in aggregate you will see So let me help you this way So what we said in 2019 is 2019 overall we grew 4 On an annual basis but excluding semi custom we grew over 20 through all the rest of the businesses If I do that same type of calculation excluding semi custom for 2020 we would still say the rest of the businesses would grow greater than 20 Stacy Rasgon Bernstein Research Analyst OK Thank you very much OperatorThank you Our next question is coming from David Wong from Instinet Your line is now live David Wong Nomura Instinet Analyst Thanks very much Devinder you said the sequential decrease in the March 2020 quarter is driven primarily by the drop in game console chips Does that mean that you expect your microprocessor and graphics revenues will be flattish sequentially Or if not roughly what does your guidance assume in terms of percentage sequential drop for say PC processors and GPUs Do you get server processors sales rising sequentially Devinder Kumar Senior Vice President Chief Financial Officer and Treasurer No I don t think I said specifically that Q4 to Q1 is all due to semi custom That obviously helped the margin but there is a product mix underneath that helps especially with the notebook products that we talked about that are moving to seven nanometers And then I think your second question s about sequential from Q1 outwards is that right David David Wong Nomura Instinet Analyst No no I was talking about revenues from December into Q1 the sequential drop Can you give us some idea of I mean there s a big chunk that s game consoles right But what about the non gam console part of it Devinder Kumar Senior Vice President Chief Financial Officer and Treasurer It is seasonality Seasonality in the business We have the consumer weight from a revenue standpoint in our CG segment And we go from Q4 to Q1 you do have the seasonality coming into play and typical seasonality is what driving the other portion of the decline in revenue from Q4 to Q1 Lisa Su President and Chief Executive Officer Yeah David I think what you re asking is you know we would expect that the computing and graphics segment would be down sequentially due to seasonality and we would expect that server CPUs should be up because you know we re continuing to ramp those processors sequentially David Wong Nomura Instinet Analyst OK great And can you give us some idea of what new GPUs you re expecting to launch through the rest of 2020 for PCs and for data center Lisa Su President and Chief Executive Officer Yeah So in 2019 we launched our new architecture in GPUs It s the RDNA architecture and that was the navy based products You should expect that those will be refreshed in 2020 and we ll have a next generation RDNA architecture that will be part of our 2020 line up So we re you know pretty excited about that and we ll talk more about that at our financial analyst day And on the data center GPU side you should also expect that we ll have some new products in the second half of this year David Wong Nomura Instinet Analyst Great Thanks so much OperatorThank you Next question is coming from Joe Moore from Morgan Stanley Your line is now live Joe Moore Morgan Stanley Analyst Great Thank you Devinder you had talked about consumer graphics as being below corporate gross margin I guess I was thinking that I know you ve historically had a high cost structure because of high bandwidth memory but as the product portfolio increasingly doesn t use high bandwidth memory is there the prospect to improve that for consumer GPU to be closer to where your competitor s gross margins are Devinder Kumar Senior Vice President Chief Financial Officer and Treasurer I don t think I specifically said that I said some of our graphics products are below corporate average from a gross margin standpoint in addition to the semi custom being below average Lisa Su President and Chief Executive Officer And I think Joe maybe just to answer your question in terms of what we expect in consumer graphics I think look we re investing in consumer graphics We think gaming is a very important segment whether we re talking about consoles or discrete graphics And the work that we re doing around the RDNA architecture and the future generations of our DNA architecture we believe will continue to improve our offerings for both consumer graphics as well as data center graphics Joe Moore Morgan Stanley Analyst OK great Thank you And then with the new console builds you mentioned that that starts in Q2 but it s mostly in the back half of the year I guess as you think about that opportunity from a unit standpoint is it the right way to look at it you know sort of a similar number of units to what we had in the first year of the current console cycle Or is there you know does the compatibility that you bring when you have an 886 CPU still and there s probably a little bit more similarity between the consoles could that point us to a sort of a better console unit market in 2020 than we saw six years ago Like how are you thinking about it just the size of opportunity Lisa Su President and Chief Executive Officer Yeah So we do think there s some pent up demand for the next generation of consoles you know without forecasting what our customers are planning I would say they re both we re planning for a strong first year and we ll have to see how things develop as we go through the ramp But the overall sentiment is that you know there has been let s call it a lull in console sales in the second half of 2019 going into in 2020 sort of you know for some of this anticipation of the next generation Joe Moore Morgan Stanley Analyst Great Thank you OperatorThank you Our next question today is coming from Blayne Curtis from Barclays Your line is now live Blayne Curtis Barclays Analyst Thanks for taking my question Maybe just following up on Joe I just want to make sure I heard you right I thought you said the semi custom as well we grow double digit I just want to confirm that And then just following on I don t know if the units are going to be but is there a content or ASP story to layer on top of that equation as well Lisa Su President and Chief Executive Officer Yeah So I did say that semi custom should grow double digit as well And again it s a strong year for us And then as it relates to content again it s fair to say that there is additional content in this generation versus previous generation Blayne Curtis Barclays Analyst Gotcha And then maybe just on the gross margin equation Is there a way to talk about the mix of seven nanometer that s a big tailwind still seems early days at least across a couple of your products Is there a way to kind of think about the whole company and what the mix of seven is Lisa Su President and Chief Executive Officer Yeah So we just completed the fourth quarter and it was a very strong quarter for us record revenue for the company And I would say about half of that revenue was seven nanometer based and the other half not yet And so there is still a significant ramp as we go into 2020 but we re pleased with how quickly we ramped you know in 2019 Blayne Curtis Barclays Analyst Thank you OperatorThank you Our next question is coming from John Pitzer from Credit Suisse John Pitzer Credit Suisse Analyst Yeah Good afternoon guys Congratulations on the solid results I just want to go back to the gross margin bridge from Q1 to the full year I just want to make sure I understand The drop from Q1 to the full year is that 100 being driven just by gaming coming back more aggressively in the back half of the year or have you baked in anything for either pricing competition from the No 1 guy out there or some share shifts How do I think about that Is it all about gaming Lisa Su President and Chief Executive Officer I think if you maybe Devinder you Devinder Kumar Senior Vice President Chief Financial Officer and Treasurer No go ahead Lisa Su President and Chief Executive Officer All right So I think if you look at it the predominant factor if you re talking about you know Q1 guide of 46 versus full year at 45 it s just as we wrap those consoles there s you know there s some impact of that As it relates to the pricing environment and what we re expecting you know we re expecting a competitive pricing environment and that s the way we built our model So we ve always expected that the competition will be very aggressive on both the CPU as well as the GPU side and you know that is you know part of the inherent model for the company John Pitzer Credit Suisse Analyst That s helpful Lisa And then you guys have a ton of goodness on your immediate plate on the server side and the data center side just with the workloads you re going after But I m kind of curious you answered an earlier question saying you expect more GPUs for the data center And I don t want you to pre announce product but then how should I think about your positioning for AIs and workload and acceleration And just given some of the heavy lifting that NVIDIA had to do around CUDA how do I think about the investment there Is this an area that you think you have some unique IP you can bring to or how do I think about that over the next couple of years Lisa Su President and Chief Executive Officer Yeah So I think that s actually a good way of talking about the opportunity John I think the CPU opportunity is very immediate and in front of us as we look at the opportunities with Rome and the expanding opportunities I think the data center you know GPU market continues to be an important growth sector for us and now I call that over the several year horizon So when you look at the opportunities that we have when we combine our CPU and GPU IP together they re very very strong I mean for example this is the reason that we won the Oak Ridge National Lab Supercomputer with Frontier which are actually both the CPU and GPU win and some of the optimization that we ve done with that overall system We think that there are additional opportunities like that as well as machine learning and AI opportunities Our focus there has been to work with large cloud providers to optimize the machine learning frameworks And we had some key milestones that we completed in the fourth quarter that will continue to be a focus for us in 2020 and beyond John Pitzer Credit Suisse Analyst Is it fair to say some of the GPU data center announcements this year go beyond just the cloud gaming market Lisa Su President and Chief Executive Officer Yeah I think you should expect that we will have you know additional you know sort of customer announcements outside of cloud gaming John Pitzer Credit Suisse Analyst Thanks guys OperatorThank you Our next question is coming from Timothy Arcuri from UBS Your line is now live Timothy Arcuri UBS Analyst Thanks a lot I guess I had another question just Audio gap gross margin Audio gap of the year s revenue in semi custom would be in the back half But how does that break out between September and December I guess I asked that because I m just you know trying to see what the gross margin will be exiting this year if you strip out semi custom Could it be 50 exiting the year Thanks Devinder Kumar Senior Vice President Chief Financial Officer and Treasurer I think you know it s hard to break it down that way We are in the initial stages of planning for the ramp and you re asking about Q3 Q4 We are projecting about 80 of the semi custom revenue growing double digits year over year in Q3 and Q4 And typically when we have this new game launches our peak quarter from a revenue standpoint in semi custom will be Q3 But Q4 when you talk about the ramp of the product especially in the first year of the ramp it s hard to project how much it will be and then what the impact would be exiting 2020 from a gross margin excluding semi custom Maybe as we get closer to that and talking about three to six months we can probably give you a better idea of that Timothy Arcuri UBS Analyst I got it OK thank you And then can you just talk about what your share targets are for the year in PC I think you re 17 18 in notebook and you re maybe 14 in desktop Can you just talk about how much share you think that you can gain this year given all the moving parts with the shortages and what not Lisa Su President and Chief Executive Officer Yeah So I m not sure I m going to forecast a share target for 2020 I will say though if you take a look back at the last eight quarters we ve been on a fairly steady share gain in PCs somewhere between you know depending on the quarter let s call it 50 to 100 basis points per quarter and that changes between desktop and notebook I think we grew somewhere on the order of four points a share So we believe that we still have additional opportunities and particularly our focus is going to be both notebook as well as commercial And those are good opportunities for us and play well to our new Ryzen you know 4000 mobile processors Timothy Arcuri UBS Analyst OK Lisa Thank you so much Lisa Su President and Chief Executive Officer Thanks Tim OperatorThank you Our next question is coming from Mitch Steves from RBC Capital Markets Your line is now live Mitch Steves RBC Capital Markets Analyst Hey guys Most of my questions been answered and it kind of lines up with the model we got here but I just want to make sure I got a couple of quick questions And so basically for Q4 it looks like semi customer is probably down 50 sequentially or somewhere around that range Is that am I leasing the ballpark And then secondly from a server perspective I m not expecting you to give numbers on this but maybe qualitatively how much of your revenue is going to be cloud versus enterprise And I think that s one of the bigger debates and I don t expect specifics but anything you could to help us understand what should be the mix between cloud and enterprise for calendar 20 Lisa Su President and Chief Executive Officer Yeah sure Mitch So look I think you re right When you look at the semi custom business in the fourth quarter it was a bit softer than originally anticipated So we had originally said last quarter that we thought the second half of the year would be down high 30s and we were actually down you know more than that for the second half of the year and for Q4 And as it relates to mix of cloud versus enterprise for 2020 You know I mean it will move around from quarter to quarter but I think the best guess at this point is let s call it roughly even between the two Mitch Steves RBC Capital Markets Analyst Perfect Thank you Laura Graves Corporate Vice President Investor Relations Operator we have time for one more question please OperatorCertainly Our final question today is coming from Srini Pajjuri from SMBC Your line is now live Srini Pajjuri SMBC Nikko Securities America Inc Analyst Thank you for squeezing me in Lisa maybe on the supply side you know you re guiding for a pretty strong growth here I m just curious have you already logged in the supply for seven nanometer And as we go into second half of the year especially as you ramp the game consoles I believe that those die sizes tend to be very large I m just curious if you were to get upside how are you feeling about your supply situation Thank you Lisa Su President and Chief Executive Officer Yeah So TSMC has supported us very well through the first couple of quarters of our seven nanometer ramp here in 2019 I think as we go into 2020 there will certainly be a significant growth for us in seven nanometer You know our current visibility supports the revenue guide that we gave you It is fair to say that wafer supply is tight and so you know it s really you know important for us to be planning well with our customers and that s what we re working on Srini Pajjuri SMBC Nikko Securities America Inc Analyst Thank you and good luck Lisa Su President and Chief Executive Officer Thank you Thank you OperatorThank you We reached the end of our question and answer session I d like to turn the floor back over to management for any further or closing comments Lisa Su President and Chief Executive Officer Thank you very much everyone for joining us today We do look forward to having you join us on Thursday the 5th of March for our financial analyst day which will also be broadcast from our website Thank you very much Have a great day and we ll talk with you again soon Operator Operator signoff Duration 60 minutesCall participants Laura Graves Corporate Vice President Investor RelationsLisa Su President and Chief Executive OfficerDevinder Kumar Senior Vice President Chief Financial Officer and TreasurerVivek Arya Bank of America Merrill Lynch AnalystToshiya Hari Goldman Sachs AnalystMatt Ramsay Cowen and Company AnalystMark Lipacis Jefferies AnalystStacy Rasgon Bernstein Research AnalystDavid Wong Nomura Instinet AnalystJoe Moore Morgan Stanley AnalystBlayne Curtis Barclays AnalystJohn Pitzer Credit Suisse AnalystTimothy Arcuri UBS AnalystMitch Steves RBC Capital Markets AnalystSrini Pajjuri SMBC Nikko Securities America Inc Analyst
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T | Ad group WPP hit by client losses in North America | By Kate Holton LONDON Reuters The world s biggest advertising company WPP LON WPP suffered a sharp drop in first quarter underlying sales in North America as the loss of work from clients such as Ford took a toll on its most important market WPP led by company veteran Mark Read following last year s departure of founder Martin Sorrell said its U S performance was disappointing but in line with expectations The company s shares which fell by more than 50 percent between a peak in March 2017 and the end of 2018 before stabilizing this year rose 3 percent in mid morning trading after it reiterated its full year forecasts WPP the owner of agencies including JWT and Ogilvy is in the middle of an overhaul following several profit warnings in 2017 and 2018 and the turmoil linked to Sorrell s abrupt departure over a complaint of misconduct which he denied With technology transforming the way advertising is made placed and sold clients want WPP to better integrate its agencies so it can produce faster offerings across multiple platforms at a cheaper cost First quarter results showed the British company has been particularly hard hit in the United States where a weak competitive performance in recent years has been compounded by the loss of work from Ford and others in 2018 Read has said the group failed to invest enough in recent years in the United States where its business was also hit by big account losses from AT T NYSE T and VW in 2016 Its U S sales fell by 4 2 percent in 2018 and were down 8 5 percent in the first quarter of 2019 The weak performance in the world s biggest advertising market has meant WPP has fallen behind its nearest rivals in terms of growth with U S groups Omnicom and IPG performing more strongly NO QUICK ANSWERS Read said around three quarters of its businesses in North America has a different leadership from six months ago It s not going to be quick he told Reuters It takes time for people to have an impact on the business and on clients But we ve dealt with the losses There is much less business under review than there was this time last year Overall WPP reported a drop in its main sales measurement of organic revenue less pass through costs of 2 8 percent It reiterated its full year forecast of a fall of 1 5 to 2 percent Read a softly spoken executive who had worked alongside Sorrell for decades set out a plan in December to hire more creative staff including around 1 000 new jobs to improve its senior leadership in its New York agencies in a bid to steer the company back to growth The company is also rolling out its most successful technologies across the whole group to help clients Analysts at Citi said that while the sharp drop in the United States would catch the attention it confirmed its thesis that WPP s problems were narrow deep rather than broad We think the market should take some comfort from the fact that the business excluding the U S actually grew by 0 8 percent in the first quarter it said To help fund the turnaround WPP has put its data analytics business Kantar up for sale and is looking for a partner to take a majority stake It said on Friday it was pleased with the level of interest Sources familiar with the situation have told Reuters that private equity groups including CVC Apollo and Bain are still in the process after submitting preliminary bids while multiple parties have been knocked out of the process |
PFE | Pain Durect Plunge As FDA Committee Votes Against Remoxy ER | Shares of Pain Therapeutics Inc NASDAQ PTIE and partner Durect Corp NASDAQ DRRX plunged following the news that a joint meeting of the Anesthetic and Analgesic Drug Products Advisory Committee and Drug Safety and Risk Management Advisory Committee of the FDA voted 14 to 3 against the approval of pain drug Remoxy ER
Per the company Remoxy is a new type of abuse deterrent extended release oral formulation of widely used opioid drug oxycodone It is being evaluated for the management of pain severe enough to require daily around the clock long term opioid treatment and for which alternative treatment options are inadequate
The news disappointed investors as Remoxy ER is Pain Therapeutics lead candidate The FDA has set a Prescription Drug User Fee Act PDUFA target action date of Aug 7 2018 for completion of its review of the New Drug Application NDA for Remoxy ER
The NDA is requesting label claims for abuse deterrence against three routes of abuse injection inhalation and nasal Per the company Remoxy s thick sticky high viscosity formulation may deter unapproved routes of drug administration such as injection snorting or smoking
However given the committee s negative opinion on the formulation a positive outcome from the FDA review is highly unlikely
Pain Therapeutics shares have lost 39 1 so far in 2018 compared to the s gain of 0 4 Shares lost 70 of their value on the above mentioned news
We note that Pain Therapeutics has a license agreement with Durect to use the latter s Oradur technology for Remoxy While Pain Therapeutics is solely responsible for clinical development Durect is responsible for furnishing suitable laboratory facilities equipment and personnel during pre clinical phases of development Both the companies are jointly responsible for certain pre clinical activities Pain Therapeutics is obligated to pay royalties to Durect on commercial sales of Remoxy 6 0 to 11 5
The company had a collaboration agreement with Pfizer Inc NYSE PFE for Remoxy which was terminated by the latter in 2014
The road to Remoxy s development has been bumpy It has already been issued Complete Response Letter CRL a few times Most recently in September 2016 the FDA issues a CRL stating that Remoxy could not be approved in its present form and specified additional actions and data is needed for drug approval Pain Therapeutics resubmitted the Remoxy NDA in the first quarter of 2018
The abuse of opioid drugs is a serious problem in the United States with companies like Endo Pharmaceuticals NASDAQ ENDP having to withdraw its injectable formulation of Opana ER
Zacks Rank
Pain Therapeutics currently carries a Zacks Rank 3 Hold You can see
5 Medical Stocks to Buy NowZacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia AIDS muscular dystrophy hemophilia and other conditions New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline Early investors could realize exceptional profits |
AMD | High Expectations in Line for AMD Earnings and 2020 Outlook | The week of January 31 will be the peak of earnings season with almost half of the Dow Jones industrials and all the major technology stocks set to report earnings Among them is Advanced Micro Devices Inc NASDAQ AMD with a report that is due after the bell on Tuesday With close to a 150 gain in 2019 and with a year to date gain of about 8 as of Tuesday morning it s an understatement to say that expectations will demand nothing short of a stellar report on earnings and 2020 outlook AMD has managed to shed its past woes it is winning more share in the processor market and the company is doing well in graphics with game consoles ahead of this year s console refreshes from Xbox and PlayStation AMD shares recently hit a new all time high of 52 81 and that has surpassed its prior zeniths of 2000 and 2005 when the shares challenged the 40 level It seems almost impossible to believe that AMD was a mere 2 stock in 2015 AMD s consensus target price heading into earnings was 43 33 While that is under the current share price by more than 6 it is higher than the Refinitiv consensus target of 41 60 just a week earlier and is better than the 37 77 consensus target price on the last day of 2019 div connatix margin bottom 1 5em div connatix img margin unset AMD has consensus estimates of 0 31 in earnings per share EPS and revenue of 2 11 billion for the fourth quarter of 2019 That would be up from 0 08 EPS and 1 42 billion in revenues in the fourth quarter of 2018 It is unclear how far out AMD will offer guidance but the consensus estimates ahead are as follows
Q1 2020 0 20 EPS vs 0 06 EPS a year earlier and 1 86 billion in revenues up 46 from a year earlier
FY 2020 1 13 EPS up from a projected 0 62 EPS for 2019 and revenues of 8 59 billion up 28 from expected 2019
Multiple analysts have made calls heading into earnings and the expectations remain firm Matt Bryson of Wedbush Securities issued a note with an Outperform rating but the same 51 50 target price until forward guidance is offered A portion of his upside commentary We continue to believe AMD is a structural winner that is positioned to benefit from market share gains through 2021 if not beyond As such we continue to view the stock as an OUTPERFORM We however are leaving our 51 50 target in place until we get an update around numbers particularly in light of the recent certainty around the impact of the Wuhan coronavirus on technology supply demand We anticipate AMD realized greater than anticipated results in PCs tied to both 1 a strong end demand environment and 2 INTC product constraints that likely benefited AMD share AMD s PC business also should have benefited from normalization of inventory sell in as the company finally appeared to resolve the shortages that had weighed on the high end of its desktop line Merrill Lynch s Vivek Arya has a Buy rating and a 56 price objective on AMD and that was issued ahead of the earnings call His earnings preview focused on its share in servers gross margin improvements an expected launch of its Zen 3 in 2020 and keeping longer term annual guidance at the vest until AMD s March 5 analyst day Other recent analyst calls
On January 27 Susquehanna maintained its Neutral rating but raised its target price to 50 from 45
On January 21 Cowen reiterated it as Outperform and raised its target to 60 from 47 noting that AMD was taking market share and was better positioned against Intel for more gains
Mizuho upgraded it to Buy from Neutral and raised its price target to 55 from 38 on January 9
Wells Fargo reiterated an Overweight rating and raised its price target to 55 from 48 on January 7
Nomura reiterated a Buy rating and raised its price target from 40 to 58 on January 2
Rosenblatt reiterated a Buy rating and raised its target to 65 from 52 on AMD on December 31
RBC Capital Markets reiterated it as Outperform and raised its target to 53 from 50 on December 24
Needless to say AMD must deliver solidly on all fronts for some value oriented investors not to bulk at its premium valuation of about 44 times expected 2020 earnings per share AMD was trading up almost 1 at 49 70 on Tuesday ahead of the key earnings report Its market cap is now 58 billion and its 52 week trading range is 19 05 to 52 81
By Jon C Ogg |
AMD | Advanced Micro Devices EPS misses by 0 16 beats on revenue | Advanced Micro Devices NASDAQ AMD Q4 Non GAAP EPS of 0 32 beats by 0 01 GAAP EPS of 0 15 misses by 0 11
Revenue of 2 13B 50 0 Y Y beats by 20M
Shares 2 7
Press Release |
AMD | Earnings Results AMD stock slides as outlook falls below Wall Street view | Advanced Micro Devices Inc failed to live up to Wall Street s high expectations Tuesday damaging its high flying stock AMD
AMD 1 48
shares declined 4 in after hours trading Tuesday and were down the same amount premarket Wednesday after disclosing a lower than expected forecast with its fourth quarter earnings report The company said it expects revenue of 1 75 billion to 1 85 billion for the first quarter analysts surveyed by FactSet had forecast revenue of 1 86 billion and revenue growth of about 28 to 30 for the full year roughly in line with analyst estimates The company s results topped Wall Street estimates with fourth quarter revenue of 2 13 billion rising from 1 42 billion in the year ago period and topping the average analyst outlook of 2 11 billion but sales in the segment containing data center and gaming console chips fell short of what analysts were expecting AMD s data center sales are an important business for investors betting on big growth AMD stock was the biggest gainer on the S P 500 index
SPX 0 04
in both 2018 and 2019 AMD s attempt to get back into the server business involves challenging longtime rival Intel Corp
INTC 0 25
which reported better than expected data center sales last week
AMD reported sales of 465 million from its enterprise embedded and semi custom segment which includes the company s Epyc line of data center chips while analysts had expected sales to rise 39 to 603 8 million AMD did not specifically quantify how much data center sales versus gaming console sales figured into the numbers Weakness in the revenue outlook going forward is linked to gaming console chip sales which have been soft ahead of console makers Sony Corp
SNE 1 34
and Microsoft Corp
MSFT 0 37
rolling out new PlayStations and Xboxes later in the year AMD said in a statement that the sequential decline in revenue going into the first quarter is driven primarily by negligible semi custom revenue which continues to soften in advance of the ramp of next generation products in addition to seasonality Game console sales dropped like a rock and had nothing to do with Epyc Patrick Moorhead principal analyst at Moor Insights Strategy told MarketWatch Moorhead a former AMD executive pointed out AMD s strong Epyc sales and said he believes they more than doubled over the year ago period Unfortunately the numbers are combined which means that any server growth could be cloaked by weakness in the console sales he said Read Chip stocks catch brunt of tech decline but coronavirus could benefit U S memory makers On the conference call AMD President and Chief Executive Lisa Su said data center sales accounted for a mid teens percentage of revenue for the quarter adding that we are very focused on continuing to grow share the data center market and we feel good about our midyear market share targets From our standpoint we see it as a good market environment for data center in both cloud as well as enterprise Su said When we look at our full year revenue guide of approximately 28 to 30 for the year the highest growth from percentage standpoint will obviously be servers In AMD s largest segment computing and graphics chips the company reported sales of 1 66 billion while analysts expected a 52 rise in sales to 1 5 billion according to FactSet The company reported fourth quarter net income of 170 million or 15 cents a share compared with 38 million or 4 cents a share in the year ago period Adjusted earnings were 32 cents a share while analysts had forecast earnings of 31 cents a share Read For chip companies stocks soared as sales slumped in 2019 what does that mean for 2020 For the year AMD reported net income of 341 million or 30 cents a share compared with 337 million or 32 cents a share in the prior year Adjusted earnings were 64 cents a share while analysts had forecast earnings of 62 cents a share Annual revenue rose to 6 73 billion compared with the Street s forecast of 6 71 billion up from 6 48 billion in 2018 Over the past 12 months AMD shares have rallied 149 In comparison the S P 500 index
SPX 0 04
has gained 24 the tech heavy Nasdaq Composite Index
COMP 0 07
has grown 31 and the PHLX Semiconductor Index
SOX 0 74
has increased 51 Of the 38 analysts who cover AMD 15 have buy or overweight ratings 20 have hold ratings and three have sell or underweight ratings with an average price target of 43 30
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AMD | AMD stock falls 4 after light first quarter outlook | Advanced Micro Devices Inc failed to live up to Wall Street s high expectations Tuesday damaging its high flying stock AMD
AMD 1 48
shares declined 4 in after hours trading Tuesday and were down the same amount premarket Wednesday after disclosing a lower than expected forecast with its fourth quarter earnings report The company said it expects revenue of 1 75 billion to 1 85 billion for the first quarter analysts surveyed by FactSet had forecast revenue of 1 86 billion and revenue growth of about 28 to 30 for the full year roughly in line with analyst estimates The company s results topped Wall Street estimates with fourth quarter revenue of 2 13 billion rising from 1 42 billion in the year ago period and topping the average analyst outlook of 2 11 billion but sales in the segment containing data center and gaming console chips fell short of what analysts were expecting AMD s data center sales are an important business for investors betting on big growth AMD stock was the biggest gainer on the S P 500 index
SPX 0 04
in both 2018 and 2019 AMD s attempt to get back into the server business involves challenging longtime rival Intel Corp
INTC 0 25
which reported better than expected data center sales last week
AMD reported sales of 465 million from its enterprise embedded and semi custom segment which includes the company s Epyc line of data center chips while analysts had expected sales to rise 39 to 603 8 million AMD did not specifically quantify how much data center sales versus gaming console sales figured into the numbers Weakness in the revenue outlook going forward is linked to gaming console chip sales which have been soft ahead of console makers Sony Corp
SNE 1 34
and Microsoft Corp
MSFT 0 37
rolling out new PlayStations and Xboxes later in the year AMD said in a statement that the sequential decline in revenue going into the first quarter is driven primarily by negligible semi custom revenue which continues to soften in advance of the ramp of next generation products in addition to seasonality Game console sales dropped like a rock and had nothing to do with Epyc Patrick Moorhead principal analyst at Moor Insights Strategy told MarketWatch Moorhead a former AMD executive pointed out AMD s strong Epyc sales and said he believes they more than doubled over the year ago period Unfortunately the numbers are combined which means that any server growth could be cloaked by weakness in the console sales he said Read Chip stocks catch brunt of tech decline but coronavirus could benefit U S memory makers On the conference call AMD President and Chief Executive Lisa Su said data center sales accounted for a mid teens percentage of revenue for the quarter adding that we are very focused on continuing to grow share the data center market and we feel good about our midyear market share targets From our standpoint we see it as a good market environment for data center in both cloud as well as enterprise Su said When we look at our full year revenue guide of approximately 28 to 30 for the year the highest growth from percentage standpoint will obviously be servers In AMD s largest segment computing and graphics chips the company reported sales of 1 66 billion while analysts expected a 52 rise in sales to 1 5 billion according to FactSet The company reported fourth quarter net income of 170 million or 15 cents a share compared with 38 million or 4 cents a share in the year ago period Adjusted earnings were 32 cents a share while analysts had forecast earnings of 31 cents a share Read For chip companies stocks soared as sales slumped in 2019 what does that mean for 2020 For the year AMD reported net income of 341 million or 30 cents a share compared with 337 million or 32 cents a share in the prior year Adjusted earnings were 64 cents a share while analysts had forecast earnings of 62 cents a share Annual revenue rose to 6 73 billion compared with the Street s forecast of 6 71 billion up from 6 48 billion in 2018 Over the past 12 months AMD shares have rallied 149 In comparison the S P 500 index
SPX 0 04
has gained 24 the tech heavy Nasdaq Composite Index
COMP 0 07
has grown 31 and the PHLX Semiconductor Index
SOX 0 74
has increased 51 Of the 38 analysts who cover AMD 15 have buy or overweight ratings 20 have hold ratings and three have sell or underweight ratings with an average price target of 43 30
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Witkowski
Wallace Witkowski is a MarketWatch news editor in San Francisco Follow him on Twitter wmwitkowski
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T | AT T Earnings inline Revenue Misses In Q1 | Investing com AT T NYSE T reported first quarter earnings that matched analysts expectations on Wednesday and revenue that fell short of forecasts
The firm reported earnings per share of 0 86 on revenue of 44 87B Analysts polled by Investing com forecast EPS of 0 86 on revenue of 45 13B That compared to EPS of 0 85 on revenue of 38 04B in the same period a year earlier The company had reported EPS of 0 86 on revenue of 48 04B in the previous quarter
AT T follows other major Services sector earnings this month
On Tuesday Verizon reported first quarter EPS of 1 2 on revenue of 32 13B compared to forecasts of EPS of 1 17 on revenue of 32 15B
Netflix earnings Beat analysts expectations on April 16 with first quarter EPS of 0 76 on revenue of 4 52B Investing com analysts expected EPS of 0 58 on revenue of 4 5B
Stay up to date on all of the upcoming earnings reports by visiting Investing com s earnings calendar |
T | Amdocs DOX Up 1 9 Since Last Earnings Report Can It Continue | A month has gone by since the last earnings report for Amdocs DOX Shares have added about 1 9 in that time frame outperforming the S P 500
Will the recent positive trend continue leading up to its next earnings release or is Amdocs due for a pullback Before we dive into how investors and analysts have reacted as of late let s take a quick look at the most recent earnings report in order to get a better handle on the important drivers Amdocs Q4 Revenues Meet Earnings Beat EstimatesAmdocs Limited reported decent fourth quarter fiscal 2019 results wherein the bottom line beat estimates and the top line matched the same Quarterly non GAAP earnings per share came in at 1 08 up from 99 cents in the year ago quarter The bottom line also beat the Zacks Consensus Estimate of 1 07 The figure came within the company s guided range of 1 04 to 1 10 Revenues for the quarter came in at 1 03 billion improving 2 8 year over year The top line also came within the company s guided range of 1 015 billion to 1 055 billion Stability in demand from North America and solid growth in Rest of the World and Europe drove the results Moreover continued flow of new customers strong project execution and solid growth in managed services boosted revenues However a negative impact of nearly 3 million year over year in foreign currency movements was a headwind Quarter DetailsRegion wise revenues from North America 62 5 of total revenues were 644 2 million up 0 9 from the year ago quarter driven by digital modernization requirements of many of Amdocs communications Pay TV and media customers However delayed merger of T Mobile and Sprint was a dampener Performance in North America region was driven by stable activity trends at AT T NYSE T and healthy activity levels at many customers in the border region The company extended its managed services agreement with U S Cellular for five years Europe 15 2 recorded revenues of 156 1 million up 3 7 Rest of the World 22 3 generated revenues of 230 million up 7 6 Managed services continued to grow driven by the managed transformation activities with new customers and multi year extension of several pre existing partnerships Moreover strong traction was seen at Amdocs Media Also a new agreement with AT T T Mobile s Metro pre paid and Telkom South Africa were highlights of the quarter Operating MetricsThe company incurred non GAAP operating expenses of 852 3 million up 2 7 from the year ago quarter Non GAAP operating income increased 3 1 to 178 million Balance Sheet Cash FlowDuring the fiscal fourth quarter the company repurchased shares worth 90 million Also its board of directors recently approved the payment of a quarterly dividend of 0 3275 per share The dividend will be paid out in April 2020 Full Fiscal Year HighlightsRevenues for full fiscal 2019 came at 4 1 billion 2 8 higher year over year driven by strong growth across each of its geographical regions Moreover strength in managed services driven by the continued ramp up of managed transformation activities was an upside However a revenue decline of 12 at AT T was a dampener Non GAAP earnings grew 6 9 to 4 31 OutlookFor first quarter fiscal 2020 Amdocs expects revenues in the range of 1 015 1 055 billion assuming approximately 1 million sequential positive impact from foreign currency fluctuations and a full quarter revenue contribution from the TTS Wireless buyout Non GAAP earnings per share in the band of 1 02 to 1 08 are expected for the fiscal first quarter No impact of the acquisition of TTS Wireless on Amdocs non GAAP earnings is expected For fiscal 2020 the company expects revenues to grow 1 5 5 5 year over year with TTS contributing a little more than 1 This guidance takes into account 0 5 year over year negative impact of foreign exchange fluctuations Amdocs expects non GAAP earnings per share growth of 3 7 year over year considering neutral contribution from TTS The company signed a large IT transformation project at Vodafone LON VOD Germany in the ongoing quarter along with another NFV deal with VodafoneZiggo These deals are expected to improve its visibility among large service providers thus attracting more deals
How Have Estimates Been Moving Since Then
In the past month investors have witnessed a downward trend in estimates review
VGM Scores
Currently Amdocs has a nice Growth Score of B though it is lagging a lot on the Momentum Score front with a D However the stock was allocated a grade of B on the value side putting it in the second quintile for this investment strategy
Overall the stock has an aggregate VGM Score of B If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift Notably Amdocs has a Zacks Rank 3 Hold We expect an in line return from the stock in the next few months |
PFE | Novartis wins U S approval for breast cancer drug to compete with Pfizer s Ibrance | By John Miller
ZURICH Reuters Novartis has won U S Food and Drug Administration approval for Kisqali to treat postmenopausal women who have a difficult to treat form of breast cancer challenging U S rival Pfizer NYSE PFE s Ibrance
The Swiss company has priced Kisqali to be cheaper than Ibrance which analysts said could help it win business though Kisqali s approval includes additional patient monitoring requirements that could work against the new drug
Novartis considers Kisqali to be one of its stable of 13 new medicines with blockbuster potential for annual revenue in the billions of dollars Analysts see global annual sales reaching 1 5 billion by 2022 Thomson Reuters data shows
British biotech company Astex Pharmaceuticals now part of Otsuka will receive undisclosed payments from Novartis having worked out the structure of the key protein targeted by Kisqali
Approval for Kisqali previously known as LEE011 and to be administered in combination with letrozole is for first line treatment of hormone receptor positive human epidermal growth factor receptor 2 negative HR HER2 advanced or metastatic breast cancer Novartis said late on Monday
The quick U S approval provides Novartis with the jump off point to challenge Pfizer s Ibrance in the initial treatment of patients
Ibrance hit about 2 1 billion in sales in 2016
Novartis estimates that it has priced Kisqali at an 18 20 percent discount to Ibrance while providing for flexible dosing
Leerink analyst Seamus Fernandez said in a note that the pricing could help to drive take up for prescriptions but that cost factors could be outweighed by patient monitoring requirements that are more rigorous than those for Ibrance
Kisqali comes with warnings for so called QT prolongation which can signal heart problems and liver issues
Physicians will likely find the monitoring requirements associated with Kisqali to be burdensome relative to Ibrance Fernandez wrote
Novartis said that no head to head studies of Kisqali and Ibrance had been done making efficacy and safety comparisons impossible But the company said that most health issues that arose during Kisqali s trials were mild to moderate and generally managed through interrupting or reducing the dose
Kisqali plus letrozole reduced the risk of disease progression or death by 44 percent over letrozole alone according to results of a study released last year
The Novartis drug is also under review in Europe |
AMD | The 3 Bets Every AMD Investor Is Really Making Now | Credit has to be given where it s due Advanced Micro Devices CEO Lisa Su has orchestrated the turnaround she intended to when she took the helm in 2014 The company was largely left for dead by then but beginning in 2016 revenue turned around well enough to push AMD back into the black in 2018
The future looks bright enough too prompting not one but two big analyst accolades this year already A little over a week ago Instinet analyst David Wong reiterated his buy rating but ratcheted up his price target from 40 to 58 on expectations that Advanced Micro Devices would become even more competitive this year Just a couple of days ago Mizuho s analyst Vijay Rakesh upgraded AMD from a neutral stance to a buy touting its prospects for gaining market share in a recovering server market An impressive showing at this year s annual Consumer Electronics Show bolstered the new optimism
The pair of analysts and the investors that followed their lead may well be right too Although Advanced Micro Devices was the S P 500 s biggest winner in 2019 with its 148 advance 2020 could be another big one for the company s shareholders Investors who are just now stepping into or back into this technology name however are ultimately making three dangerous bets they may not even realize they re making
Bet 1 Valuations don t really matter
Do earnings valuations actually affect a stock s performance The jury is still out on the matter Warren Buffett has done well by scooping up stocks at historically cheap prices but thorough statistical analysis repeatedly struggles to correlate market beating performance with low P E ratios
The truth is likely to be somewhere in the middle of the two extremes meaning it is possible to overpay for a stock but impossible to know if and when you re doing so
To the extent valuations do matter though Advanced Micro Devices offers the least amount of upside among any of the major tech hardware names That s the case on a near term and long term basis
Data Source Thomson Reuters
Bet 2 Server spending will recover in 2020 after 2019 s lull
Mizuho s Rakesh believes this year s server market will be stronger than the muted consensus following relative weakness last year It slumped to the tune of 7 in 2019 and while forecasts are modeling a 5 increase in server hardware spending for 2020 Rakesh is modeling 7 growth He further anticipates AMD leveraging its new wares to capture more than its fair share of that expansion at the expense of NVIDIA and Intel driven by the usual cyclical demand after a few quarters worth of slowdown
It s a risky assumption though While seemingly overdue for a cyclical refresh of data centers IT market research outfit Forrester fears overall tech spending growth at least in the U S will slow again in 2020 Furthermore Forrester says the lion s share of that spending growth will be on software rather than hardware a premise fellow tech market research house Gartner reflected in October with its IT spending outlook It believes enterprise software spending will swell by nearly 11 while spending on data center systems will grow by a more muted 2 6 this year and trail to an even more modest pace of 1 in 2021
Perhaps more concerning is that both outlooks are based on an assumption that the global economy won t buckle this year but instead continue moving forward Even a modest headwind could easily spook corporations and consumers into tightening their belts
Bet 3 Trajectory momentum will override prevailing opinion
Finally while Instinet and Mizuho are singing Advanced Micro Devices praises it s noteworthy that the rest of the analyst community isn t quite as optimistic despite their access to the exact same information and plenty of time to respond to it As a group these professionals still rate AMD somewhere between a buy and a hold and still sport a consensus target of less than 40 per share That s nearly 20 less than the stock s present price
Even without the analyst community s relatively reserved stances however one can t help but wonder if the recent cheerleading reflects hope that the stock s performance for the next few months will look like its performance over the course of the past few months Remember Rakesh switched his stance on AMD to neutral in July of last year The stock floundered for a couple of months but ended up rallying from 28 to 49 between October and this month It s quite a move for any analyst or investor to miss out on setting the stage for what could be seen as performance chasing now
Bottom line
Of course none of this has to mean Advanced Micro Devices won t move higher in the foreseeable future It s been rather apt to defy valuation logic and analyst pessimism and push past demand headwinds that essentially brought revenue growth to a standstill in 2019 Investors kept their eye on the long term trajectory and were rewarded for doing so
There s only so much heavy lifting a premise or trajectory can do however Beyond that additional gains have to be built on actual results that may prove tough to achieve Newcomers are betting the stock s not yet reached that pivotal point Notice not everyone is taking that bet |
AMD | AMD price target boosted to 60 at Cowen | Cowen Co analyst Matthew Ramsay boosted his price target on Advanced Micro Devices Inc
AMD 1 45
shares to 60 from 47 on Tuesday with his new target ranking as the second highest among analysts tracked by FactSet Ramsay senses a change in tone during conversations on AMD s future Our queries continue to shift to when not if in terms of share gains and earnings per share free cash flow growth as investors largely no longer question whether or not AMD will gain material x86 share or deliver upon its roadmaps but instead try to better understand the cadence magnitude and competitive roadmap positioning as Intel
INTC 0 25
experiences 14 nanometer supply constraints and roadmap changes He pointed to AMD s track record of consistent roadmap execution and stability now that its Zen 2 7 nanometer product has been launched for desktops notebooks and servers AMD shares are off 0 3 in premarket trading Tuesday but they ve gained 59 over the past three months as the S P 500
SPX 0 04
has risen 11 |
AMD | Could AMD Be a Millionaire Maker Stock | Semiconductor designer Advanced Micro Devices NASDAQ AMD has been on a roll in recent years The stock has gained 1 670 since the start of 2016 and 304 over the past two years alone If you invested 50 000 in AMD five years ago you re holding a position worth 1 07 million today
AMD is already making millionaires out of ordinary long term investors but how much further can the stock rise
Realistic expectations
A 50 000 investment in AMD is not likely to make you a millionaire Repeating the stellar returns of the last half decade would push AMD s share price above 900 per stub and the market cap would pass a trillion dollars
That s simply not a realistic five year goal and it s rather unlikely that AMD will reach that kind of rarefied air in the foreseeable future If AMD makes any more millionaires at this point they ll have to start from original AMD investments far larger than 50 000
Growth drivers
AMD is operating under a highly competent team led by CEO Lisa Su and the company rarely makes a mess of its business plans these days AMD is stealing market share from NVIDIA NASDAQ NVDA in the graphics processor market while taking advantage of a rare manufacturing process advantage to poach desktop and server processor sales from Intel NASDAQ INTC
AMD will also benefit from the introduction of new video game consoles this fall Both the Sony NYSE SNE PlayStation 5 and Microsoft NASDAQ MSFT Xbox Series X will be based on custom versions of AMD s graphics and core processors just like the Xbox One and PlayStation 4 generation
Looking beyond these short term sources of potential stock fuel I like the way AMD is investing in its own future The research and development budget is growing faster than AMD s incoming revenues and the same goes for its capital expenses In other words AMD is doing its level best to support innovation and new ideas That s a fantastic way to run a high tech company like AMD
AMD Research and Development Expense TTM data by YCharts
How much longer can AMD stay perfect
So AMD has a lot going for it but investors have already priced most of these advantages into its current stock prices The optimistic projections may already have raced too far too fast
The stock is trading at nosebleed valuation ratios like 253 times trailing earnings and 26 times the company s book value In other words AMD s stock is priced for perfection and any misstep along the way could trigger a massive crash
Now AMD has surprised me before I made the same priced for perfection argument in 2017 and the stock has nearly quadrupled since then Pulling the same trick on me today would make AMD s market cap comparable to sector giant Intel whose annual revenues are 12 times larger than AMD s Intel s profit margins are also much wider than AMD s resulting in far richer earnings and cash flows
Predicting that AMD will pass Intel as the preeminent processor provider might make sense from an extremely long term point of view stretching across several decades That s a fine argument for holding an AMD position but you re very likely to see the stock take some major haircuts along the way
So this is a classic growth stock dilemma Yes AMD might be able to create long term wealth for its investors but this is probably not the best time to start a position in the stock due to an extremely bumpy road ahead Even long term AMD bulls may want to wait for the next price drop before backing up the truck |
AMD | AMD s RX 5600 XT Is a Midrange Champion | Advanced Micro Devices NASDAQ AMD made some big claims when it announced the 279 RX 5600 XT graphics card earlier this month Priced the same as NVIDIA s NASDAQ NVDA GTX 1660 Ti the RX 5600 XT provided up to 20 better performance in AAA PC games according to AMD s testing
NVIDIA responded to AMD s announcement with a price cut on a more expensive graphics card NVIDIA brought the price of the RTX 2060 down from 349 to 299 making it the de facto competitor to AMD s latest midrange graphics card
Based on third party reviews of the RX 5600 XT NVIDIA s price cut wasn t enough to swing the value proposition in its favor Tom s Hardware ran a full slate of tests on an overclocked version of the RX 5600 XT from board partner Sapphire finding that the card beat out the RTX 2060 in most cases
Competitive below 300
The Sapphire card tested by Tom s Hardware features higher clock speeds than the base version along with a higher 289 price tag That s still 10 cheaper than NVIDIA s RTX 2060 One thing to note The card tested uses a last minute firmware update that boosted clock speeds and performance Other variants of the card may not perform as well
Except for a few cases the RX 5600 XT produced higher frame rates than the RTX 2060 at a 1080p resolution The story was the same at a higher 2560x1440 resolution with the RTX 2060 coming out on top only in a few of the games tested by Tom s Hardware
The overclocked RX 5600 XT uses quite a bit more power than the base version but still a bit less than the RX 2060 AMD seems to have caught up with NVIDIA in terms of power efficiency an area where it s struggled in recent years
AMD s 5600 XT specifically the Sapphire Pulse OC used for testing has really shown some mettle in our performance tests being able to match and perform a bit better than NVIDIA s more costly even after price drops reference RTX 2060 It did so while using less power too concluded the Tom s Hardware review
NVIDIA will strike back this year
While NVIDIA is resorting to price cuts to keep its graphics cards competitive the company is expected to launch cards based on its new Ampere architecture sometime this year Ampere cards will use a 7nm manufacturing process matching AMD and likely bringing substantial performance and efficiency improvements compared to NVIDIA s current lineup
AMD also has something up its sleeve for 2020 The company is expected to launch a high end graphics card based on its Navi graphics architecture sometime this year Currently AMD is competitive up to the 400 price point Above that NVIDIA reigns supreme AMD has tried and failed to break into the high end of the market over the past few years This time could be different
AMD had a unit share of less than 30 of the graphics card market in the third quarter of last year according to Jon Peddie Research The company has a lot of ground to make up and NVIDIA always has the option of price cuts to keep its resurgent competitor in check But given how good AMD s mid range graphics cards are it s hard to imagine the company won t pick up some market share this year |
T | White House will not turn over documents on AT T Time Warner merger | By David Shepardson Reuters The White House has told two U S House Democrats it will not turn over documents that could show whether Republican President Donald Trump sought to intervene in the regulatory review of AT T NYSE T Inc s 85 billion acquisition of Time Warner Inc NYSE TWX In March House Judiciary Committee Chairman Jerrold Nadler and Representative David Cicilline who chairs a panel overseeing antitrust issues asked the White House and Justice Department to turn over records after The New Yorker magazine reported Trump directed then National Economic Council Director Gary Cohn to use the Justice Department to block the deal The pair wrote that if accurate Trump s involvement would constitute a grave abuse of power In February a federal appeals court upheld a lower court ruling rejecting a Justice Department challenge to the deal filed in November 2017 Trump criticized the deal as a candidate in late 2016 saying it would concentrate too much media power in the hands of one owner and later saying it would raise prices He has also frequently attacked CNN a Time Warner property now owned by AT T for what he sees as negative coverage of his campaign and administration In a letter dated Monday and released on Tuesday by Cicilline White House counsel Pat Cipollone declined to release any documents saying he would not provide protected communications between the president and his senior advisers that are the very core of the executive branch s confidentiality interests Cipollone added that the Justice Department would be responding in due course The two Democrats responded in a joint statement that the White House Counsel has made a blanket claim that all White House communications regardless of whether they contain evidence of improper or even unlawful activities are protected by a cone of secrecy adding they would pursue this matter Makan Delrahim the head of the Justice Department s antitrust division said in a 2018 declaration he had never received orders instructions or directions relating to the AT T Time Warner deal from Trump Justice Department officials or White House officials The Justice Department said in February it would not seek further appeals to block the merger In February 2018 U S District Judge Richard Leon rejected AT T s request to see White House communications that might shed light on whether Trump pressured the Justice Department to try to block the deal AT T lawyers said last year the deal may have been singled out for enforcement citing as evidence statements by Trump as a candidate and as president that the deal was bad for consumers and the country AT T declined comment on Tuesday |
T | How Trading Your Own Retirement Can Fleece Your Financial Future December 11 2019 | You have a significant retirement portfolio You re an experienced investor You ve done pretty well at picking stocks You probably even own a few of Zacks Top Retirement stock picks like
Southwest Gas SWX AT T T and CNB Financial CCNE
If this sounds like you then here s a question With your background and skills should you manage your own retirement investments
It could be a good idea that is if you are one of the very few investors who understands your own risk tolerance and can keep your emotions in check during chaotic market swings However if you re like the rest of us there are likely more prudent ways to reach your retirement investing goals
Active stock trading requires an altogether different investing philosophy and risk reward understanding than building wealth for retirement
Diversification vs Stock Picking
Picking individual stocks has the potential for huge returns but also carries a lot of risk which is particularly hazardous when investing for retirement
A study done by Hendrik Bessembinder of equity markets over nine decades found that just 4 of the best performing U S stocks generated all the market s gains The rest were flat the gains of the next 38 were wiped out by the bottom 58 which lost money
For even the most expert stock pickers the chances for long term achievement are thin
Is it Possible to Invest Rationally
Investors feel they can make sensible choices however research demonstrates that the opposite is what often happens A DALBAR study analyzed investors from 1986 to 2015 and found that the average investor significantly underperformed compared to the S P 500 Over 30 years the S P 500 produced a return of 10 35 while the average investor return was only 3 66
Importantly this period included the 1987 crash and big bear markets in 2000 and 2008 but also the bull market of the 1990s
This study suggests that one key reason for investor underperformance is trying to time volatile markets and that irrational behavior biases tend to compound investor mistakes
Curiously even experienced traders tend to underperform since they can t resist the emotional urge to make impulsive investment choices They might be overly self assured and miscalculate risk get attached to a price target or perceive a pattern that does not exist This behavioral fallacy over the long term can be disastrous with potential underperformance of a huge number of dollars disrupting your retirement
What It All Means for Retirement Investors
Your retirement portfolio should be managed with a strategy of performance over decades not days weeks or quarters Most self directed investors tend to fall short when it comes to long term results
Does that mean you should quit trading Not really One plan is to take 10 of your investable resources and trade to create alpha and look for outsized returns
But the bulk of your wealth those assets earmarked for retirement should be invested using a more measured conservative risk management approach to generate steady compounded returns so you can safely reach your retirement goals
Do You Know the Top 9 Retirement Investing Mistakes
Whether you re planning to retire early or not don t let investing mistakes derail your plans
If you have 500 000 or more to invest and want to learn more click the link to download our free report 9 Retirement Mistakes that will Ruin Your Retirement This report will help you steer clear of the most common mistakes like trying to time the market lack of diversification in your portfolio and many more Get Your FREE Guide Now |
T | AT T T Stock Moves 0 29 What You Should Know | AT T T closed the most recent trading day at 38 17 moving 0 29 from the previous trading session This change traded in line with S P 500 Meanwhile the Dow gained 0 11 and the Nasdaq a tech heavy index added 0 44
Coming into today shares of the telecommunications company had lost 2 83 in the past month In that same time the Computer and Technology sector gained 1 17 while the S P 500 gained 1 51
T will be looking to display strength as it nears its next earnings release On that day T is projected to report earnings of 0 88 per share which would represent year over year growth of 2 33 Meanwhile our latest consensus estimate is calling for revenue of 46 99 billion down 2 1 from the prior year quarter
T s full year Zacks Consensus Estimates are calling for earnings of 3 57 per share and revenue of 181 36 billion These results would represent year over year changes of 1 42 and 6 21 respectively
Any recent changes to analyst estimates for T should also be noted by investors These recent revisions tend to reflect the evolving nature of short term business trends With this in mind we can consider positive estimate revisions a sign of optimism about the company s business outlook
Our research shows that these estimate changes are directly correlated with near term stock prices We developed the Zacks Rank to capitalize on this phenomenon Our system takes these estimate changes into account and delivers a clear actionable rating model
Ranging from 1 Strong Buy to 5 Strong Sell the Zacks Rank system has a proven outside audited track record of outperformance with 1 stocks returning an average of 25 annually since 1988 The Zacks Consensus EPS estimate has moved 0 03 lower within the past month T currently has a Zacks Rank of 3 Hold
Valuation is also important so investors should note that T has a Forward P E ratio of 10 67 right now This valuation marks a discount compared to its industry s average Forward P E of 12 89
Investors should also note that T has a PEG ratio of 2 4 right now This metric is used similarly to the famous P E ratio but the PEG ratio also takes into account the stock s expected earnings growth rate Wireless National stocks are on average holding a PEG ratio of 3 17 based on yesterday s closing prices
The Wireless National industry is part of the Computer and Technology sector This group has a Zacks Industry Rank of 65 putting it in the top 26 of all 250 industries
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
Be sure to follow all of these stock moving metrics and many more on Zacks com |
AMD | AMD s stock surges after Mizuho turns bullish raises price target by 45 | Shares of Advanced Micro Devices Inc
AMD 1 54
surged 2 3 in premarket trading Thursday after Mizuho analyst Vijay Rakesh turned bullish on the semiconductor maker citing an improving 2020 servers market and market share gains Rakesh raised his rating to buy after being at neutral for the past six months and boosted his price target by 45 to 55 from 38 Rakesh said the 2020 server market could be stronger than muted consensus and many of the aggressive price cuts by competitor Intel Corp
INTC 0 19
are in the rear view mirror He said his research indicates potential delays in Intel s 10 nanometer single socket server The potential ramp delays in a key single socket segment of the market could allow AMD to win market share Rakesh wrote in a note to clients The stock which is on track to open just below the Jan 2 record close of 49 10 has run up 137 over the past 12 months to pace all S P 500
SPX 0 04
gainers over that time The PHLX Semiconductor Index
SOX 0 70
has hiked up 57 over the past year and the S P 500 has rallied 26
See Full Story
AMD s stock rises to a record after Mizuho says it is time to buy again
Shares of Advanced Micro Devices Inc rallied into uncharted territory Thursday after Mizuho analyst Vijay Rakesh said he s bullish on the semiconductor company again citing expectations of server market share gains
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AMD | Why Advanced Micro Devices Shares Gained 148 in 2019 | What happened
Shares of Advanced Micro Devices NASDAQ AMD rose 148 4 in 2019 according to data from S P Global Market Intelligence The chip designer held on to a rare manufacturing process lead over archrival Intel NASDAQ INTC to boost its presence in the markets for data center computing and high end gaming machines
So what
AMD s manufacturing partners are already able to crank out large scale production runs of processors using 7 nanometer chip traces Meanwhile Intel is only getting started on 10 nanometer production runs Intel is usually the top dog in these manufacturing process battles giving the larger company a far more cost effective production platform But the world turned upside down in 2018 so AMD holds that ace card these days
Now what
The process advantage is not an academic trump card AMD started shipping 7 nanometer PC processor and graphics chips in the third quarter and the market embraced these products with open arms The company posted its highest single quarter revenue haul since 2005 while also expanding its profit margins across the board
We have the strongest product portfolio in our history CEO Lisa Su said in the third quarter earnings call We re on track to exit 2019 with another quarter of significant growth driven by the ramp of our 7 nanometer products and believe we are well positioned to build our momentum in 2020 and beyond as we deliver an even stronger set of leadership products that can drive sustained growth an increased share of the 75 billion markets for high performance computing and graphics technologies
That s exciting stuff AMD operates from a position of strength for the first time in more than a decade and the skyrocketing stock returns make sense against that backdrop |
T | AT T not planning to sell HBO Europe WarnerMedia CEO | Reuters WarnerMedia Chief Executive John Stankey denied a report on Wednesday that parent company AT T NYSE T was considering selling its HBO Europe business calling it baseless and inaccurate The Financial Times report citing current and former senior executives said AT T had internally discussed selling HBO Europe as part of efforts to reduce a debt pile of 170 billion We normally do not comment on speculation but when a news outlet is advised that their reporting is factually incorrect and report it anyway we feel compelled to set the record straight Stankey who heads the newly created unit of AT T said in a statement There is no truth whatsoever to the Financial Times story saying AT T is or has considered selling HBO Europe It s completely baseless and inaccurate HBO Europe is a valuable asset for our growth plans in Europe The paper said that HBO Europe was one of several assets AT T had considered selling but that it had not held formal talks with any potential buyers
In November AT T said it had committed to cutting its heavy debt load in 2019 through a variety of measures including a review of all of its non core assets such as its stake in streaming video company Hulu for possible sale |
T | Powerful Proof Anyone Can Invest For An Early Retirement December 09 2019 | Building sufficient financial resources to retire early may sound like a dream but making that dream come true is not as hard as it may sound The main thing is simply to save more money each month No big deal right Well
Usually advisors advise 15 to 20 of total income saved every month as an objective yet in the event that you want to retire earlier you likely need to tighten that number up to 40 or half of your pay Not a discipline easily practiced when you review or consider that a substantial segment of your paycheck goes to basic non negotiable lifestyle needs But if you are willing to make some serious lifestyle adjustments and trade offs it s achievable
A generally new development called Financial Independence Retire Early FIRE has been created around this sacrifice and over save now to retire early idea FIRE supporters create exacting savings plans up to 75 of income and make related compromises like living in small homes walking to work every day prohibitive weight control plans etc This way might be unreasonably prohibitive for many yet the mentality offers a few takeaways that may merit consideration
The first point is to adhere to the key principles of long term investing including developing a diversified portfolio that includes stocks with various styles sizes sectors and regions
You may be able to accelerate your potential retirement earnings by consciously seeking higher returns and also accepting more risk in your investment portfolio But whatever your risk tolerance your portfolio must be diversified to protect against extreme market movements that could jeopardize your early retirement objective You can choose from a number of ways to allocate investments to diversify your portfolio and these should be informed by your individual goals growth and income needs appetite for risk and age
Once you ve begun saving at a higher rate and you have an investment plan put that money to work in your plan as quickly as you can Don t worry about finding the perfect time to invest simply put the money in and keep it in Let compounding work to help you grow your retirement savings at an exponential rate
You may want to look at growth stocks with attributes acceptable for retirement investing like low beta strong earnings estimates positive sales growth and expected future growth
The Zacks Rank routinely recognizes lower risk growth retirement portfolio picks and here are a few that may be worth considering PennyMac Mortgage PMT AT T T and Phillips 66 NYSE PSX Partners LP PSXP These growth stocks have strong Zacks Ranks and a beta of 1 or lower with earnings and sales growth of at least 5 over the past 5 years
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PFE | UK agency says Pfizer breast cancer drug too expensive | LONDON Reuters Pfizer s breast cancer drug Ibrance or palbociclib is too expensive to justify its use on Britain s state run health service the country s healthcare cost effectiveness watchdog said on Friday The National Institute for Health and Care Excellence NICE said in draft guidance that although the medicine was likely to offer some improvement in overall survival this could not be quantified from clinical trials Even when allowing for these potential benefits it was still not enough to make palbociclib cost effective at its current price Carole Longson director of NICE s center for health technology assessment said in a statement on Friday Ibrance s list price is 2 950 pounds 3 700 per 28 days Pfizer NYSE PFE UK s oncology head David Montgomery noted that the NICE decision was not final decision and said the U S drugmaker was committed to working to try and find a solution to make the drug available |
AMD | AMD announces new chips at CES 2020 | Advanced Micro Devices Inc
AMD 1 35
detailed its plans for 2020 on Monday at the annual CES trade show as it attempts to maintain momentum that made its stock the biggest gainer on the S P 500 index
SPX 0 04
in 2018 and 2019 AMD announced new third generation Ryzen 4000 mobile processors for laptops which Chief Executive Lisa Su claimed outperformed Intel Corp s
INTC 0 14
i7 rival especially in graphics performance Laptops with the chips will debut this quarter Su said with more than 100 products expected to launch this year The chip maker also announced a new graphic card the Radeon RX 5600 XT which splits the difference between the high end 5700 and bargain 5500 cards launched last year and will be available Jan 21 for 279 AMD also claimed superior performance against its main rival in the gaming sphere Nvidia Corp
NVDA 0 17
To close Su showed off a new version of its high performance desktop processor called Threadripper which doubles the number of cores to 64 which Su said has not been available on a consumer desktop processor previously The third generation Threadripper will cost 3 990 and go on sale Feb 7 AMD shares were trading up 0 5 in after hours trading after closing 0 4 lower in the regular session
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AMD | AMD launches Threadripper 3990X Renoir APUs | AMD NASDAQ AMD launches the 64 core 128 thread Threadripper 3990X and a suggested starting price of 3 990 Threadripper 3390X will launch on February 7
AMD announces the Ryzen 400 Renoir APUs which include up to eight Zen 2 cores and 16 threads with a new 7nm Vega graphics engine The Renoir series marks the first x86 7nm processors for mobile The first Renoir laptops will arrive in Q1
The AMD Ryzen 4000 U Series ranges from four core four thread models to eight core 16 thread models The series comes with a configurable TDP from 12W to 15W The U Series also comes with a new 7nm Navi graphics engine and optimized 7nm Vega architecture
The Radeon RX 5600XT is built for gaming with the RDNA architecture Navi 10 silicon and 7nm process and PCle 4 0 interface
See AMD s full CES 2020 presentation here
AMD shares are up 1 8 pre market to 49 27
CES20 |
AMD | Jefferies raises AMD target after product launches | Jefferies maintains a Buy rating on AMD NASDAQ AMD and raises the target from 42 to 56 after the company s slate of product announcements at CES
The firm says the announcements underscore AMD s ability to deliver its roadmap of next generation products and the fact that it s both out executing and gaining share over Intel INTC 1 4
Jefferies sees AMD s valuation as stretched but thinks consensus estimates look too low
AMD shares are down 0 2 to 48 32 The company has a Neutral average Sell Side rating |
AMD | Should You Buy AMD s Stock at Its All Time High | AMD s stock NASDAQ AMD recently hit a historic high on widespread optimism regarding the growth of its CPU and GPU businesses However investors sitting on multibagger gains are probably wondering if the chipmaker still has room to run in 2020 Let s weigh the bullish and bearish cases for AMD to decide
What the bulls think about AMD
AMD once struggled to effectively compete against Intel NASDAQ INTC in x86 CPUs and NVIDIA NASDAQ NVDA in discrete GPUs But that all changed after industry veteran Lisa Su took the CEO job in late 2014
Su plowed AMD s rising cash flows which mainly came from sales of APUs for the PS4 and Xbox One into the development of new CPUs and GPUs that would match the performance of Intel and NVIDIA s chips at lower price points
That bold strategy succeeded AMD s Ryzen CPUs gained ground against Intel in the PC and data center markets and Intel fumbled its counterattack with an abrupt CEO change and a chip shortage AMD s new Radeon GPUs also held NVIDIA s GeForce GPUs at bay throughout the first half of 2019
Between the first quarters of 2015 and 2020 Intel s share of the CPU market fell from 76 4 to 63 6 according to PassMark AMD s share grew from 23 5 to 36 3
Between the third quarters of 2015 and 2019 NVIDIA s share of the discrete GPU market slipped from 81 1 to 72 9 according to research firm JPR AMD s share grew from 18 8 to 27 1 Moreover AMD s gross margin actually expanded over the past five years indicating that the chipmaker hasn t been swapping margins for sales growth
Source YCharts
AMD also remained the main chipmaker for Sony s NYSE SNE PS5 and Microsoft s NASDAQ MSFT Xbox Series X both of which will launch in late 2020 The bulls believe that all these tailwinds will continue throughout the year and lift the stock to fresh highs
Analysts expect AMD s revenue to rise just 4 this year then accelerate to 27 growth next year They expect its earnings to grow 35 this year then grow another 79 next year Those forecasts justify its forward P E of 44 and indicate that the stock still has room to run before overheating
What the bears think about AMD
Meanwhile the bears believe that it s only a matter of time before Intel and NVIDIA strike back AMD is currently producing 7nm chips as Intel struggles to fix its 14nm production issues and ramp up its production of 10nm chips However Intel could catch up to AMD with 7nm chips by 2021
NVIDIA s new Turing GPUs slightly beat AMD s latest Navi GPUs in head to head performance benchmarks but AMD s GPUs only offer marginally less horsepower at much lower prices However NVIDIA has been actively targeting the low end market with impressive cards like the GTX 1650 Super which only costs about 160 and it could continue to pursue budget gamers this year
Intel and NVIDIA both have deeper pockets than AMD and could significantly ramp up their R D and marketing efforts to throttle AMD s growth Intel also recently announced its first discrete GPU DG1 which could eventually compete against NVIDIA and AMD s GPUs
AMD could also face 7nm production bottlenecks at its foundry TSMC as other chipmakers including Apple ramp up their production of 7nm chips A disruption of AMD s supply chain could soften its defenses against Intel and NVIDIA
Lastly the bears will note that AMD s insiders sold nearly 39 million shares over the past 12 months but didn t buy a single share on the open market That lack of insider interest strongly suggests that AMD s stock has gotten ahead of its business
Should you chase AMD s rally
I think there are compelling reasons to both buy and sell AMD s stock However I believe that AMD s CPU and GPU businesses will continue to flourish as long as Lisa Su leads the company Intel and NVIDIA will inevitably strike back but AMD will likely hold its ground with new Ryzen Eypc and Radeon chips
The PS5 and Xbox Series X will give its EESC enterprise embedded and semi custom business a big boost in late 2020 and AMD will likely funnel that cash into its development of new CPUs and GPUs Therefore I strongly believe investors can still accumulate shares of AMD at its all time high |
AMD | AMD looks for opening pop after Mizuho upgrades to Buy | Advanced Micro Devices NASDAQ AMD 2 3 pre market after Mizuho upgrades shares to Buy from Neutral with a 55 price target up from 38 saying the 2020 server market could be stronger than current muted consensus expectations
Mizuho missed out on much of AMD s 150 rally last year on fears that aggressive price cuts from Intel would take market share but with price cuts in the past and a U S China phase one trade deal analyst Vijay Rakesh foresees another big year for AMD
Also channel checks indicate potential Intel delays in the 10nm Ice Lake single socket server market so Rakesh sees an opportunity for AMD server share gains into H2 2020
AMD s average Sell Side Rating and Quant Rating are both Neutral while its Seeking Alpha Authors Rating is Bullish |
T | Viacom signs content distribution deal with T Mobile | Reuters Viacom Inc signed a content distribution agreement with T Mobile US Inc under which the media company s brands including MTV and Nickelodeon would be available to the wireless carrier s 80 million customers the companies said on Wednesday The deal enables T Mobile to bring together live feeds of Viacom s channels as well as a broad range of on demand content to T Mobile s customers Last month Viacom renewed its carriage contract with AT T Inc NYSE T avoiding a blackout of MTV Nickelodeon and Comedy Central for users of the telecom carrier s pay TV service DirecTV Viacom needed to resolve the AT T contract before considering any other strategic moves including a potential tie up with CBS Corp NYSE CBS sources had told Reuters Shares of Viacom were up 1 5 percent at 29 26 before the bell |
T | 2019 Masters Rating the Rookies | The gravity of the event and the nuances of Augusta National are the driving factors behind only three rookies winning the green jacket in the 82 Masters contested since 1934 Ten professionals among the 87 player field will be making their Masters debuts this week There are few household names but plenty of talent that could make some noise this week Rating the rookies in this year s field Eddie Pepperell England World Golf Rank 40 Pepperell first popped onto the worldwide scene by posting the low round on Sunday at last year s Open Championship He made another final round run at The Players last month again showing that he can handle the biggest stages We like the 28 year old s game and mental makeup to be hovering around the first page of the leaderboard come Sunday Matt Wallace England 36 Some will recall Wallace s hole in one at last year s PGA Championship But the Englishman is well known on the European Tour after posting three victories in 2018 His form hasn t been stellar since a solo second at the Dubai Desert Classic in January a T6 at Bay Hill being his only other top 10 this year But Wallace s game garners a lot of respect from fellow players Lucas Bjerregaard Denmark 43 Other pros had hinted at the Dane s all around game before he slayed Tiger Woods en route to a semifinal showing at the WGC Match Play event last month He missed the cut last week and fatigue has to be a concern after a busy stretch in the U S for the European Tour star Keith Mitchell United States 60 It s understandable that Mitchell s results have tailed off since winning his first PGA Tour event at The Honda Classic and then posting a T6 the next week at Bay Hill He went T47 at The Players before failing to advance out of the group stage at Match Play Mitchell has a lot of game and more important at Augusta National length to spare Corey Conners Canada 84 Talk about a whirlwind turn of events Conners had to Monday qualify just to be in last week s field at the Valero Texas Open He then went on to win the event and secure the final spot in this year s Masters along with a slew of other perks He s an unlikely contender but should at least be playing with nothing to lose Aaron Wise United States 67 In the field courtesy of his victory at the AT T NYSE T Byron Nelson last year there is little to suggest that Wise is prepared to make a run this week He has four missed cuts in his past seven starts and only one top 20 result His swing is highly inconsistent at the moment which was on full display during his Match Play loss to Woods Andrew Landry United States 128 Landry admitted losing some focus after winning his first PGA Tour event at last year s Valero Texas Open He didn t make the cut in his title defense which has been fairly standard of late He has five MCs in nine events in 2019 and hasn t posted a top 20 result since last July Adam Long United States 108 Another first time winner this season at the Desert Classic Long promptly missed his next five cuts On the Web com Tour this time last year Long will no doubt enjoy the pageantry and the azaleas but sticking around for the weekend would be considered a significant accomplishment Kevin Tway United States 98 It has been going steadily downhill for Tway since beginning the 2018 19 season with a victory at the Safeway Open That includes six consecutive missed cuts dating back to February
Michael Kim United States 330 How does the world s 330th ranked player make his way into the Masters field By winning last year s John Deere Since then Kim has missed 13 of 18 cuts including all eight in 2019 He tied for last in the limited field Tournament of Champions and missed two more cuts prior to that Derek Harper Field Level Media |
PFE | Pfizer Q4 EPS 0 47 vs estimate 0 50 revenues in line | Investing com NYSE Pfizer fourth quarter earnings missed estimates as sales were in line Pfizer reported an 11 YoY fall in adjusted diluted Q4 EPS to 0 47 against an estimate of 0 50 Revenues were down 3 at 13 63 compared with a forecast of 13 61 bn The U S drug maker attributed the YoY decline in revenues to fewer selling dates than a year earlier Full year EPS was up 9 at 2 40 as revenues rose 8 to 52 82 bn |
AMD | AMD s stock surges premarket toward 20 year high after Instinet boosts price target by 45 | Shares of Advanced Micro Devices Inc
AMD 1 46
are starting 2020 like they ended 2019 as they rose 2 3 in premarket trading Thursday Analyst David Wong at Instinet reiterated his buy rating but boosted his stock price target by 45 to 58 from 40 on expectations the chip maker will continue to strengthen its competitive position in 2020 Wong said he believes AMD will do this through new product introductions increases in average selling prices revenue growth and an increase in operating leverage The chip maker s stock was the S P 500 s
SPX 0 05
best performer last year with a 2019 gain of 148 which also led the PHLX Semiconductor Index s
SOX 0 68
components AMD s stock is on track to open above its Dec 26 close of 46 63 which was the highest close since June 21 2000 s record close of 47 28
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AMD | AMD s Stock Momentum Keeps Going in New Year | Investing com Advanced Micro Devices NASDAQ AMD started 2020 the same way it spent 2019 with shares rallying
The stock rose 4 4 Thursday following a price target boost from Nomura
Nomura analyst David Wong reiterated his buy rating on the stock and boosted its price target to 58 per share from 40
We expect AMD to continue strengthening its competitive position in 2020 through a steady stream of new product introductions on 7nm and 7nm technologies Wong wrote
AMD NASDAQ AMD gained 148 last year making it the best performing stock in the S P |
AMD | Why AMD Shares Can Continue Surging in 2020 | Now that 2019 has come to a close investors are looking out to what is in store for 2020 Advanced Micro Devices Inc NASDAQ AMD was among the best large cap gainers in 2019 and led the S P 500 with a gain of 148 What is even more amazing after closing out the year at 45 86 per share is that AMD was trading at 10 back at the start of 2018 and throughout much of 2017 One analyst sees AMD continuing its surge in 2020 Nomura Instinet reiterated it with a Buy rating and raised its target price to 58 from 40 While this seems like a monumental change investors should note that AMD had already jumped well above the so called fair value line as its consensus analyst target price from Refinitiv was 37 77 ahead of the call David Wong the Nomura Instinet analyst behind the call sees AMD continuing to grow in 2020 With the launch of 7 nanometer processors that are currently smaller than those from rival Intel Corp NASDAQ INTC AMD is also expected to have new products coming out in 2020 Wong also believes that AMD will grow its market share for desktop processors from 18 in the third quarter of 2018 up to a range of 20 to 25 div connatix margin bottom 1 5em div connatix img margin unset One additional driving force for AMD also will come from the video game console refresh cycles for the Xbox and PlayStation due just in time for the holidays in 2020 One issue often brought up is that AMD s valuations are harder to use than some rivals due to a multiyear history of the stock underperforming AMD is now valued at 56 billion and even a 47 share price would imply valuations of 40 times expected 2020 earnings per share AMD is expected to grow revenues by about 27 to 8 5 billion in 2020 and that would value it at about 6 5 times revenues The much larger Intel is valued at less than 13 times expected 2020 earnings per share but it has very muted growth expectations and its market cap of 264 billion values the processor giant at only about 3 7 times revenues Most analyst calls with Buy and Outperform ratings tend to come with upside projections of 8 or so at this stage of the decade long bull market and economic expansion This call for AMD projects more than 26 upside from AMD s end of year closing price Investors have greeted the target hike with continued optimism for 2020 AMD shares were last seen trading up over 4 at 47 87 and the stock s new 52 week trading range is 16 94 to 47 99
By Jon C Ogg |
AMD | AMD s stock surges toward record high to pace the chip sector s and S P 500 s gainers | Shares of Advanced Micro Devices Inc
AMD 1 44
shot up 6 7 in afternoon trading Thursday putting them on track for a record close after Instinet analyst David Wong raised his price target to 58 from 40 The stock was trading above its June 21 2000 record close of 47 28 and above the June 5 2000 all time intraday high of 48 50 Wong raised his price target while reiterating his buy rating as he believes the chip maker will continue to strengthen its competitive position this year Separately Elazar Advisors LLC analyst Chaim Siegel downgraded AMD to buy from strong buy citing valuation as the stock has reached Siegel s 48 stock price target AMD s stock is starting 2020 like it ended 2019 as the biggest gainer of the year among the PHLX Semiconductor Index s
SOX 0 68
and the S P 500 s
SPX 0 05
components
See Full Story
AMD stock finally breaks its dot com era record high
Advanced Micro Devices Inc had the best performing stock on the S P 500 in 2018 and 2019 but it took a strong start to 2020 to finally break the chip maker s record high from the dot com bubble days
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AMD | AMD stock finally breaks its dot com era record high | Advanced Micro Devices Inc had the best performing stock on the S P 500 in 2018and 2019 but it took a strong start to 2020 to finally break the chip maker s record high from the dot com bubble days AMD
AMD 1 45
shares jumped 7 1 on the first day of trading in the new year Thursday pushing the share price to a new record close of 49 10 Through those two years of leading the S P 500
SPX 0 05
AMD still had not eclipsed the closing high of 47 28 set on June 21 2000 until Thursday
In between those two highs AMD has struggled to overcome its larger rivals in the semiconductor space namely chip giant Intel Corp
INTC 0 17
However Intel has struggled for more than a year with production issues while AMD has rolled out new chips and jumped back into the market for server chips under Chief Executive Lisa Su While the rest of the sector largely struggled with declines in earnings and revenue in 2019 AMD managed to grow and its stock was rewarded From 2018 Why AMD believes it can challenge Intel in servers Thursday s gain came after an Instinet analyst pushed his price target on AMD stock 45 higher to 58 from 40 and wrote that the reasons AMD shares were so successful in the past two years will continue in 2020 We expect AMD to continue strengthening its competitive position in 2020 through a steady stream of new product introductions on 7nm and 7nm technologies continuing market share gains ASP increases revenue growth and increasing operating leverage analyst David Wong wrote AMD s gains have pushed its market capitalization to nearly 55 billion and its price to earnings ratio higher than 250 according to FactSet and have left analysts average price targets well behind the going rate Even with Wong s increase AMD s record closing price Thursday put it more than 22 higher than the average price target of 38 08 Still only three out of 40 analysts tracking AMD stock recommend selling the shares now As of Thursday 15 analysts rate AMD stock the equivalent of a buy and 22 call the stock a hold
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AMD | 3 Reasons Why AMD Was the S P 500 s Top Stock in 2019 | On Dec 31 2019 Advanced Micro Devices NASDAQ AMD joined the New England Patriots and New York Yankees in an exclusive club of back to back champions AMD was the top performing stock in the S P 500 in 2019 with a return of 148 This comes after the company also took home first place in 2018 with a return of 80 The two year combined tally is a celebration worthy 346
Investing has a longer time frame than just one year Envisioning three to five years into the future is a good starting place That said for fun every year I go through the list of S P 500 companies and try to predict the top stock for the coming year I didn t pick AMD last January so when it took the top spot I had to know what contributed to its success Here are three reasons why Advanced Micro Devices rewarded investors so well in 2019 and whether they can expect a three peat in 2020
1 General semiconductor rally
AMD operates in the semiconductor space one that is notoriously cyclical New device demand drives semiconductor inventory and prices higher But in between product updates inventory can bloat and prices fall It was a slow year in 2018 for the semiconductor industry but it picked up again in 2019 particularly in the second half of the year
Data by YCharts
The iShares PHLX Semiconductor ETF is a non leveraged ETF of U S semiconductor companies and a good benchmark for measuring AMD s results Of course the chart shows that AMD outperformed the overall sector by a mile However a 60 return demonstrates that 2019 was a great year for the semiconductor industry in general
So some of AMD s 2019 championship run can be attributed to a recovering semiconductor industry but certainly not all of it The next two factors show why Advanced Micro Devices outperformed its peers
2 Key customer product wins
Throughout the year AMD announced many key customers were sticking with AMD for upcoming products Sony and Microsoft announced that upcoming PlayStation and Xbox video game consoles will employ AMD system on a chip SoC technology And companies like HP and Dell Technologies launched new laptops that continue to use AMD mobile processors
Over the last couple of years Advanced Micro Designs has taken CPU market share from top dog Intel NASDAQ INTC Intel is struggling with a chip shortage and AMD opportunistically launched its Ryzen line offering a comparable product at a superior price However even after losing some market share Intel is still the company to beat Even the worst estimates put its market share over 60
But AMD s biggest computing win came in Oct 2019 when Microsoft launched its first ever AMD powered Surface laptop historically an Intel stronghold Not only is this a huge product line with nearly 6 billion in sales for Microsoft s fiscal 2019 but Microsoft s decision could lead even more companies to switch from Intel to Advanced Micro Devices down the line
3 New product launches
Finally we should note that while AMD returned 148 for the year it returned almost 60 in the last three months of 2019 alone Part of this is attributable to the Microsoft Surface win but the dramatic upswing also corresponds to the announcement of its Radeon RX 5500 line of products The low end graphics cards are meant to compete directly with NVIDIA s NASDAQ NVDA GTX 1650
Investors are understandably excited with AMD s graphics potential Earlier in the year AMD released higher end graphic cards to compete with NVIDIA s higher end offerings These products were identical to NVIDIA s in price However some believed AMD s graphic cards outperformed those of NVIDIA That was a surprising development as NVIDIA was the unquestioned leader in the space If the RX 5500 line offers comparable or superior performance as well Advanced Micro Devices could take market share from NVIDIA
Here s to 2020
Predicting the top S P 500 stock for 2020 is a tall order but I don t think AMD will be it It s rare for a company to win the trophy three years in a row But Advanced Micro Devices doesn t need to be the top stock It can still beat the market next year and be a good investment Much of 2019 s success is attributable to the wins in computing and graphics products However one area that underperformed for AMD was its semi custom segment down 27 year over year in third quarter of 2019
That segment will pick up in 2020 when Sony and Microsoft prepare for video game console launches If the computing and graphics segments remain strong a surge in semi custom revenue should provide a catalyst for the stock to beat the market in 2020 yet again |
T | Viacom renews contract with AT T to continue airing channels on DirecTV | Reuters Viacom Inc has renewed its contract with AT T Inc NYSE T avoiding a blackout of MTV Nickelodeon and Comedy Central for DirecTV users the companies said on Monday Viacom needed to resolve the AT T contract before considering any other strategic moves including a potential tie up with CBS Corp NYSE CBS sources told Reuters on Friday
We are pleased to announce a renewed Viacom AT T contract that includes continued carriage of Viacom services across multiple AT T platforms and products the companies said |
T | Central Europe broadcaster CME reviews options including sale | PRAGUE Reuters Broadcaster Central European Media Enterprises CME said on Monday that it has launched a review of strategic options including possibly selling the company The announcement sent the company s shares surging more than 8 percent on the U S Nasdaq exchange The group majority owned by AT T NYSE T operates 30 television channels in five central and east European markets and has been slashing its debt burden in recent years Its net debt dropped to 765 million by the end of last year from 1 1 billion in 2017 CME shares jumped 6 5 percent in Prague after it announced its review to 86 3 crowns the highest since August 2018 and were up 8 1 percent on the Nasdaq Strategic alternatives may include among other things the sale of part or all of the company a merger with another strategic partner a recapitalization or continuing to execute on CME s long term business plan the company said in a statement adding it had AT T s support CME with a market capitalization of 877 million at Friday s close on the Nasdaq has seen profits rise in recent years and has forecast a 10 12 percent rise at constant prices in core profit or operating income before depreciation and amortization OIBDA this year from 222 7 million in 2018 That has prompted analysts and investors to speculate it could soon pay dividends or announce share buybacks CME said the review did not have to lead to a transaction and there was no timetable for the process It said it had hired Allen Company LLC and BofA Merrill Lynch as financial advisors and Covington Burling LLP as legal advisor |
T | Tiger survives rash of upsets at WGC Match Play | Tiger Woods took advantage of the uneven play by the youngest competitor in the field to win his opening match Wednesday at the WGC Dell Technologies Match Play in Austin Texas Playing in his first match play event since 2013 Woods beat 22 year old Aaron Wise in a match that featured few stellar shots but plenty of momentum swings Woods build a 2 up lead after two holes but was unable to keep his foot on the gas and found himself trailing by a hole after the 10th With neither player executing consistently Woods was able to get back to all square with a par on the next hole He then won three of the next five to close out his record extending 64th match play event 3 and 1 That keeps him in control of his own destiny in the round robin format but Woods knows he ll have to play better over the next two days to advance out of Group 13 I ve played a lot of matches over the years and this is definitely one of the most emotional matches Woods told the Golf Channel after securing his win when Wise three putted the 17th hole I was up early then I m down then I m up There was just a lot of ebb and flow to this match It wasn t as though we were both playing great golf but somehow I came out with the win While Wise will need to win his final two matches and get some help in order to advance Woods is still in the driver s seat He received another gift when Brandt Snedeker birdied the 18th hole to halve the other Group 13 match against Patrick Cantlay We weren t playing that great today we were both struggling a little bit Woods acknowledged If it was a stroke play event we d be pretty far behind But in stroke play it s beating the guy in front of you and that was about it and I was able to advance Several other favored players would have loved to have squeaked out a win with less than their A games Wednesday No 5 seed Justin Thomas was a 3 and 2 loser to Denmark s Lucas Bjerregaard No 50 No 9 Xander Schauffele escaped No 62 Lee Westwood 1 up No 52 Jim Furyk came from behind to upset Australia s Jason Day No 12 2 up and defending champ Bubba Watson lost to No 57 Kevin Na in a bizarre turn of events All square on the 18th tee box Watson was a bad hop away from driving the green Instead he wound up in a green side bunker while Na opted to hit iron off the tee Na found the green with his approach while Watson s first attempt failed to get out of the bunker With his second attempt heading for the same result Watson picked the rolling ball up on his feet conceding a match he appeared to have control of at 2 up through 12 holes I wasn t playing that bad the putts just weren t falling Na told the Golf Channel Anytime you beat a two time match play champion it s a great feeling Bubba is the defending champion he s a great player and we re good buddies Meanwhile most of those who entered in strong form continued their momentum Wednesday Coming off his victory at The Players two weeks ago fourth seeded Rory McIlroy closed out American Luke List 64 5 and 4 Spain s Jon Rahm the No 2 seed was even more convincing in his 7 and 5 win over South Korea s Si Woo Kim 54 I think it was a combination of I rode my luck a little bit McIlroy told reporters after his match At times I hit some loose shots but I somehow got away with most of them Luke would admit he didn t play his best stuff but I played well He let me away on a couple of holes but to birdie 13 and 14 to close the match out was nice No 2 Justin Rose of England was a 2 and 1 winner over Argentina s Emiliano Grillo 53 American Bryson DeChambeau 6 handled Scotland s Russell Knox 59 3 and 1 and Italy s seventh seeded Francesco Molinari dominated Japan s Satoshi Kodaira 63 5 and 4 Also continuing his strong play was England s Paul Casey the No 10 seed who saved some much needed energy by beating Mexico s Abraham Ancer 58 5 and 3 just three days after winning the Valspar Championship There s a lot Casey said when asked by the Golf Channel about his confidence level We re trying to manage the energy level as well The victory was great on Sunday But then that short window to try to get ready for this on Wednesday we ve been trying to manage the energy I ve been fatigued the past few days so today was really really good Actually one of the better rounds of golf I ve ever played around this golf course so form and confidence are fine Countryman Ian Poulter seeded 30th was able to exercise some demons with his 2 and 1 win over Kevin Kisner 48 of the United States It was a loss to Kisner in this event last year that prevented Poulter from reaching the quarterfinals and securing a spot in the Masters Meanwhile Kisner went on to lose to Watson in the final match It was painful I wasn t going to roll over like last year Poulter told the Golf Channel I knew that coming out this morning and perhaps he wouldn t he knew I wouldn t be that easy as what the match turned out to be last year I played very well today I know winning your first match is really important winning every match is really important Today was really important to come out strong and do whatever you need to do
NOTES Woods is playing his first tournament in Texas since the AT T NYSE T Byron Nelson in 2005 and his first WGC event since 2013 The winners from each of the 16 groups will move on to the single elimination weekend rounds American Rickie Fowler and Australia s Adam Scott are the only eligible players who chose not to compete this week Field Level Media |
T | Spurs retire Ginobili s No 20 | The San Antonio Spurs retired the jersey of guard Manu Ginobili in a ceremony that recognized both his contribution to the Spurs and his Argentinian heritage Former teammates returned to San Antonio to take part in the emotional ceremony Thursday night at AT T NYSE T Center where a full house had to wait until 25 minutes after the Spurs 116 110 win over the Cleveland Cavaliers to celebrate Ginobili Fans had lined up outside the arena more than four hours before game time to make sure they didn t miss a minute of the festivities Former longtime teammates Tony Parker and Tim Duncan spoke as did coach Gregg Popovich and Fabricio Oberto a fellow Argentinian who was a Spurs teammate from 2005 09 I m telling you I m one of the lucky ones Ginobili 41 said during his words to the crowd I ve been dealt amazing cards I just had to play them OK That was all I had to do Spurs guard DeMar DeRozan wore Nikes in the color of Argentina s flag light blue with a gold swoosh during the game and the country s national anthem also was played At halftime seven of Ginobili s former teammates from Argentina s national team took part in a roundtable discussion about his career I would not be the player I became without you being my teammate Parker told Ginobili during the ceremony You were such an inspiration to me every day that it was just contagious You helped me become a better player just playing with you In 16 seasons with the Spurs before retiring last summer Ginobili captured four NBA championships 2003 2005 2007 2014 while posting a career winning percentage of 721 762 295 According to the Spurs that is the best winning percentage in NBA history among players who have been in at least 1 000 games Selected by San Antonio with the 57th overall pick in the 1999 NBA Draft Ginobili appeared in 1 057 career games averaging 13 3 points 3 8 assists 3 5 rebounds and 1 32 steals in 25 4 minutes He is the Spurs all time leader in three pointers made 1 495 and steals 1 392
He is credited with introducing the Eurostep to the NBA and won an Olympic gold medal in 2004 and a bronze in 2008 representing Argentina Field Level Media |
T | Related Cos wins bid in WarnerMedia s office sale at Hudson Yards source | By Herbert Lash NEW YORK Reuters Related Companies has won a bid to buy a stake in the second tallest office building in Manhattan from AT T s WarnerMedia in a deal expected to top 2 billion a source involved in the bidding said on Monday The winning bid for WarnerMedia s 1 5 million square feet 139 355 meters of space at 30 Hudson Yards the hub of the new development on Manhattan s far west side was chosen last week the source said AT T NYSE T looking to cut debt after last year s 85 billion takeover of Time Warner plans to lease back the space at the tower which has the highest outdoor observation deck in the Western Hemisphere jutting out from the 100th floor AT T declined to comment Doug Harmon the broker at Cushman Wakefield handling the transaction declined to comment as did Joanna Rose a spokeswoman for Related The deal would be similar to Time Warner s sale of its office space in the Time Warner Center in 2014 to Related and two sovereign wealth partners in the deal the Abu Dhabi Investment Authority and Singapore s GIC That sale allowed Time Warner to acquire its space at Hudson Yards a 25 billion project developed by Related with Canada s Oxford Properties that officially opened last month Time Warner aimed to consolidate 5 000 employees spread across seven locations into one site WarnerMedia recently began moving into 30 Hudson Yards the first tenant to do so AT T is in the midst of a restructuring at WarnerMedia that has seen the heads of HBO Turner Broadcasting and Warner Brothers leave this year AT T s plans for a sale and leaseback deal surfaced in January and attracted pension funds a sovereign wealth fund and real estate investment trusts The losing bidders have been notified the source said
AT T plans this year to shave 20 billion off its net debt of 171 3 billion as reported at the end of 2018 with debt reduction a top company priority |
PFE | Are Dovish Central Banks Doing The USD Heavy Lifting | Currency Markets
The US dollar bulls continued to lead the charge as traders remain centered favorably on the entrenched US data flow despite a slightly softer ISM relative to those from other major economies that are cooling quickly This suggests that central bank policy divergence and the widening interest rate differentials have G 10 traders taking the dollar bull by the horns It s now over to the FOMC to hold up their side of the bargain as so far the heavy lifting for the greenback has fallen on the global central bank community which has turned dovish on the first hint of economic slack
Equity Markets
After initially grumbling on Pfizer NYSE PFE results and dropping oil prices US equity market rebounded convincingly in Tuesday s NY session However investors remain cautious that tariffs and higher oil prices could increase cost pressures and weigh on corporate profits In addition the negative equity market connotations from the prospects of higher US interest rates as the Federal Reserve Board concludes its two day policy meeting continues to weigh on markets
Oil Markets
As the May 12 Iran nuclear deadline nears headline risk continues to speak volumes The market turned lower after peaking post Israeli Prime Minister Benjamin Netanyahu s televised expos which accused Iran of lying about its past nuclear intentions when in fact the existence of a covert Iranian program was divulged in a 2011 report from the International Atomic Energy Agency
Geopolitical developments will continue to drive sentiment However a stronger US dollar soft ISM and a refocusing on rising US production have caused traders to turn to profit taking mode and capped upticks so far
The API reported a larger than expected crude inventory build while the U S Energy Information Administration said Monday that oil production rose to a record 10 264 million barrels a day in February
Gold Markets
Gold market is melting as the surging US dollar takes hold The revitalized greenback has all but crushed demand for bullion and as we near the critical 1300 level the specter of stop losses getting triggered on an upbeat FOMC statement has traders now positioning for the path of least resistance which appears lower
We re in a lull between geopolitical developments which is also offering little support for gold prices
G 10
The USD is bid across the board after testing some significant levels as the market sits tight ahead of the FOMC but more significantly now pivots to this week s NFP which could make or break the resurgent dollar
EUR Some traders had not entirely positioned for downside exposure so on a break of the psychological key 1 2050 there was a mad dash for downs exposure which toppled the EUR below the 200 day moving average which set up a test of this year s low print 1 1915
JPY Interest rate differential and positive developments in the Korea Peninsula suggest a test of 110 is on the cards
AUD The RBA was a non event and was more or less a replay of past statements With the RBA continuing to err dovish and barring a surprise uptick in global growth and commodities the market continues to favor the Aussie short vs USD among G 10 peers
Asia
MYR Stronger dollar narrative coupled with political uncertainty should continue to pressure the ringgit
Growing election uncertainty continues to keep investors at bay While the chances of the opposition to pull off a surprise result remain low a large scale knee jerk negative repricing of Malaysian assets suggests foreign bond buyers will stay on the sidelines As such the MYR will continue to trade defensively due to its heightened domestic political risk |
PFE | Where Will The Dow Jones Industrial Average Go In May | Market technician Dave Chojnacki of Street One Financial recaps Tuesday s mixed market action and updates the important technicals to focus on as we progress through what promises to be a choppy month of May
The major indices opened mixed on Tuesday A combination of economic and earnings reports put a damper on the Dow Jones Industrial Average DJIA ISM and Construction spending came in lower than expected and Pfizeer disappointed in their earnings report These events sent the DJIA down over 354 points at one time before reversing and finishing with a small loss
Meanwhile the Nasdaq 100 NDX was holding up much better powered by a good day in Techs and AAPL The NDX ended the day with a significant gain while the S P 500 SPX eked out a small gain
At the close the DJIA was off 0 27 the SPX added 0 25 and the NDX moved up 1 1 Breadth was slightly positive 1 1 to 1 on slightly below average volume ROC 10 s declined in the session with all three major indices remaining in negative territory
RSI s were mixed with the NDX moving higher and becoming the strongest at 51 2 The DJIA dropped to 44 8 and the SPX was little changed at 47 9 The DJIA continued with its MACD bel0ow signal while the NDX and SPX remain above The ARMS index ended the day at 1 37 a slightly bearish reading
It was the third straight down day for the DJIA with PFE NYSE PFE down 3 3 contributing to its poor performance The DJIA closed at 24099 holding below its 20D SMA of 24340 It came within 80 points of its 200D SMAv 23727 Until it moves above its 50 retrace level of 25074 short term bias remains to the downside
The SPX ended at 2654 near its high of the day It remained just below its 20D SMA of 2659 The SPX must move through its 50 retrace at 2726 to reverse bias Its 50D SMA is at 2684 The NDX closed at 6681 moving above its 20D SMA of 6628 It remains below its 50D SMA of 6742 The NDX 50 retrace stands at 6760 The VIX slipped 2 7 to end at 15 49
Near term support for the NDX is at 6628 6600 Near term resistance is at 6700 and 6742 Near term support for the SPX is at 2625 and 2613 Near term critical resistance is at 2659 and 2684
Europe is slightly higher in early trade Tuesday while U S Futures are slightly higher in the premarket Major economic reports on tap today include the ADP Employment report at 8 15am EIA Petro Report at 10 30am and the FOMC Announcement at 2 00pm
The SPDR Dow Jones Industrial Average SI SPDR ETF rose 0 49 0 20 in premarket trading Wednesday Year to date DIA has declined 2 68 versus a 0 70 rise in the benchmark S P 500 index during the same period
DIA currently has an of A Strong Buy and is ranked 3 of 81 ETFs in the category |
T | Why Is AT T T Down 1 7 Since Last Earnings Report | A month has gone by since the last earnings report for AT T T Shares have lost about 1 7 in that time frame underperforming the S P 500
Will the recent negative trend continue leading up to its next earnings release or is AT T due for a breakout Before we dive into how investors and analysts have reacted as of late let s take a quick look at the most recent earnings report in order to get a better handle on the important drivers AT T s Beats on Q3 Earnings Offers 3 Year Financial ViewAT T reported relatively tepid third quarter 2019 results with year over year decline in GAAP earnings and revenues due to lower than anticipated performances from legacy wireline services and WarnerMedia businesses The company has offered a three year guidance and financial allocation plan which is expected to drive significant improvement in margins and bottom line growth with sustained investments and debt reduction Net IncomeOn a GAAP basis AT T reported net income of 3 700 million or 50 cents per share compared with 4 718 million or 65 cents per share in the year ago quarter The slump in earnings despite lower operating costs was primarily attributable to lower revenues and merger and integration related expenses Excluding non recurring items adjusted earnings for the quarter were 94 cents per share compared with 90 cents in the year earlier quarter and exceeded the Zacks Consensus Estimate by a penny Quarter DetailsQuarterly GAAP operating revenues decreased 2 5 year over year to 44 588 million largely due to lower revenues from legacy wireline services WarnerMedia and domestic video partially offset by growth in strategic and managed business services domestic wireless services and IP broadband The top line missed the Zacks Consensus Estimate of 45 006 million Operating income for the quarter was 7 901 million compared with 7 269 million in the prior year quarter owing to lower operating expenses resulting in respective operating income margins of 17 7 and 15 9 Adjusted operating income for the reported quarter was 9 901 million compared with 10 035 million in the year earlier quarter for respective margins of 22 2 and 21 9 During the reported quarter AT T experienced a net increase in total wireless subscribers of 3 7 million to reach 162 3 million in service Postpaid churn was 1 19 compared with 1 16 in the year ago quarter owing to pricing pressures and tablet churn Postpaid phone only average revenue per user ARPU increased 0 6 year over year to 55 89 Segmental PerformanceCommunications Total segment operating revenues were 35 401 million down 1 7 year over year with decline in Business Wireline and Entertainment Group owing to lower legacy voice and data services revenues partially offset by higher wireless service revenues Service revenues from the Mobility unit improved 0 7 year over year to 13 930 million owing to subscriber gains and postpaid phone ARPU growth while equipment revenues were down 3 5 to 3 771 million due to lower upgrades Revenues from the Entertainment Group were down 3 4 to 11 197 million while that from Business Wireline decreased 2 7 to 6 503 million due to lower legacy voice and data services Segment operating income was 8 036 million compared with 8 150 million in the year ago quarter for respective operating margin of 22 7 and 22 6 Segment EBITDA was 12 634 million compared with 12 726 million in the year ago quarter for respective margins of 35 7 and 35 3 WarnerMedia Total segment revenues were 7 846 million down 4 4 year over year primarily driven by lower Warner Bros revenues due to lower contribution from theatrical and television division partially offset by gains at Home Box Office and Turner Operating income was down 1 5 to 2 544 million for corresponding margin of 32 2 Segment EBITDA was 2 697 million for a corresponding margin of 34 1 Latin America Total operating revenues were 1 730 million down 5 6 year over year due to adverse foreign currency translation EBITDA increased to 105 million from 87 million in the year ago quarter for respective margins of 6 1 and 4 7 Xandr Total revenues were 504 million up 13 3 year over year due to AppNexus acquisition while operating income declined 1 8 to 327 million due to higher acquisition and integration costs for corresponding margin of 64 9 EBITDA was 342 million for a corresponding margin of 67 9 Cash Flow LiquidityAT T generated 36 725 million of cash from operations for the first nine months of 2019 compared with 31 522 million in the prior year period Free cash flow at quarter end was 6 200 million compared with 6 473 million in the year ago period As of Sep 30 2019 AT T had 6 588 million of cash and cash equivalents with long term debt of 153 568 million AT T sold 3 5 billion worth of non core assets during the quarter The company is on track to achieve end of year net debt to adjusted EBITDA in the 2 5x range and has reduced debt by about 3 6 billion in the quarter and 12 7 billion year to date Guidance Three Year Capital Allocation PlanManagement has offered healthy guidance for 2020 and expects adjusted earnings in the range of 3 60 to 3 70 per share on revenue growth of 1 2 Free cash flow is expected to be stable at 28 billion with non core asset monetization of 5 10 billion Adjusted EBITDA margin is expected to remain steady compared with 2019 levels For the three year period from 2020 to 2022 AT T expects consolidated revenue growth of 1 2 per year Adjusted earnings are expected to be significantly up to 4 50 to 4 80 per share by 2022 with adjusted EBITDA margin of 35 While adjusted EBITDA margin is expected to be stable in 2020 it is likely to grow in 2021 and 2022 driven by extensive companywide cost reduction plan WarnerMedia synergies continued Mobility growth and AT T Mexico EBITDA growth Free Cash flow is anticipated to be within 30 billion to 32 billion in 2022 with net debt to adjusted EBITDA of 2 0x to 2 25x as 100 debt related to the acquisition of Time Warner assets is likely to be repaid
How Have Estimates Been Moving Since Then
In the past month investors have witnessed a downward trend in estimates review
VGM Scores
Currently AT T has a nice Growth Score of B though it is lagging a lot on the Momentum Score front with a D However the stock was allocated a grade of A on the value side putting it in the top quintile for this investment strategy
Overall the stock has an aggregate VGM Score of B If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift Notably AT T has a Zacks Rank 3 Hold We expect an in line return from the stock in the next few months |
PFE | Macron momentum threatens French election frontrunners | By Michel Rose PARIS Reuters In May last year then French Economy Minister Emmanuel Macron sat down with Socialist lawmaker Christophe Sirugue in the steel town of Le Creusot and asked him to join his new political movement He said No Eight months on others are saying Yes A political outsider who has never run for office and hopes to transcend the classic Left Right divide Macron suddenly seems to have a fighting chance of winning the keys to the Elysee Palace and becoming president before he turns 40 The latest polls show him breathing down the necks of conservative frontrunner Francois Fillon and the far right s Marine Le Pen and he is drawing larger crowds than both at rallies across France Macron s rise is beginning to create cracks in the mainstream parties as more and more local officials disregard party orders and defect to the 39 year old s campaign On the right four former center right ministers have backed Macron illustrating Fillon s struggle to rally moderates behind free market policies harking back to former British Prime Minister Margaret Thatcher Macron s magnetic pull is also being felt at the center When the management of the small UDI party endorsed Fillon the party s youth wing sent a furious statement announcing that their 130 elected officials and supporters would back Macron A UDI Youth sign now adorns the door of a small room at Macron s modest presidential campaign headquarters in the 15th district of the French capital Long time centrist presidential hopeful Francois Bayrou who may get about 5 percent of the vote is facing growing calls from his base to throw in the towel and rally behind Macron SOCIALIST PANIC The momentum behind Macron is starting to sow panic too in the ranks of the Socialists who fear they have little chance of making the runoff in May after five years of uninspiring rule by President Francois Hollande Fifty Socialist members of parliament have already joined Macron according to his team defying threats of expulsion from their own party Even in remote regions of the country he is attracting more people to rallies than his rivals More than 2 000 supporters attended his event in the central city of Clermont Ferrand this month for example while former Prime Minister Manuel Valls who is gunning for the Socialist ticket only pulled in 300 people there according to local media There s a real possibility that at some point the dyke breaks and the Socialist party starts hemorrhaging officials towards Emmanuel Macron Jerome Sainte Marie head of pollster PollingVox told Reuters An Odoxa poll this month showed Macron would get 16 percent to 24 percent of votes in the first round in April putting him within a whisker of Le Pen and Fillon In the latest Harris Interactive poll 41 percent said they trusted Macron and he was more popular than Fillon for the first time in a December poll by Odoxa FRESH FACE Macron followed a path well trodden by the French elite attending the prestigious Sciences Po and Ecole national d administration ENA schools and then joining the finance ministry He then moved to investment bank Rothschild Cie in 2008 and made a small fortune brokering a 10 billion deal between Nestle and Pfizer NYSE PFE before joining Hollande s presidential staff and becoming economy minister in 2014 Macron quit in November to focus on his En Marche or Onwards political movement which he established in April Written off as a presidential hopeful then Macron has become France s most popular politician in just a few months his image a regular feature of Paris boulevard newsstands Macron s popularity is an achievement in a country where many hold a disdain for the world of high finance and much of his broad popularity is down to his attempts to bridge the Left Right divide that dominates French politics He made a name for himself criticizing sacred cows of the French social model such as the 35 hour working week iron clad job protection and civil servants jobs for life But in a country where many often end up voting for the candidate they dislike least part of Macron s appeal can also be put down to a deep yearning for a fresh face He stands out in a race dominated by figures who have been sparring with each other for decades He is a generation apart from 62 year old former prime minister Fillon and 10 years younger than Marine Le Pen Many Socialist and conservative grandees have long dismissed the Macron phenomenon deriding him as a shooting star destined to crash and burn in the run up to the two stage election But with less than 100 days to the election there is no sign yet the media frenzy around him is starting to subside TWO THIRDS One Socialist MP who declined to be named said as many as two thirds of the party s lawmakers could swing behind Macron if the Socialists choose one of the most left wing candidates at their primaries this month Beyond the presidential election those MPs are getting worried that if Macron remains high in the polls and fields his own candidates in the legislatives they re dead he told Reuters Analysts warn however that as Macron s reform program becomes clearer especially on how he intends to cut public spending the harder it will be to appeal across the spectrum He has yet to release a full manifesto but aware of the need to attract left wing voters now says he wants to reform the 35 hour working week and the country s wealth tax rather than scrap these emblematic Socialist policies There are some real question marks hanging over him said Celine Bracq at the Odoxa polling institute His popularity today will not necessarily foretell success in the presidential election But others are prudently hedging their bets Sirugue the Socialist MP who turned down Macron in May told Reuters that the presidential hopeful had since toned down his free market message and was now more presentable
We re not poles apart said the lawmaker who replaced Macron at the economy ministry If you re asking me who I d choose between Macron and the Right s candidates there isn t a shadow of a doubt |
AMD | AMD Joins Blockchain Game Alliance Partners With Marketplace Creators | United States transnational IT firm Advanced Micro Devices NASDAQ AMD has joined the Blockchain Game Alliance and forged two new partnerships to help advance the technology s use in the industry
A Dec 12 press release revealed that the chip manufacturing giant is partnering with blockchain technology providers Robot Cache and ULTRA both of whom are working to develop and operate blockchain based online gaming marketplaces These marketplaces aim to establish new secure purchase options and distribution channels for game publishers and users |
AMD | AMD boosted on 2020 prospects shares 2 | Nomura reiterates a Buy rating on AMD NASDAQ AMD and raises the target from 40 to 58 The company has a Bullish average SA Author s rating
Analyst David Wong expects AMD to continue strengthening its competitive position in 2020
Wong sees gains from new products and increased ASPs revenue growth and operating leverage
AMD shares are up 1 9 pre market to 46 73 |
AMD | AMD s stock surges premarket on track to open at a 20 year high | Shares of Advanced Micro Devices Inc
AMD 1 48
are starting 2020 like they ended 2019 as they rose 2 3 in premarket trading Thursday Analyst David Wong at Instinet reiterated his buy rating but boosted his stock price target by 45 to 58 from 40 on expectations the chip maker will continue to strengthen its competitive position in 2020 Wong said he believes AMD will do this through new product introductions increases in average selling prices revenue growth and an increase in operating leverage The chip maker s stock was the S P 500 s
SPX 0 05
best performer last year with a 2019 gain of 148 which also led the PHLX Semiconductor Index s
SOX 0 70
components AMD s stock is on track to open above its Dec 26 close of 46 63 which was the highest close since June 21 2000 s record close of 47 28
div gpt ad 1569967089584 0 div iframe width 100 important min width 300px max width 800px |
T | AT T CEO says China s Huawei hinders carriers from shifting suppliers for 5G | By David Shepardson WASHINGTON Reuters AT T Inc NYSE T Chief Executive Randall Stephenson said Wednesday that China s Huawei Technologies Co Ltd is making it very difficult for European carriers to drop the company from its supply chain for next generation 5G wireless service If you have deployed Huawei as your 4G network Huawei is not allowing interoperability to 5G meaning if you are 4G you are stuck with Huawei for 5G said Stephenson at a speech in Washington When the Europeans say we got a problem that s their problem They really don t have an option to go to somebody else The United States has been pressuring other countries to drop Huawei from their networks Stephenson said the U S government could do a better job explaining the security risks of Huawei The biggest risk is not that the Chinese government might listen in on our conversations or mine our data if we use their equipment Stephenson said Within a decade 5G will drive all U S factories utilities refineries traffic management and help underpin autonomous vehicles If that much of infrastructure will be attached to this kind of technology do we want to be cautious about who is the underlying company behind that technology We damn well better be Stephenson said Huawei did not respond to a request for comment Wednesday The United States warns that next generation 5G equipment which some telecoms experts see as more vulnerable to attack than previous technology could be exploited by the Chinese government for spying if supplied by Huawei Huawei has grown rapidly to become the world s biggest maker of telecoms equipment and is embedded in the mobile networks and 5G plans of many European operators It denies that its technology represents a security risk In the United States 5G networks will largely be built by Nordic equipment makers Ericsson BS ERICAs and Nokia HE NOKIA and Strayer said there were safer alternatives to Huawei The United States has also alleged Huawei violated its sanctions on Iran and stole intellectual property No evidence of spying has been presented publicly even as scrutiny on Huawei has intensified and several Western countries have restricted the firm s access to their markets Chancellor Angela Merkel said on Tuesday Germany was not planning to exclude any one company from its 5G auction per se but rather wanted bidders in the mobile spectrum auction to meet certain requirements |
PFE | Chart Of The Day Is Pfizer About To Retest Its January High | Analysts have recently increased Pfizer Inc NYSE PFE s EPS expectations from 0 74 to 0 75 Does this updated estimate indicate that the stock will retest its January 39 43 high
The overall supply demand balance seems to indicate that it will not
Pfizer is a Diamond in the Sky that is About to Fall
The price has been developing a diamond top formation It is rare as it is a profitable pattern upon the successful downside breakout The right side of the top is dotted to indicate it is presumptive assuming the pattern will continue to form and that the former February 28 37 28 peak will maintain resistance
This pattern is made up of two smaller ones On the left side it started mid September to develop a Broadening Pattern on the right side it began forming what may be a triangle
The pattern may be described as a Complex Head and Shoulders with a V shaped neckline
Thomas Bulkowski is an investor and author His research shows that 58 percent of the time the last rally before the Diamond Top is steep Between August 21 and September 12 which is less than a three week period the price surged by more than 10 percent During the same period the S P 500 Index climbed 3 1 percent An advance three times that of the benchmark more than satisfies the requirement for a steep rise
When this occurs his research shows that the odds increase that the breakout from the diamond will be downward and will be equally as steep That means that should the price fall below 36 it should almost automatically fall quickly to the beginning of the last move on August 21 at 32 32
Pullbacks occur about 54 percent of the time When they occur they do tend to detract from performance in terms of optimum entry An entry upon breakout with a stop loss above the pattern should eliminate performance weakness
84 percent of downside breakouts provide a minimum of a 10 percent gain The 10 percent failure percentage is 16 percent below the average for most tops complete with a downside breakout These numbers render the diamond pattern with an above average chance of being profitable with minimum risk
The 200 DMA increases the weight of the evidence that this pattern as drawn is meaningful as it guards the pattern bottom
Trading Strategies Short Position Setup
Conservative traders would wait for a 3 percent downside breakout and for the probable return move which would demonstrate the pattern s resistance with at least one red candle engulfing one green candle
Moderate traders would be satisfied with a 2 percent breakout and might wait for a return move for a better entry
Aggressive traders may enter a short position immediately counting on the dual resistance of the former February 28 37 28 peak The dotted downtrend line from the January 30 diamond top is presumptive in case the previous peak would maintain resistance |
T | How Trading Your Own Retirement Can Fleece Your Financial Future November 27 2019 | You have a significant retirement portfolio You re an experienced investor You ve done pretty well at picking stocks You probably even own a few of Zacks Top Retirement stock picks like
American Eagle Outfitters NYSE AEO Oversea Chinese Banking Corporation Limited OVCHY and AT T T
If that sounds like you should you actively trade your own retirement assets
It could be a good idea that is if you are one of the very few investors who understands your own risk tolerance and can keep your emotions in check during chaotic market swings However if you re like the rest of us there are likely more prudent ways to reach your retirement investing goals
Active stock trading requires an altogether different investing philosophy and risk reward understanding than building wealth for retirement
Managing Retirement Investments Stock Picking vs Diversification
While stock picking can potentially result in outsized returns its outsized concentrated risk can pose significant hazards for retirement investors
In fact a study done by Hendrik Bessembinder revealed that only 4 of equities produced all of the stock market s gains over the last 90 years All other stocks broke even with the increases of 38 canceled out by the losses of the bottom 58
Those numbers reinforce that even if you are an experienced and talented stock picker your chances of success over a long period are very slim
Is it Possible to Invest Rationally
Investors think they can make rational decisions but research shows that the opposite is often true A recent DALBAR study tracked investors from 1986 to 2015 and found that the average investor substantially underperformed compared to the S P 500 Over 30 years the S P 500 returned 10 35 but the average investor return was just 3 66
It is worth noting that this period included the 1987 crash and enormous bear markets in 2000 and 2008 and the positively trending market of the 1990s as well
This study indicates that one key explanation behind investor underperformance is attempting to time volatile markets and that irrational emotional biases are likely to compound investor botches
Interestingly even savvy traders tend to underperform because they can t help but allow emotions to drive investment decisions They may be overconfident and misjudge risk latch onto a price target or perceive a pattern that isn t there This behavior gap over the long term can be catastrophic with potential underperformance of hundreds of thousands of dollars sabotaging your retirement
The Key Takeaway for Retirement Investors
Your retirement portfolio should be managed with a strategy of performance over decades not days weeks or quarters Most self directed investors tend to fall short when it comes to long term results
Does that mean you should quit trading Not really One plan is to take 10 of your investable resources and trade to create alpha and look for outsized returns
But the point we re making here is that the money you have set aside for your retirement should be invested using a more conservative long term approach designed to produce reliable returns so you can steadily build assets and achieve your retirement goals
Do You Know the Top 9 Retirement Investing Mistakes
Whether you re planning to retire early or not don t let investing mistakes derail your plans
If you have 500 000 or more to invest and want to learn more click the link to download our free report 9 Retirement Mistakes that will Ruin Your Retirement This report will help you steer clear of the most common mistakes like trying to time the market lack of diversification in your portfolio and many more Get Your FREE Guide Now |
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