Alibaba shares edge higher, declares buying activities

Alibaba edged higher in the trading session earlier by 8.88 percent to $66.30, an increase of 5.41. The biggest Chinese e-commerce company has a market capitalization of 169.4 billion Chinese yuan. The stock opened at $64.42 with a session low of $64.04 and session high of $66.89.

Around 21,735, 387 shares of the company were traded on the session while its price earnings ratio is 16.26. The company has a one-year low of $57.20 and its one-year high is $95.06. Currently, the stock has a 500-day moving average price of $69.55 and a 200-day moving average price of $73.06.

The e-commerce company gained $5.33 billion as reported from their quarterly earnings report beating the expected revenue of the analysts of $5.02 billion. Similarly, the firm surpassed the expected earnings per share of the analyst when it disclosed $0.98 EPS for the said quarter.

Alibaba gained an average rating of Buy from thirty eight analysts while its average objective price is $93.92. On the other hand, ICON Advisers purchased 5,1000 shares of the company which gave the institutional investor a total of $1,215,000 worth of shares.  Other hedge funds raised their positions in the e-commerce company as well. For the fourth quarter, Private Asset Management, Diwa SB Investments and River & Mercantile Asset Management are just some of the investors which boosted their respective positions in Alibaba Group Holding.

Alibaba surprised the market when it announced its buying activities recently. The company confirmed that it has bought 32.9 million shares of Groupon which created an anticipation for a possible full acquisition in the long run.

According to the filing extracted from the Securities and Exchange Commission, the Chinese e-commerce giant bought a total of $101 million shares to Groupon or around 5.6 percent stake.

“We bought a very small minority stake in Groupon in order to share ideas between U.S. and China markets. This is a passive holding and if Groupon management would like to exchange experiences with us, we are prepared to share,” the spokesperson of Alibaba said.

“Alibaba has a reputation as a long-term holder, and we’re pleased that they take the same view of Groupon’s opportunity and execution as we do,” Groupon told the media.

 

A market analyst explained that this might be one of the strategic plans of Alibaba to slowly extend its market in the United States. He mentioned that the Chinese e-commerce company doesn’t want to have their own operations, so they are investing in other companies to help them learn and pave the way for more robust activity down the road. Alibaba has acquired stakes from Magic Leap, Jet.com and Lyft as well.

Meanwhile, as the news spread regarding the matter, the shares of Groupon edged higher about 40 percent after its recent jump of 30 percent. The U.S. based global e-commerce marketplace has a market capitalization of $2.3 billion and focuses more on its travel section and keep its traditional online shopping platform. It has slowly climbed after the drastic drop of 60 percent the previous year.

In other news, Temasek Holdings Pte has tied up with Alibaba as part of its plan to widen the investment of the company in the industries serving the middle class and on the illustrious technology of China. The Investment firm traded about 548, 769 American Depository Receipts of Alibaba. Temasek has bought $50 million of Alibaba’s shares on March 2011.

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Google’s self-driving car, to partner with Tesla or GM?

In a recent news, Google has announced its plans to create a self-driving car and tied up with one of the prominent car manufacturers. In connection to this, Tesla also disclosed its plan in coming up with a self-driving auto pilot. Could this be the team-up that will bring the most awaited technological car evolution in the market?

Peter Krafcik, told the press that they are going to need a lot of help in the next stage of their project. “We’re going to be partnering more and more and more: you can count on it, though I don’t have anything certain to say today,” Krafcik said.

Aside from Tesla, one of the companies that is speculated to materialize the plan is General Motors. Peter Krafcik was an employee of GM before, but he didn’t comment on that matter instead he explained that the company had to figure out the right set of partnerships and it was too early to say whether Google would work with more than one car manufacturer of vehicles or with a single on one model.

Here is the further statement of Krafcik. “Automakers have a track record of producing cars at scale…As work progresses, we look forward to working with many of you people as we bring this technology to market…“We’ve just been delighted, honestly, by the amount of inbound interest in the program. Every [carmaker] has been wanting to speak to us.”

Last week the shares of the multinational tech company dropped by 2.8 percent or 20.07 points with a market capitalization of $477. 591. The 12-month high of the stock was at $779.98 while its 12-month low stood at $483.23. The shares notably have underperformed the  S&P500 by 0.65 percent, however, it has still outperformed the index by 0.19 percent in 4 weeks.

The firm has a 50 day moving average of $745.04 and its 200-moving average is at $669.05 with a total of 3,608,109 shares at $694.45. Google Inc. has 52-week low share price of $496.39 and the 52-week high of $779.98.

Google has remained to be the on top as its growth stimuli keep on pushing the stock higher. The smart home electronics, expanded fiber optic internet availability and sensing devices in the hands of Google are just some of the sectors where the firm benefits.

Having recent 12 percent decline as compared from its previous gain, the stock is given a buy rating.

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CISCO pushes collaborations for 2016

Cisco Systems seemed on the set to expand its influence in the tech market as rumors spread on its latest hyper-converged appliance.

Sources claimed that Cisco was planning to converge its UCS servers with the technology acquired from an Original Equipment Manufacturing (OEM)agreement with Springpath.

Last month, a longtime Cisco partner revealed that Cisco needs a good non-hardware-specific hyper-converged infrastructure offering, and Springmath is a good one.

“Springpath is pretty new, but customers like [the technology]. They also have good differentiation against the other me-too software-only hyper-converged infrastructure offerings, ” the partner added.

Further to this, the unnamed partner expressed the excitement over the team up with the Springpath. He was looking forward to how this (team up) would be compared  to Nutanix or [VMware] EVO:RAIL from a  pricing and performance standpoint, as well as ease of management.

However, at the moment, both companies remain silent on the issue.

Cisco’s Spark service

At the yearly Cisco Collaboration Summit this January in San Francisco, the company announced its plan to explore on collaboration.

Chuck Robbins, Cisco CEO, claimed that there was no better way to drive productivity than through collaboration.

Furthermore, Rowan Trollope, Senior Vice President and General Manager, IoT and Collaboration Technology Group at Cisco, explained that the experience when attempting to use unified communications, video conferencing, and web conferencing together was far from magical and certainly wasn’t  simple because the three technologies were not designed to work together.

The tech company pushed its claim for a unified experience through Cisco Spark Hybrid Services. Under the Cisco Spark Hybrid Services, a meeting  is automatically created in a Spark room shared by call participants sharing contents. With the help of the calendar invitations and adding “@spark” in the location line, meetings can be easily set up.

According to Trollope, Spark partners will set the pricing of the service and will be the ones to sell  it.

Cisco’s Recent Figures

The tech company expects for an earnings per share of 5.63 percent in 2016. In the previous year, Cisco System made a 5.60 percent earnings  per share growth.

Presently, the stock has $1.87 earnings  per share and return of assets of 8.80 percent.Its current market capitalization is $134.06 billion and the return on equity is around 16.20 percent and a 0.41 debt to equity.

On its last quarterly earnings in 2015, the firm earned $12.68 billion and its revenue went up 3.6 percent.

Cisco has obtained an average price objective of $32.50 and an average rating of Buy. The stock received Buy ratings from twenty-three equity research analysts. Further to this, one analyst rated the stock with a strong Buy rating, four of them gave a Sell rating and eight issued a Hold rating for the tech company.

Moreover, the business has 50-day moving average price of $27.09 and 200-day moving average of $27.35.

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3M lessens profit outlook twice in 2015

3M recently has cut its profit forecast twice  for 2015 due to slow growth of world economy and the decline in demand for consumer electronics products and industrial supplies. The stock reduced its earnings per share to $7.55 lower than the first $7.60 to $7.65 per share. Its one-year low is $134.00 and one-year high is 170.50.

According to the chief executive of 3M, the cut of its earnings and sales growth was primarily due to declining  demand for smartphones, tablet computers and television sets globally. The company is the supplier of films, adhesives, coatings and other materials to make the said products.

“We’re seeing particular weakness in industrial-related businesses in the United States, and we’re also seeing weaker than expected demand in,” a representative of the company said.

The maker of Post-it Notes and Scotch tape to high tech components, perceives earnings of $8.10 to $8.45  per share for 2016,  higher than this year’s 7 percent to 12 percent. The company projected its organic sales growth to surge to 1 percent to 3 percent after its positive expectation on its sales in China and Japan.

At the end of the fourth quarter, the company’s dividend is seen to move higher with a total of 54 percent of earnings per share.

“Organic sales in the fourth quarter are likely to be down about 2% from a year earlier, and they may also be negative in the first quarter of 2016,” the company declared.

In other news, the hedge fund, Modera Wealth Management had 7,663 total shares at 3M at $1,086,000 according to Securities and Exchange Commission. A hedge fund is an alternative investment vehicle available only to sophisticated investors, such as institutions and individuals with significant assets.Hedge funds are pools of underlying securities and they can invest in many types of securities.

The tech company has 0.5 percent of Modera Wealth management’s Portfolio. Additionally, Palo Capital had 6,090 shares at $863,000 after purchasing 400 shares in the third quarter.

In the current trading session, the company’s shares increased by 1.23 percent to $149.95 and  its market capitalization is $92.33. The stock has 50-day moving average price of $157.06 and 200 moving average price of 151.57.

Zacks Investment Research changed its Hold rating to sell rating while Credit Suisse improved the neutral rating to outperform rating and set a price objective of $155.00. Barclays gave the stock a price objective of 150.00 and an equal weight rating. One investment analyst gave the stock a strong buy rating, two rated it with a sell rating, five issued a buy rating  and seven gave it a hold rating.The tech company has an average rating of Hold and a consensus price target of $160.61.

3M Company (3M)  is a diversified technology company. The Company operates in five segments: Industrial, Safety and Graphics, Electronics and Energy, Health Care and Consumer. 3M products are sold through a number of distribution channels, including directly to users and through wholesalers, retailers, jobbers, distributors and dealers in a range of trades in a number of countries worldwide.

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Oil Climbs on U.S. Stock Draws as Demand Forecast Gains

On Thursday, oil prices climb as lower U.S. crude stocks and optimistic global demand forecast concerns regarding the glut of supply, while threat on China’s budget continues to be evaluated.

Energy Information Administration resulted data on Wednesday that U.S. stockpiles of gasoline and crude declined 1.7 million barrels last week, boosting sentiment in the U.S. market.

Brent crude oil traded at $50.26 per barrel which rose 60 cents when it closed on Wednesday. As for U.S. crude, it traded at $43.50 per barrel which was also up 20 cents.

According to the International Energy Agency, the global demand for crude oil this year was seen as the strongest in five years. EIA also mentioned that global oversupply could extend until 2016.

China’s demand for oil dropped in July due to the sudden plunge of sales which could affect the further development for this year.

In July, China consumed approximately 10.12 million barrels of oil per day which was 4% down since June. Last year, surplus of oil gained 9.72 million barrel per day.

Chinese automobile sales have declined 7.1% in July 2014 for four consecutive months, which was the steepest drop since February 2013.

China’s currency slightly gained after the worst two-day depreciation. However, the central bank moved to stem a sudden selloff that witnessed the currency lose 4% in just two days.

Brent futures forecast a rate of $54.61 per barrel this year and $60.48 per barrel for next year, while WTI crude is expected at $49.31 per barrel this year and $54.50 per barrel next year.

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Bank of America’s Earnings Report: What to Expect

Bank of America is one of the most outstanding financial institutes in the world that serves individual customers, middle and small market businesses, as well as large companies with a full range of banking, inventing, asset management, diverse risk management and financial services and products. Aside from that, it offers convenience and serves about 48 million customers and small business associations.  Furthermore, it also operates through Consumer Real Estate Service; Consumer and Business Banking; Global Banking; Global Markets; and Global Wealth and Investment Administration.

RELEASE DATE

On July 15, the BAC will release the results of its earnings for the three months ending June 30. The financial industry stocks caught attention from investors this year. The bank is believed to release honest results and investors will notice a decrease in BAC’s overall expenses and legal costs.

Shares of BAC rose by 1.4% to $16.93 as of 1:16 PM EDT.

The Relative Strength Index for BAC’s stocks shows a neutral outlook among investors. Currently, it stands at a value price of 50, which suggests that the stock is neither oversold nor overbought.

Analysts expect the company to post profits of $0.36 a share and $21.30 billion in income, up from $0.19 profits per share,but below the $21.96 billion in revenue during the same quarter in the previous year.

Conversely, the typical 12-month value target for BAC is $19.63, indicating a 17.54% possible advantage from where the stock is presently trading.

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