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on 20/09/2020 at 3:56 am

(Bloomberg) -- Donald Trump gave his blessing to Oracle Corp.’s bid for the American operations of TikTok, putting the popular video-sharing app on course to escape a U.S. ban imposed as part of his pressure campaign against China.“I approved the deal in concept,” Trump told reporters Saturday as he left the White House for a campaign rally in Fayetteville, North Carolina. “If they get it done, that’s great. If they don’t, that’s OK too.”The new company, which will be called TikTok Global, has agreed to funnel $5 billion in new tax dollars to the U.S. and set up a new education fund, which Trump said would satisfy his demand that the government receive a payment from the deal. “They’re going to be setting up a very large fund,” he said. “That’s their contribution that I’ve been asking for.”Oracle plans to take a 12.5% stake in the new TikTok Global, while Walmart Inc. said it has tentatively agreed to buy 7.5% of the entity. Walmart’s Chief Executive Officer Doug McMillon will serve on TikTok Global’s board of directors, the retailer said in a statement. Four of the five board seats will be filled by Americans, according to the statement.The deal was forced by a pair of bans Trump issued in August over concerns that TikTok’s Chinese owner ByteDance Ltd. posed a national security risk, thrusting the video-sharing app into the center of the president’s confrontation with Beijing.Shortly after Trump signaled his approval, the Commerce Department on Saturday delayed by a week a ban that would have forced Apple Inc. and Alphabet Inc.’s Google to pull the TikTok video app from their U.S. app stores on Sunday.Trump is ramping up pressure on Chinese-owned apps in the weeks before the Nov. 3 presidential elections, citing national security concerns about the data U.S. citizens provide to them and the potential for Beijing to use them for spying. The president is trailing his opponent Joe Biden in polls and has sought to portray himself as tougher on Beijing than the Democrat.TikTok said in a statement that it was “pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the U.S. administration and settle questions around TikTok’s future in the U.S.”The company confirmed Oracle will host all its U.S. data and secure its computer systems. Oracle’s Generation 2 Cloud fully isolates running applications and responds to security threats autonomously, according to the statement, which eliminates the risk of foreign governments spying on American users or trying to influence them with disinformation.“Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle Cloud,” said Oracle CEO Safra Catz in a statement. “We are a 100% confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok’s American users.”Oracle will get full access to review TikTok’s source code and updates to make sure there are no back doors used by the company’s Chinese parent to gather data or to spy on the video-sharing app’s 100 million American users, according to people familiar with the matter.TikTok Global, together with Oracle, SIG, General Atlantic, Sequoia, Walmart and Coatue will create an educational initiative to develop and deliver an online video curriculum driven by artificial intelligence, according to the statement.TikTok said it’s working with Walmart on a commercial partnership and said that it will take part in a TikTok Global financing round along with Oracle before an initial public offering in which the investors can take as much as a 20% cumulative stake in the company.TikTok Global will likely be headquartered in Texas and will hire “at least” 25,000 people, Trump said. TikTok will need to hire thousands of content moderators, engineers, and marketing staff that were previously located in China and around the world. The company will also pay more than $5 billion in new tax dollars to the Treasury, according to the statement.To sweeten the deal for Trump, TikTok promised to hire an additional 15,000 jobs, more than the 10,000 positions the company already pledged to fill earlier this year. It’s unclear if there’s a timeline to achieve that target, or guarantees that it will follow through. Facebook Inc., the largest U.S. social media company, employed about 45,000 people in 2019, while Twitter Inc. employed only 4,900, according to data compiled by Bloomberg.Proponents of the deal told the Trump administration that the new company would be controlled by American investors by counting the passive stakes of existing shareholders in TikTok’s Chinese parent, people familiar with the matter said. Although Bytedance will have an 80% stake in the new company, existing U.S. investors hold a 40% stake in ByteDance. That tallies up to 53% ownership by U.S. companies and investors -- although that doesn’t entail majority control or voter rights, the people said.TikTok Global, which will be an independent company, will hold an initial public offering in less than 12 months and the stock will be listed on a U.S. exchange, according to the statement. After going public, U.S. ownership of TikTok Global will increase and continue to grow over time, it added.While the Chinese government must now sign off on the transaction for it to go forward, as of earlier this week, ByteDance was growing increasingly confident that the proposal would pass muster with Chinese regulators, people familiar with the matter told Bloomberg.Early reaction from Chinese state media appeared positive. “This scheme is still unfair, but it avoids the worst result, that TikTok is shut down or sold to a U.S. company completely,” wrote Hu Xijin, the influential editor in chief of China’s state-owned Global Times.Under the terms of the agreement reached early in the week, ByteDance would retain a majority of TikTok’s assets and control over the algorithm, with Oracle and other U.S. investors taking minority stakes.Trump seemed to contradict that on Saturday. “It will have nothing to do with China, it’ll be totally secure, that’ll be part of the deal,” he said. “All of the control is Walmart and Oracle, two great American companies.”Trump spoke with Oracle Chairman Larry Ellison and Walmart’s McMillon on Friday, telling them he still expected the U.S. government to receive a cash payment as part of the transaction, according to people familiar with the matter. They agreed to the educational donation as a way to satisfy Trump’s demand, one of the people said. The deal came together last weekend, the result of high-level negotiations between ByteDance, Oracle and top Trump administration officials after ByteDance rejected a bid from Microsoft Corp. and Walmart to buy the U.S. TikTok service outright.Beijing has signaled it would greenlight a deal as long as ByteDance doesn’t have to transfer the artificial intelligence algorithms that drive TikTok’s service, Bloomberg has reported.The Treasury Department said the deal is subject to a security agreement that requires approval by the Committee on Foreign Investment in the U.S., or Cfius. The term sheet that’s been negotiated between Cfius and the companies will now have to be formalized in a document that details the mechanics for implementing the terms of the deal.That document would likely include requirements related to the establishment of the new company, arrangements governing its relationship with ByteDance, whether an IPO is part of the deal, whether ByteDance will have to divest its entire stake in the IPO and what would happen if for some reason the IPO doesn’t occur, said Aimen Mir, a lawyer at Freshfields Bruckhaus Deringer LLP and a former deputy assistant secretary for investment security at Treasury.In a video posted on TikTok with the caption WeAreTikTok and we are here to stay, interim head of TikTok Vanessa Pappas thanked users for “sticking by us,” she said. “We’re here for the long run.” In the comments below, users said they were happy that the ongoing drama around the ban would subside. “This on and off situation is working on my nerves,” said @iamdavante, who has 4.1 million followers on the video app.(Updates with comment from Oracle and Walmart throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

on 20/09/2020 at 3:04 am

TikTok owner Bytedance said in a social media post on Sunday that it was the first time it had heard in the news it was setting up a $5 billion education fund in the United States. U.S. President Donald Trump said he had approved a deal, which included a $5 billion education fund, to allow TikTok to continue to operate in the United States. "The company has been committed to investing in the education field, and plans to work with partners and global shareholders to launch online classroom projects based on AI and video technology for students around the world," ByteDance said on its official account on Toutiao.

on 20/09/2020 at 2:22 am

REDWOOD SHORES, Calif. and BENTONVILLE, Ark.

on 20/09/2020 at 1:56 am

(Bloomberg) -- Oracle Corp. and Walmart Inc. plan an minority investment in TikTok Global, giving companies that have little experience in social media a stake in a fast growing music and video-sharing app that became the focal point of a trade standoff between the U.S. and China.Oracle and Walmart together could end up with as much as 20% of the entity, purchased in a round of financing that would precede an initial public offering, the companies said Saturday. Sequoia Capital and General Altantic, current investors in TikTok parent ByteDance Ltd., could also pursue stakes in the fundraising round, a person with knowledge of the matter said. ByteDance will retain majority control.ByteDance commenced a search for investors in TikTok’s U.S. operations after Trump proclaimed that TikTok was a threat to U.S. national security, and ordered the app be sold to an American business or shut down by Sept. 20. The president said Saturday that he gave his “blessing” to the “concept” of the deal, even though ByteDance will retain such a large stake.For Oracle, the partnership fits with a plan to become a provider of a broad range of computing services delivered via remote server farms, rivaling leaders Amazon.com Inc., Microsoft Corp. and Alphabet Inc. The strategy, announced with fanfare half a decade ago, had mixed success. As of last year, Oracle had grabbed such a small share of the cloud computing and storage market that research firm Gartner Inc. didn’t even tabulate the figure. In 2018 Gartner classified Oracle as a “niche player.”TikTok’s decision to pick Oracle was influenced by another company, Zoom Video Communications Inc., which recently moved some of its videoconferencing capacity to Oracle’s cloud business, Redwood City, California-based Oracle said Saturday in a statement.Oracle Chairman Larry Ellison said in a statement that TikTok chose Oracle “because it’s much faster, more reliable, and more secure than the first generation technology currently offered by all the other major cloud providers.”Walmart said that while terms aren’t final, it has tentatively agreed to buy 7.5% of TikTok Global and that it would provide services including payments, e-commerce and order fulfillment to the new company. Walmart Chief Executive Officer Doug McMillon will also serve as one of five board members of TikTok Global.“This partnership will provide Walmart with an important way for us to expand our reach and serve omnichannel customers as well as grow our third-party marketplace, fulfillment and advertising businesses,” Bentonville, Arkansas-based Walmart said in a statement.The move is part of a broader long-term play to bring more shoppers, advertisers and vendors into its camp as the lines between content and commerce continue to blur. The arrangement could also enhance its soon-to-launch delivery subscription service, making it a more credible threat to rival Amazon’s Prime offering. TikTok could become a platform to sell Walmart’s products, catapulting the 58-year-old Arkansas retailer into the emerging realm of “social commerce” against Facebook and its Instagram platform.The new minority owners have pledged to create 25,000 jobs through the new company.(Adds details on Walmart’s plans throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

on 20/09/2020 at 12:45 am

(Bloomberg) -- Oracle Corp.’s agreement to take a stake in TikTok has won the long-awaited blessing of U.S. President Donald Trump.The proposal, which would give Oracle and other investors minority ownership of a new company called TikTok Global, still needs approval from regulators in China, where TikTok’s parent ByteDance Ltd. is based.Trump’s praise for the agreement suggests that weeks-long deliberations over the fate of a popular music and video-sharing app are nearing completion. ByteDance began holding discussions with investors in its U.S. operations after the Trump administration threatened to shutter the business, saying that it poses a threat to national security.While some of the terms remain undetermined, here’s what’s known about the deal, based on public statements and people with knowledge of the matter:What We KnowWho’s in and who’s outOracle plans to take a 12.5% stake in a round of financing that would precede an IPOTikTok also said that together, Oracle and Walmart Inc. could end up with as much as 20%The new company, called TikTok Global, will seek a U.S. IPO and raise a pre-IPO round of financingExisting Bytedance investors that could participate in the pre-IPO round include Sequoia Capital, General Altantic and Coatue CapitalA host of other companies made proposals or considered bidding. Microsoft Corp. was rebuffed because it wanted to control all of TikTok in the U.S., a condition that didn’t sit well with BeijingWhat the deal looks likeOracle will be TikTok’s “trusted technology provider,” meaning Oracle will house the entity’s data in its U.S. servers -- a boon to a cloud computing business that has lagged behind those of Amazon.com Inc., Alphabet Inc. and Microsoft. It will also get access to monitor TikTok’s source code and algorithmsWalmart Chief Executive Officer Doug McMillon will sit on Tiktok Global’s board and is discussing a commercial partnership with TikTokTikTok Global will likely be headquartered in Texas and will hire at least 25,000 people, Trump said, without mentioning a timeline for those hiresByteDance would retain a majority stake in TikTok’s assets and control the closely guarded algorithm that determines what clips users seeThe new company will hold an initial public offering in about a yearHow the parties are addressing security concernsOracle will review TikTok’s full source code and updates to make sure there are no back doors that could be used by ByteDance to gather data or spy on the app’s 100 million or so American usersOracle will be able to continue to review the technology as updates come in to make sure there are no new points of access to the dataTikTok was able to convince the U.S. government that TikTok Global would be controlled by American investors by counting the passive stakes of existing shareholders in TikTok’s Chinese parent, people familiar with the matter said. Although Bytedance will retain an 80% stake in the new company, because existing U.S. investors hold a 40% stake in ByteDance, the math works out to 53% ownership by U.S. companies and investorsWhether Trump will get a payoutTikTok Global will use proceeds of the IPO to create a $5 billion education fund“They’re going to be setting up a very large fund,” Trump said Saturday. “That’s their contribution that I’ve been asking for”What We Don’t KnowWhat China thinksThe Chinese government will also have to approve ByteDance’s plans under new restrictions Beijing imposed on the export of artificial intelligence technologies, Bloomberg News reported earlierAs of earlier this week, ByteDance was growing increasingly confident that the proposal would pass muster with Chinese regulators, people familiar with the matter told BloombergEarly reaction from Chinese state media appeared positive. “This scheme is still unfair, but it avoids the worst result that TikTok is shut down or sold to a US company completely,” wrote Hu Xijin, the influential editor in chief of China’s state-owned Global TimesFate of the Commerce Department’s banThe Commerce Department said Saturday it will push a ban back by one week that would bar TikTok from the Apple Inc. and Android app stores, extending the Sept. 20 deadline set by President TrumpFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

on 19/09/2020 at 11:48 pm

Oracle said it will take a 12.5% stake in the new TikTok Global, a U.S.-based entity formed from the Trump administration's demand that the popular video app's Chinese parent company, ByteDance, divest its U.S. operations to American owners. Oracle confirmed its plans to take the ownership stake in TikTok shortly after President Trump said Saturday

on 19/09/2020 at 11:00 pm

Major financial institutions seem to be undertaking equity manipulation via the

on 19/09/2020 at 8:31 pm

* Benzinga has examined the prospects for many investor favorite stocks over the past week. * This past week's bullish calls included an e-commerce colossus and some surprises. * An aerospace leader and a supermarket operator were among last week's bearish calls. * As the third-quarter winds down and the presidential election heads for the home stretch, market volatility was still a major theme last week. The big U.S. indexes ended marginally lower for a week that saw the latest Federal Reserve commentary, the unveiling of the latest products from the iPhone maker and the electric version of America's favorite vehicle, as well as the latest in the ongoing TikTok saga.Also, Supreme Court Justice Ruth Bader Ginsberg passed away at week's end, no doubt heralding further political upheaval and market uncertainty.As usual, Benzinga continues to examine the prospects for many of the stocks most popular with investors. Here are a few of this past week's most bullish and bearish posts that are worth another look. Bulls Shanthi Rexaline's "Why Amazon Is Among Morgan Stanley's Top Picks For Q4, 2021" shows why Amazon.com Inc. (NASDAQ: AMZN) stands to benefit from the shelter-in-place holiday shopping season."3 Airline Stocks To Buy, According To Seaport Global" by Jayson Derrick discusses why Delta Air Lines, Inc. (NYSE: DAL) and a few of its peers may be contrarian stock picks now on very early signs of an industry recovery.In "General Electric Analyst Targets .5B In Industrial FCF In 2021," Wayne Duggan reveals why General Electric Co. (NYSE: GE) has several significant offsets to current troubles that support its cash flow.CVS Health Corp. (NYSE: CVS) is well positioned to transform health care access, according to Chris Katje's "CVS Is Transforming Health Care, Piper Sandler Says In Upgrade."For additional bullish calls, also have a look at 14 Popular Tech Stocks With Room To Run and An Investment Opportunity That Deserves More Attention. Bears In Wayne Duggan's "Boeing And FAA Share Blame For Deadly 737 Max Crashes: Congressional Report," makes the case that the key for Boeing Co. (NYSE: BA) investors moving forward is when exactly the 737 Max will be cleared for takeoff.The bullish case for Kroger Co. (NYSE: KR) can no longer be justified. So says "Kroger Is Out Of Momentum, BofA Says In Downgrade" by Jayson Derrick. See why it will be more difficult for it to beat expectations moving forward.Jason Shubnell's "The SEC Gets Involved With Nikola" indicates that the U.S. Securities and Exchange Commission will assess the merits of a short-seller's allegations that electric-truck maker Nikola Corp. (NASDAQ: NKLA) has deceived investors."Why BofA Is Sidelined On Caterpillar" by Priya Nigam discusses why a top analyst remains concerned about Caterpillar Inc. (NYSE: CAT) despite signs of acceleration in global growth. What does the analyst prefer instead?Be sure to check out 7 Reasons Why A Coronavirus Vaccine May Not Work The Way You Hope and Is Elon Musk The New Steve Jobs? Bill Gates Says No for additional bearish calls.At the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Notable Insider Buys Last Week: Keurig Dr Pepper, Xerox And More * Barron's Picks And Pans: Amazon, Crocs, GM, Microsoft And More * Benzinga's Bulls And Bears Of The Week: Exxon, Peloton, Uber And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

on 19/09/2020 at 3:51 pm

Here are some of Rigzone's top upstream stories during the last week, just in case you missed them...

on 19/09/2020 at 2:30 pm

on 19/09/2020 at 2:17 pm

The NL Industries, Inc. (NYSE:NL) share price has done very well over the last month, posting an excellent gain of...

on 19/09/2020 at 1:28 pm

The 11th annual Gaming & Lodging Conference from Bank of America hosted ten companies. A look at the highlights from DraftKings Inc (NASDAQ: DKNG), Penn National Gaming (NASDAQ: PENN), and Hilton Worldwide Holdings Inc (NYSE: HLT).Bank of America analyst Sarah C. Kelley shared takeaways from the conference on three companies.DraftKings: The resumption of the major sports has been a big catalyst for DraftKings. Kelley notes DraftKings comments had a "very strong opening weekend with the NFL season."DraftKings also noted how newer markets are strong and New Jersey is seeing huge strength."Management still thinks this fall will present unique customer acquisition opportunities in existing markets and recent launches such as Colorado and Illinois," Kelley said.Other catalysts include the co-exclusive link-out deal signed with ESPN and legalization in more states.Penn National: The key takeaway from the Penn National presentation was comments on the soft launch of the Barstool Sportsbook. "Penn has been impressed with the limited data they have seen so far," Kelley said. "This weekend will be important to watch and we expect a lot of focus around early app download data and customer reviews."Penn National is seeking to be a top three competitor in terms of market share for the states it competes in for sports betting and iGaming."Barstool's unorthodox marketing approach should allow for a meaningful CAC advantage compared to incumbents and potentially earlier profitability than for peers," Kelley said.Penn's land-based casinos continue to see strength, which Kelley notes shows this is not "simply a product of unsustainable pent-up demand. Penn National believes it can work on long-term margin improvement with operational changes for its land-based casino business.Hilton: The conference featured presentations from several lodging companies, but he one that stood out to Kelley was Hilton. "Our most positive takeaways were from Hilton which was more bullish than anticipated on margins as it rethinks its corporate G&A structure and simplifies brand standards for owners," Kelley said.The read on management at the conference showed September and October consistent with August levels with a continued improvement coming in November."Will likely take until 2022-2023 before a return to 2018/2019 levels of demand activity," Kelley said. "Hilton can achieve record-level margins and free cash flow this cycle thanks to a combination of compounding unit growth and a lower/more efficient cost structure."Cost reductions of 25% in G&A could become permanent and help margins going forward. Kelley believes Hilton will hit positive or break-even cash flow as early as the fourth quarter of fiscal 2020.Photo by Sixflashphoto via Wikimedia.See more from Benzinga * Chamath Palihapitiya Launches Three More SPACs: IPOD, IPOE, IPOF * EV Commercial Vehicle XL Fleet The Latest To Market Via SPAC * The BETZ ETF's Will Hershey On Legal Sports Betting: 'It's A Gold Rush'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

on 19/09/2020 at 1:22 pm

Tech stocks are suffering despite little change in the outlook, and the broader market is falling in their wake.

on 19/09/2020 at 12:00 pm

(Bloomberg) -- Option traders are tempering bets that volatility will spike in the stock market immediately after the U.S. election. Instead, they’re boosting wagers that price swings will stay elevated at least one month after the vote, according to strategists at Goldman Sachs Group Inc.Options on the S&P 500 pointed to a 2.8% move on Nov. 4, the day after the presidential vote, down from an implied 3.2% swing seen in August, according to the bank’s analysis. What’s also shifting is the curve in futures tied to the CBOE Volatility Index. Specifically, VIX’s November contracts, which refer to volatility during the month through Dec. 18, have jumped above October ones for the first time this year, a sign that traders are adding protections well beyond Election Day, said Goldman strategists led by Ben Snider.“Option markets seem to have abandoned the view that volatility would rise strongly in the lead-up to the election, which had been priced in throughout much of 2020,” the strategists wrote in a note to clients. “Instead, currently markets are expecting volatility to jump at Election Day, and then remain high thereafter.”The focus on extended volatility may mark a change in sentiment toward election risks. In early August, Binky Chadha, chief global strategist at Deutsche Bank, warned that options traders were too sanguine positioning for a steep post-election drop in the VIX.Potential DelayThe latest shift in volatility pricing reflects the potential for delays in counting ballots and for results to be disputed, according to Goldman. A key date during the process is Dec. 8, known as a “safe harbor” deadline for when states have to resolve any controversies related to the appointment of their electors to the Electoral College, and six days before electors cast final votes on Dec. 14 to determine the outcome.In 2000, the contested George Bush-Al Gore election results were decided on Dec. 12 after the Supreme Court ended a Florida vote recount ahead of the Electoral deadline. Republicans have floated a bill that seeks to extend the safe harbor and Electoral College meeting into January.“The level of implied volatility sends a clear message: The election matters for equities, and the outcome is highly uncertain,” Snider said.One industry -- health care -- appears particularly shielded from the turmoil. With developments in the race for Covid-19 vaccines at the top of investor’s minds, health care appears to be more buffered against broader market volatility than any other sector, save industrials, according to Goldman.October VIX futures, which expire before Election Day but are priced off options that include Election Day, have less upside than the November future, they wrote, adding that November VIX optionality should be more valuable than October VIX options and recommends trades in VIX option calendars.This is how Goldman suggests investors brace for the turmoil:Sell VIX Oct. $27 puts and buy Nov. $27 puts for $1.05 per contract versus reference prices of the Oct. future of $30.40 and the Nov. future of $30.80For investors wanting to hedge, they recommend selling VIX Oct. $35 calls and buying Nov. $35 calls for $1.25 per contractFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

on 19/09/2020 at 11:43 am

Netflix is facing serious backlash following the release of the French coming-of-age film “Cuties” — and new data suggests it could be leading to cancellations on the platform.

on 19/09/2020 at 3:09 am

Tesla (TSLA) is planning its battery day for Sept. 22, and analysts and investors are looking forward to hearing what new developments the company has on it. The big topic of conversation lately has been a million-mile battery, but it may be too early for that technology. UBS analyst Patrick Hummel outlined in a report today

on 19/09/2020 at 2:35 am

There has been lots of talk this year of the COVID-19 benefits reaped by streaming services. As a result of the stay-at-home culture, OTT leader Roku (ROKU) has been a prime beneficiary, experiencing large account growth.But according to Rosenblatt analyst Mark Zgutowicz, Roku is particularly well placed to benefit from another trend: the move from linear to connected TV (CTV).Following discussions within OTT/CTV programmatic venues, the 5-star analyst notes there is clear indication “the demand picture for Roku will soon climb to new heights.” Zgutowicz believes the big 5 Ad agencies are “making a concerted effort to negotiate volume commitments for OTT/CTV inventory.”Importantly, Zgutowicz adds, the budgets for these advertising needs will come from “long-standing linear spend.”In other words, the agencies are realizing the untapped potential of CTV, as consumers move from the “decades old model” of linear TV to more flexible CTV services. This is great for CTV services as a whole, but Zgutowicz highlights why it is particularly promising for Roku.“Roku is a well-positioned beneficiary with its leading 40M+ CTV household reach, tightening gatekeeper status, and enhanced ad stack, while a reshuffle of linear to digital suggests more tangible Roku economics,” the analyst explained. Furthermore, Zgutowicz believes Roku’s “gatekeeper status is underappreciated.” While there are now multiple “homogeneous OTT services,” it is worth remembering they are all available on Roku, with Roku usually the “preferred access point.”Additionally, the pandemic has only cemented Roku’s leading status as its “ad monetization continues to well over-index the other primary gatekeeper, Amazon’s Fire TV.” While the two combined cater to an estimated 70% of US broadband households, Roku is nearly 18 months ahead of Amazon, where its video ad IP and sales strategy is concerned.So, this is excellent news for Roku, but what does it mean for investors? Zgutowicz keeps to his Buy rating and $195 price target, indicating potential upside of 15% from current levels. (To watch Zgutowicz’ track record, click here)Ratings wise, the majority of Wall Street agrees. Based on 13 Buys, 5 Holds and 2 Sells, the stock has a Moderate Buy consensus rating. However, in contrast to Zgutowicz’ forecast, the $167.21 average price target implies share will remain range bound for the foreseeable future. (See Roku stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

on 18/09/2020 at 11:13 pm

“Big Pharma” doesn’t come much bigger than Pfizer (PFE). Although you could argue it is so big, the stock can hardly move. Shares are essentially trading for the same price as 3 years ago. Pfizer is also one of the leading names in the hunt for a COVID-19 vaccine. But unlike other names in the race to be first to market with a solution, the catalyst has had no bearing on the stock.However, after attending the company's investor presentation, Mizuho analyst Vamil Divan believes the event “successfully illustrated how the company is evolving into a ‘New Pfizer.’"Pfizer has an extensive pipeline of vaccines and treatments that it expects will generate over $15 billion of annual sales by 2025. The “New Pfizer” is also an attempt to highlight the giant’s growth potential. The upcoming spin-off of its Upjohn portfolio should rid it of unwanted bulk and help it become an “innovation-driven biopharma company.” The company expects to grow the top-line by 6% a year, while delivering double-digit growth on the bottom line.On the rare diseases front, Pfizer anticipates six rare disease assets will be in Phase 3 trials by the end of the year, including three gene therapies.The company is also developing a wide range of immunology products, “each for a targeted number of indications where there appears the potential for a truly differentiated product.”Leading the charge form this business unit is abrocitinib, an oral JAK-inhibitor which Pfizer last month filed for the treatment of atopic dermatitis. Pfizer believes the treatment could reach annual sales above $3 billion.Pfizer is also targeting the launch of 6 new vaccines by 2025. As for the company’s collaboration with BioNTech on a COVID-19 vaccine, Divan said, “we are encouraged by the data to date and believe Pfizer remains on track to have a clear sense of the vaccine's profile by the end of October, with potential FDA approval shortly thereafter.”The analyst believes the vaccine can generate risk-adjusted sales of roughly $1.7 billion next year and $1.2 billion in 2022.Overall, Divan rates PFE shares a Buy, along with a $43 price target. There’s room for upside of 17% from current levels should the target be achieved in the next months. (To watch Divan’s track record, click here)The rest of the Street has roughly the same average price target ($43.13), whilst the analyst consensus currently rates the stock a Moderate Buy. The rating is based on 4 Buy and 6 Holds. (See Pfizer stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

on 18/09/2020 at 10:05 pm

on 18/09/2020 at 8:27 pm

Every smart investor knows that he doesn’t know everything – and there is no shame in turning to the experts for advice. International investment firm Credit Suisse regularly publishes the information that investors need to make informed decisions. According to TipRanks, Credit Suisse ranks number 5 among the top 50 investment firms, with a sustained long-term success rate of 60% out of more than 12,000 stock recommendations made.This makes Credit Suisse a natural place to look for stock picks. With the year winding down, and the fourth quarter just around the corner, the bank is starting to publish its analysts 1 picks to round out 2020 – and to get a strong start on 2021. We’ve pulled up three of these picks; stocks that Credit Suisse analysts see gaining 20% or more in the year ahead.Using TipRanks’ Stock Comparison tool, we were able to evaluate these 3 picks alongside each other to get a sense of what the analyst community has to say.Concho Resources (CXO)First on the list, Concho Resources, is a major hydrocarbon exploration and exploitation company in the Permian Basin of West Texas. The company has exploration rights on 800,000 acres of ground in the region, and extracts both oil and natural gas. Concho is a one of the area’s largest unconventional shale producers, and has proven reserves in excess of 1 billion barrels of oil equivalent. The proven reserves are split, 2 to 1, between crude oil and natural gas.Concho has shown great resilience during the corona crisis. While earnings fell by a third in the Q1, they quickly returned to normal levels in Q2. The second quarter results, reported in July, showed a top line of $474 million in revenues, and EPS of $1.13. That EPS result was 242% above expectations. Furthermore, Concho generated $689 million in cash from operations last quarter, well above the forecast – and of that total, $238 million was considered free cash flow, giving the company sound liquidity.Credit Suisse’s Bill Janela explains why this stock is a top pick: “We believe concerns around federal acreage exposure are overblown for CXO and have been more than taken out of its stock price given recent relative underperformance. CXO’s asset quality and depth would allow it to easily reallocate activity; we estimate loss of well permits on Fed acreage would only reduce its NAV by <5%.”To this end, Janela rates this stock an Outperform (i.e. Buy), and his $48.03 price target suggests an impressive 45% upside potential for the coming year. (To watch Janela’s track record, click here)Overall, Concho gets a Strong Buy analyst consensus rating, based on 17 reviews of which 16 are Buys and only 1 is a Hold. Shares are selling for $48.18, and the $72.44 average price target implies a 50% one-year upside for the stock. (See CXO stock analysis on TipRanks)Ares Management (ARES)The second Credit Suisse pick for today is Ares Management, an alternative investment manager with global reach operations across the private equity, real estate, and credit segments. The company brought in $1.77 billion in total revenues last year, and boasts $165 billion in assets under management.Size and competence have stood Ares well during the health and economic crises of 1H20. In discussing its earnings during the period, it’s important to note that the 4Q19 EPS was unusually high – and so the earnings fall in Q1 brought the result back in-line with historical values. Q2 showed a further dip, to 39 cents per share, which was 5% above the forecast.At the top line, revenues collapsed in the first quarter of the year, but roared back in the second. Q2 total revenues hit $602 million. Solid revenues and positive earnings allowed Ares to keep up its dividend payment, which the company has been increasing for the past three years. At 40 cents per common share, this dividend annualizes to $1.20 and gives a yield of 4%, well above the average found among peer companies.Craig Seigenthaler wrote the Credit Suisse review for Ares, saying, “ARES is our Top Outperform due to the high visibility into its Stock Total Return (including Divs) strong fee-related earnings trajectory coupled with its defensive qualities (distressed investing capabilities, credit mix, long-duration AuM base, high composition of fees generated on fixed committed capital)… Over the next two to three years we expect ARES will earn ~$350M in incremental mgmt. fees without raising any additional capital…”Seigenthaler supports his Outperform (i.e. Buy) rating with a $49 price target, suggesting a 23% upside potential going forward. (To watch Seigenthaler’s track record, click here)Overall, shares in ARES are trading for $39.47, and the $44 average price target implies they have room for 11% upside growth this year. The stock's Strong Buy analyst consensus rating is based on 6 Buys and 2 Holds set in recent weeks. (See ARES stock analysis on TipRanks)Carlisle Companies (CSL)Last on our list of Credit Suisse picks is Carlisle Companies, a highly diversified global manufacturer. Carlisle has its hands in many pots, with four major divisions: construction materials, interconnections technologies, industrial fluids, and brake and friction technology. The company is best known, however for its roofing materials, in the construction segment. This is another company weathered the corona crisis and remained in good shape. Earnings per share had been declining through the latter half of 2019, and so the dip in Q1 of this year only continued that trend. EPS turned back upwards for Q2, and at $1.61 it beat the forecast by a wide margin. The outlook for Q3 is even higher, at $1.73. Revenues in 1Q20 were stable, at just over $1 billion in each quarter.Fiscal health has not translated into share appreciation, however, as CSL shares are still down 21% from February’s pre-market collapse peak. The stock has underperformed in recent months, but Credit Suisse’s Adam Baumgarten sees it with an ace in the hole for future growth."~75% of Carlisle’s profits come from commercial roofing, and ~75% of that is for roof replacements. Given the non-discretionary nature of roofs (if your roof leaks, you fix it), roofing is one of the most downturn resistant product categories in our coverage universe… Given that roof replacements are never lost, just delayed, we expect the stock to outperform when the backlog of roof replacements is cleared,” In other words, Baumgarten believes that the economic downturn simply pushed some of Carlisle’s base business into next year at the latest. Based on this belief, the analyst rates the stock an Outperform (i.e. Buy), and his $150 price target implies an upside of 22% in the next year. (To watch Baumgarten’s track record, click here)Carlisle has earned a unanimous Strong Buy consensus rating, with 5 Buy reviews in the past two months. Shares are priced at $122.42 and the $150 average price target matches Baumgarten’s. (See CSL stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.