On Thursday, Shares of Southwest Airlines Co (NYSE:LUV), gained 1.06% to $43.90. The Container Store® and Southwest Airlines® are teaming up to surprise and delight travelers at seven airports nationwide with free gift wrapping on […] Paying $5 billion for TikTok’s U.S. operations would help Microsoft offset LinkedIn’s slowing growth Convergence Investment Partners LLC raised its stake in shares of Mastercard Inc (NYSE:MA) by 16.9% in the second quarter, Holdings Channel.com reports. The institutional investor owned 6,086 shares of the credit services provider’s stock after buying an additional 879 shares during the quarter. Convergence Investment Partners LLC’s holdings in Mastercard were worth $1,800,000 as of […]
On Thursday, Shares of Southwest Airlines Co (NYSE:LUV), gained 1.06% to $43.90.
The Container Store® and Southwest Airlines® are teaming up to surprise and delight travelers at seven airports nationwide with free gift wrapping on Wednesday, December 23rd from 10am – 4pm. The Transportation Security Administration (TSA) advises passengers not to wrap their gifts in carry-on or checked luggage for screening purposes, leaving many travelers packing their bags with unwrapped gifts. The Container Store and Southwest Airlines will spread holiday cheer as they share their expert gift packaging tips while wrapping up travelers’ gifts – big or small – in the seven airports below:
“Both The Container Store and Southwest Airlines are passionate about service and also love spreading joy with our customers each and every day,” said Casey Shilling, Vice President of Public Relations and Marketing Communications, The Container Store. “What better way to spread holiday cheer and smiles than by treating travelers with stunning gift packaging from our expert employees while they are facing their busy holiday trips!”
Southwest Airlines Co. operates passenger airlines that provide planned air transportation services in the United States and near-international markets. As of December 31, 2014, it operated 665 Boeing 737 aircraft; and had 12 Boeing 717 aircraft.
Shares of GoPro Inc (NASDAQ:GPRO), declined -0.27% to $18.22, during its last trading session.
GoPro, declared The GoPro Channel will be available starting recently on the PlayStation®4 (PS4™) and PlayStation®3 (PS3™) systems. The custom designed GoPro Channel app allows PS4 and PS3 owners to stream GoPro content on-demand, browse GoPro cameras and accessories, and more. PlayStation joins GoPros growing roster of distribution partners counting Amazon Fire TV, Roku, Comcast Watchable, Sky, Vessel Entertainment, Xbox, LG and Virgin America.
We want GoPro content and programming to be easily accessible on every platform where our millions of fans spend time, said Jon Cohen, GoPros director, distribution. Theres a sweet-spot of overlap between PlayStations super-engaged audience and the GoPro audience and were excited to welcome PlayStation to GoPros expanding OTT family.
GoPro, Inc. develops hardware and software solutions to alleviate consumer pain points associated with capturing, managing, sharing, and enjoying engaging content. The company offers HERO line of capture devices, such as cameras; premium accessories, counting battery BacPac, smart remote, and LCD touch BacPac accessories; and mounts comprising equipment-based mounts compriseing of helmet, handlebar, roll bar, and grip and tripod mounts that enable consumers to capture content while engaged in a range of activities, in addition to mounts that enable customers to wear the mount on their bodies, such as wrist housings, chest harnesses, and head straps.
Finally, Cadence Design Systems Inc (NASDAQ:CDNS), ended its last trade with 0.14% loss, and closed at $21.29.
Sean Sobers, corporate vice president and controller, Cadence Design Systems, Inc. (CDNS)
Sean Sobers will speak at the Needham Growth Conference at The New York Palace hotel in New York. Sobers will provide an overview of the company and take part in a question and answer session with analysts and investors.
Sobers address will be available live via on-demand webcast at 12:10 p.m. EST on Thursday, Jan. 14, 2016. The presentation will be archived on the Cadence website and available for replay through 8 p.m. EST on Thursday, Apr. 7, 2016.
Cadence Design Systems, Inc. develops, sells, leases, and licenses electronic design automation (EDA) software, emulation and prototyping hardware, verification intellectual property (VIP), and design intellectual property (design IP) for semiconductor and electronics systems industries worldwide.
Author: About Travis Garlick
If Microsoft Pays $5B For TikTok America, Buy The Stock
A boy wearing a face mask with the TikTok logo uses a mobile phone outside the downed shutters of a … [+] shop in Mumbai, India on July 29, 2020. (Photo by Himanshu Bhatt/NurPhoto via Getty Images)
President Donald Trump plans to ban TikTok from the U.S. At the same time, Microsoft is in talks to acquire TikTok’s U.S. operations, according to the Wall Street Journal.
That’s the same video app that contributed to empty seats at Trump’s June 20 rally in Tulsa, Okla., according to the New York Times. Forbes writes that this could be the real reason that Trump wants to ban TikTok.
If that deal goes through for the roughly $5 billion I estimate TikTok’s U.S. operations are worth, you should buy Microsoft shares.
Why? With LinkedIn slowing down — posting 10% growth in the June-ending quarter, the triple digit acceleration of TikTok’s user base could add oomph to Microsoft’s top line.
(I have no financial interest in the securities mentioned in this post).
Banning TikTok In The U.S.
TikTok, owned by China-based Bytedance Ltd., is a wildly popular video app — particularly among teenagers.
On July 31, Trump told reporters on Air Force One that he did not favor a deal to let a U.S. company buy TikTok’s American operations and that he had the authority to ban it, according to the Journal.
At 4:10 pm August 1, the Wall Street Journal, citing anonymous sources, reported that Microsoft had put the talks on hold — “after Trump said late Friday he opposes the deal.”
U.S. officials worry that TikTok could pass on the data it collects from American users to the Chinese government. This concern is abetted by a 2018 law that allows regulators to investigate deals that involve foreign investment in companies with over a million U.S. users that have access to their genetic, biometric, financial, health, or location data, noted the Journal.
In a July 29 statement, CEO Kevin Mayer said TikTok would never share such data and was committed to transparency. Nevertheless, the Journal cited anonymous TikTok executives who “feared that the U.S. government would force device makers to take TikTok out of their app stores.”
What Are TikTok’s U.S. Operations Worth?
As a privately held company, there is no definitive valuation for TikTok. What’s more, the uncertainty about the future of TikTok’s U.S. operations makes it hard to estimate its value.
Having said that, I think a good starting point for the value of TikTok’s U.S. operations is $5 billion.
How so? Bytedance was recently valued at $50 billion by investors seeking to take over the company, according to a July 28 report in Reuters. 10% of TikTok’s monthly active users — 80 million out of 800 million in July 2020, according to Wallaroomedia — were in the U.S.
Multiplying the two figures leads me to a $5 billion estimate for the value of TikTok’s U.S. operations.
Another way to look at this is to multiply TikTok’s $500 million U.S. revenue estimate for 2020, according to the Information, by rival Facebook’s price to sales ratio of 9.7. The result is about $4.9 billion.
There are many factors that could drop that valuation — including legal and political challenges. Yet the acceleration of TikTok’s growth and the possibility that ownership by Microsoft would limit the risk of U.S. user data getting to China could mean that Microsoft has to pay a control premium for the deal to go through.
To complicate matters, the Journal reported that Bytedance was recently valued three times higher — at $150 billion — in the secondary market. If a deal is struck, I hope to learn whether the right answer is closer to $5 billion or $15 billion (10% of that secondary market valuation).
Why Would a TikTok Acquisition Boost Microsoft Stock?
Microsoft’s biggest acquisition is not paying off as much as it used to.
Microsoft paid $26.2 billion to acquire LinkedIn in 2016. In February 2020 — before the pandemic hit the U.S. — LinkedIn represented almost 6% of Microsoft’s total revenue and was one of the fastest growing Microsoft businesses, according to CNBC.
Since then the pandemic has reduced hiring which has cut into LinkedIn’s revenue growth — resulting in layoffs. Indeed on July 21, LinkedIn announced the dismissal of 960 employees, or 6% of its workforce. LinkedIn CEO Ryan Roslansky said, “Our Talent Solutions business continues to be impacted as fewer companies, including ours, need to hire at the same volume they did previously,” noted CNBC.
TikTok’s U.S. operations could offset some of this revenue decline and give Microsoft a stronger position in the social media business dominated by Facebook and YouTube. Since the pandemic began, TikTok usage has increased — with the number of active users rising 15.1% between January 21 and March 24, according to the New York Times.
TikTok has benefited from the pandemic — resulting in more American monthly active users and a considerable amount of U.S. revenue. For example, according to Wallaroomedia, the number of Tik Tok monthly active users in the U.S. soared at a 122% annual rate from 20 million in November 2018 to 80 million in July 2020.
This June, TikTok’s U.S. revenue for 2020 was estimated at $500 million, according to the Information, around twice TikTok’s roughly $200 million to $300 million in worldwide 2019 revenue.
LinkedIn — which generated $6.9 billion in 2019 revenue, according to Statista — grew a mere 10% in Microsoft’s June 2020-ending quarter — the lowest rate of growth since Microsoft bought it, according to CNBC.
Even though TikTok’s U.S. revenues are small compared to Microsoft’s $139 billion total sales, its accelerating growth could pay off for Microsoft shareholders.
Author: Peter Cohan
Convergence Investment Partners LLC Increases Holdings in Mastercard Inc (NYSE:MA)
Convergence Investment Partners LLC raised its stake in shares of Mastercard Inc (NYSE:MA) by 16.9% in the second quarter, Holdings Channel.com reports. The institutional investor owned 6,086 shares of the credit services provider’s stock after buying an additional 879 shares during the quarter. Convergence Investment Partners LLC’s holdings in Mastercard were worth $1,800,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Community Bank N.A. raised its stake in Mastercard by 12.8% during the 2nd quarter. Community Bank N.A. now owns 880 shares of the credit services provider’s stock valued at $260,000 after buying an additional 100 shares during the last quarter. Morningstar Investment Services LLC raised its stake in Mastercard by 4.9% during the 2nd quarter. Morningstar Investment Services LLC now owns 670,676 shares of the credit services provider’s stock valued at $196,462,000 after buying an additional 31,117 shares during the last quarter. HCR Wealth Advisors raised its stake in Mastercard by 7.9% during the 2nd quarter. HCR Wealth Advisors now owns 3,086 shares of the credit services provider’s stock valued at $928,000 after buying an additional 225 shares during the last quarter. EFG Asset Management Americas Corp. increased its stake in shares of Mastercard by 0.8% in the 2nd quarter. EFG Asset Management Americas Corp. now owns 24,699 shares of the credit services provider’s stock worth $7,299,000 after purchasing an additional 190 shares in the last quarter. Finally, Peregrine Capital Management LLC increased its stake in shares of Mastercard by 3.3% in the 2nd quarter. Peregrine Capital Management LLC now owns 109,969 shares of the credit services provider’s stock worth $32,518,000 after purchasing an additional 3,486 shares in the last quarter. Institutional investors and hedge funds own 73.87% of the company’s stock.
In other Mastercard news, CEO Ajay Banga sold 61,067 shares of Mastercard stock in a transaction on Thursday, July 23rd. The shares were sold at an average price of $315.89, for a total value of $19,290,454.63. Following the completion of the transaction, the chief executive officer now owns 384,371 shares of the company’s stock, valued at $121,418,955.19. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Julius Genachowski sold 2,009 shares of Mastercard stock in a transaction on Monday, May 11th. The shares were sold at an average price of $281.79, for a total transaction of $566,116.11. Following the completion of the transaction, the director now directly owns 7,346 shares of the company’s stock, valued at approximately $2,070,029.34. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,005,122 shares of company stock valued at $304,245,598. 3.79% of the stock is currently owned by corporate insiders.
Mastercard (NYSE:MA) last issued its earnings results on Thursday, July 30th. The credit services provider reported $1.36 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.15 by $0.21. Mastercard had a net margin of 45.12% and a return on equity of 129.52%. The firm had revenue of $3.30 billion during the quarter, compared to analysts’ expectations of $3.26 billion. During the same quarter last year, the company posted $1.89 earnings per share. The firm’s revenue was down 19.8% compared to the same quarter last year. On average, equities analysts anticipate that Mastercard Inc will post 6.49 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Thursday, July 9th will be issued a dividend of $0.40 per share. The ex-dividend date of this dividend is Wednesday, July 8th. This represents a $1.60 annualized dividend and a dividend yield of 0.52%. Mastercard’s dividend payout ratio (DPR) is presently 20.59%.
Several research firms have commented on MA. Oppenheimer began coverage on shares of Mastercard in a report on Friday. They set a “hold” rating for the company. Wedbush increased their price objective on shares of Mastercard from $300.00 to $330.00 and gave the stock an “outperform” rating in a research report on Monday, June 1st. Daiwa Capital Markets reissued a “neutral” rating and issued a $314.00 price objective on shares of Mastercard in a research report on Tuesday, July 21st. UBS Group reduced their target price on shares of Mastercard from $345.00 to $315.00 and set a “buy” rating on the stock in a research report on Friday, May 1st. Finally, Morgan Stanley raised their target price on shares of Mastercard from $311.00 to $315.00 and gave the stock an “overweight” rating in a research report on Tuesday. Five investment analysts have rated the stock with a hold rating and twenty-six have given a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $331.97.
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services.
Recommended Story: Should you buy a closed-end mutual fund?
Want to see what other hedge funds are holding MA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Mastercard Inc (NYSE:MA).
Receive News & Ratings for Mastercard Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Mastercard and related companies with MarketBeat.com’s FREE daily email newsletter.
Author: John. R. Edwardson