|Bid||270.55 x 900|
|Ask||270.53 x 1100|
|Day's Range||267.51 - 271.00|
|52 Week Range||142.00 - 271.00|
|Beta (3Y Monthly)||1.23|
|PE Ratio (TTM)||22.77|
|Earnings Date||Jan. 27, 2020 - Jan. 31, 2020|
|Forward Dividend & Yield||3.08 (1.16%)|
|1y Target Est||258.61|
Oprah Winfrey is the original influencer. One small business owner describes the transformative experience of making the "O List."
(Bloomberg) -- Peloton Interactive Inc. has been pilloried online and punished on the stock market following the release of a holiday ad for its stationary exercise bike that was deemed culturally insensitive. But the backlash could be a good thing for the company in the long run.The commercial, which features a woman documenting a year in her life with the Peloton bike her male partner gave her, struck some viewers as out of touch -- suggesting the already thin “Grace from Boston” was undergoing a strenuous workout in order to lose weight for the guy. The video, released about a month ago, went viral on social media, eliciting a scathing parody by comedian Eva Victor and prompting Peloton to close comments on the official YouTube video.As the internet buzz seemed to hit a peak earlier this week, Peloton’s stock fell 9%. But some experts say the increased attention could end up boosting sales. The shares were up 3.7% on Friday in New York.“They might benefit more because people are looking it up and learning more about it,” Laura Ries, president of advertising consultancy firm Ries & Ries, said. It’s still a short-term bump for a company that has historically been largely successful with marketing, with a total member base of 1.6 million people including more than 560,000 who have one of the proprietary bikes or treadmills plus a fitness subscription, according to Peloton’s most recent quarterly report. The official Peloton ad on the company’s YouTube channel has been seen by more than 3.6 million people.The controversy comes at a crucial time for the New York-based company, which is new to market scrutiny after listing shares in September, as it seeks to capitalize on the all-important holiday sales season and expand in new markets like the U.K. and Germany. The shares had gained 27% since its initial public offering before the wave of internet commentary dragged it down on Tuesday. The company is also facing increased competition in the booming at-home fitness market, especially among workout apps. Nike Inc., Aaptiv Inc. and apps like Kayla Itsines’s Sweat with Kayla have all gained followings for exercise programs available on a user’s phone.Peloton has been punished by Wall Street for its focus on growth over profitability. The company sells a stationary bike starting at about $2,000 and a treadmill that costs about $4,000, in addition to a basic “connected fitness” subscription plan at $39 a month for those pieces of hardware, and the separate digital apps that don’t require equipment. Its loss narrowed in the three months ended Sept. 30 to $49.8 million.The stock surged almost 10% last Friday after the company was reportedly seeing strong demand on Black Friday. And earlier this month, Peloton lowered the price of its digital subscription app to $12.99 a month from $19.49 in conjunction with the launch of new apps for Amazon’s Fire TV and the Apple Watch, a move that could entice new users. JMP Securities analysts raised their price target on the stock after the subscription reduction, saying it “broadens Peloton’s reach, improves conversion, and reduces purchase friction.” Ronald Josey, a JMP analyst, said there are “a lot of good things going on” at the company and that people will continue to buy the bike and other products despite the controversy.According to the most recent earnings report, Peloton expects its user base to grow to 680,000 or more by the end of its second quarter thanks to holiday sales and New Year’s resolutions.Scott Galloway, a professor of marketing a the NYU Stern School of Business, said the commercial itself is tone deaf and borderline offensive. But “in this attention-driven economy, anything that gets attention is arguably a positive,” he said in an interview. “It’s bringing Peloton into the social discourse on very regular basis, which is what ads are supposed to do.” If Peloton had to do it again, Galloway said, “I’d argue they probably would.”(Updates shares in third paragraph. A previous version of the story corrected a company error in the subscription price.)To contact the reporter on this story: Julie Verhage in New York at email@example.comTo contact the editors responsible for this story: Mark Milian at firstname.lastname@example.org, Molly Schuetz, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
National consumer-rights law firm FeganScott consolidated its two proposed class action suits against Apple (AAPL) and Samsung Electronics (SSNLF) after independent testing from a Federal Communications Commission-accredited laboratory confirmed that radio-frequency (RF) radiation levels from popular Apple and Samsung smartphones far exceeded federal limits when the devices are used as marketed by the manufacturers.
(Bloomberg Opinion) -- One of the objectives of Joe Biden’s tax plan, clearly, is to increase the amount of taxes wealthy Americans pay without imposing a new tax on Americans’ wealth. By this standard — and a few others for which economic conservatives can be grateful — it succeeds.Biden’s plan is far from ideal. But in today’s political climate, and compared to some proposals offered by his rivals for the Democratic presidential nomination, it is realistic and makes an honest effort to limit any negative impact on economic growth.A lot of attention has focused on the plan’s increase of the corporate tax rate to 28% from 21%. But the changes to the individual tax code are also important, in particular its treatment of capital gains: It would increase the maximum long-term tax rate on capital gains from 23.8% to 43.4%, and it would end the favored tax treatment of capital gains when they are passed on as an inheritance.That is an eye-popping increase in the capital gains tax. And while there is close to a consensus among tax experts that large increases in the capital gains tax can be self-defeating, Biden’s plan tries to mitigate them.There are at least three reasons even liberal economists are wary of higher capital gains taxes. Biden’s plan addresses one of these concerns directly, and another is rendered less disconcerting by the changing global economy.First, the revenue raised by capital gains taxes is highly sensitive to the tax rate, because investors tend to delay the sale of assets in order to defer tax payments. In particular, older investors can choose never to sell their investments at all and simply pass them on to their heirs. When they die, all the tax liability they incurred over their lives is erased.For example: Grandma bought Apple stock for $2 two decades ago. When she died last month, she gave all her shares, now worth $260 each, to her grandson. If he sells them next week for $265, he pays taxes only on that $5 profit — not on the $263 rise in value since his family bought the stock.Under Biden’s plan, however, he would have to pay taxes on $263. This provision would make it much harder for investors to avoid the capital gains tax.There is another reason capital gains taxes are traditionally lower than those on ordinary income. High tax rates on individual investors discourage savings generally. Savings help fund business investment, which in turn drives productivity growth and higher wages. So encouraging greater savings has long been seen as way to increase wages and incomes overall.The current U.S. economy, however, attracts savings from all around the world. The key determinant of U.S. investment is not necessarily the tax treatment of domestic investments, but how favorable returns on capital are in the U.S. relative to the rest of the world. Taxing American investors at higher rates doesn’t necessarily put U.S. capital at a disadvantage.Unfortunately, Biden’s plan does little to address a third argument against higher capital gains taxes. A large portion of the tax falls on investors in public corporations. Corporations already pay a 21% tax rate. When combined with the 23.8% tax rate on capital gains, the effective tax rate is 39.8%, just the above the plan’s proposed maximum rate of 39.6% on individual income.Raising the capital gains tax rate to 43.8%, along with Biden’s proposed corporate tax rate increase to 28%, would create an effective top tax rate of 59.2% on publicly traded companies. That’s extraordinarily high, and would undoubtedly both reduce the amount Americans invest in the stock market and encourage public companies to go private. Such tax-avoidance schemes would decrease efficiency, and the Biden plan does little to compensate for that.Overall, Biden’s proposal would hit investors hard, and the increase in the corporate tax rate would reduce GDP in the long run. But it needs to be considered in context of the Democratic campaign.Compared to the wealth tax proposed by Elizabeth Warren and Bernie Sanders, the mark-to-market capital gains tax proposed by Cory Booker, or the full repeal of the corporate tax cut advocated by Pete Buttigieg, it’s a moderate proposal. (Michael Bloomberg, the founder of Bloomberg LP and a Democratic presidential candidate, has yet to release a detailed tax plan.) Economic conservatives should take Biden’s plan seriously.To contact the author of this story: Karl W. Smith at email@example.comTo contact the editor responsible for this story: Michael Newman at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Karl W. Smith is a former assistant professor of economics at the University of North Carolina's school of government and founder of the blog Modeled Behavior.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Samsung Electronics Co.’s response to Apple Inc.’s much-improved iPhone 11 cameras is going to be a giant photographic arsenal strapped to the back of its 2020 flagship phones.The Korean company is preparing the biggest overhaul to the cameras on its flagship phones for next year, according to people familiar with the company’s plans. Its upcoming Galaxy S11 will sport a 108-megapixel sensor for the main camera -- versus the iPhone 11’s 12 -- flanked by three more on the back of the device including an ultrawide-angle lens and 5x optical zoom, they said. The marquee device will also adopt a time-of-flight sensor for depth detection similar to one already in the Note 10+, a feature that can aid portrait photos and augmented-reality applications, the people said, asking not to be identified discussing specifications that haven’t been made public.Samsung will also extend the high-resolution sensor and 5x zoom camera to the Galaxy Fold clamshell device -- which is expected to be publicly unveiled around the time of the Galaxy S11’s launch in February, the people said. The raft of new features signal Samsung’s renewed commitment to mobile photography after years of minimal innovation, as well as an attempt to catch Apple in the camera stakes.The deluge on the camera front joins the introduction of foldable devices and fifth-generation wireless connectivity as core pillars of Samsung’s hardware strategy, features Apple won’t be able to match until its next iPhone refresh in September. A Samsung Electronics representative declined to comment. The company’s shares gained 1.8% Friday.Read more: Samsung Profit Beats on Strength of Smartphones and DisplaysNow that closest rival Huawei Technologies Co. is struggling in Europe thanks to U.S. sanctions, Samsung can consolidate its lead by doing what it’s always done: overwhelming consumers with specs.Affiliate Samsung Electro-Mechanics Co. developed the 5x zoom module and started production earlier this year. Similar technology has figured in devices from Chinese competitors Huawei and Oppo. Both rivals licensed their zoom tech from Corephotonics Ltd., an Israeli company Samsung acquired early in 2019.Heading into 2020, as multi-camera and multi-lens arrays become the norm on smartphones, Samsung stands to benefit from owning a pioneer in this developing field. Camera specs in particular feature heavily in consumer-buying decisions in developing markets such as India, Counterpoint Research data has shown.(Updates with shares in the fourth paragraph)To contact the reporter on this story: Sohee Kim in Seoul at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Vlad Savov, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Apple Inc. is taking delivery this month of the first batch of carbon-free aluminum produced by a Montreal-based venture, helping move the iPhone maker closer to its greenhouse-gas reduction goal.Elysis, a joint venture between Rio Tinto Group and Alcoa Corp. backed by Apple, uses new technology that emits pure oxygen when producing aluminum. Apple has said in an environment report that 80% of its emissions from an iPhone 8 came during the production phase. The metal is also used in iPads, Macs and Apple watches.“For more than 130 years, aluminum — a material common to so many products consumers use daily — has been produced the same way,” Lisa Jackson, vice president of environment, policy, and social initiatives at Apple, said in an emailed statement.Rio’s commercial network is handling the first delivery to Apple, a Rio spokesman said in an email.“This is another important step towards zero carbon aluminum and a more sustainable future,” said Alf Barrios, Rio Tinto Aluminium chief executive officer.The metal being shipped to Apple was produced at the Alcoa Technical Center in Pittsburgh.“This first sale is tangible evidence of our revolutionary work to transform and disrupt the conventional smelting process by making a process that is both more efficient and more sustainable,” Benjamin Kahrs, an Alcoa executive vice president and Chief Innovation Officer, said in a statement.\--With assistance from Mark Gurman and Steven Frank.To contact the reporter on this story: Joe Deaux in New York at email@example.comTo contact the editors responsible for this story: Luzi Ann Javier at firstname.lastname@example.org, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chirp, a Twitter client preferred by hundreds of thousands of Apple Watch users, is getting its biggest upgrade since its arrival last year. Now redesigned for watchOS 6, the new version of Chirp includes a rebuilt timeline feature that allows you to endlessly scroll through tweets much more quickly than before, along with other enhancements, like support for iOS 13's dark mode and a way to add colors to your Twitter username. The app was first introduced to fill the void created when Twitter pulled its own Apple Watch app back in 2017 in favor of using Apple Watch's notifications platform instead.
Investing.com – Stocks were holding onto small gains Thursday afternoon after climbing back from early losses a day before Labor Department's monthly report on payroll employment and unemployment.
(Bloomberg) -- Apple’s price target was raised to $300 from $250 at Citi, which reiterated its buy rating on the iPhone maker and forecast strong results in the company’s holiday quarter.Analyst Jim Suva cited the company’s “pricing strategies and recent demand trends” as factors that “augur for a better Christmas quarter” than last year, when Apple cut its revenue forecast. The consensus is “underappreciating the Apple Watch and Apple AirPods demand strength,” he wrote, adding that Apple’s services business would also grow and help margins.Suva sees upside to both earnings and sales, but doesn’t see an expansion in Apple’s valuation multiple as this “has already expanded materially.”Shares of Apple are up nearly 70% thus far this year, putting the company on track for its biggest one-year gain since 2009. The stock rose as much as 1.2% on Thursday.Citi’s revised target implies upside of nearly 15% from Apple’s Wednesday close. The average price target for the stock is $260, which is slightly below the most recent close, according to data compiled by Bloomberg. Currently, 27 firms recommend buying Apple shares, while 14 have a hold rating on the stock and seven recommend selling it.Apple’s first-quarter results are expected to be released on Jan. 28.(Updates stock to market open in fourth paragraph)To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The metal is being made by Elysis, a Montreal-based joint venture of Alcoa Corp and Rio Tinto announced last year with $144 million (£112.24 million) in funding from the two companies, Apple and the governments of Canada and Quebec. The aluminium will be shipped this month from an Alcoa research facility in Pittsburgh and used in Apple products, although the technology company did not say which ones. The smelting process involves passing electrical current through a large block of carbon called an anode, which burns off during the process and releases carbon dioxide into the atmosphere.
Amazon (AMZN), Google and others are leaving no stone unturned to rapidly penetrate the smart speaker market in India, which is booming due to rising adoption of virtual assistants in the country.
(Bloomberg) -- U.S. Senator Elizabeth Warren is drafting a bill that would call on regulators to retroactively review about two decades of “mega mergers” and ban such deals going forward.Warren’s staff recently circulated a proposal for sweeping anti-monopoly legislation, which would deliver on a presidential campaign promise to check the power of Big Tech and other industries. Although the Trump administration is currently exploring their own antitrust probes, the proposal is likely to face resistance from lawmakers.According to a draft of the bill reviewed by Bloomberg, the proposal would expand antitrust law beyond the so-called consumer welfare standard, an approach that has driven antitrust policy since the 1970s. Under the current framework, the federal government evaluates mergers primarily based on potential harm to consumers through higher prices or decreased quality. The new bill would direct the government to also consider the impact on entrepreneurs, innovation, privacy and workers.Warren’s bill, tentatively titled the Anti-Monopoly and Competition Restoration Act, would also ban non-compete and no-poaching agreements for workers and protect the rights of gig economy workers, such as drivers for Uber Technologies Inc., to organize.A draft of Warren’s bill was included in an email Monday from Spencer Waller, the director of the Institute for Consumer Antitrust Studies at Loyola University Chicago. Waller urged fellow academics to sign a petition supporting it. He said Warren was working on the bill with Representative David Cicilline, the most prominent voice on antitrust issues in the House. Waller declined to comment on the email.Representatives for Cicilline and Warren declined to comment. The existence of the bill and Warren’s support of it were reported earlier this week by the technology publication the Information.In Washington, there is some support across the political spectrum for increased antitrust scrutiny of large technology companies. Warren positioned herself as a leader on the issue this year while campaigning on a plan to break up Big Tech. She has repeatedly called for unwinding Facebook Inc.’s acquisitions of WhatsApp and Instagram, along with Google’s purchase of YouTube and advertising platform DoubleClick.Read more: Warren Accuses Michael Bloomberg of ‘Buying the Election’It’s not clear when a bill would be introduced or whether it would move forward in its current form. Cicilline has said he would not introduce antitrust legislation until he concludes an antitrust investigation for the House Judiciary Committee in early 2020.Amy Klobuchar, a Senator from Minnesota who’s also vying for the Democratic nomination, has pushed legislation covering similar ground. Klobuchar plans to introduce additional antitrust legislation soon, according to a person familiar with the matter who wasn’t authorized to discuss the plans and asked not to be identified.Any proposal would face significant hurdles to becoming law, and Warren’s version could be particularly problematic because it promotes the idea that antitrust enforcement is equivalent to being against big business, said Barak Orbach, a law professor at the University of Arizona who received a draft of the bill. “The way I read it is that Elizabeth Warren is trying to make a political statement in the course of her campaign,” Orbach said. “It’s likely to have negative effects on antitrust enforcement, so I just don’t see the upside other than for the campaign.”The bill proposes a ban on mergers where one company has annual revenue of more $40 billion, or where both companies have sales exceeding $15 billion, except under certain exceptions, such as when a company is in immediate danger of insolvency. That would seemingly put a freeze on many acquisitions for Apple Inc., Alphabet Inc., Facebook, Microsoft Corp. and dozens of other companies. The bill would also place new limitations on smaller mergers.Chris Sagers, a law professor at Cleveland State University, said the proposal would serve as an effective check on corporate power. “I don’t think you’ll have new antitrust policy until Congress says the courts have incorrectly interpreted the statutes,” he said. “Someone has to do what Elizabeth Warren is doing.”(Michael Bloomberg is also seeking the Democratic presidential nomination. Bloomberg is the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.)To contact the reporters on this story: Eric Newcomer in San Francisco at email@example.com;Joshua Brustein in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Milian at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
As music streaming apps struggle to differentiate, Apple is making concert video a more central part of its strategy with tonight's big Billie Eilish show at its HQ's Steve Jobs Theater. The Apple Music Awards concert will be streaming live and then on-demand to Apple Music's 60 million subscribers. Apple would like to do more of these streamed concerts in the near future.
(Bloomberg) -- U.S. antitrust enforcers have broadened their scrutiny of Amazon.com Inc. beyond its retail operations to include its massive cloud-computing business, according to people familiar with the matter.Investigators at the U.S. Federal Trade Commission have been asking software companies recently about practices around Amazon’s cloud unit, known as Amazon Web Services, said the people, who declined to be named because they weren’t authorized to speak publicly.The outreach by the FTC signals that the agency, which is already looking at Amazon’s conduct in its vast online retail business, is taking a broader look at the company to determine whether it could be violating antitrust laws and harming competition.The FTC and Amazon declined to comment. The agency’s scrutiny won’t necessarily result in an enforcement action against the company.AWS dominates the market for foundational cloud-computing technology that provides the storage and computing power needed to run applications. It is several times bigger than its next largest rival, Microsoft Corp.’s Azure, according to analyst estimates. Gartner Inc. puts AWS’s share at 48% and Microsoft’s at 16%.AWS accounted for 60% of Amazon’s operating income in the most recently reported 12 months. The unit’s profitability in recent years has helped keep investors happy even as the company continues to spend heavily to expand both its retail and cloud-computing businesses.Amazon also sells an array of products that run on top of those basic services, such as databases, machine-learning tools and data-warehousing products. It competes with hundreds of other software companies large and small that offer similar products.One issue the FTC could look at is whether Amazon has an incentive to discriminate against those software companies, which sell their products to clients of AWS, while at the same time competing with Amazon. The fear is that Amazon could punish the companies that work with other cloud providers and favor those that it works with exclusively.The dynamic echos that in Amazon’s retail marketplace, where third-party sellers depend on the platform to reach customers because of its size, but in many cases they also compete with Amazon’s own products. That’s a conflict that threatens competition, according to critics.The FTC’s Amazon inquiry is part of antitrust investigations sweeping across the technology industry. Federal and state authorities are investigating Alphabet Inc.’s Google and Facebook Inc. while the House Judiciary Committee is examining conduct of those companies as well as Amazon and Apple Inc.\--With assistance from Matt Day.To contact the reporters on this story: Dina Bass in Seattle at firstname.lastname@example.org;David McLaughlin in Washington at email@example.com;Naomi Nix in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Sara Forden at email@example.com, ;Jillian Ward at firstname.lastname@example.org, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Google (GOOGL) co-founders Larry Page and Sergey Brin stepped down from active management of the internet giant's parent company Alphabet.