Tag Archives: Investors

Facebook’s Famous Problem

Since Facebook was founded and became available for the public all we heard was how quick the company is growing and how famous it will become. Investors, investment banks and everyone hanging around the internet and social media believed “sliced bread” has been re-invented.

Now that the site has around a billion users and some time has gone by, things don’t look so rosy anymore. Especially since the messed up IPO from last year. Things are clearly different now. All of the sudden usage and users are measured in dollars and profit. With the new view of things, Facebook had to learn that it is easier to become famous and much more difficult to keep the status…Read More Continue reading

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Sprint Battle: Dish Gains Ground Against Softbank

Dish’s $25.5 billion proposal to take over Sprint is better than a board-endorsed offer by Softbank, investor Omega Advisors said, joining billionaire John Paulson in praising the bid. Cristina Alesci reports on Bloomberg Television’s “Money Moves.” (Source: Bloomberg)

Companies Take to Twitter: Will Investors Benefit?

Stanford’s Beth Blankespoor discusses how companies are using Twitter to communicate with investors. She speaks with Cory Johnson on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

E-Commerce A Hot Spot For Growth Investors: Barnes

First Round Capital’s Phin Barnes discusses investing in e-commerce with Deirdre Bolton on Bloomberg Television’s “Money Moves.” (Source: Bloomberg)

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The online trading revolution has transformed the financial industry. Not so long ago investors had to call a regular land line to speak to a live broker in order to place a trade. That all changed in the 1990s with … Continue reading

How Apple Ate Wall Street

How Apple ate Wall Street – MarketWatch.

Mutual-fund investors aren’t supposed to have to pay attention to the fate of any particular stock. But like so many things with technology giant Apple (NASDAQ:AAPL)  , the regular rules don’t seem to apply.

 

While Apple’s stock has been hit hard in recent months — losing more than third of its value since September, including a 12% drop since missing earnings estimates on Wednesday — the Cupertino, Calif.-based company is still the most valuable name on the stock market. That distinction means it looms unusually large in millions of Americans’ investment portfolios, even if they’ve never glanced at one of its quarterly earnings reports. “We’ve never seen another company have as big an impact” on overall market returns, says Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

Just how popular has Apple become? It was among the top 10 holdings in more than 1,000 mutual funds last year, according to fund researcher Morningstar Inc. — up from just 11 in 2002, shortly after Apple introduced the device that started the gadget craze, the iPod. Overall, about one in four stock funds owns Apple. See Apple’s slide catches many funds. Is yours one?

 

To be sure, that partly reflects Apple’s popularity with index funds. These vehicles — like Vanguard Total Stock Market (MFD:VTSMX)  , which owned more than $6 billion of Apple shares at Dec. 31—merely buy stocks based on their market values. For those funds, Apple is automatically their largest holding.

 

But many prominent actively managed funds, including Fidelity Contrafund (MFD:FCNTX)  —Apple made up 8.2% of its portfolio as of its most recently published figures — and T. Rowe Price Blue Chip Growth (MFD:TRBCX)   — 8.6% — are also big fans. While both those names have strong long-term track records, some fund managers were likely tempted to hold big stakes for the wrong reasons, according to experts. “You want to show you own a successful stock,” says Lipper analyst Jeff Tjornehoj. “It’s not easy to get rid of.” (A tool like Morningstar’s Instant X-Ray can tell you how much Apple you hold via your funds.) See Morningstar’s Instant X-Ray

WSJ’s George Stahl takes a look at current iPhone popularity and offers some tips on how Apple can re-energize its stock.

 

Now investors that rode the Apple bandwagon — and frankly everyone else too — is feeling the stock’s reverberation. The S&P 500 was up 13.8% last year. Apple, which at its peak amounted for about 5% of the index, added roughly a percentage point to that gain, according to S&P. Today the index was flat in early afternoon trading, and for the year so far it’s up 4.8%, but would have risen nearly 5.7% without Apple’s drag.

 

Sliverblatt says the only stocks in his memory to take up such a big slice of the index were IBM and the old AT&T in the early 1980s, although he doesn’t remember their price swings having as big an impact on returns. “I didn’t see anything like this,” he say.

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10 things to watch for in Apple’s earnings call – MarketWatch. All eyes will be on Apple (NASDAQ:AAPL)  this afternoon when it reveals results for the crucial holiday quarter, including sales of the new iPhone 5 and iPad Mini. The … Continue reading

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The Impact Of U.S. Real Estate Investors – Infographic

As we already covered in “The $9.2 Billion Impact of 28.1 Million U.S. Real Estate Investors,” the impact of real estate investor on the housing market has been substantial, to say the least, over the past few years. Our Joint BiggerPockets.com / Memphis Invest National Survey of Residential Real Estate Investors outlined a slew of important data points about investor intent has received national press coverage, and has help illustrate the real power of the individual real estate investor.

Not only have they been spending billions of dollars annually on rehabilitating and renovating our neighborhoods, but they have demonstrated their long-term commitment to their investments by signifying their intent to put down large down payments in order to receive unlimited financing of future properties.

Source: Biggerpockets.com, Memphis Invest

Why should Apple pay Dividends?

After this week’s Apple event, the writers in the finance world are busy to tell us why Apple should pay a dividend to its shareholders. The reasons brought up range from greed to theories from 1871 and worse. Fact is, Apple is not paying such dividend, and rightly so. Continue reading

Most Influential Investors in 2011…

A Wall Street Analyst

“An economist/analyst is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today”.
Laurence J. Peter

Apple’s financial reporting for the 3rd quarter once again displayed how far off Wall Street Analyst’s are with their predictions. The common problem is that an analyst is digging in the past, but has no view and sense for the day after end of quarter. Major events, in the past and much more future events are not considered in an analyst’s work. 

One has a hard time to believe that all these analysts in the last six weeks bought the old iPhone, even though their predictions would indicate so. Continue reading

Goldman Sachs only reports modest numbers and is sleeping at the wheel

Wall Street’s former love-child reported only very modest numbers for Q2. While the company completely lost credibility with America’s Main Street, it seems that this fact now also sneaks into consideration in the corporate world. Bad reputation, earned, and still earning more of it, during the still ongoing financial crisis will fuel lower expectations on the earnings side for quite some time. With that, the stock might further fall Continue reading