Author Archives: Scalper1

Google Draws Wrath Of AT&T, Pay-TV Industry On FCC Set-Top Proposal

AT&T ( T ) on Wednesday became the latest pay-TV company to lash out at Google parent  Alphabet ( GOOGL ) in the wake of the Federal Communications Commission’s proposal to open up the set-top box market to more suppliers. FCC Chairman Tom Wheeler last week proposed a new rule that would make it easier for consumers to switch from set-top boxes rented from cable TV companies to devices sold by consumer electronics or Internet companies. Pay-TV providers such as  Comcast ( CMCSA ) lease broadband cable modems as well as set-top-boxes to consumers, charging them on a monthly basis. The FCC aims to make programming bundles sold by pay-TV companies accessible from a wider range of devices. After Wheeler announced the initiative, Google followed up by demonstrating a set-top box to Congressional staffers at its Washington D.C. office, according to the “Future of TV Coalition,” a lobbying group formed by cable TV companies, industry groups, programmers and others. AT&T, in a blog post  on Wednesday, took a shot at Google. “When you get beyond all the hype, Google and its affiliated proponents of this technology mandate are simply trying to take our competitive service and repackage it as their own, without ever having to negotiate with us or with the content owners with whom we had to negotiate to create our service offering. It’s akin to the FCC mandating that we get access to Google’s home page so that we can redesign and rebrand it as our own,” said Stacy Fuller, AT&T vice president of federal regulatory issues. A Comcast blog post  last week said that companies concerned about the FCC proposal include: set-top box maker Arris Group ( ARRS ), Cisco Systems ( CSCO ) and Roku, as well as Walt Disney ( DIS ), 21 st Century Fox ( FOXA ), Comcast’s NBCUniversal and Viacom ( VIA ). Scott Cleland, head of consultancy Precursor Group said: “The FCC would be giving Google access to most of the benefits and business value of their pay-TV competitors for free. The real story here is Google wants to add TV advertising as their next-most-coveted market to dominate.”

Tesla Stock Turns Low-Rider Before Earnings, As Demand Questioned

Tesla Motors ( TSLA ) stock plunged almost 7% Wednesday afternoon, after Tuesday skidding 7.2% to its lowest close since May 2014. That’s after analysts cut some views and raised questions on Model X deliveries — and the limits of demand for the popular Model S. In the last hour of Wednesday’s regular session, Tesla stock was down about 6% near 172. The electric car maker is set to report its fourth-quarter earnings after the stock market close Feb. 10. Last week, according to a filing with the Securities and Exchange Commission, Tesla CEO Elon Musk exercised options to buy and hold about $100 million more Tesla stock than he already had, while paying a hefty tax bill (and in effect diluting the stock outstanding). Tesla has interesting times ahead this year: Its planned Model 3 unveil, for one thing. For another, scoping out some kind of partnership in China  so it can set up a car manufacturing plant there. Tuesday, Tesla’s China blog announced a Model X debut for the Chinese market, and invited orders. But for now stateside, analyst outlooks are getting tweaked ahead of that Q4 report. Analysts Tally Tesla In research that circulated Wednesday, Berenberg started Tesla with a sell rating and price target of 165, with analyst Adam Hull mentioning concerns about valuation and competition , and favoring  Daimler ( DDAIF ) and Volkswagen ( VLKAY ), according to a report. In a research note distributed Monday night, Pacific Crest Securities analyst Brad Erickson asked, in his report headline: “Does TSLA Have a Demand Problem?” He wrote that after doing channel checks, he’s more cautious on Tesla stock, and lowered estimates. “We can’t overstate the importance of the March 29 Model 3 unveiling,” he added, referring to the smaller and more affordable vehicle that Tesla is planning, expected to sell for around $35,000. But, “we remain suspicious of underlying demand and would continue avoiding TSLA,” he wrote. Analysts question how soon the Model 3 can roll off the assembly line. There’s potential competition ahead from other automakers — such as General Motors’ ( GM ) long-range Chevrolet Bolt — and maybe at some point an Apple ( AAPL ) car. Erickson noted that Tesla’s Model S sedan, which like the Model X SUV sells for north of $70,000, “may be approaching its run-rate ceiling.” He lowered estimates through 2020, curbing his Tesla revenue outlook from a prior view of $5.325 billion for 2015 to $5.28 billion. For 2020, he sees revenue of $24.273 billion instead of his prior view of $30.775 billion. On Monday, Morgan Stanley analyst Adam Jonas slashed his target price on Tesla stock to 333 from 450, reports noted, citing concerns about extra costs tied to the Model X launch delay. The recently debuted crossover SUV is Tesla’s third vehicle after the Roadster sports car and Model S sedan. Jonas cut his view for Tesla’s overall 2016 vehicle deliveries to a little over 70,000 units — 56,000 of the Model S and 15,000 of the Model X — down from his previously forecast 18,500, a press report said. Global Equities Research analyst Trip Chowdhry said in a Jan. 31 research report that 30,000 people have so far reserved the Model X. He wrote that “Model X production is still probably between 250 and 300 units per week” with the focus seeming to be “to get the quality right, rather than immediately ramp up production.” Stifel analyst James Albertine rates Ford ( F ) and Tesla as buy, with a $193.56 price target for Tesla, as of a Jan. 27 research note. Tesla stock is down 28% this year, and not highly ranked by IBD, with a Composite Rating of 30 out of a possible 99. That’s after an 8% Tesla stock gain in 2015, a 48% rise in 2014, and a 344% gain in 2013. Analysts polled by Thomson Reuters are looking for, on average, EPS of 10 cents in Tesla’s Q4 report, up from a 13-cent loss a year ago. They see a $1.27 loss for 2015, then project EPS of $1.71 for 2016. Fourth-quarter 2015 sales are anticipated at $1.79 billion, up 64%, with 2015 coming in at revenue of $5.35 billion and 2016 at $8.62 billion. RELATED: CEO Elon Musk Adds Huge Tesla Stock Stake Ahead Of Earnings . With Tesla Earnings Ahead, Truck Could Follow Model 3 .