Author Archives: Scalper1

Will Microsoft Earnings Cast a Cloud Over These ETFs

The world’s largest software maker Microsoft (MSFT) reported disappointing fiscal third quarter 2016 results after the markets closed yesterday. Investors reacted negatively to the news with the stock declining 4.7% in after market trading. The Q1 earnings season has

Charter-Time Warner Cable Deal Gets Regulatory OK, Netflix A Winner

The Justice Department approved the Charter Communications ( CHTR ) takeover of Time Warner Cable ( TWC ) and Bright House Networks after the cable giants agreed to concessions that should benefit Netflix ( NFLX ) and other streaming media. Federal Communications Commission Chairman Tom Wheeler also backed the deal. The FCC will likely approve the combination soon. After that, California regulators would pose the final hurdle for the merger. They are expected to approve it in a vote next month. As part of the deal, Charter will expand the number of homes with broadband access by 2 million, including 1 million with another high-speed provider, Wheeler said. Netflix has endorsed the deal, based on Charter’s pledges. Charter agreed to not impose data caps or tie Internet rates to usage. Charter also won’t be allowed to sign deals with content providers to make it harder for Netflix and other streaming services to get content. Charter said last year it would have some 23.9 million cable and broadband customers in 41 states, with big gains in Los Angeles and New York. It would be the No. 2 broadband operator after Comcast ( CMSCA ). Charter Communications in May 2015 agreed to buy Time Warner Cable for $55.1 billion and Bright House for $10.4 billion. That followed the collapse of Comcast’s planned Time Warner Cable buy due to regulatory objections. Charter Communications stock rose 4.6% to 207.01 on the stock market today , with Time Warner Cable climbed 4.1% to 209.83. Netflix fell 2.4% as shares still reel from last week’s weak subscriber outlook. Comcast fell fractionally. Related: How Charter Broadband Conditions May Set Bar For Comcast

GoPro Finds Woe In High Action-Camera Inventories

Beleaguered GoPro ( GPRO ) saw its shares tank anew on Monday on a report that unsold Hero action cameras are piling up at retail. GoPro stock fell 8.3% to 12.82 on the stock market today . Key supplier Ambarella ( AMBA ), which makes image-processing chips, saw its shares slide 5.9% to 41.96. Pacific Crest Securities analyst Brad Erickson said his firm’s U.S. retail checks showed GoPro’s days of inventory nearing all-time highs. “Channel inventory is again too high,” Erickson said in a report Sunday. “Our checks detected days of inventory at roughly three weeks consistently over the past month, and we estimate aggregate sell-through in the United States was down nearly 40% year-over-year in Q1.” He predicted continued “action camera softness” and expressed doubts about whether GoPro’s planned Karma drone could turn things around for the company. He rates GoPro stock as sector weight, with a fair value of 9 to 10. GoPro’s Hero action cameras are “a compelling device for a small niche of buyers,” but the company needs to improve ease of use to expand the market, Erickson said. GoPro is expected to launch its flying camera drone toward the end of the second quarter. The device could double GoPro’s total addressable market, he said. “We believe the stock has gotten some recent lift anticipating Karma, which could persist depending on how it is initially perceived by investors,” Erickson said. There are many unknowns about Karma including price, functionality and how it will compare to competitors like DJI. Erickson estimates that 5 million to 6 million consumer, camera-enabled drones will ship this year worldwide, roughly equivalent to the action camera market. RELATED: GoPro Rockets After Hiring Key Apple Designer