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Why You Should Be Paying Attention To Apple’s Stock Chart

Loading the player… With the market down for a second day in a row, Apple ( AAPL ) shares have come close to a recent low. The consumer tech giant has been stuck in a downtrend for months as analysts have slashed their iPhone sales forecasts for 2016. Shares fell as much as 1.4% to 93.33 Wednesday morning. That’s within $1 of its Jan. 28 low of 92.39, and not much further from its Aug. 24 low of 92. Volume was tracking lighter than average. The stock was able to erase its losses and was trading a fraction higher by the afternoon in the stock market today . Apple is trading about 30% below its all-time high reached last April. On Tuesday, market research firm IDC said Apple Watch shipments slowed in the fourth quarter, with Fitbit ( FIT ) shipping nearly double the amount of wearable devices as Apple in the same time. But Fitbit issued weak first-quarter guidance late Monday, as it’s discontinuing one model and adding two more beginning in March. Apple will hold its spring product meeting next month, where a second-generation Apple Watch could be revealed. Elsewhere in the tech space, Facebook ( FB ) tested support at its 50-day moving average, down 0.6% Wednesday. Facebook, a top-rated stock, is trading 11% below its all-time high reached earlier this month. Facebook said its Instagram ad milestone , with its video- and photo-sharing service, hit 200,000 advertisers. Amazon dropped 2.3%, falling back below its 200-day line in intraday trade just two sessions after retaking that level. Amazon is trading about 22% below its high and a potential buy point. Microsoft is trading about 10% below a buy point, off 0.7% Wednesday. Microsoft shares neared the 50-day line on Monday but found some resistance there.

Game Console Cycle Looks Bright For Activision, EA

The current video-game-console cycle still has room to run, providing upside for top game publishers like Activision Blizzard ( ATVI ) and Electronic Arts ( EA ), Piper Jaffray analyst Michael Olson said Wednesday. Olson reiterated his overweight ratings on Activision and EA stock in separate reports. He has a price target of 39 on Activision and 87 on EA. In afternoon trading on the stock market today , Activision was up over 1% to above 31 and EA was up 1.5% to above 62. “The console cycle is in its third year and investors are beginning to ask if we are nearing the ‘peak’ of this cycle,” Olson said. “While some that own these stocks for the ‘cycle trade’ may be selling, we believe there are arguments to be made that consistent growth will come over the next several years and an ongoing mix shift towards digital that will drive margins higher.” Current-generation console uptake rates have outpaced the previous generation, but the installed base has “significant room to grow,” he said. The current-generation consoles are Sony ‘s ( SNE ) PlayStation 4, Microsoft ‘s ( MSFT ) Xbox One and Nintendo ‘s ( NTDOY ) Wii U. “While the uptake rate of hardware in the current console cycle has been tracking 40% to 50% faster than the prior cycle, we believe growth of the installed base is far from over,” Olson said. “Specifically, at this point in the cycle about 40% as many consoles (Xbox One & PS4) have shipped compared to life-to-date shipments of prior-gen consoles (Xbox 360 & PS3).” Sales of previous-generation consoles (Xbox 360 and PS3) reached about 162 million units, while current-generation consoles (Xbox One and PS4) have sold about 60 million so far, he said. RELATED: Activision Blizzard Whiffs On Q4 EPS, Sales; Stock Sinks Electronic Arts Falls On Mixed Q3, Weak Guidance .  

Mobileye Q4 Earnings Tops Views, But Tesla Partner’s Outlook Light

Mobileye ( MBLY ) reported fourth quarter earnings before the market open Wednesday that beat estimates but provided a 2016 outlook that fell short. The provider of driver-assistance technology reported revenue of $71.8 million, up 81% year-over-year and topping the consensus estimate of $70.76 million. Mobileye reported earnings per share minus items of 15 cents, compared with 6 cents a year ago and topping the consensus of 14 cents. Mobileye’s guidance for 2016 fell short. It forecasts revenue in the range of $336 million to $340 million, up 40% at the midpoint but below views of $344.5 million. It forecast earnings per share of 68 cents to 69 cents, below the forecast of 70 cents. Mobileye stock rebounded after falling 14% briefly Thursday morning. In early afternoon trading the stock was down 2%, near 28 in the stock market today . The stock is far below its all-time high of 64.48 set in August, under pressure over growing competition from Alphabet ( GOOGL ) and others. While Alphabet’s Google car gets most of the media attention for self-driving cars, Mobileye is one of the tech companies in the driver’s seat, a leader in autonomous-driving technology. It specializes in developing chips and software that collect and process data from automobiles’ camera systems and sensors. Customers include General Motors ( GM ), Ford Motors ( F ), BMW, Honda Motor ( HMC ) and Nissan Motor. Mobileye has listed Tesla Motors ( TSLA ) as a customer but details of that agreement have not been revealed. Tesla has referred to it as a “business relationship.” Tesla has said it plans to develop its own autonomous-driving systems but would use sensors and components from other companies. Mobileye’s camera-based system identifies detailed interpretations of roads and sidewalks to help prevent collisions with vehicles, pedestrians and anything else, the company says. It detects roadway markings and boundaries and can read traffic signs and lights. On Tuesday, Mobileye announced an agreement with Nissan ( NSANY ) to integrate Mobileye’s new Road Experience Management technology into Nissan’s fleets. Nissan is the third large automaker to have partnered with Mobileye to integrate its new REM.  The technology provides real-time data for precise localization and high-definition lane data to support fully autonomous driving. Mobileye raised $890 million from its August 2014 initial public offering, selling 35.6 million shares at an above-range price of 25. Mobileye stock currently gets a 54 Composite Rating from IBD out of a possible 99.