Snap Inc. (NYSE: SNAP) the parent company of popular messaging app Snapchat, recently officially filed for its initial public offering (IPO). Calling itself a “camera company,” Snapchat, which boasts a private market valuation of $17.8 billion, has ambitious plans to raise some $3 billion from the offering — a figure which some analysts call merely a placeholder number for a far greater goal. Don’t Make Snap Decisions Estimates suggest this offering to value the company between $20 billion and $22 billion, according to MarketWatch. But should retail investors, who the company says will have no… Read More

Snap Inc. (NYSE: SNAP) the parent company of popular messaging app Snapchat, recently officially filed for its initial public offering (IPO). Calling itself a “camera company,” Snapchat, which boasts a private market valuation of $17.8 billion, has ambitious plans to raise some $3 billion from the offering — a figure which some analysts call merely a placeholder number for a far greater goal. Don’t Make Snap Decisions Estimates suggest this offering to value the company between $20 billion and $22 billion, according to MarketWatch. But should retail investors, who the company says will have no voting rights, buy into the IPO? Just as important, given the recent IPO lemons we’ve seen from the likes of GoPro (Nasdaq: GPRO) — another camera company — Snapchat investors must consider the bigger picture. #-ad_banner-#According to its recent filing, Snapchat has made considerable progress in terms of monetizing its core ephemeral photo- and video-sharing app, which had 158 million daily active users at the end of 2016 for an average of 2.5 billion “snaps” created per day. Aside from the ads posted on its photo-sharing platform, the company makes money from content created by third-party channels such as news… Read More

If you think Microsoft (Nasdaq: MSFT) shares are expensive now, they are about to get even more so. Back in December, I issued a 12-month piece target of $72. But following the company’s breathtaking fiscal second-quarter earnings results, I am now confident is too cheap. As such I’m raising my price target by $8 to $80 per share. Why the price increase? For starters, Microsoft stock is currently priced at a forward P/E of just 21 based on fiscal 2017 estimates of $2.97 per share. And while that P/E is two points above the average stock in… Read More

If you think Microsoft (Nasdaq: MSFT) shares are expensive now, they are about to get even more so. Back in December, I issued a 12-month piece target of $72. But following the company’s breathtaking fiscal second-quarter earnings results, I am now confident is too cheap. As such I’m raising my price target by $8 to $80 per share. Why the price increase? For starters, Microsoft stock is currently priced at a forward P/E of just 21 based on fiscal 2017 estimates of $2.97 per share. And while that P/E is two points above the average stock in the S&P 500 index, Microsoft’s recent moves suggests it deserves a much higher multiple. With growth opportunities emerging in the realm of the cloud, Internet-of-Things, smart home and a host of other areas thanks to its recent acquisitions, Microsoft stock still looks like a bargain. I’ll get back to this in a moment. But let’s first assess its recent earnings.   #-ad_banner-#The main question heading into 2017 was to what extent Microsoft could sustain the strong cloud momentum it used in 2016 to surpass Amazon.com (Nasdaq: AMZN). Microsoft answered that question with authority. In three months that ended… Read More

The new year is turning out to be just as I predicted for jet-maker and defense specialist Boeing (NYSE: BA). Fresh on the heels of better-than-expected fourth-quarter earnings results, shares of the Dow component have posted year-to-date gains of 3.59%. Within the Dow, Boeing trails only Disney (NYSE: DIS) and Visa (NYSE: V) in 2017 performance. New Orders, New Growth Prospects Boeing stock, currently trading at around $163, reached a new 52-week high of $170 on January 26. This marks a 10% rise since we last recommended the stock on December 15. And it would be a mistake to… Read More

The new year is turning out to be just as I predicted for jet-maker and defense specialist Boeing (NYSE: BA). Fresh on the heels of better-than-expected fourth-quarter earnings results, shares of the Dow component have posted year-to-date gains of 3.59%. Within the Dow, Boeing trails only Disney (NYSE: DIS) and Visa (NYSE: V) in 2017 performance. New Orders, New Growth Prospects Boeing stock, currently trading at around $163, reached a new 52-week high of $170 on January 26. This marks a 10% rise since we last recommended the stock on December 15. And it would be a mistake to lock in these gains now, especially as the Chicago-based company continues to secure long-term contracts with various local and international government agencies. Most recently, Boeing announced a win on a $2.1 billion contract to build 15 more KC-46A refueling aircrafts. #-ad_banner-#The recent order for 15 planes follows a $2.8 billion deal in August for 19 planes, which now puts Boeing’s KC-46A orders at 34. But wait, there’s more. Earlier this month, the company won a $22 billion deal from SpiceJet Ltd., an India-based, low-cost airliner looking to expand its domestic and international operations. India’s fourth-largest airline by number of passengers… Read More

Membership now has its privileges at Amazon (Nasdaq: AMZN). The e-commerce giant recently announced its new Amazon Prime Rewards Visa Signature credit card, giving Prime shoppers more ways to buy and earn cash back in the process. Meanwhile, critics who continue to bet against AMZN stock — citing outdated valuation arguments — must prepare for more losses while the longs ride these shares higher. Too Good To Be True Or Too Good To Pass Up? The new Amazon Prime Rewards Visa card, in partnership with JPMorgan Chase (NYSE: JPM), gives Prime shoppers a whopping 5% cash back on all… Read More

Membership now has its privileges at Amazon (Nasdaq: AMZN). The e-commerce giant recently announced its new Amazon Prime Rewards Visa Signature credit card, giving Prime shoppers more ways to buy and earn cash back in the process. Meanwhile, critics who continue to bet against AMZN stock — citing outdated valuation arguments — must prepare for more losses while the longs ride these shares higher. Too Good To Be True Or Too Good To Pass Up? The new Amazon Prime Rewards Visa card, in partnership with JPMorgan Chase (NYSE: JPM), gives Prime shoppers a whopping 5% cash back on all Amazon purchases. The card also rewards members with 2% cash back at restaurants, gas stations, and drugstores and 1% back on all other purchases. There is no cap on the amount of rewards cardholders can earn. The card has no annual fee and does not charge foreign transaction fees, and charges 14.74% to 22.74% annual percentage rate (APR) on unpaid balances versus the average credit card interest rate of 16.35%. #-ad_banner-#Still undecided? According to Zach Honig, editor in chief of rewards site The Points Guy, Amazon’s new card is a good choice for someone looking for “a very simple option… Read More

Can Nvidia Corporation (Nasdaq: NVDA) stock, which could do no wrong last year, be trusted in 2017? And by “trust” I mean can the company live up to all of the hype investors have created? Notice that I didn’t say Nvidia itself has created the hype. Living Inside The Nvidia Bubble While the company’s entry into the realm of virtual and augmented reality, data centers, self-driving cars, and other growth markets were well-timed moves, the shares have approached bubble territory. And some investors still believe the stock — even after more than 200% returns — has room to run… Read More

Can Nvidia Corporation (Nasdaq: NVDA) stock, which could do no wrong last year, be trusted in 2017? And by “trust” I mean can the company live up to all of the hype investors have created? Notice that I didn’t say Nvidia itself has created the hype. Living Inside The Nvidia Bubble While the company’s entry into the realm of virtual and augmented reality, data centers, self-driving cars, and other growth markets were well-timed moves, the shares have approached bubble territory. And some investors still believe the stock — even after more than 200% returns — has room to run while ignoring the attractive short thesis the Nvidia story has created. #-ad_banner-#After crushing the Nasdaq 100 Index (NDX) with some 222% returns in 2016, the semiconductor company has a tough act to follow. That, however, hasn’t stopped retail investors from wanting to chase the returns they feel they’ve missed out on last year. Notably, on the heels of the stock soaring almost 35% in one month, analysts at Goldman Sachs added Nvidia to the Conviction Buy list. Who’s Left To Buy The Stock? But here’s the question Goldman — or any other long investor — must ask: Who’s left… Read More

Chasing Nike’s (NYSE: NKE) dominant position in the athletic footwear business has been a tiring exercise for competitors such as Under Armour (NYSE: UA), Adidas (OTC:ADDYY), and Skechers (NYSE: SKX) over the past couple of years. In 2016, however, chasing Nike stock has proven to be an even more frustrating… Read More

Shares of Microsoft Corporation (Nasdaq: MSFT) have been on a steady uptrend over the past couple of months, rising about 11% since mid-October. And while Microsoft stock hasn’t crushed the S&P 500 index to the extent of banking stocks since the election, the world’s largest software company — fresh on the heels of the closing of its $26.2 billion blockbuster deal for LinkedIn Corporation– is nonetheless trading at all-time highs. And with LinkedIn now under its umbrella, Microsoft resembles a startup, given the many new markets it can pursue and growth opportunities it can take. #-ad_banner-#Indeed, with Microsoft having landed… Read More

Shares of Microsoft Corporation (Nasdaq: MSFT) have been on a steady uptrend over the past couple of months, rising about 11% since mid-October. And while Microsoft stock hasn’t crushed the S&P 500 index to the extent of banking stocks since the election, the world’s largest software company — fresh on the heels of the closing of its $26.2 billion blockbuster deal for LinkedIn Corporation– is nonetheless trading at all-time highs. And with LinkedIn now under its umbrella, Microsoft resembles a startup, given the many new markets it can pursue and growth opportunities it can take. #-ad_banner-#Indeed, with Microsoft having landed its social network prize, the hard work of integrating LinkedIn must begin. While there is a ton of execution risk tied to the merger, Microsoft CEO Satya Nadella has established a strong track record of pushing the right buttons at the right the time. Combined with momentum the company has established in the cloud with Office 365 and its dominant Azure platform, Microsoft is no longer just a PC-centric business. So, despite the seemingly pricey stock or the associated risk with integrating LinkedIn, it would be a mistake to exit a MFST position now.  What LinkedIn Brings To The Table… Read More

Shares of jet-maker and defense specialist The Boeing Company (NYSE: BA) haven’t delivered the level of returns in 2016 that investors expected. As of Thursday, December 8, the stock had risen 7.5% for the year, compared to gains of 12.5% and 9.9% in the Dow Jones Industrial Average (DJI) and the S&P 500 Index (SPX), respectively. The Seattle-based aerospace giant attracted unwelcome attention after President-elect Donald Trump complained on Twitter about the cost of the new Air Force One, currently in development. Driven by the resulting negative headlines, Boeing stock fell more than more than 1%, though the shares ended… Read More

Shares of jet-maker and defense specialist The Boeing Company (NYSE: BA) haven’t delivered the level of returns in 2016 that investors expected. As of Thursday, December 8, the stock had risen 7.5% for the year, compared to gains of 12.5% and 9.9% in the Dow Jones Industrial Average (DJI) and the S&P 500 Index (SPX), respectively. The Seattle-based aerospace giant attracted unwelcome attention after President-elect Donald Trump complained on Twitter about the cost of the new Air Force One, currently in development. Driven by the resulting negative headlines, Boeing stock fell more than more than 1%, though the shares ended in positive territory after cooler heads prevailed. Despite these setbacks, Boeing stock can still take off in 2017 if the company can achieve a few operational objectives. Where Things Stand Today It’s become a challenge for Wall Street to celebrate Boeing’s recent accomplishments, which include two straight earnings beats and raised guidance. This is because, when looking at the company’s strong earnings reports, it comes with the understanding that Boeing also benefits from favorable tax adjustments. And its third-quarter earnings report, which resulted in a beat on both the top and bottoms lines, was the perfect example. #-ad_banner-#While the… Read More

In the first part of this article, I highlighted two main aspects of the investment research that — if used correctly — can maximize investors’ time when scouring for quality companies in which to invest. The first rule I outlined is the simple fact that an investor shouldn’t attempt to follow everything. The second is that you should keep company relationships — such as supplier-customer and competitor relationships — in mind when analyzing a stock. With these two established rules in hand, we are now ready to cast our net into the market to attempt to reel in possible investment… Read More

In the first part of this article, I highlighted two main aspects of the investment research that — if used correctly — can maximize investors’ time when scouring for quality companies in which to invest. The first rule I outlined is the simple fact that an investor shouldn’t attempt to follow everything. The second is that you should keep company relationships — such as supplier-customer and competitor relationships — in mind when analyzing a stock. With these two established rules in hand, we are now ready to cast our net into the market to attempt to reel in possible investment candidates that will fit nicely in our portfolios. Research Rule No. 3: Learn to Discriminate While we’re primarily looking for good fits, it’s just as important to know the companies we don’t want in our portfolios. In essence, the investor must learn to discriminate between companies that are “good,” “great” and “outstanding.” And inversely, we must identify the difference between “bad,” “terrible” and “horrific.” #-ad_banner-#Of course, there are more technical descriptions than the ones above that can be used to describe and categorize certain companies. But the point is, it’s important to have a process when deciding on the… Read More

Shares of Honeywell International Inc. (NYSE: HON) have underperformed the rest of the market over the past six months, languishing in negative territory for most of the fall. This decline has been driven by a combination of factors, including investor nervousness regarding the company’s upcoming leadership change and some weakness… Read More