Tech results bring sweet Valley highs
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The busiest day of technical income of the year brought good news for many names of Silicon Valley, including, for the first time in the recent past, Twitter.
The social networking site saw its share price shrink more than two years, but after cutting costs and strengthening some sources of revenue, the company believes that it can publish its first profit right after the new year.
This news compensated for the inconvenient recognition that since 2014 it has re-read the number of users. The current number of active users of the site - 330 m - takes into account the error; 4 million non-existent users were withdrawn from the total amount.
This adjustment did not in the least hamper investors, as they were encouraged by positive news on one of the historically complex charts of Twitter data: Daily Active Users or DAU.
Twitter will never be as big as Facebook, and it was overtaken by Snapchat, but what it can do is try to attract the attention of its users longer. And this quarter shows signs that they are doing it, daily active users grew by 14% this time last year.
Therefore, for the first time, as long as I remember, Twitter shares have grown. Up! I write this 20%.
This is very important news for chief executive Jack Dorsey, whose other company, payment firm Square, also works quite well lately.
Next week it will be more difficult, Twitter - among the companies that appear before the US Senate Investigative Committee to explain their actions on the eve of the election. If the company reacts badly to tough questions, then a 20% blow may not last long.
This will also mean Alphabet, the parent of Google. As has been repeatedly stated, the company relies heavily on advertising revenues, and any minor threat to this model (from increased government control) can have an impact.
Right now, although, according to the chief financial officer of the company, Ruth Porat, the Alphabet had an "amazing quarter". Profit - through the roof, 7.8 billion dollars for the quarter, which is 33% more than last year.
This is mainly due to the fact that more people click on ads. There are two large data points to think about here. First, cost per click - the amount of companies paid by Google every time a person clicks on an ad, as well as the cost of acquiring traffic or TAC.
TAC, the amount that Google invests to get its advertising platform to Internet users, has grown dramatically - $ 5.502 billion, which is 31.6% more than last year.
Cost-per-click-CPC-decreased compared to last year, which means that Google makes less money every time you click on an ad. There's good news, while the annual CPC is 18% lower when compared to the previous quarter, the CPC is slightly higher. The alphabet will hope that this is the beginning of a new uptrend.
I also like to look at the "other rates" of the Alphabet, a bit more outlandish and experimental side of the business. Revenue here is a drop in the ocean compared to advertising, but it is improving - in the last quarter, other rates generated revenue of $ 302 million, which is $ 105 million more than last year.
Amazon is getting bigger and bigger
I know for sure that Amazon is not Silicon Valley, located in Seattle, with a second headquarters, which will soon be built in a place not yet found.
My money is in Canada, although there are several parts of North America that did not bet on becoming a new home for a company that, according to Thursday, looks unstoppable.
These revenues were the first, which include revenues from a major acquisition of Amazon: Whole Foods. Revenues amounted to 1.3 billion dollars - a tiny, but an important piece of the total profit of Amazon, which amounted to 43.7 billion dollars.
The profit has grown by only $ 4 million in the last quarter, but it is expected - all Amazon money is moving in the direction of rapid growth right now. In addition to the deal with Whole Foods, Amazon is plowing money into its home assistant, Alexa and other data centers and an extension for Amazon Web Services, its cloud computing business.
We also just learned that Amazon received a license for pharmaceutical activities to work in at least 12 US states, news, resulting in a sharp price tag for well-known pharmacy brands such as CVS, Walgreens and Rite Aid.
These are movements that led to an increase in the use of the phrase "Amazon-proof". In some Bloomberg reports, executives of other companies regularly try to convince investors that they are in a space that Amazon can not touch.
"Thanks to our Amazon-resistant business, strong fixed income, high-margin, stable growth opportunities and attractive growing dividends, I do not know of a better place to invest," said Jim-Reid Anderson, CEO of Six Flags, a company that builds and operates theme parks, the Amazon area is not touched.
Maybe some day they will be - roller coasters, inspired by the price of the company's shares, sound absolutely terrible ... you would have risen and, probably, never come down again.
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FAST-FOOD CHAIN YUM CHINA REJECTS $17.6 BILLION HILLHOUSE BUYOUT OFFER
McGrath Says Anderson's Wicket Haul Won't Ever Be Beaten
T-Mobile, Sprint ready board committees to decide on merger: sources
Asia tracks Wall St. higher, dollar advance slows before jobs data
Deutsche Bank tumbles down private bank rankings