Weekly Update 04/20/2016 Technology

Technology
April 20
Analyst Runzhong(Frank) Zhang

Important: Q1 2016 Earnings Reports

Information about about the portfolio stocks:

Amazon:

·      Amazon is scheduled to release its next earnings report on Thursday. Consensus estimates suggest earnings of 58 cents per share and $28 billion in revenue for the first quarter.

·      Amazon will start offering U.S. customers a standalone subscription to Prime Instant Video for $9 per month. This breakout means the company is getting even more serious about competing with Netflix. 

·      The online retailer will also start offering its Prime service for $11 per month for those who don’t to want to pay for a full year at $99 in one payment.

Verizon:

·      Verizon has already prepared for the second stage of bidding for Yahoo’s core assets. Current competitors are private equity firms like TPG Capital LP.

Netflix:

·      On Tuesday shares of Netflix fell nearly 13% after the company reported its latest earnings results the night before. While NFLX beat the analysts’ bottom-line expectations for the first quarter, it was a revenue miss and the user growth outlook for Q2 that scared investors.

Stock worth noticing:

Intel:

·      INTC reported an earnings beat but a revenue miss.

·      Intel announced 12,000 job cuts (around 11% of its workforce). 

·      The stalled PC industry remains a drag as the company tries to reorient toward cloud computing and internet-of-things products.