Wasn't Amazon.com (AMZN) supposed to be an online retailer? Because we distinctly recall hearing at some point that Amazon.com sold stuff online... and yet it's what Amazon's doing offline that earned it a re-recommendation from Bank of America analyst Justin Post.
In a note reiterating his "buy" recommendation and $4,250 price target on Amazon, Post explains that "Amazon is building an 'omni-channel POS solution' that includes its own point-of-sale (POS) hardware and software." And yet, by definition, point-of-sale hardware is equipment used to check out a customer at a physical retail location.
In case you have not yet heard, Amazon -- the world's biggest e-tailer -- also has developed quite a number of physical retail locations at which it might install this new "omni-channel POS solution." Amazon's physical businesses include: Amazon Books stores, Amazon 4-Star department stores, Amazon Pop Up stores, and Amazon Fresh, Amazon Go, and Amazon Go Grocery grocery stores too. (Oh, and Whole Foods, of course).
In addition to all of those potential outlets at Amazon proper, Post says Amazon is now looking to sell its new "omni-channel POS solution" to third party retailers as well.
As Post observes, Amazon seems to have developed its new solution as "a response to [the Covid] pandemic and Shopify" as well.
Shopify -- also originally an online phenomenon -- has been promoting its own point of sale system lately with a free trial for business customers. Amazon may see Shopify's offering as a threat to its own sales, because, as Post explains, "the pandemic has created a greater sense of urgency by local businesses (SMBs) to add multi-channel sales capabilities, and growing number of merchants have been adopting third party services, including Shopify and Google search, to help sell directly to consumers."
Post notes that there may initially be "resistance" to Amazon's offering from local businesses that will have "competitive concerns" about letting the fox into the hen house. In the analyst's view, however, "the opportunity is big" enough for Amazon to risk taking a flyer on this and see if it sticks.
Consider that an Amazon-branded POS system could offer customers the ability to "add Amazon check-out options," and "even allow customers to pay with their Amazon accounts at retail locations." If Amazon is able to capture sales data from transactions run through its POS system (as seems likely, and maybe even the whole point), it could yield valuable data for Amazon on other companies' stores' "inventory and business analytics." Amazon would presumably want to re-package this data to provide "customer data management for SMBs" as a service. But Amazon will probably also integrate sales data run through its devices into its own internal data troves as well, the better to understand which products are selling, where, and to whom -- so as to better optimize its own product offerings online.
Because in case you have forgotten by now, Amazon was originally and remains in large part today... an online retailer.
Overall, Wall Street likes Amazon, a fact clear from the 32 unanimous Buy ratings on record. The forecast is for one-year gains of ~22%, given the average price target currently stands at $4,225.13. (See AMZN stock analysis on TipRanks)
To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.stocks pandemic
Stock Market News For Today September 22, 2021
Investors await Fed’s monetary policy update and new economic projections in the stock market today.
The post Stock Market News For Today September 22, 2021 appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket…
Stock Market Futures Edge Higher As Evergrande Bankruptcy Fears Ease
Stock market futures are on the rise early on Wednesday morning. This came after China’s Evergrande said it would make its interest payment on schedule, offering some relief to the jittery markets. Some investors are also expecting the Chinese government to step in to mitigate potential spillover effects that could weigh on global economic recovery. For example, the short-term cash injection from China’s central bank has helped soothe the nerves of the stock market. While there has been speculation that this could be China’s ‘Lehman moment’, many experts believe the comparison is unjustified.
“There’s been a fair bit of concern about the possibility of contagion,” analysts at New York-based Bespoke wrote in a research note on Tuesday. “But so far that concern isn’t showing up in parts of the credit markets that have served well as red flags for broader credit crunches in the past.”
Investors are also awaiting an update to the Fed’s monetary policy and economic projections. Jerome Powell is expected to speak to the media at 2.30 p.m. ET today. Investors could expect the Fed to lay the groundwork for a near-term announcement and when the tapering would take place. Recall that Powell previously said it could begin as soon as this year. But some investors are now speculating that it won’t happen this soon. As of 6:45 a.m. ET, the Dow, S&P 500, and Nasdaq are up by 0.64%, 0.58%, and 0.34% respectively.
[Read More] What Stocks To Buy Today? 5 Tech Stocks To Watch
Marin Software (MRIN) Stock Surges On New Google Agreement
Marin Software (NASDAQ: MRIN) stock is spiking higher in pre-market trading today. This came after the announcement that the company entered into a revenue share agreement with Alphabet (NASDAQ: GOOGL) to develop its enterprise tech platform and software products. The revenue share agreement will take effect on October 1. For some context, the company provides marketing software to advertising agencies. Its MarinOne product is an e-commerce advertising platform, and its Marin Search is for managing advertising campaigns.
Last month, the company revealed that its system is now integrated into Criteo’s Commerce Media Platform. Essentially, that opens up the option of wider use of the company’s MarinOne platform.
Chris Lien, CEO of Marin Software, is also highly optimistic about the news. In his own words, “Commerce media is one of the most exciting and fastest-growing areas of digital marketing. With this integration, we can tap into Criteo’s commerce data and intelligence to further our mission of providing advertisers with seamless access to customers across their customer journey, from the top of the funnel to the point of purchase.”
Adobe (ADBE) Stock Falls As Recurring Revenue Barely Top Estimates
Adobe’s (NASDAQ: ADBE) fiscal third-quarter earnings and sales beat expectations, but the results weren’t enough to lift ADBE stock in the extended trading. From its quarterly report, revenue came in 22% higher year-over-year to $3.94 billion. In fact, it was a quarterly sales record for Adobe, topping Wall Street’s consensus estimate of $3.89 billion, according to FactSet.
On top of that, Chief Executive Officer Shantanu Narayen also pitched new creative software tools to continue Adobe’s steady 20% revenue growth. As part of that effort, Adobe said last month it would acquire Frame.io, a startup that makes video collaboration software, for $1.3 billion. By and large, the current tailwinds behind Adobe’s core offerings persist along with the pandemic. With all this in mind, the real question is whether or not Adobe can maintain its current momentum.
On Monday, Wells Fargo (NYSE: WFC) reiterated its Overweight rating on ADBE stock ahead of its earnings call. The firm even hailed Adobe as “one of the crown jewels of software”, citing solid core positioning and industry tailwinds as major growth factors. Wells Fargo recommends Adobe “as a long-term core holding in any large-cap tech portfolio“. Last week, the company also announced a partnership with PayPal (NASDAQ: PYPL). This partnership aims to add more payment services to its e-commerce platform. Thus, merchants will be able to accept credit cards and other ways of paying. Considering all these, would the current dip in ADBE stock present an opportunity for bargain hunters?
BlackBerry Set To Report Earnings After The Stock Market Closes Today
Gone were the days when BlackBerry (NYSE: BB) tops the global smartphone market. But that doesn’t keep investors away from investing in this well-respected software security company. The company is set to report its earnings after the stock market closes today. Naturally, a lot of the attention will be on BlackBerry stock today. Many investors and analysts are highly bullish on the company’s untapped potential in the cybersecurity space. If you have been following Reddit’s chatter, you would also know that’s a meme stock that gets speculated on by investors.
The company provides intelligent security software and services to enterprises and governments around the world. As you may be aware, Microsoft (NASDAQ: MSFT) participated in a meeting at the White House last month regarding the need to address cybersecurity threats as a country. With BlackBerry as a partner, a lot of focus will be on BB stock moving forward.
Other positive catalysts include the increased proliferation of BlackBerry’s systems in China’s automotive space. On August 26, the company announced that Chinese carmaker Great Wall Motors would use an advanced digital cockpit controller platform developed by BlackBerry and its partner Nobo. If anything, it shows that BlackBerry and its partner continue to be making progress in the huge Chinese auto market. With all that in mind, is BB stock a buy ahead of its earnings report?
Other Notable Earnings On Tap Today
Not to mention, several other major companies are looking to report their earnings today. For those looking to jump on some pre-market earnings action, we have General Mills (NYSE: GIS) and Gaotu Techedu (NYSE: GOTU) on tap.
Alternatively, in case you are keener on earnings after the closing bell, there is a good mix of names to consider as well. Namely, Blackberry, KB Home (NYSE: KBH), and H.B. Fuller (NYSE: FUL) among others would be in focus. Whether you are anticipating the Fed’s announcement or keeping up with earnings, one thing remains. There is no shortage of exciting news to note in the stock market now.bankruptcy pandemic economic recovery credit markets sp 500 nasdaq stocks monetary policy fed white house recovery china
The Market is Deeply Oversold And Looking For A “Dovish” Fed
As we will discuss, the market is deeply oversold and looking for a "dovish" Fed to spark buying. Traders and investors will be laser-focused on the Fed meeting adjourning at 2 pm ET. Of importance, the decision on taper and their characterization of…
As we will discuss, the market is deeply oversold and looking for a “dovish” Fed to spark buying. Traders and investors will be laser-focused on the Fed meeting adjourning at 2 pm ET. Of importance, the decision on taper and their characterization of the economic recovery and inflation. If they do elect to announce a taper schedule, the pace of tapering and any caveats that may delay tapering will be of utmost importance.
Like yesterday markets are opening up a half to one percent higher. Will they hold onto the gains, unlike yesterday? The answer likely lies with the Fed at 2 pm.
What To Watch Today
- 7:00 a.m. ET: MBA Mortgage Applications, week ended September 17 (0.3% during prior week)
- 10:00 a.m. ET: Existing home sales, month-over-month, August (-1.7% expected, 2.0% in July)
- 2:00 p.m. ET: FOMC policy decision
- 7:00 a.m. ET: General Mills (GIS) is expected to report adjusted earnings of 89 cents per share on revenue of $4.30 billion
- 4:10 p.m. ET: KB Home (KBH) is expected to report adjusted earnings of $1.62 per share on revenue of $1.57 billion
- 5:05 p.m. ET: BlackBerry (BB) is expected to report adjusted losses of 7 cents per share on revenue of $166.80 million
- President Biden is back in Washington this morning after his speech to the UN General Assembly. He’s still involved remotely in the proceedings and is hosting a virtual COVID-19 Summit with other world leaders today.
- The Centers for Disease Control and Prevention has meetings today and tomorrow to discuss the need for COVID booster shots. Last week, a Food and Drug Administration (FDA) advisory committee recommended boosters for Americans at high risk of falling seriously ill from the coronavirus.
- The Senate may consider a plan to avoid a government shutdown and to raise the debt ceiling. It passed the House of Representatives last night on a party-line vote with Republicans vowing to block it when it reaches the Senate.
Market Deeply Oversold – Looking For Some “Dovish” Tones
The rolling correction over the last 3-weeks has pushed the market into deeply oversold conditions on a short-term basis. Such provides plenty of “fuel” for a decent rally over the next month or two given some news to spark buying. Today, the Fed could do the trick with Jerome Powell delivering his post-FOMC press conference with a “dovish” tone. With Congress battling over the debt ceiling, the Treasury running out of money, and the risk of a Government “Shutdown” looming, the Fed has all it needs to provide plenty of “caveats” to its “taper” plans.
Fear Greed Index Near Lows
Another reason for near-term bullish optimism, is that both the AAII bullish allocation and the “Fear/Greed” index are near their respective lows. Combined with the oversold market conditions, such typically provides a buying catalyst as traders reposition themselves in equity risk.
Trading Game Plan for the S&P 500
The markets are trading well in overnight trading following yesterday’s flat-trading day. The bounce provides us with another set of levels, in addition to the 50, 100, and 200-dmas, to guide our trading. The graph below shows the Fibonacci retracements from the recent high to low. If this rally proves to be a bull trap, it is likely to give up between the 38% retracement (4395) and the 62% retracement (4451). There is also a gap between 4400 and 4430.
It is common for such gaps to fill and then reverse direction. If the market surges higher through the gap and retracement levels, the outlook becomes more bullish. A rally above the 4451 retracement level and well through the 50dma (4436) will likely lead to new highs. Conversely, the 50 dma (4436) may prove to be resistance. The first line of support is yesterday’s lows and the 100dma (4328). A break of the recent low leaves a target of 4106, the 200dma.
Easy Lending Standards
Employment and inflation tend to get the headlines as far as rationales for the Fed to take action. As we consider what the Fed may do tomorrow, we should also consider lending standards. The graph below shows the lending standards for large banks’ credit card customers are as easy as they have been in 20 years. On its own, very easy lending standards, as we have, push the Fed toward a more hawkish stance. Easy borrowing conditions incentivize personal consumption. More consumer activity, especially given current supply line problems, is likely to further agitate inflationary conditions.
Chinas & Evergrande. Will They or Won’t They?
In addition to concerns with China, Evergrande, and possible contagion, the markets are also grappling with Wednesday’s Fed meeting. In what was likely a purposeful leak last week, the WSJ laid the groundwork for a taper announcement Wednesday and the reduction in asset purchases in November. With the U.S. and foreign markets skidding yesterday some are asking how the Fed might react. In a Bloomberg interview, ex-New York Fed President, Bill Dudley, warns “They’re not going to react to small market moves and defer the tapering on that basis. They have to change their economic forecast,” he said Monday during an interview on Bloomberg Television with Lisa Abramowicz, Tom Keene and Jonathan Ferro. “At this point, it’s really premature to reach that conclusion.”
The post The Market is Deeply Oversold And Looking For A “Dovish” Fed appeared first on RIA.economic recovery coronavirus covid-19 sp 500 fomc fed home sales disease control congress senate house of representatives fda recovery china
Get Ready for the Coming Oil Crisis (SBOW, VKIN, CPE, RRC, XOM, CVX, SM, CEI, OIH)
The landscape is in place for a coming supply shortage crisis in the oil market, and the only place to hide for investors may be in small-cap oil stocks. The world is adjusting to the next chapter – the post-pandemic period – and global oil demand…
The landscape is in place for a coming supply shortage crisis in the oil market, and the only place to hide for investors may be in small-cap oil stocks.
The world is adjusting to the next chapter – the post-pandemic period – and global oil demand is recovering powerfully, on pace to hit new all-time highs by early next year.
At the same time, non-OPEC oil supply is falling, down over 2 million barrels per day from its 2019 peak. Even more to the point, non-OPEC oil supply growth will turn negative over coming years, according to new forecasts from the IEA.
That inflection will foster a gap between supply and demand with structural implications. By just 12 months from now, demand will encroach on total production potential for the first time in 160 years – since we first started ramping up the oil industry in the 19th century.
This may well become the most important investment theme over coming years. But it won’t just impact the fortunes of the world’s major integrated producers like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX). It will define the landscape for the entire market, and the biggest beneficiaries will likely be the small-cap oil players now trading at cheap levels.
With that in mind, we take a look at a few of the more interesting names in the space and cover some recent catalysts.
SilverBow Resources Inc (NYSE:SBOW) is a growth-oriented independent oil and gas company in the dead-center of what you might call the small-cap growth niche in the US shale energy space.
The company engages in the acquiring and developing assets in the Eagle Ford Shale.
SilverBow Resources Inc (NYSE:SBOW) recently announced it has entered into definitive agreements to acquire oil and gas assets in the Eagle Ford from an undisclosed seller. Acquisition Highlights include: All stock Transaction for approximately $33 million, consisting of approximately 1.5 million shares of SilverBow common stock, 45,000 total net acres in the Eagle Ford, bolstering SilverBow’s gas position in McMullen and Live Oak counties, while adding new oil positions in Atascosa, Lavaca, and Fayette counties, and April 2021 net production of approximately 1,580 barrels of oil equivalent per day, 39% liquids. Net oil production of 569 barrels per day
Sean Woolverton, SilverBow’s Chief Executive Officer, commented, “We continue to execute on accretive opportunities and bolster our balanced oil and gas portfolio. This marks the second acquisition we have announced since the beginning of August. Our first deal increased our high-return Eagle Ford and Austin Chalk locations, as well as incremental working interest in producing wellbores, in our La Mesa position. Today’s announcement expands our gas portfolio in the Western Eagle Ford, while also adding oil acreage in three new counties. Each transaction is accretive to Adjusted EBITDA and further reduces our pro forma leverage ratio(1) via the assets’ incremental cash flow. Our ability to use stock as consideration reflects the constructiveness of Eagle Ford partners to share in SilverBow’s long-term value creation.”
The stock has suffered a bit of late, with shares of SBOW taking a hit in recent action, down about -9% over the past week. Shares of the stock have powered higher over the past month, rallying roughly 13% in that time on strong overall action.
SilverBow Resources Inc (NYSE:SBOW) managed to rope in revenues totaling $69.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 181.2%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($2.1M against $101.9M, respectively).
Viking Energy Group Inc (OTC US:VKIN) is an emerging small-cap player in the oil and gas space with assets located in North America in Kansas, Missouri, Texas, Louisiana, and Mississippi. Viking also has firm financial backing from its majority owner, Camber Energy Inc (NYSEAMERICAN:CEI), which recently raised $15 million in non-toxic financing that is convertible well above current share pricing.
That suggests Viking has a lot of expansion opportunity here as well, which is a big factor in presenting the stock. Shares have started to heat up as it gets involved in carbon capture technology, which is a very nice addition to the narrative.
Viking Energy Group Inc (OTC US:VKIN), to expand on that point, recently entered into an Exclusive Intellectual Property License Agreement with ESG Clean Energy regarding ESG’s patent rights and know-how related to stationary electric power generation, including methods to utilize heat and capture carbon dioxide. This has the potential to catapult VKIN into a key position in the clean energy space.
According to the release, the ESG Clean Energy System is designed to generate clean electricity from internal combustion engines and utilize waste heat to capture ~ 100% of the carbon dioxide (CO2) emitted from the engine without loss of efficiency, and in a manner to facilitate the production of precious commodities (e.g., distilled/ de-ionized water; UREA (NH4); ammonia (NH3); ethanol; and methanol) for sale.
James Doris, President and Chief Executive Officer of Viking, commented, “In my view this transaction positions us as an industry leader in terms of being able to assist with the power generation needs of commercial and industrial organizations while at the same time helping them reduce their carbon footprint to satisfy regulatory requirements or to simply follow best ESG-practices. We are excited to be able to use the platform of Simson-Maxwell Ltd., our recently acquired majority-owned subsidiary, to promote the ESG Clean Energy System.”
Viking Energy Group Inc (OTC US:VKIN) is a small but growing oil play with improving financial metrics, and it should be taken seriously as a player in a space that could be heading for a major windfall. The company recently posted double-digit growth in revenues, current assets, and EBITDA for its calendar Q2, and its move to gain exposure to the carbon capture theme is likely to help it gain greater visibility, as evidenced by the stock’s recent 200% multi-week rally.
Callon Petroleum Company (NYSE:CPE) engages in the exploration, development, acquisition and production of oil and natural gas properties in the United States.
The company focuses on unconventional oil and natural gas reserves in the Permian Basin.
Callon Petroleum Company (NYSE:CPE) recently announced an agreement to acquire the leasehold interests and related oil, gas, and infrastructure assets of Primexx Energy Partners and its affiliates. Primexx is a private oil and gas operator in the Delaware Basin with a contiguous footprint of 35,000 net acres in Reeves County and second quarter 2021 net production of approximately 18,000 barrels of oil equivalent per day (“Boe/d”) (61% oil). The cash and stock transaction is valued at approximately $788 million, representing a headline purchase price multiple of approximately $43,800 per Boe/d, based on second quarter production.
Callon President and Chief Executive Officer Joe Gatto commented: “The Primexx transaction checks every operational and financial box on the list of compelling attributes of consolidation. The asset base adds substantial current oil production and a top-tier inventory to our Delaware portfolio, and fits squarely into our model of scaled, co-development of a multi-zone resource base. Our integrated, future development plans will benefit greatly from the combined Delaware scale and we expect to generate approximately 30% more adjusted free cash flow from the third quarter of 2021 through year-end 2023 under our conservative planning price assumptions. The infusion of over $550 million of equity from the acquisition and Kimmeridge’s exchange further heightens the overall benefits, immediately reducing leverage metrics and creating a visible path to net debt to adjusted EBITDA of below 2.0x next year.”
And the stock has been acting well over recent days, up something like 7% in that time. Shares of the stock have powered higher over the past month, rallying roughly 22% in that time on strong overall action.
Callon Petroleum Company (NYSE:CPE) managed to rope in revenues totaling $440.4M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 180.1%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($3.8M against $813.8M, respectively).
Other key stocks in the small-cap oil space include Range Resources Corp. (NYSE:RRC), Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), SM Energy Co (NYSE:SM), and VanEck Oil Services ETF (NYSEARCA:OIH).
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The post Get Ready for the Coming Oil Crisis (SBOW, VKIN, CPE, RRC, XOM, CVX, SM, CEI, OIH) appeared first on Wall Street PR.stocks pandemic etf small-cap otc commodities oil
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