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  • 11 high-yield dividend stocks that are Wall Street’s favorites for 2023

    11 high-yield dividend stocks that are Wall Street’s favorites for 2023

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    Investors love dividend stocks but there are different ways to look at them, including various “quality” approaches. Today we are focusing on high yields.

    A high dividend yield can be a warning that investors have lost confidence in a company’s ability to maintain its dividend payout. But there are always exceptions, some of which can be brought about by market events — some investors remain skeptical of energy stocks, for example, after so much pain before this year’s outstanding performance for the sector.

    Below is a screen of stocks that have high dividend yields and are favored by analysts. The screen has no financial quality filters.

    For investors who are interested in dividend stocks but wish to focus on quality and total returns, this recent look at the S&P Dividend Aristocrats (companies that have raised dividends consistently for many years) might be of interest. For those looking for income but also worried about dividend cuts, here is a list of stocks with dividend yields of at least 5% whose payouts are expected to be well-covered by free cash flow in 2023.

    If you are looking for higher yields with moderate risk, you should at also learn about funds that use covered-call option strategies to enhance income.

    Removing the filters for a high-yield dividend-stock screen

    For a broad screen of stocks with high dividend yields that are favored by analysts, we began with the S&P Composite 1500 Index
    SP1500,
    +1.42%
    ,
    which is made up of the S&P 500
    SPX,
    +1.42%
    ,
    the S&P 400 Mid Cap Index
    MID,
    +1.48%
    ,
    and the S&P 600 Small Cap Index
    SML,
    +1.49%
    .

    The S&P indexes exclude energy partnerships, so we added the 15 stocks held by the Alerian MLP ETF
    AMLP,
    +1.81%

    to the list. Energy partnerships tend to have high distribution yields, in part because they pass most earnings through to investors. But they also can make tax preparation more complicated. They can also be volatile as oil
    CL00,
    +2.96%

    CL00 and natural-gas
    NG00,
    +1.58%

    prices swing.

    The S&P indexes also exclude business development companies, or BDCs, so we expanded our initial screen to include the 24 stocks held by the VanEck BDC income ETF
    BIZD,
    +0.76%
    .
    BDCs are specialized leveraged lenders that make loans with high interest rates, mainly to middle-market companies. They often take equity stakes in the companies they lend to, for a venture-capital-type of investment style. The BDC space features several stocks with very high dividend yields, but is also known for volatility.

    You have been warned — this particular stock screen focuses only on high yields and favorable ratings among analysts working for brokerage firms. There is no look back at dividend cuts and no cash-flow analysis as featured in other dividend-stock articles. If you see anything of interest resulting from the screen, you need to do your own research to consider whether or not a long-term commitment to one or more of these companies is worth the risk as you seek high income.

    The screen

    Starting with the S&P Composite 1500 and the components of AMLP and BIZD, there are 68 stocks with dividend yields of at least 8%, according to data provided by FactSet.

    Among the 68 companies, 55 made the first screen, because they are covered by at least five analysts polled by FactSet.

    Among the 55 companies, 11 have “buy” or equivalent ratings among at least 70% of analysts.

    Here they are, ranked by upside potential implied by analysts’ consensus price targets:

    Company

    Ticker

    Dividend yield

    Share “buy” ratings

    Dec. 20 price

    Consensus price target

    Implied 12-month upside potential

    Energy Transfer LP

    ET,
    +2.35%
    9.08%

    95%

    $11.68

    $16.24

    39%

    Enterprise Products Partners LP

    EPD,
    +0.88%
    8.12%

    79%

    $23.39

    $31.69

    35%

    Barings BDC Inc.

    BBDC,
    11.67%

    86%

    $8.14

    $10.75

    32%

    Redwood Trust Inc.

    RWT,
    +2.70%
    13.45%

    80%

    $6.84

    $8.92

    30%

    Crestwood Equity Partners LP

    CEQP,
    +0.78%
    9.75%

    100%

    $26.86

    $35.00

    30%

    KKR Real Estate Finance Trust Inc.

    KREF,
    +1.38%
    11.90%

    71%

    $14.45

    $18.50

    28%

    Owl Rock Capital Corp.

    ORCC,
    +0.38%
    11.21%

    91%

    $11.78

    $14.73

    25%

    Sixth Street Specialty Lending Inc.

    TSLX,
    +1.89%
    10.48%

    82%

    $17.18

    $20.90

    22%

    Oaktree Specialty Lending Corp.

    OCSL,
    -0.37%
    9.97%

    100%

    $6.77

    $7.75

    14%

    Ares Capital Corp.

    ARCC,
    +1.22%
    10.45%

    93%

    $18.38

    $20.87

    14%

    BlackRock TCP Capital Corp.

    TCPC,
    +1.76%
    10.25%

    71.43%

    $12.49

    $14.00

    12%

    Source: FactSet

    One way to begin your own research into any company listed here is to click on the ticker for more information.

    You should also read Tomi Kilgore’s detailed guide to the wealth of information available free on the MarketWatch quote page.

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  • Adobe stock jumps after earnings beat, in-line annual forecast

    Adobe stock jumps after earnings beat, in-line annual forecast

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    Adobe Inc. shares rose in the extended session Thursday after the software company capped off its fiscal year by topping quarterly earnings expectations, and executives predicted the new fiscal year would play out close to Wall Street’s expectations.

    Adobe ADBE reported fiscal fourth-quarter net income of $1.18 billion, or $2.53 a share, compared with $1.23 billion, or $2.57 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $3.60 a share, compared with…

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  • Google vs. ChatGPT: Here’s what happened when I swapped services for a day

    Google vs. ChatGPT: Here’s what happened when I swapped services for a day

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    OpenAI logo seen on screen with ChatGPT website displayed on mobile seen in this illustration in Brussels, Belgium, on December 12, 2022.

    Jonathan Raa | Nurphoto | Getty Images

    You may have heard the recent buzz around ChatGPT, an artificial intelligence chatbot that was released to the public at the end of November. I’ve read about people using the service to write their school essays and I was curious as to how it could help me in my daily life.

    The technology was developed by OpenAI, a research company backed by Microsoft and others. ChatGPT automatically generates text based on written prompts in an advanced and creative way. It can even carry out a conversation that feels pretty close to one you’d have with a human being.

    related investing news

    CNBC Pro

    This got me wondering — is ChatGPT smart enough to change how we find information online? Could it someday replace Google and other search engines?

    Some Google employees are certainly worried about the possibility, At a company all-hands last week, CNBC’s Jen Elias reported, employees recently asked execs if an AI-chatbot like ChatGPT was a “missed opportunity” for the company.

    Alphabet CEO Sundar Pichai and Jeff Dean, the long-time head of Google’s AI division, responded by saying that the company has similar capabilities, but that the cost if something goes wrong would be greater because people have to trust the answers they get from Google.

    Morgan Stanley published a report on the topic on Monday, Dec. 12 examining whether ChatGPT is a threat to Google. Brian Nowak, the bank’s lead analyst on Alphabet, wrote that language models could take market share “and disrupt Google’s position as the entry point for people on the Internet.”

    However, Nowak said the firm is still confident in Google’s position because the company is continuing to improve search, and creating behavioral change is a huge hurdle — a lot of internet users use Google as a habit. Additionally, Google is “building similar natural language models such as LaMDA” which could find their way into new products.

    For now, OpenAI’s creators are cautious about making any big claims. Generally speaking, the more users employ ChatGPT, the better it gets. But it still has a lot to learn. OpenAI CEO Sam Altman said in a tweet on Dec. 10 that ChatGPT is “incredibly limited” and “it’s a mistake to be relying on it for anything important right now.”

    Either way, I wanted to see how well the chatbot would work as an alternative to Google’s search engine. Instead of Googling my questions throughout the day, I asked ChatGPT.

    Here are some of the questions I asked and how ChatGPT responded compared with Google.

    ChatGPT vs. Google

    It’s easy to sign up for ChatGPT — all you need is an email address. Once you’ve registered, the webpage is very simple to navigate. There’s an area where your results will populate and a text box where you’ll type your inquiries. OpenAI says to put in a statement for the best possible result.

    I recently purchased my second Fiddle Leaf Fern plant for my apartment because the first one died. Now the new one is dying after just a few days. I normally would have asked Google what to do.

    Instead, I asked ChatGPT. “How can I keep my Fiddle Leaf Fern plant alive?”

    The results lined up with the instructions I received from the plant company, Easy Plant, which is where I bought the new Fiddle Leaf Fern. I also liked that I didn’t have to go to various different websites like I would have if I’d Googled this question.

    When I Googled the same question, the top result gave me detailed instructions in an article that included pop-up ads and a way more information than I needed, like links to buy new soil.

    Winner: ChatGPT.

    Next, I tried something where more shopping links would actually have been beneficial. I am still trying to find a present for all 8 nights of Hanukkah for my husband, so I decided to ask ChatGPT for some ideas.

    I didn’t give it any information about my husband, besides the fact that the gifts were for Hanukkah. The chatbot then assumed that my husband is kosher and that he’s into tech and watches. The latter isn’t wrong, but it’s not the answers I was hoping for.

    When I Googled this question I got access to hundreds of articles with different gift ideas and links to websites. For example I got ads to Lululemon and Bombas, which are both companies I’ve used to buy him gifts before. So in this case, Google used its personalized knowledge of me to find more targeted results from around the web.

    Winner: Google

    Next, I decided to ask ChatGPT a question with higher stakes.

    “Is it safe to take Benadryl while pregnant?” I am currently expecting my first child, and I know that taking Benadryl is safe in pregnancy based on information I’ve received from my doctor. Still, I wanted to see what the chatbot would say.

    I appreciated that ChatGPT gave me the correct answer, while also noting the importance of consulting a doctor before taking any medications during pregnancy.

    When I Googled the same medical question, the results were all over the place. At quick glance, one article from TheBump.com quoted a doctor saying “Generally, it’s safe to take Benadryl in the first trimester.” While other results said similar information to what I received on ChatGPT, without the explicit warning to discuss with my healthcare provider (unless clicking into a specific link).

    Winner: ChatGPT

    Could it replace me?

    One of the claims (or concerns) around ChatGPT — and artificial intelligence in general — is that it will replace human workers.

    So I decided to see if ChatGPT could write this article for me.

    The results were pretty astonishing. Here’s what the chatbot said after I told it to “write an article about whether or not ChatGPT is a good alternative to Google as a search engine.”

    As a large language model trained by OpenAI, I am not capable of conducting research or browsing the internet to gather information on ChatGPT or other search engines. I am only able to provide information based on what I have been trained on, which is limited to the knowledge that was available up until my training cutoff date of 2021.

    With that being said, it is worth considering the potential advantages and disadvantages of using ChatGPT as a search engine compared to other options, such as Google. One potential advantage of using ChatGPT as a search engine is that it is able to provide more personalized and conversational results.

    Because ChatGPT is a language model, it is able to understand and respond to natural language queries, allowing users to ask questions and receive answers in a more intuitive and human-like way. This can make the search experience more engaging and interactive, and may be especially useful for users who have specific or complex information needs.

    On the other hand, there are also potential limitations to using ChatGPT as a search engine. Because it is a large language model and not a traditional search engine, ChatGPT may not have access to the same breadth and depth of information as other search engines. This means that it may not be able to provide as comprehensive or up-to-date results, and may not be as effective for certain types of searches, such as those that require a large amount of data or real-time information.

    In conclusion, whether or not ChatGPT is a good alternative to Google as a search engine will depend on the specific needs and preferences of the user. It may be a useful option for those who value a more personalized and conversational search experience, but it may not be as comprehensive or effective for certain types of searches. Ultimately, the decision to use ChatGPT or another search engine will depend on the individual user’s needs and preferences.

    What impressed me most about ChatGPT’s response is that it was pretty subjective and explained its limitations.

    The verdict

    ChatGPT’s value really lies in its ability to explain complicated topics as if you were talking to a human, and to do simple writing tasks.

    For example, I asked ChatGPT to explain concepts like the stock market and internet to me, and the responses were as if I was talking to an expert on the matter. Unlike the case on Google, I didn’t have to filter through unnecessary results.

    I also asked it to write a letter to my landlord asking for an early end to my lease, and I’d be happy sending the results directly to my landlord, almost word for word.

    On the other hand, Google knows more about us and tailors the results to our interests and behaviors. Google also acts as a gateway to the internet, leading users to a plethora of different websites with more information than one could possibly digest. That’s helpful if you want a range of voices, or if there’s no single simple answer to your question — like if you’re looking for gift suggestions.

    Google is also great for certain types of questions where it scours the web to provide a brief but simple answer right in line. For instance, if you search “Apple stock ticker” or “Cheap flights to Aruba,” it will show you a ticker chart with up-to-the-minute price info, or a calendar with the most likely cheapest days to fly and a dialog box that connects you to multiple web sites to shop for tickets on your chosen date. ChatGPT does not scan the internet for real-time information, and has only been trained on data through 2021, so it’s totally useless on these kinds of queries.

    And sometimes, ChatGPT is strangely close yet totally wrong. My editor asked it for the lyrics to “The Ballad of Dwight Fry” by Alice Cooper. It somehow knew the song was about a man having a mental breakdown, but then returned completely invented lyrics about that subject, rather than the actual lyrics. Google nailed it.

    Google is also incredibly reliable, thanks to the company’s massive operations budget and years of expertise. ChatGPT is still in testing and goes down from time to time.

    So I’ll definitely continue using Google for most of my search queries for now. But if I’m not happy with the results, now I have a useful alternative. And if I ever need to dash off an angry letter, ChatGPT could be a huge help there.

    The Rise of ChatGPT: Game changer or gimmick?

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  • Best stock picks for 2023: Here are Wall Street analysts’ most heavily favored choices

    Best stock picks for 2023: Here are Wall Street analysts’ most heavily favored choices

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    Following a sharp and sustained rise in interest rates, U.S. stocks have taken a broad beating this year.

    But 2023 may bring very different circumstances.

    Below are lists of analysts’ favorite stocks among the benchmark S&P 500
    SPX,
    the S&P 400 Mid Cap Index
    MID
    and the S&P Small Cap 600 Index
    SML
    that are expected to rise the most over the next year. Those lists are followed by a summary of opinions of all 30 stocks in the Dow Jones Industrial Average
    DJIA.

    Stocks rallied on Dec. 13 when the November CPI report showed a much slower inflation pace than economists had expected. Investors were also anticipating the Federal Open Market Committee’s next monetary policy announcement on Dec. 14. The consensus among economists polled by FactSet is for the Federal Reserve to raise the federal funds rate by 0.50% to a target range of 4.50% to 4.75%.

    Read: 5 things to watch when the Fed makes its interest-rate decision

    A 0.50% increase would be a slowdown from the four previous increases of 0.75%. The rate began 2022 in a range of zero to 0.25%, where it had sat since March 2020.

    A pivot for the Fed Reserve and the possibility that the federal funds rate will reach its “terminal” rate (the highest for this cycle) in the near term could set the stage for a broad rally for stocks in 2023.

    Wall Street’s large-cap favorites

    Among the S&P 500, 92 stocks are rated “buy” or the equivalent by at least 75% of analysts working for brokerage firms. That number itself is interesting — at the end of 2021, 93 of the S&P 500 had this distinction. Meanwhile, the S&P 500 has declined 16% in 2022, with all sectors down except for energy, which has risen 53%, and the utilities sector, which his risen 1% (both excluding dividends).

    Here are the 20 stocks in the S&P 500 with at least 75% “buy” or equivalent ratings that analysts expect to rise the most over the next year, based on consensus price targets:

    Company

    Ticker

    Industry

    Closing price – Dec. 12

    Consensus price target

    Implied 12-month upside potential

    Share “buy” ratings

    Price change – 2022 through Dec. 12

    EQT Corp.

    EQT Oil and Gas Production

    $36.91

    $59.70

    62%

    78%

    69%

    Catalent Inc.

    CTLT Pharmaceuticals

    $45.50

    $72.42

    59%

    75%

    -64%

    Amazon.com Inc.

    AMZN Internet Retail

    $90.55

    $136.02

    50%

    91%

    -46%

    Global Payments Inc.

    GPN Misc. Commercial Services

    $99.64

    $147.43

    48%

    75%

    -26%

    Signature Bank

    SBNY Regional Banks

    $122.73

    $180.44

    47%

    78%

    -62%

    Salesforce Inc.

    CRM Software

    $133.11

    $195.59

    47%

    80%

    -48%

    Bio-Rad Laboratories Inc. Class A

    BIO Medical Specialties

    $418.28

    $591.00

    41%

    100%

    -45%

    Zoetis Inc. Class A

    ZTS Pharmaceuticals

    $152.86

    $212.80

    39%

    87%

    -37%

    Delta Air Lines Inc.

    DAL Airlines

    $34.77

    $48.31

    39%

    90%

    -11%

    Diamondback Energy Inc.

    FANG Oil and Gas Production

    $134.21

    $182.33

    36%

    84%

    24%

    Caesars Entertainment Inc

    CZR Casinos/ Gaming

    $50.27

    $67.79

    35%

    81%

    -46%

    Alphabet Inc. Class A

    GOOGL Internet Software/ Services

    $93.31

    $125.70

    35%

    92%

    -36%

    Halliburton Co.

    HAL Oilfield Services/ Equipment

    $34.30

    $45.95

    34%

    86%

    50%

    Alaska Air Group Inc.

    ALK Airlines

    $45.75

    $61.08

    34%

    93%

    -12%

    Targa Resources Corp.

    TRGP Gas Distributors

    $70.42

    $93.95

    33%

    95%

    35%

    Charles River Laboratories International Inc.

    CRL Misc. Commercial Services

    $201.94

    $269.25

    33%

    88%

    -46%

    ServiceNow Inc.

    NOW Information Technology Services

    $401.64

    $529.83

    32%

    92%

    -38%

    Take-Two Interactive Software Inc.

    TTWO Software

    $102.61

    $135.04

    32%

    79%

    -42%

    EOG Resources Inc.

    EOG Oil and Gas Production

    $124.06

    $158.24

    28%

    82%

    40%

    Southwest Airlines Co.

    LUV Airlines

    $38.94

    $49.56

    27%

    76%

    -9%

    Source: FactSet

    Most of the companies on the S&P 500 list expected to soar in 2023 have seen large declines in 2022. But the company at the top of the list, EQT Corp.
    EQT,
    is an exception. The stock has risen 69% in 2022 and is expected to add another 62% over the next 12 months. Analysts expect the company’s earnings per share to double during 2023 (in part from its expected acquisition of THQ), after nearly a four-fold EPS increase in 2022.

    Shares of Amazon.com Inc.
    AMZN
    are expected to soar 50% over the next year, following a decline of 46% so far in 2022. If the shares were to rise 50% from here to the price target of $136.02, they would still be 18% below their closing price of 166.72 at the end of 2021.

    Read: Here’s why Amazon is Citi’s top internet stock idea

    You can see the earnings estimates and more for any stock in this article by clicking on its ticker.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    Mid-cap stocks expected to rise the most

    The lists of favored stocks are limited to those covered by at least five analysts polled by FactSet.

    Among components of the S&P 400 Mid Cap Index, there are 84 stocks with at least 75% “buy” ratings. Here at the 20 expected to rise the most over the next year:

    Company

    Ticker

    Industry

    Closing price – Dec. 12

    Consensus price target

    Implied 12-month upside potential

    Share “buy” ratings

    Price change – 2022 through Dec. 12

    Arrowhead Pharmaceuticals Inc.

    ARWR Biotechnology

    $31.85

    $69.69

    119%

    83%

    -52%

    Lantheus Holdings Inc.

    LNTH Medical Specialties

    $54.92

    $102.00

    86%

    100%

    90%

    Progyny Inc.

    PGNY Misc. Commercial Services

    $31.21

    $55.57

    78%

    100%

    -38%

    Coherent Corp.

    COHR Electronic Equipment/ Instruments

    $35.41

    $60.56

    71%

    84%

    -48%

    Exelixis Inc.

    EXEL Biotechnology

    $16.08

    $26.07

    62%

    81%

    -12%

    Darling Ingredients Inc.

    DAR Food: Specialty/ Candy

    $61.17

    $97.36

    59%

    93%

    -12%

    Perrigo Co. PLC

    PRGO Pharmaceuticals

    $31.83

    $49.25

    55%

    100%

    -18%

    Mattel Inc.

    MAT Recreational Products

    $17.39

    $26.58

    53%

    87%

    -19%

    ACI Worldwide Inc.

    ACIW Software

    $20.75

    $31.40

    51%

    83%

    -40%

    Topgolf Callaway Brands Corp.

    MODG Recreational Products

    $21.99

    $32.91

    50%

    83%

    -20%

    Dycom Industries Inc.

    DY Engineering and Construction

    $86.03

    $128.13

    49%

    100%

    -8%

    Travel + Leisure Co.

    TNL Hotels/ Resorts/ Cruiselines

    $37.98

    $56.00

    47%

    75%

    -31%

    Frontier Communications Parent Inc.

    FYBR Telecommunications

    $25.21

    $36.18

    44%

    82%

    -15%

    Manhattan Associates Inc.

    MANH Software

    $120.06

    $171.80

    43%

    88%

    -23%

    MP Materials Corp Class A

    MP Other Metals/ Minerals

    $31.39

    $44.79

    43%

    92%

    -31%

    Lumentum Holdings Inc.

    LITE Electrical Products

    $54.45

    $76.44

    40%

    76%

    -49%

    Tenet Healthcare Corp.

    THC Hospital/ Nursing Management

    $44.22

    $62.00

    40%

    80%

    -46%

    Repligen Corp.

    RGEN Pharmaceuticals

    $166.88

    $233.10

    40%

    82%

    -37%

    STAAR Surgical Co.

    STAA Medical Specialties

    $59.57

    $82.67

    39%

    82%

    -35%

    Carlisle Cos. Inc.

    CSL Building Products

    $251.99

    $348.33

    38%

    75%

    2%

    Source: FactSet

    Wall Street’s favorite small-cap names

    Among companies in the S&P Small Cap 600 Index, 91 are rated “buy” or the equivalent by at least 75% of analysts. Here are the 20 with the highest 12-month upside potential indicated by consensus price targets:

    Company

    Ticker

    Industry

    Closing price – Dec. 12

    Consensus price target

    Implied 12-month upside potential

    Share “buy” ratings

    Price change – 2022 through Dec. 12

    UniQure NV

    QURE Biotechnology

    $22.99

    $51.29

    123%

    95%

    11%

    Cara Therapeutics Inc.

    CARA Biotechnology

    $11.34

    $23.63

    108%

    88%

    -7%

    Vir Biotechnology Inc.

    VIR Biotechnology

    $25.50

    $53.00

    108%

    75%

    -39%

    Dynavax Technologies Corp.

    DVAX Biotechnology

    $11.22

    $23.20

    107%

    100%

    -20%

    Thryv Holdings Inc.

    THRY Advertising/ Marketing Services

    $18.40

    $36.75

    100%

    100%

    -55%

    Artivion Inc.

    AORT Medical Specialties

    $12.93

    $23.13

    79%

    83%

    -36%

    Cytokinetics Inc.

    CYTK Pharmaceuticals

    $38.33

    $67.43

    76%

    100%

    -16%

    Harsco Corp.

    HSC Environmental Services

    $7.17

    $12.30

    72%

    80%

    -57%

    Ligand Pharmaceuticals Inc.

    LGND Pharmaceuticals

    $64.80

    $110.83

    71%

    100%

    -35%

    Corcept Therapeutics Inc.

    CORT Pharmaceuticals

    $20.84

    $34.20

    64%

    80%

    5%

    Payoneer Global Inc.

    PAYO Misc. Commercial Services

    $5.70

    $9.33

    64%

    100%

    -22%

    Xencor Inc.

    XNCR Biotechnology

    $28.69

    $46.71

    63%

    93%

    -28%

    Pacira Biosciences Inc.

    PCRX Pharmaceuticals

    $45.50

    $72.90

    60%

    80%

    -24%

    BioLife Solutions Inc.

    BLFS Chemicals

    $19.72

    $31.38

    59%

    89%

    -47%

    Customers Bancorp Inc.

    CUBI Regional Banks

    $30.00

    $47.63

    59%

    75%

    -54%

    ModivCare Inc.

    MODV Other Transportation

    $92.22

    $145.83

    58%

    100%

    -38%

    Stride Inc.

    LRN Consumer Services

    $32.56

    $51.25

    57%

    100%

    -2%

    Ranger Oil Corp. Class A

    ROCC Oil and Gas Production

    $36.98

    $58.00

    57%

    100%

    37%

    Outfront Media Inc.

    OUT Real Estate Investment Trusts

    $17.59

    $27.00

    53%

    83%

    -34%

    Walker & Dunlop Inc.

    WD Finance/ Rental/ Leasing

    $82.22

    $125.20

    52%

    100%

    -46%

    Source: FactSet

    The Dow

    Here are all 30 components of the Dow Jones Industrial Average ranked by how much analysts expect their prices to rise over the next year:

    Company

    Ticker

    Industry

    Closing price – Dec. 12

    Consensus price target

    Implied 12-month upside potential

    Share “buy” ratings

    Price change – 2022 through Dec. 12

    Salesforce Inc.

    CRM Software

    $133.11

    $195.59

    47%

    80%

    -48%

    Walt Disney Co.

    DIS Movies/ Entertainment

    $94.66

    $119.60

    26%

    82%

    -39%

    Apple Inc.

    AAPL Telecommunications Equipment

    $144.49

    $173.70

    20%

    74%

    -19%

    Verizon Communications Inc.

    VZ Telecommunications

    $37.95

    $44.60

    18%

    21%

    -27%

    Visa Inc. Class A

    V Misc.s Commercial Services

    $214.59

    $249.33

    16%

    86%

    -1%

    Microsoft Corp.

    MSFT Software

    $252.51

    $293.06

    16%

    91%

    -25%

    Chevron Corp.

    CVX Integrated Oil

    $169.75

    $191.20

    13%

    54%

    45%

    Cisco Systems Inc.

    CSCO Information Technology Services

    $49.30

    $53.76

    9%

    44%

    -22%

    UnitedHealth Group Inc.

    UNH Managed Health Care

    $545.86

    $593.30

    9%

    85%

    9%

    Goldman Sachs Group Inc.

    GS Investment Banks/ Brokers

    $363.18

    $392.63

    8%

    59%

    -5%

    Walmart Inc.

    WMT Specialty Stores

    $148.02

    $159.86

    8%

    72%

    2%

    JPMorgan Chase & Co.

    JPM Banks

    $134.21

    $143.84

    7%

    59%

    -15%

    Home Depot Inc.

    HD Home Improvement Chains

    $327.98

    $346.61

    6%

    61%

    -21%

    American Express Co.

    AXP Finance/ Rental/ Leasing

    $157.31

    $164.57

    5%

    43%

    -4%

    McDonald’s Corp.

    MCD Restaurants

    $276.62

    $288.67

    4%

    72%

    3%

    Johnson & Johnson

    JNJ Pharmaceuticals

    $177.84

    $185.35

    4%

    36%

    4%

    Coca-Cola Co.

    KO Beverages: Non-Alcoholic

    $63.97

    $66.62

    4%

    73%

    8%

    Boeing Co.

    BA Aerospace and Defense

    $186.27

    $192.69

    3%

    77%

    -7%

    Intel Corp.

    INTC Semiconductors

    $28.69

    $29.54

    3%

    13%

    -44%

    Walgreens Boots Alliance Inc.

    WBA Drugstore Chains

    $41.06

    $42.24

    3%

    17%

    -21%

    Merck & Co. Inc.

    MRK Pharmaceuticals

    $108.97

    $110.62

    2%

    65%

    42%

    Caterpillar Inc.

    CAT Trucks/ Construction/ Farm Machinery

    $233.06

    $236.23

    1%

    41%

    13%

    Honeywell International Inc.

    HON Aerospace and Defense

    $214.50

    $217.35

    1%

    54%

    3%

    Nike Inc. Class B

    NKE Apparel/ Footwear

    $112.07

    $112.58

    0%

    64%

    -33%

    3M Co.

    MMM Industrial Conglomerates

    $126.85

    $127.30

    0%

    5%

    -29%

    Procter & Gamble Co.

    PG Household/ Personal Care

    $152.47

    $150.22

    -1%

    59%

    -7%

    Travelers Companies Inc.

    TRV Multi-Line Insurance

    $187.11

    $184.24

    -2%

    18%

    20%

    Amgen Inc.

    AMGN Biotechnology

    $276.78

    $264.79

    -4%

    24%

    23%

    Dow Inc.

    DOW Chemicals

    $51.11

    $48.73

    -5%

    15%

    -10%

    International Business Machines Corp.

    IBM Information Technology Services

    $149.21

    $140.29

    -6%

    33%

    12%

    Source: FactSet

    Don’t miss: 10 Dividend Aristocrat stocks expected by analysts to rise up to 54% in 2023

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  • Oracle’s Cloud Business Is Still Growing

    Oracle’s Cloud Business Is Still Growing

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    Oracle


    shares were moving higher late Monday after the company posted better-than-expected financial results for its latest quarter. The enterprise software giant continued to see success in shifting more of its business to the cloud during the period.

    “Simply put, we had an outstanding quarter,” Oracle CEO Safra Catz said on a call with analysts. “More and more customers are recognizing our second generation infrastructure cloud as being better architected for higher performance, better security and unmatched reliability” than other cloud providers.

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  • Oracle stock rises as earnings and revenue beat, but forecast is still to come

    Oracle stock rises as earnings and revenue beat, but forecast is still to come

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    Oracle Corp. topped Wall Street’s expectations for profit and revenue in its most recent quarter, though the software company is still expected to issue a forecast that could be more fraught.

    Oracle
    ORCL,
    +1.78%

    on Monday reported fiscal second-quarter net income of $1.74 billion, or 63 cents a share, on revenue of $12.28 billion, up from $10.36 billion a year ago. After adjusting for stock-based compensation and other costs, Oracle reported earnings of $1.21 a share, even with the same quarter a year ago.

    Analysts on average expected adjusted earnings of $1.17 a share on sales of $11.96 billion, according to FactSet. Oracle shares gained nearly 3% in after-hours trading immediately after the results were announced, following a 1.8% increase to $81.29 in regular trading.

    Oracle executives did not provide guidance for the fiscal third quarter in Monday’s announcement, but Chief Executive Safra Catz does typically provide a forecast in their conference call, which is scheduled for 5 p.m. Eastern time. Those numbers are likely to affect earnings more than the results, as concerns about an increasing slowdown in business spending have rocked a swath of software companies in recent weeks.

    “We believe the darkest days of this downturn are ahead of us,” Monness Crespi Hardt analyst Brian J. White wrote in a preview of Oracle results, later adding that “results across Big Tech, the leading public clouds, and the enterprise software complex paint an increasingly concerning picture for the software world heading into 2023.”

    Oracle stock has outperformed the S&P 500 index
    SPX,
    +1.43%

    since executives hosted an event for financial analysts and investors in October, with shares gaining 4.8% in the past three months while the larger index fell 3.9%. Oracle executives promised to grow adjusted earnings by more than 10% every year as revenue growth accelerates, after years of stagnant sales growth led to large share repurchases and constant cuts to improve the software company’s bottom line.

    Oracle is experiencing strong revenue growth thanks to the acquisition of healthcare-focused company Cerner, a $28 billion deal that closed in June. There are hopes for organic growth as well, though, as Oracle’s cloud-computing effort starts to show fruit, including winning part of a recent Defense Department contract after suing to halt an earlier version of that award.

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  • FTC sues to block Microsoft’s $69 billion acquisition of game giant Activision Blizzard

    FTC sues to block Microsoft’s $69 billion acquisition of game giant Activision Blizzard

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    The Federal Trade Commission on Thursday sued Microsoft Corp. to block its $69 billion deal to buy Activision Blizzard Inc.

    The acquisition, which would be Microsoft’s
    MSFT,
    +1.07%

    largest and the biggest ever in the video gaming industry, would “enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business,” the FTC claimed.

    “Microsoft has already shown that it can and will withhold content from its gaming rivals,” Holly Vedova, director of the FTC’s Bureau of Competition, said in a statement. “Today we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”

    FTC members pointed to Microsoft’s record of “acquiring and using valuable gaming content to suppress competition from rival consoles,” including its acquisition of ZeniMax, parent company of Bethesda Softworks.

    Microsoft President Brad Smith indicated the software giant will fight the lawsuit. In a statement, he said Microsoft has “been committed since Day One to addressing competition concerns.”

    “While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court,” Smith said.

    Activision CEO Bobby Kotick, in a statement, said the suit “sounds alarming, so I want to reinforce my confidence that this deal will close. The allegation that this deal is anti-competitive doesn’t align with the facts, and we believe we’ll win this challenge.”

    Still, In recent weeks Microsoft has taken steps to demonstrate to regulators its acquisition of Activision would not give it an unfair advantage in the gaming market. On Tuesday, Microsoft said it would bring the “Call of Duty” franchise to Nintendo Co.’s
    7974,
    -1.31%

    Switch, a rival of Microsoft Xbox, and Microsoft has said it would make Call of Duty available on rival Sony Group Corp.’s
    SONY,
    -0.06%

    PlayStation.

    “It’s a bad idea,” Geoffrey Manne, president of the International Center for Law and Economics, said of the FTC’s lawsuit vs. Microsoft. “There may be markets in which some activities of some of these large tech companies cause concerns, but when they are expanding into new markets or enhancing competition in markets where they aren’t leaders, we should be encouraging them, not threatening them with lawsuits.”

    The government’s action in administrative court marks the first serious regulatory threat to Microsoft’s business in more than two decades, when the Justice Department brought a landmark antitrust lawsuit against the software giant that took years and was settled in 2002. Since then, Microsoft had sidestepped antitrust scrutiny and Smith in particular has focused the glare on its tech rivals Amazon.com Inc.
    AMZN,
    +2.24%
    ,
    Apple Inc.
    AAPL,
    +1.19%
    ,
    Alphabet Inc.’s
    GOOGL,
    -0.94%

     
    GOOG,
    -0.89%

    Google, and Facebook parent company Meta Platforms Inc.
    META,
    +1.26%
    .

    Read more: Microsoft’s shadowy presence in antitrust push is angering the rest of Big Tech

    Shares of Microsoft are up 1% in trading Thursday. Activision’s
    ATVI,
    -1.33%

    stock is down 1.5%.

    The FTC’s lawsuit comes the same day it is heading to court in San Jose, Calif., in what is expected to be a three-week trial to bloc Meta’s $300 million acquisition of VR fitness app maker Within.

    The trial is likely to showcase an intriguing look at the agency’s ability to stifle alleged anticompetitive conduct using largely untested legal theories at a time when Congress is sitting on tech antitrust legislation.

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  • Microsoft says it has reached a 10-year deal to bring ‘Call of Duty’ to Nintendo | CNN Business

    Microsoft says it has reached a 10-year deal to bring ‘Call of Duty’ to Nintendo | CNN Business

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    New York
    CNN Business
     — 

    Fans of the popular first-person shooter game “Call of Duty” may soon have more options for where they can play it.

    Microsoft said late Tuesday it has reached a 10-year deal to bring the 19-year-old game franchise to Nintendo after its acquisition of Activision Blizzard, which makes the game, is completed. The deal is pending regulatory approval.

    The news came one day after Microsoft president Brad Smith wrote in a Wall Street Journal opinion piece that the Redmond, Washington-based company offered a 10-year contract for “Call of Duty” to work with Sony’s PlayStation console. (Microsoft reportedly made another offer earlier this year). Sony did not immediately respond to a request for comment.

    The Nintendo deal is the latest attempt by Microsoft to ease concerns that its blockbuster acquisition of the gaming giant could harm competition in the industry.

    Microsoft announced plans to acquire Activision Blizzard in January in a deal valued at nearly $70 billion, which would be one of the biggest ever in the tech industry. The move could boost Microsoft’s standing in the gaming industry, as its Xbox console trails behind Sony’s PlayStation and the Nintendo Switch.

    Microsoft head of gaming Phil Spencer announced the commitment with Nintendo in a tweet and said it will continue to offer “Call of Duty” on gaming platform Steam if the deal is completed. “Microsoft is committed to helping bring more games to more people – however they choose to play,” he said.

    The company’s decision to bring “Call of Duty” to Nintendo comes as Microsoft’s Activision deal faces regulatory scrutiny on both sides of the Atlantic. The US Federal Trade Commission reportedly plans to sue Microsoft to block the Activision acquisition.

    But Smith this week defended the strategy, saying a block of the deal would be “a huge mistake.”

    “It would hurt competition, consumers and thousands of game developers,” he wrote in the Wall Street Journal.

    He argued that Microsoft faces “huge challenges” in the gaming industry, and the potential acquisition of Activision Blizzard could allow Microsoft to compete against these companies “through innovation that would benefit consumers.”

    Microsoft also wants to offer the option for customers to subscribe to a cloud gaming service that lets them stream a variety of games on multiple devices for a “reasonable” fee, Smith said. The company is open to providing the same commitment to other platforms, which would be legally enforceable by regulators in the United States, the United Kingdom and the European Union.

    According to Eric Abbruzzese, an analyst at ABI Research, the effort to open up access to its games shows Microsoft is “scrambling” to overcome regulatory hurdles.

    “If the offer helps the deal finalize, then that is a huge win that flies under the radar with ‘Call of Duty’ in the headlines,” he said. “But offering a single entity for a limited time would not be enough to circumvent regulation, as it is temporary and narrow in scope.”

    “Call of Duty” is arguably the most popular game title today, so the impact to consumers is notable. As of 2020, the game had topped 250 million downloads worldwide, according to data from SensorTower, an analytics firm that tracks app downloads.

    “Nintendo is not a high priority for ‘Call of Duty,’ all things considered – it has done perfectly fine without being on Nintendo recently,” Abbruzzese added. “Keeping it on Steam for the PC market is significant though, and obviously if this offer convinces Sony to accept as well, that’s gigantic.”

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  • Microsoft to bring ‘Call of Duty’ to Nintendo if Activision merger approved

    Microsoft to bring ‘Call of Duty’ to Nintendo if Activision merger approved

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    Microsoft Corp. said late Tuesday it has made a “10-year commitment” to bring the massively popular “Call of Duty” videogame series to Nintendo Co. consoles, when — and if — its merger with Activision Blizzard Inc. is completed.

    In a tweet late Tuesday night, Xbox head Phil Spencer announced the deal. “Microsoft is committed to helping bring more games to more people – however they choose to play,” he said, adding: “I’m also pleased to confirm that Microsoft has committed to continue to offer Call of Duty on @Steam simultaneously to Xbox after we have closed the merger with Activision Blizzard King.”

    Microsoft is awaiting federal approval of its $68.7 billion acquisition of Activision.

    A deal to share one of Activision’s
    ATVI,
    -0.29%

    most lucrative videogame titles could appease some antitrust concerns from regulators. Spencer told Bloomberg News that a similar offer had been extended to rival Sony Corp.
    SONY,
    -2.62%

    for its PlayStation consoles, but said that offer had so far been rebuffed.

    A “Call of Duty” title has not been available on Nintendo since 2013.

    In an interview with the Washington Post published Tuesday, Spencer said there was no Nintendo “Call of Duty” release date set yet, but that if the merger closes — it has a June 2023 target date — future “Call of Duty” games would be released for all platforms at once. “Once we get into the rhythm of this, our plan would be that when [a Call of Duty game] launches on PlayStation, Xbox, and PC, that it would also be available on Nintendo at the same time,” he told the Post.

    Nintendo shares
    7974,
    +0.33%

    rose slightly in Tokyo trading following the news. Microsoft shares
    MSFT,
    -2.03%

    fell Monday, and are down 17% year to date, compared to the S&P 500’s
    SPX,
    -1.44%

    17% decline this year.

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  • $3,000 gold and more outrageous market predictions investors shouldn’t brush aside.

    $3,000 gold and more outrageous market predictions investors shouldn’t brush aside.

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    Monday served as another smackdown for investors who are banking on a Goldilocks economy and a less aggressive Fed.

    Some are now not ruling out a Grinch-like turn from the central bank — a 0.75% hike next week instead of the 0.50% markets have been pinning hopes on — following strong data on services, jobs and wages.

    It all goes along with the theme of 2022 — expect the unexpected. The relief of moving out of a crippling pandemic was quickly replaced by the biggest war on Europe’s shores in decades, that sparked worldwide inflation surges.

    What comes next is anyone’s guess and that brings us to our call of the day via Saxo Bank’s annual “Outrageous Predictions” for 2023.

    While some of these will sound crazy, note that the Saxo team, led by Chief Investment Officer Steen Jakobsen, have nailed a few wild prophecies in the past decade. Those include: a Brexit prediction in 2015, a 25% drop for the S&P 500 from its 2007 high in 2008, a tripling of Bitcoin’s value forecast in 2017.

    The focus for 2023’s prediction is that “a return to the disinflationary prepandemic dynamic is impossible because we have entered into a global war economy, with every major power across the world now scrambling to shore up their national security on all fronts; whether in an actual military sense, or due to profound supply-chain, energy and even financial insecurities that have been laid bare by the pandemic experience and Russia’s invasion of Ukraine,” says Jakobsen.

    As for those predictions, here we go:

    • Gold crosses $2,075 then rockets to $3,000 on unstoppable inflation. “Fed policy tightening and quantitative tightening drives a new snag in U.S. treasury markets that forces new sneaky ‘measures’ to contain Treasury market volatility that really amounts to new de facto quantitative easing,” says Saxo. And China’s end of zero-COVID drives up demand, commodity prices and inflation.

    • Widespread price controls to cap official inflation due to war economy mentality. “In 2023, expect broadening price and even wage controls, maybe even something like a new National Board for Prices and Incomes being established in the U.K. and the U.S.,” said Saxo. Market fallout? Fuel for gold’s
      GC00,
      +0.19%

      climb.

    • There’s a new reserve asset in town. Non U.S.-allied countries move away from the U.S. and IMF to create an “international clearing union (ICU) and a new reserve asset, called the Bancor (currency code KEY)” that borrows from economist John Maynard Keynes idea of resisting U.S. power over the international monetary system. Nonaligned central banks slash U.S. dollar reserves, Treasury yields soar and the dollar
      DXY,
      +0.09%

      drops 25% against a basket of currencies that trade with Bancor.

    • Japan pegs USDJPY to 200. Pressure intensifies on the already weak yen
      USDJPY,
      +0.04%

      into 2023 as currency intervention fails and inflation soars. The government resets the financial system, erasing all debt, recapitalizing banks, as trillions of yen return to Japan shores. But the yen still weakens by year-end.

    • A $10 trillion-dollar Manhattan project. A team of major tech leaders form a mega research-and-development effort for energy infrastructure and ground-breaking technologies — the Third Stone. Companies tied to the project soar in an overall weak environment for investing.

    • Tax haven ban kills private equity. The OECD launches a full ban on the biggest tax havens in the world in 2023 and in the U.S., carried interest tax as capital gains is shifted to ordinary income. It’s a body blow for private equity and venture capital — the valuation of publicly listed private-equity firms fall 50%.

    The rest of their predictions are here, such as the formation of an EU Armed Forces in 2023 and an “UnBrexit” referendum.

    Read: Why Monday’s stock-market rout should be a wake up call for investors

    The markets

    MarketWatch

    Stocks
    DJIA,
    -0.96%

     
    SPX,
    -1.40%

     
    COMP,
    -1.77%

    are drifting into the red, with Treasury yields
    TMUBMUSD10Y,
    3.571%

     
    TMUBMUSD02Y,
    4.395%

    steady, the dollar
    DXY,
    +0.09%

    lower and oil
    CL.1,
    -3.43%

     
    BRN00,
    -3.73%

    also down.

    For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.

    The buzz

    BioVie stock
    BIVI,
    -18.43%

    is climbing after positive results from the clinical-stage biopharmaceutical company on a drug for Parkinson’s and Alzheimer’s.

    NRG Energy
    NRG,
    -15.79%

    agreed to buy Vivint Smart Home
    VVNT,
    +32.31%

    in a $5.2 billion deal. Vivint shares are soaring.

    MEI Pharma
    MEIP,
    -33.52%

    shares are tumbing after drugmaker said it would stop developing cancer treatment zandelisib outside of Japan and announces job cuts. Herbalife shares
    HLF,
    -18.85%

    are down 10% after an offering of convertible notes 

    Powell Industries
    POWL,
    +19.11%

    stock is up 9% after the electrical equipment maker’s well-received results and new orders. Within software Sumo Logic
    SUMO,
    +11.65%

    and GitLab shares
    GTLB,
    +5.71%

    are surging on upbeat results and forecasts.

    Layoffs extending beyond tech? PepsiCo 
    PEP,
    -0.86%

    is reportedly cutting hundreds of workers at its North American headquarters.

    Home builder Toll Brothers
    TOL,
    -1.56%

    will report results after the close.

    The October trade deficit jumped 5.4% to $78,2 billion.

    The U.S. and EU are reportedly considering fresh steel and aluminum tariffs on China to fight carbon emissions.

    Best of the web

    “Nothing to be glad about.” An empty, lonely and cold formerly occupied Ukraine city.

    Morocco’s World Cup team leans on its secret weapon of parents in the stands.

    Why human composting could be the next big thing.

    The chart

    Headed into the holidays, consumers are using savings and credit, says a team of Jefferies analysts led by Corey Tarlowe. “The savings rate continues to trend lower and credit card balances are growing +15% Y/Y. We believe these trends indicate that the consumer is stretched.”

    Against this backdrop, they like Costco
    COST,
    -1.34%
    ,
    Dollar General
    DG,
    -1.52%
    ,
    Target
    TGT,
    +0.13%

    and Walmart
    WMT,
    -0.98%
    .


    FactSet/Jefferies

    The tickers

    These were the top-searched tickers on MarketWatch at 6 a.m.:

    Ticker

    Security name

    TSLA,
    -2.00%
    Tesla

    GME,
    -5.32%
    GameStop

    AMC,
    -9.00%
    AMC Entertainment

    NIO,
    +2.37%
    NIO

    BBBY,
    -8.86%
    Bed Bath & Beyond

    AAPL,
    -1.83%
    Apple

    APE,
    -5.40%
    AMC Entertainment Holdings preferred shares

    COSM,
    -17.49%
    Cosmos

    AMZN,
    -2.26%
    Amazon.com

    MULN,
    -3.08%
    Mullen Automotive

    Random reads

    Tributes pour after “Cheers” star Kirstie Alley dies at 71.

    Happy 190th birthday to the world’s oldest tortoise.

    A green Grinchy dog for Christmas? Not everyone’s heart grew three sizes.

    Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

    Listen to the Best New Ideas in Money podcast with MarketWatch reporter Charles Passy and economist Stephanie Kelton

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  • Digitunity Report Identifies Need for Computers to Address Rural America’s Digital Divide

    Digitunity Report Identifies Need for Computers to Address Rural America’s Digital Divide

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    A new report examines the technology gap in rural areas and identifies ways communities can spur computer donations.

    Press Release


    Dec 5, 2022 08:00 EST

    Rural areas in the U.S. struggle to provide residents with broadband internet access and the computers needed to maximize the benefits of online educational and economic resources. Digitunity, a non-profit organization committed to ending the digital divide, has released a commissioned report on the potential causes and solutions to the rural digital divide. 

    “We know the digital divide has few boundaries,” said Scot Henley, executive director of Digitunity. “It exists in large coastal cities and small towns in America’s heartland. It affects people across demographics. With this report, we now know more about why that divide exists and how communities can resolve it.”

    Areas with substantial internet access and usage typically have higher levels of economic and community development in comparison to those with lower levels of use. The Infrastructure Investment and Jobs Act, passed in late 2021, dedicated an unprecedented amount of federal funding toward increasing broadband availability and adoption in less connected areas.

    Digitunity’s report, written by Oklahoma State University professor Brian E. Whitacre, discusses the direct correlation between internet access and rural economic development. It also looks in depth at the issue of device ownership, focusing on nationwide access and usage of large-screen devices recognized as superior to smartphones in the digital equity space. 

    The three major segments of the report, titled “Status Quo,” “Supply,” and “Support,” cover the socio-demographics impacted, as well as the supply chain processes and support networks working to resolve the digital divide rural communities face. The report’s findings align with Digitunity’s mission and focus on partnership networks. 

    “Since its inception, Digitunity has operated on the belief that community-based organizations are essential to ending the digital divide,” Henley said. “This report clearly defines the problems facing rural communities and how they can work with organizations like Digitunity to foster the solutions to those problems.”

    To learn more about Digitunity’s mission to eliminate the digital divide in both rural and urban communities, please visit digitunity.org.  

    About Digitunity
    Since the 1980s, Digitunity has advanced digital inclusion by connecting donors of technology with organizations serving people in need. Our mission is to ensure everyone who needs a computer has one, along with robust internet connectivity and digital literacy skills. To learn more about our mission, please visit digitunity.org.

    Source: Digitunity

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  • Foxconn says it’s restoring production at the world’s largest iPhone factory | CNN Business

    Foxconn says it’s restoring production at the world’s largest iPhone factory | CNN Business

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    Hong Kong
    CNN Business
     — 

    Apple supplier Foxconn says it is “gradually” restoring production capacity at its sprawling campus in central China, which has been hit by Covid-19 restrictions and worker protests since October.

    The “epidemic situation” at the facility, known as iPhone City and normally home to hundreds of thousands of workers, has been brought under control, the Taiwanese contract manufacturer said in a statement on Monday.

    “We have also started to recruit new employees, and are gradually moving toward the direction of restoring production capacity to normal,” it said, adding that the outlook for the fourth quarter was expected to be in line with market consensus.

    Foxconn did not provide further details. Its executives were quoted as telling Reuters that full production would resume between late December and early January.

    The ongoing supply disruptions at Foxconn’s campus in the city of Zhengzhou were costing Apple roughly $1 billion a week in lost iPhone sales, Daniel Ives, an analyst at Wedbush Securities, had told CNN Business. He estimates that Apple is short of between 10 million and 15 million iPhones in the vital holiday shopping season.

    The troubles started in October when workers left the campus because of concerns about working conditions and shortages of food. Short on staff, bonuses were offered to workers to return.

    But protests broke out last month when newly-hired staff said management had reneged on their promises. Workers clashed with security officers, before the company eventually offered them cash to quit and leave.

    Analysts said the production woes at iPhone City would speed up the pace of Apple’s supply chain diversification away from China.

    In recent weeks, according to The Wall Street Journal, Apple

    (AAPL)
    has accelerated plans to shift some of its production outside China. It was reportedly telling suppliers to plan more actively for assembling Apple

    (AAPL)
    products elsewhere in Asia, particularly India and Vietnam.

    Apple did not immediately respond to a request for comment.

    “The shift out of China will not be easy and come with clear logistical, engineering, and infrastructure hurdles as the aggressive move to India and Vietnam now begins with the Apple ecosystem alerted,” Ives wrote in a research report on Sunday.

    If Apple moves aggressively, more than 50% of iPhone production could come from India and Vietnam by the 2025/2026 fiscal year, versus the single-digit percentage currently, he added.

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  • Apple, Alibaba, NIO, and More Stock Market Movers Monday

    Apple, Alibaba, NIO, and More Stock Market Movers Monday

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    Stock futures traded lower Monday as investors remained keyed on interest rate policy from the Federal Reserve and as a surge in China stocks over a loosening of Covid-19 restrictions in the country failed to boost U.S. equities.

    Here are some stocks that could make moves Monday:

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  • Forget smartwatches, consumers are snapping up these quirky alternatives | CNN Business

    Forget smartwatches, consumers are snapping up these quirky alternatives | CNN Business

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    CNN
     — 

    In 2015, the same year Apple introduced its smartwatch, a Kickstarter campaign launched for a very different kind of wearable device: a wellness-tracking ring called the Oura.

    Seven years later, the Apple Watch is the most popular wearable device while other similar products from Google and Samsung also dominate the wearables market. But something notable is underway: products like Oura, which look and sometimes function markedly different from more mainstream wearables, are gaining renewed traction.

    The Oura ring ($399) experienced a spike in sales during the pandemic, and has seen continued momentum this holiday season, CEO Tom Hale told CNN Business. It provides sleep tracking data without needing to wear a smartwatch to bed and can detect subtle changes in body temperature. It also has no screen. Earlier this year, the company announced it had received a $2.55 billion valuation and has since rolled out partnerships with Gucci, Strava and other brands.

    The ring is among a small but increasingly buzzy group of alternative wearable devices that people are gravitating toward right now, including a fitness band tracker with no screen and headphones that don’t need to be put in the ear. Some of the demand stems from shifts during the pandemic, as consumer interest in health monitoring surged. People turned to activity trackers, smartwatches and other devices to keep tabs on their steps, vital statistics and more. Many were also willing to experiment with different form factors, as long as they provided accurate data and were still comfortable – a trend that continues today.

    “The funny thing is that most of these devices have been around for a while but have slowly built a name for themselves in recent quarters,” said Ramon Llamas, a research director at IDC Research. “But it takes time for word of mouth to spread.”

    The devices may also tap into a desire to get the benefits of wearable trackers without necessarily having a screen or device on their body at all times.

    Take the WHOOP band, a health tracker without a screen that first came out in 2015. It has a very specific focus on workout recovery, resting time, training and coaching. Founder and CEO Will Ahmed told CNN Business this year’s Cyber Monday was its largest sales day ever.

    “It wasn’t that long ago that people only wore a health monitor if something was wrong. Now, we’re seeing people take a much more proactive approach to their health,” he said. “This trend has continued even as the pandemic subsides.”

    Like Oura, the WHOOP is a subscription-based device and targeting a more niche audience. It’s pricy, too: $480, including a two-year subscription plan.

    The WHOOP band

    “The challenge is that most of these devices are vying for single-digit market share behind the market leaders, [such as Apple and Samsung],” Llamas said. “That’s why it is key to have a well-differentiated segment that you can serve almost exclusively. Companies like WHOOP have been successful because they focus on athlete rest and recovery so well, and those are key factors for many athletes today.”

    Ahmed said the product is evolving to support this growing interest in health by adding new features related to pregnancy, stress and deeper biometric monitoring. In August, WHOOP announced it raised $200 million in a funding round led by SoftBank Vision Fund 2, giving the company a valuation of $3.6 billion.

    Health tracking devices continue to take on new shapes and sizes, too, including some that don’t require being worn at all. In September, Amazon showed off a non-wearable sleep tracking monitor, Halo Rise, which sits on a nightstand and tracks breathing patterns while the user is asleep. Meanwhile, some companies like Withings let users slip sensors under the mattress to collect sleep data.

    There’s also a shift in demand for what is arguably one of the original wearables: headphones.

    Bone conduction headphones, which like the Oura have been around for years, are also “having a moment,” according to Steve Konig, head of the research department at the Consumer Electronics Association. Rather than sitting inside or on top of the ear canal, bone conduction headphones rest in front of the ear, leaving it uncovered. They transmit audio along the user’s bones and jaw to the ears instead of directly into the ear canal. The headphones also feature a soft band that runs behind the upper portion of the neck to secure it in place and minimize sound distortions.

    Bone conduction headphones by Shokz.

    At the same time, the exposed ear allows users to pick up on sounds and the environment around them, crucial for safety when doing activities such as riding a bike or jogging. Unlike earbuds, there’s also less concern about it popping out of your ears.

    Shokz ($125) pioneered bone conduction headphones, but the market has since expanded with other brands offering similar designs. Open earbuds – such as ones designed by Sony and Bose – feature a similar design that leaves the ear canals completely open so that the user can hear the outer noise. But some audiophiles say the sound quality on bone conduction headphones and open earbuds is less than stellar.

    “In the past 10 years, audio innovation in general has soared because of the introduction of new features, such as noise cancellation technology, built-in wireless capabilities and more,” Konig said. “Now, people own multiple pairs of personal listening products for different locations and use cases; some leave them at the office, others prefer bigger, beefier ones on airplanes. They also make a great holiday gift because, in the grand scheme of gift giving, they’re fairly reasonable to buy.”

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  • Apple Makes Plans to Move Production Out of China

    Apple Makes Plans to Move Production Out of China

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    In recent weeks, Apple Inc. has accelerated plans to shift some of its production outside China, long the dominant country in the supply chain that built the world’s most valuable company, say people involved in the discussions. It is telling suppliers to plan more actively for assembling Apple products elsewhere in Asia, particularly India and Vietnam, they say, and looking to reduce dependence on Taiwanese assemblers led by Foxconn Technology Group. 

    Turmoil at a place called iPhone City helped propel Apple’s shift. At the giant city-within-a-city in Zhengzhou, China, as many as 300,000 workers work at a factory run by Foxconn to make iPhones and other Apple products. At one point, it alone made about 85% of the Pro lineup of iPhones, according to market-research firm Counterpoint Research. 

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  • Okta CEO promises profit for all of next year — ‘The problem was never that we didn’t have talented sales people’

    Okta CEO promises profit for all of next year — ‘The problem was never that we didn’t have talented sales people’

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    Okta Inc. executives on Wednesday said they will report an adjusted profit in the fourth quarter and, in a surprise, predicted profitability for all of next fiscal year, trumping profit concerns stemming from recent sales-operation issues.

    For the fourth quarter, Okta
    OKTA,
    +4.04%

    guided for adjusted earnings of 9 cents to 10 cents a share on revenue of $488 million to $490 million. Analysts, on average, were expecting an adjusted loss of 12 cents a share on sales of $488.3 million, according to FactSet.

    In a surprise announcement during the conference call, Chief Financial Officer Brett Tighe revealed a full forecast for fiscal 2024 as well. Most software companies shy away from such practices amid uncertainty about macroeconomic conditions. He said Okta executives are aiming for adjusted profits for the full year on revenue of $2.13 billion to $2.15 billion. Analysts on average expected adjusted losses of 30 cents a share on sales of $2.3 billion, beating profit projections widely but also missing sales expectations by more than $100 million.

    Shares rallied as much as 18% in after-hours trading immediately following the release of the results, but those gains noticeably pared back to a steady 12% level after Tighe announced the outlook to analysts on the call. They have fallen 76% so far this year, compared with a 27% decline by the tech-heavy Nasdaq Composite Index
    COMP,
    +4.41%
    .

    In an exclusive interview with MarketWatch ahead of the company’s conference call, Okta Chief Executive and co-founder Todd McKinnon said the company is not providing any forecasts past 2024 because of uncertainty in the macro environment.

    “We’re thinking a pretty conservative assumption that the macro is going to get worse before it gets better, so that’s definitely factored into the guide,” McKinnon told MarketWatch.

    On a more positive note, McKinnon said sales-rep attrition has been the lowest it has been in the past several quarters, following a spike last quarter. Okta also announced that Susan St. Ledger, the president of worldwide field operations, is retiring and McKinnon will take over her duties on an interim basis.

    “What we’ve done over the last six months is what a lot of companies are doing, slowing hiring, re-evaluating real estate, doubling down on the things we know are high value. And some of the things that are maybe less value we’re doing less of, so that’s where we see the profitability come from,” McKinnon told MarketWatch.

    Much of that comes from addressing the company’s struggle in combining Okta’s salesforce with sales reps acquired in the May 2021 acquisition of identity-platform Auth0 (pronounced “Auth Zero”), which is more focused on direct-to-user sales than Okta’s corporate focus.

    “The problem was never that we didn’t have talented sales people,” McKinnon told MarketWatch. “The problem is that we didn’t enable them and clarify things with them.”

    In-depth: Okta CEO says ‘short-term challenges’ resulted in workers leaving at a higher rate

    “We still have work to do,” McKinnon said. “We don’t think we’ve solved it after one quarter of a positive trend but I do think it’s progress.”

    “The biggest factor: We’ve really done a much better job clarifying the products and the positioning and saying we have two clouds: We have Workforce Identity Cloud and Customer Identity Cloud and it’s very clear what to sell when,” he said.

    Okta reported a third-quarter loss of $208.9 million, or $1.32 a share, compared with a loss of $221.3 million, or $1.44 a share, in the year-ago period. After adjusting for stock-based compensation expenses and other items, the company reported break-even results on a per-share basis, compared with a loss of 7 cents a share in the year-ago period. Revenue rose to $481.4 million from $350.7 million in the year-ago quarter.

    Analysts had forecast an adjusted loss of 24 cents a share on revenue of $465.4 million, based on the company’s forecast for a loss of 24 cents to 25 cents a share on sales of $463 million to $465 million.

    For the current year, Okta forecast an adjusted loss of 27 cents to 26 cents a share on revenue of about $1.84 billion, compared with the Street’s forecast of 73 cents a share on revenue of $1.82 billion.

    So far in November, cloud software stocks have been getting trashed. While the S&P 500
    SPX,
    +3.09%

    has gained 5.4%, and the Nasdaq has advanced 4.4%, the iShares Expanded Tech-Software Sector ETF
    IGV,
    +4.39%

    has risen 1.6%, the Global X Cloud Computing ETF
    CLOU,
    +6.00%

    has ticked up 0.8%, the First Trust Cloud Computing ETF
    SKYY,
    +4.54%

    has fallen 2%, and the WisdomTree Cloud Computing Fund
    WCLD,
    +4.99%

    has dropped 6.9%.

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  • Salesforce co-CEO Bret Taylor leaving, stock falls after lower-than-expected forecast

    Salesforce co-CEO Bret Taylor leaving, stock falls after lower-than-expected forecast

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    Salesforce Inc. performed better than expected in the third quarter, but executives issued a fourth-quarter forecast that fell short of expectations on Wednesday and revealed that co-Chief Executive Bret Taylor is leaving the company.

    Salesforce
    CRM,
    +5.65%

    shares fell about 7% after hours, after rising about 5.5% in the regular session to close at $159.97, their fifth gain in the past six sessions. 

    The cloud-software company said in a news release that founder, co-CEO and Chairman Marc Benioff will resume the sole CEO role on Jan. 31. Taylor is the second executive to be elevated to co-CEO with Benioff, only to leave with Benioff still in charge. Keith Block stepped down in February 2020 after just 18 months in the position, and Taylor lasted exactly a year in the co-CEO position after being promoted Nov. 30 of last year.

    “I am grateful for six fantastic years at Salesforce,” Taylor, who was also vice chairman, said in a statement. “Marc was my mentor well before I joined Salesforce and the opportunity to partner with him to lead the most important software company in the world is career-defining. After a lot of reflection, I’ve decided to return to my entrepreneurial roots.”

    See more: Opinion: Salesforce better get used to Marc Benioff in charge, because he keeps chasing off his chosen successors

    On the company’s earnings call, Benioff said “we’re still in a little bit of shock and extremely sad” about Taylor’s exit, but did not answer an analyst’s question about whether he would fill the co-CEO position.

    At least one analyst said he didn’t see the departure coming: “Given that Mr. Taylor was assumed to be the ‘heir apparent’ at CRM, this does bring up a lot of questions in terms of the management team and frankly offsets some of the positive narrative around margins heading into [calendar year 2023],” wrote Kirk Materne, analyst for Evercore ISI, in a note Wednesday.

    Salesforce reported that third-quarter net income fell to $210 million, or 21 cents a share, compared with $468 million, or 47 cents a share, in the year-ago period. Adjusted for stock-based compensation and other costs, earnings were $1.40 a share. Revenue rose to $7.84 billion from $6.86 billion in the year-ago quarter.

    Analysts, who have been expressing concerns about a slowdown in business-software spending, had forecast adjusted earnings of $1.22 a share on revenue of $7.83 billion, according to FactSet.

    “We remain positive on the long-term outlook for Salesforce as front-office applications leader,” Michael Turits, analyst for KeyBanc Capital Markets, wrote ahead of the company’s earnings report. “That said, we remain cautious regarding the near-term outlook given ongoing recession concerns, slowing cloud spend, and weaker conversations we had with a few Salesforce channels this quarter.”

    Those concerns sprung up in the company’s forecast, as Salesforce executives’ guidance fell $900 million short of expectations. They expect fourth-quarter earnings of 23 cents to 25 cents a share on revenue in the range of $7.932 billion to $8.032 billion, and adjusted earnings of $1.35 to $1.37 a share. Analysts had forecast adjusted earnings of $1.44 a share on revenue of $8.94 billion.

    Chief Financial Officer Amy Weaver said on the earnings call that along with the “unpredictable” macroeconomic environment and some slowing in customer spending, the strong dollar had an impact on the company’s showing. “Foreign exchange continued to be a headwind for our results,” she said.

    Still, Weaver said the company remains committed to a goal of operating margins of 25% or above; in the third quarter it was at 22.7%, which she said was a record high. Among the things the company is doing, she said, is taking a measured approach to hiring. Earlier this month, the company confirmed hundreds of layoffs, though it did not address them during the call.

    See: Tech layoffs approach Great Recession levels

    In response to an analyst’s question about employees working from home and the company’s real-estate footprint, Benioff said the San Francisco-based company will have more employees in the office while maintaining the flexibility of remote work. “We’re never going back to how it was, we all know that,” he said. Meanwhile, Weaver said the company is “looking at every aspect of our real estate .”

    Shares of Salesforce have declined about 37% this year. The Dow Jones Industrial Average
    DJIA,
    +2.18%
    ,
    whose 30 components include Salesforce, has fallen about 5% year to date, while the S&P 500 index
    SPX,
    +3.09%

    is down almost 15% this year.

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  • China’s Zhengzhou, home to world’s largest iPhone factory, ends Covid lockdown | CNN Business

    China’s Zhengzhou, home to world’s largest iPhone factory, ends Covid lockdown | CNN Business

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    Hong Kong
    CNN Business
     — 

    The central Chinese city of Zhengzhou, home to the world’s largest iPhone factory, has lifted a five-day Covid lockdown, in a move that analysts have called a much-needed relief for Apple and its main supplier Foxconn.

    Zhengzhou is the site of “iPhone City,” a sprawling manufacturing campus owned by Taiwanese contract manufacturer Foxconn that normally houses about 200,000 workers churning out products for Apple

    (AAPL)
    , including the iPhone 14 Pro and 14 Pro Max. Last Friday, the city locked down its urban districts for five days as Covid-19 cases surged there.

    Foxconn’s massive facility is not part of the city’s urban districts. However, analysts say the lockdown would have been detrimental to efforts to restore lost production at the campus, the site of a violent workers’ revolt last week.

    “This is some good news in a dark storm for Cupertino,” Daniel Ives, managing director of equity research at Wedbush Securities, told CNN Business, referring to the California city where Apple is based. “There is a lot of heavy lifting ahead for Apple to ramp back up the factories.”

    Ives estimates the ongoing supply disruptions at Foxconn’s Zhengzhou campus were costing Apple roughly $1 billion a week in lost iPhone sales. The troubles started in October when workers left the campus in Zhengzhou, the capital of the central province of Henan, due to Covid-related fears. Short on staff, bonuses were offered to workers to return.

    But protests broke out last week when the newly hired staff said management had reneged on their promises. The workers, who clashed with security officers, were eventually offered cash to quit and leave.

    Analysts said Foxconn’s production woes will speed up the pace of supply chain diversification away from China to countries like India.

    Ming-Chi Kuo, an analyst at TF International Securities, wrote on social media that he estimated iPhone shipments could be 20% lower than expected in the current October-to-December quarter. The average capacity utilization rate of the Zhengzhou plant was only about 20% in November, he said, and was expected to improve to 30% to 40% in December.

    Total iPhone 14 Pro and 14 Pro Max shipments in the current quarter would be 15 million to 20 million units less than previously anticipated, according to Kuo. Due to the high price of the iPhone 14 Pro series, Apple’s overall iPhone revenue in the current holiday quarter could be 20% to 30% lower than investors’ expectations, he added.

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  • Best standing desks of 2022 | CNN Underscored

    Best standing desks of 2022 | CNN Underscored

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    Whether you’re a professional, a student or somewhere in between, the “new normal” has meant trading in a proper desk for a work-from-home space. It could be your kitchen tablet, a small hallway turned into an office or even tossing together something in the bedroom. But what about a standing desk or convertor desk? The trend that has taken the professional industry by storm is now readily available — with literally countless options — and could be the perfect solution for working from home.

    That’s why we’ve been testing a handful of standing desks for months on end — from assembly to entire days spent on each — to find the best one for you.

    Best standing desk

    Best standing desk overall

    The Branch Adjustable Standing Desk is a near-perfect desk that can handle multiple monitors, dual laptops and a plethora of knickknacks. It’s also incredibly sturdy, with one of the best builds we’ve encountered.

    Branch’s standing desk might only come in two sizes and a handful of colors, but it doesn’t corner the product into oblivion. Instead, it keeps a high level of craftsmanship in a standing desk that ultimately rises above the best with seamless motion, a sturdy build and a design that doesn’t distract.

    It starts with the desktop — in this case, a 48-inch wide by 30-inch depth particle board laminate. You can also opt for white or a dark walnut finish. Either route, though, you’re stuck with a set of legs in white. What’s especially lovely about the Branch option is that the depth is wider than the average desk. This makes it easy for multiple monitors, a laptop (maybe a tablet as well), a notebook with plenty of room to spare.

    Furthermore, the desk’s front edge has a comfortable rounded bevel, making it pleasant to rest your arms on or lean into it without the feeling of a sharp corner jutting into your abdomen. During our testing, spills of water, coffee and never stained the finish, nor did the tabletop scratch. The side edges did peel a bit and showed some scuffs — but from pretty unnatural, heavy bangs.

    The Branch also features a metal plate in the center rear of the desk that can either tilt backward or forward to reveal a brush system, through which you can snugly run cables to keep them tidy — and it even kept loose Lightning and USB-C cables from falling through.

    While it’s not curved with an ergonomic cutout in the front like our previous overall pick — the ApexDesk Elite Series — we feel the Branch Standing Desk is a better overall package. Setup as a whole took about 20 minutes, and found a drill sped things up a bit. Branch does include all the necessary tools in the box and can be done with ease. The desk comes in two boxes — one with the legs and one that’s the desktop, and the directions were clear and thorough.

    Heights range from 25 to 52 inches, and you can make adjustments by the centimeter at most heights. Whether adjusting up or down, the transition was one of the smoothest we tested no matter how heavy the items we had atop the desk. The Branch comes standard with a control switch that’s on the left-hand side that features an LED dot display showing the exact height, an up and a down switch and four presets. Those presets are easy to set and one touch to operate.

    The Branch was also one of the sturdiest desks we tested, never rocking side to side or back and forth.

    Other top standing desks we recommend

    Best customizable standing desk

    The Uplift V2-Commercial Standing Desk offers the widest breadth of customization out of any standing desk we’ve encountered, from size to finish to keypads — in addition to being a high-quality desk.

    Best budget standing desk

    The SHW Electric Height-Adjustable Computer Desk is a surprisingly functional, sturdy desk at an incredibly affordable price, comparatively. It was a breeze to assemble, comes with a cable management tray and features a digital keypad with memory presets. ​

    Best standing desk overall

    Most customizable standing desk

    Best budget standing desk

    What we loved about it

    The Branch Adjustable Standing Desk is a near-perfect desk — the sturdiest we tested (no matter the height) and one of the most comfortable to belly-up to thanks to its a slightly diagonally cut finish in the front. Setup took just 20 minutes.

    We value choice. And with such an investment, we appreciated Uplift’s customizability — from size to finish to keypads — that ensures you’re getting the exact desk you want.

    We were surprised by just how sturdy this affordable desk was once assembled, with minimal wobble from front to back and side to side at all heights. The this desk moves smoothly up and down without a hitch. Setup took just 25 minutes.

    What we didn’t like about it

    While you can choose from several finishes for the desktop, you’re stuck with white legs. Also, the side edges did peel a bit and showed some scuffs — but from pretty unnatural, heavy bangs.

    The Uplift was one of the toughest desks to assemble, thanks to and assembly took nearly an hour due to all the parts required. Expect an hour-plus of assembly time.

    We should note that the desktop is actually two planks of wood rather than one solid piece as the product photos may lead you to believe. Certainly looks and feels a bit cheaper than the other models highlighted.

    Key specs

    48-inch wide by 30-inch depth; adjustable from 25 inches to 52 inches high

    42-inch wide by 30-inch depth up to 80-inch wide by 30-inch depth; adjustable from 22.6-inches to 48.7-inches high

    47.25-inch wide by 24-inch depth; adjustable from Adjustable from 28-inches to 46-inches high

    Price

    $699



    $599+



    $209.87

    The testing process for these desks lasted nearly two months. We unboxed and assembled each desk, paying special attention to the amount of time each unboxing and building process took. We noted how long it took to put each one together, how clear the product’s instructions were and if any special tools were needed. Once each electric standing desk was fully built, we used it at both sitting and standing heights; desk converters, of course, were used only in standing positions. We used each product for at least three full workdays and carefully noted how each desk performed in terms of ease of adjustments and ergonomics. Overall, we evaluated them on what we considered the most important factors: function, build and length of warranty. After tallying up scores for each product, we also took value into consideration, factoring the starting price of each desk with regard to the features it delivered on, to determine our final winners.

    We broke the testing into the following categories and subcategories:

    Function

    • Comfort: We made note of whether the desk provided proper ergonomics at all heights, and, where applicable, in both sitting and standing positions.
    • Number of different height adjustments: We noted the range of heights the desk was capable of reaching.
    • Ease of adjustments: We considered how easy it was to adjust the height of the desk, noting how smoothly it was able to move up and down as well as how easy and intuitive the keypad, if there was one, was to operate.
    • Sturdiness from front to back: We noted how much the desk wobbled, if it all, from front to back.
    • Sturdiness from side to side: We noted how much the desk wobbled, if it all, from side to side.
    • Organization: We noted if the desk came standard with any slots/grommets to organize wires, cable management trays, extra outlets. etc.

    Build

    • Build quality: We looked at the quality of the desk’s materials, assessing whether it felt cheap or flimsy, as well as whether the desktop was prone to scratches and/or smudges.
    • Ease of assembly: We considered the time it took to unbox and fully assemble the desk, how clear the instructions were, if any special tools were necessary as well as if the included tools were efficient in the building process.
    • Appearance: We assessed the aesthetics of the desk — how it looked in a room/home office, if it was available in different colors and if so, how many.
    • Size: We noted how much equipment could fit on the desk, how much room it took up and whether it was available in more than one size and if so, how many.

    Warranty

    • We looked into the warranty for each product and noted the length of coverage and what parts were covered.

    ApexDesk Elite Series 60” (starting at $599.99)

    The ApexDesk Elite Series 60” — our previous pick for best standing desk overall — is a sturdy, gorgeous standing desk available in two desktop sizes, both big enough to accommodate multiple monitors and devices. With a curved front, it’s more comfortable to use in both sitting and standing positions compared with the other standing desks we tried, allowing us to sit closer to the desk. It also comes standard with covered grommets to manage your wires. When we re-tested against the Branch, we found the latter had a sturdier and overall more premium build — and, therefore, more worth your money.

    Fully Jarvis EcoTop Standing Desk (starting at $519 for 30×24”; fully.com)

    Let it be known that we adored this desk, for myriad reasons. A newer model produced by Fully’s Jarvis line, the EcoTop is the brand’s most eco-friendly design to date, crafted from locally sourced fiber in Oregon that’s a minimum 92% pre-consumer, recycled or recovered, meeting the Eco-Certified Composites (ECC) Sustainability Standard. Beyond this new desktop, it’s identical in build and function to the customer-favorite (and also earth-friendly) Jarvis Fully Bamboo Standing Desk — and it’s easy to see why it’s so beloved. It scored top marks for its range of sitting and standing heights (25.5” to 51.1”, the second largest range of all desks we tested, displayed in increments of 0.1”) as well as its ease of adjustments, with the industry-standard four memory presets being intuitive to program. This desk felt high-quality — according to Fully, it can support upwards of 350 pounds — though a bit more wobbly from side to side at higher heights than our best overall pick. Similar to the Uplift’s warranty, Jarvis desks are covered by an impressive all-inclusive 10-year warranty on all frame components, including motors and electronics, and a five-year warranty on desktop surfaces, excluding normal wear and tear, and damage caused by improper assembly, disassembly or repair.

    Ultimately, this desk lost points when it came to assembly. It was one of the most complicated builds of our pool, taking the most time and clocking in at a bit over an hour; particularly we found that the giant allen key, with prongs of equal lengths, made things clumsy to assemble. While the EcoTop features two uncovered grommets at the back corners for your cables, if you’d like to attach cord organizer, you’ll need a power drill to do so, as there are no pre-drilled holes. (We did appreciate that it came packaged with a surge protector, however.) The EcoTop is available in six sizes, and in black and white finishes.

    This is a solid desk — and was indeed a solid contender for winner — particularly if you value sustainable, earth-friendly materials.

    Vari Electric Standing Desk (starting at $650 for 60”; amazon.com; starting at $695 for 60” models; officedepot.com)

    Another one of our favorites, the Vari is a classic electric standing desk, and there’s a reason — well, many reasons — why you may have seen it in myriad office spaces throughout the country as the standing desk du jour. For one, it’s impossibly sturdy, racking up top marks in that category during our testing. And despite its heavyweight build, it was by far the easiest of the non-budget-priced electric standing desks to assemble, taking approximately 20 minutes to do so. The Vari moves up and down smoothly, from a minimum height of 25” to a maximum of 50.2” (the highest maximum height of all desks we tested), and its LED keypad displays increments of 0.1. Programming the four memory presets is easy as pie; we didn’t even need to consult an instruction manual for that. And while there wasn’t much difference among all our standing desks in terms of motor noise, we’d contend that the Vari was noticeably quieter than the others in our pool. It has a five-year warranty for all components.

    The Vari Electric Standing Desk is available in two sizes, 60×30”, 48×30” (starting at $550 at Amazon and Office Depot for the latter) as well as five finishes. Really the only place where it lost major points was in the category of organization. It features no grommets to contain wires, but rather a slightly indented back should you want to place it flush against the wall, so you’ll still have space for all your cables to comfortably hang; an additional wire tray is sold separately. (We did appreciate the complimentary bag hook that was included with our shipment.) The Vari came in just one point behind our overall winner, the ApexDesk Elite, so suffice it to say that we would recommend this desk in a heartbeat, so long as you can make do with that caveat.

    Readydesk 2 Adjustable Standing Desk ($154.99; amazon.com)

    While we were fans of this converter’s artsy, minimalist design, constructed from sustainable birchwood (it just screams “Brooklyn architect,” does it not?), admittedly we can understand how not everyone might be — and how it may not necessarily vibe with your decor scheme. Aesthetics aside, we appreciated how easily this converter assembles: Literally, it took just five minutes to unbox and slot the shelves into the base, no tools necessary. Because of this, it’s a good option for students living in dorms, or anyone else who may be moving around a lot and have minimal desktop space to work with. Disassembling is just as simple if you need to quickly get it out of the way and store it in a corner without taking up much space at all. Despite its lightweight build (it weighs in at less than 15 pounds), we found the Readydesk 2 to be impressively sturdy, both from front to back and side to side. It’s also designed with two keyhole-esque slots on each ledge to manage wires. The product has a one-year warranty free of defects in craftsmanship and material and a generous 100-day free return policy in the US.

    It fell short in a few categories, however: It’s available in just one size and color, and doesn’t provide as much room for equipment as other converters in our testing pool did. Its unfinished edges had us worried we might snag the fabric of our sleeve on it (a valid concern among reviewers as well, as we later learned). Because of the lack of grips at the base, depending on the surface beneath it, it could be prone to sliding, although we had no issues in this regard. And, given its unique design, it’s not the most ideal product if two or more people of different heights are sharing use of it, as you have remove the piece of wood and manually move it to a different slot if you’d like to change up the adjustments, which is easy enough, but obviously not as simple as raising or lowering a lever.

    Flexispot Standing Desk 48×30” ($249.99; amazon.com)

    The Flexispot Standing Desk is another budget-priced standing desk model, similar to the SHW. It’s available in black, white and mahogany finishes, and while it does look quite sleek, and the desktop is indeed one solid piece rather than two narrow pieces assembled side by side, for the same price as our best budget winner, it comes with some noticeable downfalls. For one, the basic model includes a keypad with only an up and down button; the desk has a standing range from 28–47.6”, but in order to know what height you’re standing at (if that’s important to you), you’ll have to tack on another $90 for the “standard” model, which is 55” long and includes a digital LED keypad with memory presets. There’s also a smaller, 42×24” model, for $244.99.

    We also noticed significant wobble once fully assembled, mostly from side to side but also from back to front. And on the topic of assembly: this desk arrives in two boxes, both pretty lightweight, but the instructions were confusing at times. A particularly baffling example: One step was to loosen bolts and stretch a rod, but the instructions didn’t specify to what length to stretch it. So we guessed, and when it came time to add the desktop, we had to loosen the bolts once again and then measure it to the correct length. Another step also required backtracking and unscrewing screws from a previous step. This desk comes with a five-year warranty for the frame, motor and other mechanisms, and a two-year warranty for the controller and switch, electronics.

    Seville Classics 27.8” Tilting Sit-Stand Height Adjustable Mobile Laptop Computer Desk Cart with Mouse Side Ergonomic Table ($44.99; homedepot.com)

    If you’re looking for a simple sit-stand option with enough room for your laptop and a mouse, and a laptop and a mouse alone, this Seville Classics desk is one worth considering. At just a hair under $50, unsurprisingly, you’re not getting a super-sturdy, smart standing desk option — but you are getting a product that gets the job done (the job being: providing the option to stand while at your computer), and on wheels to boot. Assembly was easy enough, as the desk is lightweight, and though the flimsy hexagon key wrench proved a bit difficult to use, we were able to build it in approximately 25 minutes. It comes with a one-year limited warranty.

    The desk adjusts from a minimum of 27.9” to a maximum of 40.7”, so if you’re above, say, 5’9”, we can’t imagine you’d find this the most ergonomic product to use. We should also note that the desktop’s tilt is not adjustable, i.e, you cannot position it parallel with the floor, and the manual twist-lock knob can be a bit annoying to use to make adjustments to heights. Bottom line: If you’re on a tight budget and looking for something that’ll allow you to take standing breaks from time to time, this is a perfectly adequate solution. It’s a desk that’s perhaps best suited to students, children, and those with minimal space.

    Vivo Height Adjustable 32-Inch Standing Desk Converter (starting at $109.95, originally $119.95; amazon.com)

    This Vivo converter was quite similar in both build and function to the Flexispot converter. Assembly required only attaching the keyboard tray to the base, which was simple enough, and adjustment is controlled via lever. It’s a standard desk riser, and we found its sturdiness to rival Flexispot’s as well, but ultimately we didn’t select it as a winner for a few reasons: We took value into consideration, and the Vivo is available only in one size, at a starting price of $119.99, versus Flexispot’s $99.99 for its 31-inch option. (For $159.99, you can snag the Vivo in light wood or white finishes, or dark wood for $179.99.) The width of both the keyboard and desktop are a bit smaller than the Flexispot converter we tested, at 10” and 15.75”, respectively, though it does rise to a maximum height of 19.5,” one inch higher than our winning converter does. It comes with two cable clips to stick to the underside of the product, and it has a three-year warranty. If you’re seeking a finish that isn’t solid black, could make use of another inch of height as a tradeoff for some desktop space, and you’re willing to shell out a bit more cash, we think the Vivo is a fine option.

    Ergo Desktop Kangaroo Pro Junior ($399; amazon.com)

    This desktop converter is unique in its design, and we appreciated the dual ergonomics at play here: Basically, the desktop work surface and your attached monitor adjust separately, allowing you to customize the setup more so than typically possible with a traditional desk riser. The desktop surface, which measures 24×18” — enough to fit a laptop, or a keyboard and mouse — is adjustable to 14.5” above your desk. You’ll have to mount your monitor, and though it took us a bit to figure out the twist-knob situation in order to adjust our monitor, we no sooner got the hang of it. However, we found the removable stabilization leg to, initially, be quite confusing, and ultimately, a crucial design flaw; while the adjustable rod is meant to provide extra stability to your desktop at all heights, we found it difficult to stay put, and ultimately not a reliable source of stability after all. The Kangaroo Pro Junior does, however, take up minimal space, and if you’re working with a single monitor and a keyboard, we could see why you might be interested in this product.

    High Rise Height Adjustable Electric Full Standing Desk DC840B (starting at $499.99, originally $609.99; victortech.com)

    The highlight of the Victor Technology’s High Rise standing — available in 4-foot top or 3-foot top versions — features a deep work space paired with various height levels. All of this allowed us to comfortably fit a laptop, phone, papers, water bottle and iPad with space to spare. Made from materials including wood and metal, the build is sturdy no matter the height at which it’s set. Taking less than 20 minutes to assemble, the desk came with tools to put it together and straightforward directions.

    There’s a memory function which lets you save four preferable heights — just tap the button and it adjusts to that exact height, ranging between 28.7 to 48 inches. Better yet, for anyone who works around other people, the desk is quiet when moving between heights.

    The High Rise does lack additional perks, like desktop customization, options for additional accessories or a curved design like the ApexDesk. The price is very similar to our top-ranked standing desks, but for the same price, many of those desks offer unique features that create an individualized experience for customers, including white board and laminate desktops.

    Read more from CNN Underscored’s hands-on testing:

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  • CrowdStrike stock drops nearly 20% as elongating sales cycle slows new subscriptions

    CrowdStrike stock drops nearly 20% as elongating sales cycle slows new subscriptions

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    CrowdStrike Holdings Inc. shares dropped in the extended session Tuesday after the cybersecurity company said new subscriptions came in below expectations amid macro headwinds and longer customer buying cycles.

    Given concern that businesses are cutting back on spending, CrowdStrike 
    CRWD,
    -1.04%

    shares plummeted nearly 20% after hours, following a 1% decline in the regular session to close at $138.

    George Kurtz, CrowdStrike’s co-founder and chief executive, told analysts on a conference call that the company reported $198.1 million in net new annual recurring revenue, or ARR, in the quarter, not as much as it had hoped. 

    ARR is a software-as-a-service metric that shows how much revenue the company can expect based on subscriptions. That grew 54% to $2.34 billion from the year-ago quarter, while the Street expected $2.35 billion. Kurtz said that about $10 million was deferred to future quarters.

    “We expect these macro headwinds to persist through Q4,” Kurtz told analysts.

    Burt Podbere, CrowdStrike’s chief financial officer, explained that the company relies on ARR because it’s “an X-ray into the contract sales.”

    “As George mentioned, even though we entered Q2 with a record pipeline, and we are expecting the elongated sales cycles due to macro concerns to continue, we’re not expecting to see the typical Q4 budget flush given the increased scrutiny on budgets.”

    Podbere said it is “prudent to assume” fourth-quarter net new ARR will be up to 10% below the third quarter’s. That would mean about a 10% year-over-year headwind going into the first half of next year, and “full-year net new ARR would be roughly flat to modestly up year over year.”

    “This would imply a low 30s ending ARR growth rate and a subscription revenue growth rate in the low to mid-30s for FY 2024,” Podbere said.

    Read: Cloud software is suffering a cold November rain. Can Snowflake and Salesforce turn things around?

    The company expects adjusted fiscal fourth-quarter earnings of 42 cents to 45 cents a share on revenue of $619.1 million to $628.2 million, while analysts surveyed by FactSet forecast earnings of 34 cents a share on revenue of $633.9 million, according to analysts.

    CrowdStrike expects full-year earnings of $1.49 to $1.52 a share on revenue of $2.22 billion to $2.23 billion. Wall Street expects $1.33 a share on revenue of $2.23 billion.

    The company reported a fiscal third-quarter loss of $55 million, or 24 cents a share, compared with a loss of $50.5 million, or 22 cents a share, in the year-ago period. Adjusted net income, which excludes stock-based compensation and other items, was 40 cents a share, compared with 17 cents a share in the year-ago period.

    Revenue rose to $580.9 million from $380.1 million in the year-ago quarter.

    Analysts expected CrowdStrike to report earnings of 28 cents a share on revenue of $516 million, based on the company’s outlook of 30 cents to 32 cents a share on revenue of $569.1 million to $575.9 million.

    So far in November, cloud software stocks have been getting trashed. While the S&P 500
    SPX,
    -0.16%

    has gained 2%, and the tech-heavy Nasdaq Composite
    COMP,
    -0.59%

    is flat, the iShares Expanded Tech-Software Sector ETF
    IGV,
    -0.78%

    has fallen more than 2%, the Global X Cloud Computing ETF
    CLOU,
    -1.12%

    has declined more than 4%, the First Trust Cloud Computing ETF
    SKYY,
    -0.74%

    has fallen more than 6%, and the WisdomTree Cloud Computing Fund
    WCLD,
    -1.05%

    has dropped more than 11%.

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