U.S. Stocks Are Super-Expensive, But for the Right Reasons

U.S. Stocks Are Super-Expensive, But for the Right Reasons

FINANCE NEWS
There are two beautifully simple explanations for why U.S. stocks are valued so much higher than equities in the rest of the developed world. First, the U.S. economy is doing much better than troubled Europe, aging Japan or Brexit-stricken Britain. Second, the U.S. market includes the FANGs of Facebook, Amazon.com, Netflix and Google, now Alphabet, while the rest of the developed world has few big companies with high growth potential. The question investors often ask is whether the valuation gap is so big they should prepare... Source link
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Stocks to Watch: Netflix, Google, BlackBerry and Overstock.com

Stocks to Watch: Netflix, Google, BlackBerry and Overstock.com

FINANCE NEWS
Photo: lucas jackson/Reuters Updated Sept. 24, 2019 8:28 am ET Here are some of the companies with shares expected to trade actively in Tuesday’s session. Stock movements noted by ticker reflect movements during regular trading hours; premarket trading is specified separately. American Express —Flat premarket: The company authorized the repurchase of up to 120 million shares and announced a 10% dividend increase. Netflix —Down 0.2% premarket: Shares of the company fell 1.8% Monday, putting the streaming giant’s stock into the red on a year-to-date basis for the first time since November 2016, according to Dow Jones Market Data. Overstock.com —Up 3% premarket: Shares of the online surplus-goods retailer lost a quarter of their value Monday, after the company announced the departure of another key executive and cut earnings guidance. BlackBerry…
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Google Tries Hand at Apple’s New Game

Google Tries Hand at Apple’s New Game

FINANCE NEWS
Google is launching a subscription-based mobile game service, similar to a new offering by Apple. Photo: dado ruvic/Reuters Sept. 24, 2019 7:00 am ET In tech, no good idea goes uncopied. Sometimes even before it is clear if the idea was actually good. Google, owned by Alphabet, is launching a subscription-based mobile game service this week. Known as Play Pass, the service allows users of Android devices to play games and access other apps free of advertising and in-app transactions for about $5 a month. It comes just days after Apple formally launched Arcade—a similar service at the same price. Arcade was previewed by Apple earlier this year as part of the company’s expanded slate of entertainment offerings. Google and Apple together own the operating systems that power nearly every…
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A Big Biotech Bet Hiding in Plain Sight

A Big Biotech Bet Hiding in Plain Sight

FINANCE NEWS
There is an opportunity for biotech-style rewards hiding in an unexpected place: big pharma. Bristol-Myers Squibb BMY -0.10% and Celgene CELG 0.05% are set to close their $74 billion merger before the end of the year. In the meantime, not much is happening to their stock prices: Bristol-Myers shares have rallied 3% over the past three months, while Celgene shares are flat. There is still plenty of investor excitement to be had with the deal, however. As part of the buyout consideration, the holder of each Celgene share will receive a tradable security known as a contingent value right, or CVR, when the deal closes. Each CVR entitles the holder to a $9 payment if Celgene can win timely Food and Drug Administration approval for three late-stage drug candidates. Specifically,…
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Global Stocks Edge Up as Central Bankers Diverge

Global Stocks Edge Up as Central Bankers Diverge

FINANCE NEWS
Global stocks posted gentle rises Tuesday, as central bankers around the world diverged over how best to address a clouded economic outlook. The Stoxx Europe 600 climbed by 0.2% in morning trade, following a session of similar gains in Asia. The Shanghai Composite gained 0.3%, Hong Kong’s Hang Seng rose 0.2% and Japan’s Nikkei edged up 0.1%. “It’s a relatively small move, and what we’ve seen in recent days has been relatively thin, lacking conviction,” said Larry Hatheway, group head of investment solutions and chief economist at GAM investment. “Market participants are facing a conflicted news environment. The markets are really treading water.” Europe’s poor manufacturing and services data on Monday “cast a long shadow” on hopes that the European Central Bank’s latest stimulus package would “reflate” economic expectations, said…
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China’s Tech Industry Brings Home the Bacon

China’s Tech Industry Brings Home the Bacon

FINANCE NEWS
Pigs at a farm in Tianjin, China. Photo: Giulia Marchi/Bloomberg News Sept. 24, 2019 12:44 am ET Chinese technology companies are onto the next pig thing. China’s second-largest gaming company, NetEase , agreed last week to invest 1.5 billion yuan ($211 million) to build a pig farm in Shaoxing, a coastal city south of Shanghai. The farm will produce half a million swine a year, according to the local government’s website. This will be NetEase’s third pig farm since the company first dabbled in livestock 10 years ago. Other Chinese technology companies, including e-commerce giants Alibaba and JD.com, also have gotten interested in animals in the past couple of years. They have said they are using technologies like artificial intelligence, facial recognition and voice recognition to reduce costs and raise…
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SoFi Pays Customers for Unexpected Tax Hit

SoFi Pays Customers for Unexpected Tax Hit

FINANCE NEWS
Social Finance Inc. is paying money to customers for unexpected capital-gains taxes after the financial technology startup pulled their money from Vanguard Group’s funds into its own exchange-traded funds. The San Francisco firm launched in April two SoFi-branded ETFs that it said would cost zero for a period. The firm didn’t tell customers of SoFi’s robo-advisory business beforehand that it would liquidate some clients’ existing ETF investments and funnel the proceeds into SoFi’s own new funds.   The move stood to generate capital gains for some clients, saddling them with tax bills, The Wall Street Journal reported. The two ETFs made their debut in April with a CNBC appearance by Anthony Noto, SoFi’s chief executive. This month, the firm notified users who were affected that they would receive refunds. SoFi…
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Citadel’s Griffin Reaps Windfall From Company’s Bond Sale

Citadel’s Griffin Reaps Windfall From Company’s Bond Sale

FINANCE NEWS
Citadel Limited Partnership sold $500 million in investment-grade bonds earlier this month to fund a dividend to its owners, an unusual move for most hedge funds but the second time in three years Citadel has done so. Citadel, the management company of the Chicago hedge-fund giant founded by Kenneth Griffin, issued seven-year bonds with yields below 5%. The deal increased Citadel’s debt while directing hundreds of millions of dollars to Mr. Griffin. While he owns the vast majority of the equity in the management company, a person familiar with Citadel said dividends also will be distributed to other equity holders for their personal use. Mr. Griffin, who started investing as a 19-year-old in his Harvard dorm room, earlier this year drew attention after buying a Manhattan penthouse for $238 million.…
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Credit Suisse Launches Probe Into Its Surveillance of Top Executive

Credit Suisse Launches Probe Into Its Surveillance of Top Executive

FINANCE NEWS
Credit Suisse Group AG has launched an investigation into its surveillance of a departing top executive who is joining crosstown rival UBS Group AG , after the executive filed a report with Zurich police. Credit Suisse said Monday in a memo to employees that its board launched a “detailed inquiry” following Swiss and German media reports that the bank put former wealth-management head Iqbal Khan under surveillance, leading to a confrontation with three unidentified men last week outside a restaurant in Zurich. Mr. Khan left Credit Suisse abruptly in July. In August, he was named head of wealth management at UBS, starting next week. A spokesman for the Zurich public prosecutor’s office said Monday that prosecutors opened a criminal investigation into possible assault and threat based on a complaint made by…
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Sustainable Greens, But Make It Tech

Sustainable Greens, But Make It Tech

FINANCE NEWS
Salad chain Sweetgreen is known for its usage of technology. Photo: Richard B. Levine/Zuma Press Sept. 23, 2019 3:01 pm ET Today’s startups are tossing around the “tech company” classification as lightly as dressing falls onto a bowl of leaves. Take fast-casual salad chain Sweetgreen for example: The company says its vision is to evolve from a restaurant company to a “food platform.” That appears to be resonating with investors. Including a $150 million round reported by The Wall Street Journal on Friday, the company has raised over $500 million since its founding in 2007 and says it is now valued at $1.6 billion, up from $1 billion less than a year ago. The chain has grown a legitimate cult following, with some mega-users joining an elite loyalty program for…
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