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December 2018

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BlackBerry Ltd (NASDAQ:BBRY) stock traded downwards yesterday after a mixed earnings report showed substantial year over year revenue decline

BlackBerry Ltd’s (NASDAQ:BBRY) earnings beat expectations but the company missed consensus for revenue in the fourth quarter by an alarming margin resulting in a 7.54% decline in the stock’s price. Blackberry reported loss per share of only $0.03, beating the Street’s expectations by $0.07. However, this did in no way detract from the fact that the company’s revenue declined 26.2%  year over year to $487 million and missed the consensus by $76.18 million.

Blackberry continues to transition away from hardware and focus on its more profitable software and services business which grew to contribute 32% of the company’s total revenue. In fact, revenue from licensing and software combined was more than the company’s $500 million outlook. Blackberry expects its focus on software and services to continue to create tailwinds for its business with 30% growth expected this year and guidance for positive cash flow.

The revenue miss, however, was squarely blamed on smartphone sales which missed quarterly projections due, in part, to negotiation delays with mobile networks. Despite the $238 million loss this quarter, down from the $28 million profit last quarter, CEO John Chen conveys confidence that cost cutting measures will help the company to breakeven in mobile segment. However, Samsung and Apple have almost driven Blackberry out of the market for high-end mobile devices, with the company now having less than a percent of market share. Analysts are looking for a hardware exit from the company which has already started rolling out a number of IoT focused products. Software and services segment will continue to grow and IoT will provide diversification to the company’s portfolio along with a foot into highly lucrative market segments such as the automobile industry. Blackberry is still transitioning, hopefully parting ways with its expensive hardware segment. 

Tesla is quickly expanding the number of charging stalls at existing and new Supercharger locations

With about 373,000 reservation holders, owners and investors have been concerned how Tesla Motors Inc. (NASDAQ:TSLA) will fulfill the escalating charging requirements as delivery numbers are expected to increase exponentially over the coming years. While the automaker has accelerated Supercharger construction across the globe, it is also increasing the number of stalls at existing charging locations. Additionally, it is about to launch its largest Supercharger location, as Electrek reported.

If both the 20-stall charging stations represent the company’s future Supercharger network, the number of stalls per location could significantly increase. For now, the average number of chargers per station is six.

The first new Supercharger is located in Fremont, CA, close to the Tesla Factory, where the automaker has a charging station with 12 stalls. The location has been under construction since last September on Kato Road, alongside a 300,000 square-foot building purchased by Tesla under an expansion plan.

Although the launch date of the Supercharger is yet to be announced, its installation is almost complete, according toElectrek. However, the company might take time to get it online.

The other large charging station in situated in Nebbenes, Norway, north of the capital city Oslo. Although the construction work at the site started in May, it could be launched before the Fremont Supercharger #2. The existing Fremont Supercharger has 12 stalls and it is currently on the biggest charging location.

The location is expected to be officially opened by the end of this month, making it the world’s first largest fast-DC charging station. The photo shows that the location includes a new layout which looks more like a drive-through than a parking lot.

Since the Model 3 unveiling, Tesla has opened more than 70 Supercharger stations across the globe, according to Supercharge.info. Additionally, it has also acquired permits for 20 locations and is currently working on 26 Superchargers worldwide. The company has 686 Supercharger stations and more than 2,600 Destination Charging locations.

The Country Caller takes a close look as to what technical analysis suggests for both the companies

Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL) are two of the tech giants in the U.S who have been working hard to sustain their dominance in the industry. Microsoft has come up with several innovations in it products, such as Windows updates and its surface hardware, to take on rivals. Moreover, the gaming segment of the company has also made a vital contribution to its bottom line results. The Redmond based giant’s latest acquisition of professional networking site LinkedIn marks its presence in the networking arena.

Apple, on the other hand, has faced some immense pressure in recent times. The Cupertino based tech giant’s signature product, the iPhone, has been facing declining sales and the company finds it difficult to compete with other high-end players such as Huawei and Xiaomi. Moreover, the company’s recent decision to extend the product life cycle of its phones is not perceived well by investors. The Country Caller tries to examine both the stocks from a technical perspective.

Microsoft is nearing the overbought region, but the bulls may still dominate to some extent. The 14-day RSI currently stands at 51.32, which indicates a Neutral region. Other indicators such as Stochastic RSI and MACD indicate that the bulls may lose momentum in the coming sessions. The Bull/Bear power indicator suggests that the bulls are left with very little power.

Major Price level for Microsoft today will be $51.57, a break above which may lead to $51.96 and $53.04 levels, respectively. Major support exists at $50.49, a break below which may plummet to $49.8 and $48.72 levels, respectively. Overall, we assume that the bulls may lose momentum in today’s session.

Apple appears to be in a Neutral state and either of the two participants may take a lead in today’s session. The 14-day RSI is 45.38, which indicates bull-friendly conditions. Other indicators such as Stochastic RSI and oscillators indicate bear dominance. The Bull/Bear indicator also suggests that bears are currently in power.

Major Price level for Apple Inc. today is $95.44, a break above which may lead to $95.89 and 96.83 levels, respectively. Major support exists at $94.5, a break below which may plummet to $94.01 and $93.07 levels, respectively. Overall we maintain a Neutral stance on Apple.

Tesla’s v8.0 software update will revamp UI, improve Autopilot visualization and features, as well as improve its braking system

If no last-minutes issues are found, Tesla Motors Inc (NASDAQ:TSLA) will release the long-awaited v8.0 software update globally on Wednesday, to its fleet of Model S sedans and Model X SUVs. While the update contains improvements in Autopilot features with the new radar processing technology, it will also have the biggest user interface (UI) overhaul since 2012, when the Model S was launched.

Electrek, citing anonymous sources, published some new pictures of the new UI coming with the v8.0 software update. While the Autopilot updates will only benefit those owners with ‘Autopilot Convenience Features’ option, the UI will make every Tesla owner delighted.

However, some of the most interesting UI changes will occur with Tesla cars with Autopilot, as the automaker has changed the Autopilot visualization on the dashboard. This provides more accurate vehicle renderings on the 17-inch touchscreen.

Additionally, the company also updated the icons for key Autopilot features: Auto-steer and traffic active cruise control (TACC). Tesla owners can change TACC’s speed setting through its icon, while the Auto-steer icon becomes a blue circle with the steering wheel engaged, making it more visible. These icons reportedly blink at times, according to Electrek.

Nevertheless, non-Autopilot owners do not have to worry as there are a few new design features available to every Tesla car. Firstly, owners can get rid of the top menu bar to have a view of the application on Tesla’s touchscreen. Other than the fixed menu bar, some icons hover over the app, the publication noted. These new features can be really essential to owners who use Tesla’s navigation app frequently.

Moreover, the media app has been completely overhauled and now owners can find shortcuts to their favorite streaming stations or radio. The company improved the search option with filters for album, artist, and music in the new app.

Earlier this month, TheCountryCaller reported that Tesla will likely launch Spotify app integration for its American owners, after the service was launched in Europe last year. Currently, the company uses streaming app of Slacker in the US. However, the media app’s icons remain the same.

Other than the UI changes, the improvement in the regenerative braking software will cheer all the owners, who “may experience slightly stronger deceleration.” This would further increase the safety of Tesla cars which have attained highest safety ratings from the NHTSA.

Since TheCountryCaller cannot publish the images, here is the link to Electrek’s article.

Tesla Motors Inc charging stations will soon surpass the number of gas stations in NYC, as car chargers are increasingly being installed in garages to fulfill urban charging requirements

For years, Tesla Motors Inc (NASDAQ:TSLA) has been criticized for overspending and undertaking plans way ahead of its time. After investing $1.6 billion on several projects including expansion of global Supercharger network, the automaker has allocated $1.5 billion again for similar initiatives. Although the amount looks massive for a young, loss-making electric vehicle (EV) maker, it is establishing a cutting-edge.

New York Post (NYP) reported on Thursday, that Tesla’s charging facilities will soon outnumber gasoline stations in the New York City (NYC), making it far easier for owners in the city’s most densely populated borough, Manhattan. The company plans to expand its charging network in Manhattan to 105 stations by the end of this month, providing tension-free EV driving experience.

While the slower Destination Chargers will recharge a Tesla car in four hours, the company-owned Superchargers, which are free for the owners, will do the same in roughly 45 minutes. CEO Elon Musk’s expansion plans point towards having EV charging stations three times the number of gas stations in Manhattan.

The report states that the number of gas stations has reduced to merely 40 units in NYC, as developers are demolishing them for more profitable projects. Manhattan drivers have to wait as much as 40 minutes to refuel their vehicles, while Tesla owners hardly have to wait to plug-in their cars.

Tesla Spokeswoman Alexis Georgeson stated that the company had been mostly installing fast-chargers at restaurants and hotels until last year. Considering the increasing requirement for urban charging, Tesla expanded the program and entered into agreements with public garages to give parking on hour and monthly basis.

By March 18, Tesla had installed Destination Chargers, which provide roughly 60 mile range per hour, in 68 garages in Manhattan. The high-tech car manufacturer expects Tesla stations every three blocks in the next six months. While Destination Chargers are installed in Manhattan garages, Superchargers are built along highways. Today, Tesla was scheduled to open its new store and service center in Red Hook Brooklyn, the most populous NYC borough.  Tesla has a dealership in Manhattan and a Supercharger in Queens in NYC.

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The management stated in the 4QFY15 Shareholder Letter that it will roll out 300 Superchargers this year to further strengthen the global charging network. Tesla’s direct sales and charging station model is a unique offering in the automobile industry, where players use franchised dealerships to sell their vehicles. Concept of launching company-owned charging station was started by Tesla and is now followed by few automakers including Volkswagen.

Intel Corporation (INTC) short interest increased by 14.26% as per recent FINRA report

Intel Corporation (NASDAQ:INTC) recent Cloud Day 2016 was focused on technical improvement, which the company is adopting in order to make Cloud implementation much easier. Intel believes that the cloud market is showing a maturing trend, amid which the company needs to improve its software. Improvements in Cloud will enhance the performance of processor in terms of utilization rate by 50-90%. Moreover, Intel’s management also highlighted the likelihood of softness in DCG sales amid first half of the current year and predicts a single digit growth only.

Intel stock is trading at $32.34 down 0.34% in pre-market hours on April 4. It seems like the company stock is finally gaining momentum after a year-to-date (YTD) loss of 7.26% and is trading near to its 52 week high of $35.59. The overall market is showing an upward trend, Dow Jones and S&P 500 Index are out of the red zones and are up 1.07% and 0.48% respectively. Intel stock has gained 13.3% since mid-February, which increased the market capitalization of the company to $153.77 billion with a total float of 4.72 billion shares.

The short interest of the company has increased to 14.26% in the month of April. As per Financial Industry Regulatory Authority (FINRA), total short of Intel stood at 91.51 million shares in the month. The company stock has an average daily trading volume of 22.15 million shares, which gives short sellers 4 days to cover their short position on the Intel stock.

Southeast Asset Advisors increased its position in Intel by buying additional 16,635 shares, as per recent filing with Security and Exchange Commission (SEC). The investment firm now has a total 105,890 shares of the company which are worth $3.5 million and is 1.18% of investment firm portfolio. Conversely, Lvw Advisors reduced its position in Intel by selling off 2,709 shares which left the investment management with a total stake of 87,894 shares, which are worth $2.9 million.

Intel stock is expected to reach $36.07 in the coming 12-months, as per consensus estimations. The most bullish firm on the stock suggests that Intel stock might reach $45 in short term, whereas the most bearish firm is of the view that the company stock might trade as low as $26 in the coming 12-months. The company has a consensus rating of Outperform as per Zacks Investment Research. This data may vary from Thomson Reuter’s data.

More evidences are piling as we move closer to another rumored Radeon GPU announcement

Advanced Micro Devices, Inc. (NASDAQ:AMD) is rumored to unveil the Radeon RX-490 before the end of 2016 and the evidences are increasing every week. An entry in MacOS Sierra driver has revealed two names that have previously been unknown to us. When using a HEX viewer, the driver controller file shows Polaris 12 and Polaris 10 XT2. (via Videocardz)

Judging by the name, Polaris 10 XT2 sounds like a dual-GPU. AMD confirmed before that Radeon RX-480 represents the full configuration of Polaris 10 chip, so perhaps we will get a dual GPU solution that is either the rumored RX-490 or some different GPU.

Polaris 12 is something that comes off as a surprise given what we just mentioned about Polaris 10 configuration. It was speculated that if RX-490 is based on Polaris then it will either be a dual-GPU or using a new chip that AMD has not unveiled before. From what we officially know so far, AMD is working on Vega for a Q1 2017 release. Where Polaris is meant to serve as a mid-range GPU lineup, Vega will be the high-end part in the Radeon lineup that replaces R9-390, RX-390X and the Fury series. AMD might launch RX-490 in the Polaris segment and since Vega is set to introduce High-Bandwidth Memory 2 on-board, it could be exclusively for Fury successor, but that’s all speculation at this point.

There was another piece of information just recently, which suggested that AMD is prepping another GPU. Ashes of the Singularity online benchmark database contained a new device ID that does not match any GPU, it could be the RX-490 we are hearing so much about. The GPU scored in the same ball park as the GeForce GTX 1080. AMD will be holding New Horizon event on December 13 to showcase Zen to the public, but we may also see another product announcement in the Radeon family.

No financial details of the transaction have been disclosed as of yet

Advanced Micro Devices, Inc. (NASDAQ:AMD) announced today that it has bought HiAlgo Inc., a company that specializes in the development of advanced PC gaming technologies. The company has developed certain technologies that complement Radeon RX Series GPU in redefining the overall gaming experience for users. These technologies enhance the overall effeceincy of the GPU in turn giving the user a significantly improved experience.

“Software is an integral part of advancing the science of graphics, enabling us to best harness the silicon of the GPU to maximize performance and deliver outstanding experiences in games and applications,” commented senior VP Raja Koduri of the company. HiAlgo shares the same ‘passion’ for the overall gaming experience for users as AMD does, adding that the former has delivered several unique solutions in the realm of gaming. He further noted that HiAlgo is instrumental in taking GPU to the next level.

Already, Radeon Software has the capacity to allow the user to fully utlize the performance of the Radeon graphics leading to a worthwhile gaming experience. This is said to provide users with higher control over their respective computing gaming experience. 

AMD stock has been racing up in the market as of late. Today, the stock jumped by 2.33% after having plunged during the past few trading sessions as a result of the Brexit scare. The stock during the past six months has surged by more than 74% while the NASDAQ has dipped by 5.50% during the same timeframe.

Morgan Stanley has raised its price target on Alibaba to $130.60, the highest on the Street, projecting 76% upside potential

Alibaba Group Holding Ltd. (NYSE:BABA) stock has surged 2.30% so far today and is currently trading at $75.94. The rise in the stock price was seen after Morgan Stanley raised its price target on the stock.

Robert Lin, the analyst at the investment bank, raised his 12-month price target on the stock from $119.30 to $130.60; now he has the highest price target across the Wall Street. The analyst’s raised price target reflects a 76% upside potential over the current price. He has also reaffirmed his Overweight rating on the stock.

Moreover, Alibaba stock is currently trading within a 52-week range of $57.20-89.48, and has a market capital of $182.82 billion. On a daily average basis, 19.86 million Alibaba shares exchange hands.

Mr. Lin believes that the company’s AliCloud has immense potential to drive significant value; on a broader prospect, he advises investors that they should consider Alibaba stock as an investment for the long term. This is becaus, the analyst projects growth in the company’s revenue. He stated: “The foundation is set to transform Alibaba into a leading data commerce company that leverages big data / cloud computing to upgrade all of its businesses, ecosystem partners, and customers.”

Furthermore, Mr. Lin also mentioned that unlike its international competitors, Jack Ma’s company has businesses which connect the complete value chain of over-the-air marketing and electronic commerce. Along with this, these businesses offer solution for several merchants along with a number of brands, all under one roof. Mr. Lin elaborated that Alibaba’s unified ID asset keeps a track of and interprets users’ digital footprints across a number of platforms and screens.

Out of the 43 analysts at the Street who provide coverage on Alibaba stock, 37 recommend the investors to place a long position in the stock, comprising 86% of the total analysts covering the stock. The remaining six rate the stock as a Hold.

Elon Musk shares positive updates on the Model 3’s profitability, future capital raise and the Autopilot timeline

Tesla Motors Inc (NASDAQ:TSLA) has fallen 3% year-to-date (YTD) and more than 7% in the last three months. The regulators’ investigation on Autopilot accidents, SolarCity Corp (NASDAQ:SCTY) merger deal, and weaker-than-expected quarterly deliveries severely impacted the stock price. Even the much anticipated Secret Master Plan extension could not turn investor sentiments.

However, Tesla CEO Elon Musk knows how to get investors back on his side. He gave a presentation to the media at the Gigafactory on Tuesday and shared some optimistic projections and plans, which apparently won the Street’s heart.

The stock surged as much as 1.7% and hit an intraday high of $233.36. By 11:03 AM EDT, Tesla shares were trading up 0.92% at $231.63.

Tesla Model 3 is the most decisive vehicle to the company’s overall success to become a mass market auto manufacturer. While over 373,000 reservations show that the demand for the compact sedan is skyrocketing, investors had been concerned about the vehicle’s profitability.

Mr. Musk said that he expects that the Model 3 will likely generate $20 billion in revenue with 25% gross margin once its hits full production by the end of this decade. Although the automaker is struggling to maintain similar margins for its premium sedan, the Model S, the CEO explained that easy manufacturability and declining battery costs will help in achieving the ambitious target.

The company expects to reduce battery pack costs to about $100 per kWh by 2020 via the Gigafactory, where it eventually plans to produce 1.5 million packs per year for its vehicles.

Moreover, investors and analysts have not been pleased with the company for its excessive cash burn and the Secret Master Plan includes several new initiatives which would require “tens of billions” of dollars. Yet, Tesla’s chief foresees the Model 3 and possible the Model Y (compact SUV) to support the funding of most of those projects, leading to just “modest” capital raise requirement.

He said that the automaker’s Autopilot plans are on track despite its decision to part ways with Mobileye NV (NYSE:MBLY). The fully autonomous driving system is expected to include an integrated platform with far more safety than a manual driven vehicle.

With these statements, Mr. Musk responded some of the analysts unanswered question and must have lowered their skepticism to an extent.