Mr Smith


There has been a recent shift in sentiments of Street analysts for GoPro Inc (GPRO) stock as it crashed more than 50% YTD

GoPro Inc (NASDAQ:GPRO) stock closed at $8.80 yesterday, down about 2.11% against the previous day’s close. The stock has crashed nearly 51.12% since the start of this year through May 18, 2016 and has massively underperformed the S&P 500 Index’s gain of about 0.18% during the same time span.

There has been a recent shift in the Wall Street analysts’ sentiments in the San Mateo, California based manufacturer of action cameras. The analysts’ buy ratings on the stock turned into hold ratings as they sensed factors which would hamper GoPro’s financial performance.

During the past week, GoPro’s video chip partner, Ambarella Inc’s (NASDAQ:AMBA) stock witnessed a cut in price target by the analysts at Pacific Crest. The analysts curbed the 12-month price target to $53 from $62, while maintaining an Overweight rating on the stock.

The cut in Ambarella’s price target at Pacific Crest came on the heels of GoPro’s inventory corrections which showed an inventory pile-up due to sluggish demand. Along with this, the action camera producer faces fierce competition from LG’s standalone action cameras. In addition to this, GoPro is Ambarella’s biggest buyer of video chips, and as both the company’s stock price movement is tied so closely, it will be vital to examine the action camera manufacturer’s move to get on track its failing business in attempts to broaden its stagnant customer base.

Out of a total of 18 analysts, five analysts believe the investors should long the stock. Another 11 analysts recommend to Hold, while the remaining two analysts rate the stock a Sell.

The 12-month consensus price target on the stock is $11.32, carrying an upside potential of almost 29%.

Stephen Turner of Hilliard Lyons – an investment firm at the Wall Street – has the most bullish stance on the stock. The analyst believes the investors should buy the stock for long term and his 12-month price target on the stock is $17.

In comparison to Mr. Turner, Piper Jaffray’s analyst Erinn E Murphy holds the most bearish sentiments in GoPro stock. He believes that stock will underperform the market and projects the stock price to tank to $6.5 during the 12-month period.

New Benchmark puts the upcoming Pixel XL smartphone to shame

If you already don’t know, Alphabet Inc. (NASDAQ:GOOGL) Pixel smartphones are the first ever devices to incorporate Qualcomm’s latest Snapdragon 821 processing chipsets. According to Qualcomm, its latest Snapdragon 821 processor is 10% faster than its previous generation Snapdragon 820 processing chipset. Technically, this should represent as a significant advantage for the newly announced Pixel smartphone devices compared to other smartphones powered by a Qualcomm Snapdragon 820 processor. However, in a new benchmark conducted by Geekbench, the performance of the Pixel XL is not much different to smartphone devices running on Qualcomm’s previous generation Snapdragon 820 processors. This might seem strange but it’s a clear indication that the upcoming Pixel smartphones might not be as fast as we originally believed.

According to the performance test conducted by Geekbench, the soon to release Pixel XL managed to score 1648 in its single-core test, while the smartphone scored 4121 in its multi-score test. Interestingly, leading smartphone devices which are powered by the previous generation Snapdragon 820 processors managed to gain very similar ratings compared to Pixel XL. This benchmark clearly indicates that the upcoming Pixel smartphone devices do not have a significant advantage over smartphones running on previous generation processing chipsets. The test conducted by Geekbench compares the performance of Pixel XL with leading smartphone devices running Snapdragon 820, such as; Samsung Galaxy S7, Galaxy Note 7, HTC 10, OnePlus 3 and LG G5.

However, this new benchmark should not raise significant doubts about the upcoming Pixel smartphones, as results gained by the latest Qualcomm Snapdragon 821 processor is still great but nothing extraordinary. Even though Qualcomm’s latest generation processors might not be significantly faster compared to its predecessor model but there is hope that the new processor could turn out to be more efficient. It is widely accepted that the previous generation Snapdragon 820 processors quickly heated up which contributes to faster battery drain. Hence, if Qualcomm has fixed this issue in its latest processing chipsets then it would represent a win for Qualcomm and Google’s upcoming smartphone devices.

The drug maker is optimistic that new CEO will bring back the company on the track of success

The appointment of Joseph Papa as a new Chairman and Chief Executive Officer (CEO) of Valeant Pharmaceutical Intl Inc (NYSE:VRX) is mainly to give a ray of hope to the investors along with increasing its credibility in the eyes of stakeholders. The company is in hot waters since August 2015 after a tweet from the presidential candidate Hillary Clinton in association with the price hike of the drugs.

Joseph Papa is a 56 years old pharmaceutical legend who has various credits to his name such as merger and acquisitions of multiple companies. Joseph has played a vital role in the development of multiple companies’ revenue generation with the introduction of strategic marketing and research and development plans. He led Perrigo for 10 years as CEO and with his efforts, the company generated revenue of $5 billion. He has ample experience in handling the Pharmacy Benefit Managers (PBM) and his appointment will definitely help Valeant to re-enter in new agreements with PBMs.

Valeant was aggressively looking to replace Mr. Pearson as his strategic policies pushed the company’s growth and stock on the sky, but in August 2015, the policies were hit by controversies. He also slashed heavily in the research and development (R&D) funding. Due to the Philidor scandal, the drugmaker has lost approximately $80 billion in its market capitalization. 

This change in the leadership is expected to bring a big change in the company. There is no question about the assets of Valeant that can definitely aid in bringing back the drugmaker on the track of success. 

Mr. Papa is very keen to pay off the huge debt of $31 billion on Valeant’s shoulders making the position of the company very problematic in the eyes of investors, but the recent approval from the Food and Drug Administration (FDA) of its gastrointestinal and dermatology drugs gives some sigh of relief to the investors. Both the drugs are expected to be the blockbusters in the near future – aiding in releasing the pressure of hefty debt from the company. 

Joseph Papa is confident that he can turn the company back in the pharmaceutical arena due to its robust and competitive drug pipeline, which consists of novel investigational molecules. He said that the drug pipeline has 10 new drugs that are expected to be launched in a year and a half. 

Valeant CEO Joseph Papa said: “We have an opportunity to move forward with a renewed focus on operating with integrity across all areas of the business and providing customers with safe and affordable products that improve their lives.”

Marvel’s Luke Cage surpasses Parrot Analytics Demand Rating of 90 and becomes the most in-demand TV series in the US

With plans to go big on content spending, Netflix, Inc. (NASDAQ:NFLX) wants to maintain its dominance with the topnotch content and collaboration with Marvel playing a key role in it. The success of the first two successful series, Marvel’s Daredevil and Jessica Jones, laid down strong foundation for the launch of Netflix’s latest series on Marvel’s character Luke Cage, which has become the most demanded TV series in the US.

Parrot Analytics, which finds demand expressions using various platforms, reported that after its first full week since the launch on September 30, the demand for Marvel’s Luke Cage more than doubled. This was sufficient to surpass Demand Rating of 90, and becoming the most in-demand TV show overall and digital originals in the country.

The analytics platform noted that the TV series also drove demand for its both sister marvel series. While demand for Jessica Jones impressions increased by 50%, the Daredevil entered the top 10 digital original series list for the week ending of October 8.

“The mention of these characters in Luke Cage seems to have resulted in a substantial increase in demand for their series,” Parrot Analytics noted in the weekly report.


With 51.3 million demand impression, the bulletproof Luke Cage remained at the top, while Jessica Jones and Daredevil came up at fourth and seventh spots in digital original list.

While the demand for Marvel series increased over the period, interest in older blockbuster shows, Stranger Things and Narcos, dropped by 23% and 40%, respectively. Nevertheless, both the original series remained in top three.

Demand for the recently launched series, Longmire Season 5 and The Ranch, also remains high during the week. Though, Fuller HouseHouse of Cards, and Orange is the New Black were named the steady performs.

For now, the only overall TV series that could outperform Luke Cage is the HBO’s new drama series Westworld that stood at the second spot with 37.2 million demand impressions.

After the search giant released its first quarter earnings, SunTrust Robinson lowered its price target on the stock to $850

Yesterday, Alphabet Inc. (NASDAQ:GOOGL) released its quarterly earnings report for the second quarter of fiscal year 2016. The $502 billion company missed the Street on both its top and bottom line numbers this time. Following the announcement, research firm SunTrust Robinson Humphrey cut its price target on the stock from $875 to $850.

For the March quarter, the search giant reported GAAP revenues of $20.26 billion, up 17% from last year, yet slightly below the consensus of $20.38 billion. Non-GAAP earnings per share totaled $7.50, missing the Street by an unpardonable 46 cents, while posting 15.92% year-on-year increase. The 46-cent difference can largely be attributed to investments and headwinds from mobile, increased traffic acquisition costs, and increased capital expenditure. While the revenue was mostly driven by advertisements and mobile search growth, aggressive investments on core and side bets led to the EPS miss. Management also lowered its EPS guidance for 2017 from $40.33 to $38.56.

On one hand, SunTrust analyst Robert Peck believes the stock remains well-positioned, but on the other hand, he also trimmed his 12-month price target for the stock, with his updated one reflecting a 20x multiple of the core EPS and a 13.5x enterprise value-to-earnings before income taxes depreciation and amortization (EV/EBITDA) ratio. The analyst maintained his Buy rating on the stock.

In contrast, Cowen analyst John Blackledge, was rather positive on the stock following the Q1 earnings report.  The operating income trumped Mr. Blackledge’s estimate by 2%, which, he believes, was largely owing to strong mobile search growth. Growth in paid clicks was slightly slower than the analyst’s expectation of 32%, as it turned out to be 29% YoY, still above a consensus of 27%. The analyst maintained his outperform rating and $940 price target on the stock.

The Street currently has 5 Strong Buys, 7 Buy, and one Hold rating on Alphabet stock. Class A Shares last traded at $731.42 as of 12:54 EDT Friday, down 6.23% from their previous close.

The Country Caller explains why investors should consider Cheniere Energy shares for the long term

Liquefied natural gas company Cheniere Energy, Inc. (NYSEMKT:LNG) reported a net loss of $298.4 million for its second quarter earnings, almost doubling the $118.5 million loss it reported for the same quarter last year. However, The Country Caller believes this would not drastically hamper investor confidence in the stock, as the company has finally yielded revenues from its commercial operations.

The company started burning cash at a fast pace, when it began developing export facilities at Louisiana, Sabina Pass and Corpus Christi, and had to report substantial losses. In addition, its debt also kept piling up as it had no commercial operations and was engaged in developing LNG trains.

However, earlier this year, the company began its LNG shipments from Sabine Pass, leading it to report its first commercial revenue of $110.7 million from LNG sales. Last year, the company had reported a net loss amounting to $706 million.

The revenue commencement marks a key milestone for the company, as it signals the hard times are finally over as the company has now entered into the earnings phase. In addition, revenues for the company are expected to grow over time.

Even in 3QFY16, investors can expect the revenues to be higher. This is because 2QFY16 reflected sales from only five weeks as the train began its operations on May 26. However, the company has plans to shut down Train-1 for maintenance later in September, which would ultimately improve revenues further.

Moreover, the company’s second LNG Train also commenced production in June. As per Cheniere’s expectations, revenue through shipments could be realized as early as next month. Hence, the 3QFY16 and 4QFY16 revenues have the chance to soar even higher.

In the long run, the company plans to build about five trains from the Sabine Pass which could produce around 4.5 million tons a year of LNG on a cumulative basis. Later in 2019, the company also expects two trains to be constructed at its Corpus Christi.

The demand for LNG is also secure, as the company stated that it has already made contracts for 87% of its overall capacity at two of its LNG terminals. Hence, The Country Caller continues to remain bullish on Cheniere Energy’s long-term growth prospects.

Tesla’s Elon Musk says those in denial of the climate change are real frauds; he has challenged Robert Murray to go zero-zero on subsidies

Tesla Motors Inc. (NASDAQ:TSLA) has not only been in a battle with traditional automakers and franchise dealers, but has also been offensive to those companies which are actively participating in one of the biggest global issues, i.e. global warming. On Monday, a coal-mining boss called the young automaker “fraud” for using taxpayers’ money and not making any money on it.

Murray Energy Corp CEO Robert Murray went on the CNBC on Monday and said that Tesla has received “too big in dollars” from the taxpayers, and yet it “has not made a penny in cash flow.” Being a Trump supporter, he mentioned that Presidential candidate Hillary Clinton went on record saying these companies require government assistance.

He added: “She was talking about Elon Musk, Warren Buffet, the Prtizkers, the Polskys, Steyer, the wealthiest family Podesta himself,” implying that Ms. Clinton is merely trying to help her friends and it has nothing to do with the climate change. He believes that even if every coal plant closes down in the US today, there will be no effect on global temperature.

Mr. Musk immediately took the issue to Twitter and responded to Mr. Murray that “real frauds” are those who deny the climate science. For subsidies, he wrote that his company receives “pennies” compared to the coal industry. He openly challenged the big coal chief to go toe-to-toe with zero subsidies.



Tesla chief previously revealed that the fossil fuel industry gets $5 trillion in subsidies per year, according to an IMF study. He claims that the industry is purposely trying to defame Tesla for its role in accelerating the transition to sustainable energy. He has been urging lawmakers to introduce carbon tax to ensure coal is priced fairly in the market, according to Electrek. Last year, he talked on the matter at the Paris Climate Change Conference.

The Country Caller discusses recent quarter earnings forecasts of Qualcomm and AT&T before their respective announcements later in the evening today

After the market closes on Wednesday, January 25, QUALCOMM, Inc. (NASDAQ:QCOM) and AT&T Inc. (NYSE:T) will announce their earnings for the first quarter of fiscal year 2017 (1QFY17) and 4QFY16, respectively. While the companies have published mixed financial results in the previous quarters, forecasts suggest that both QCOM and T are likely to exceed analysts’ predictions on the top line whereas QCOM is also expected to outperform on bottom line.

Qualcomm, Inc.

Wall Street analysts have given Qualcomm consensus earnings per share (EPS) projection of $1.19. While this is expected to result in a decline of 7% quarter-over-quarter, it will also lead to growth of about 23% on the bottom line. On the other hand, expects the company to exceed both Street expectations and QCOM’s 1Q EPS outlook of $1.12-1.22, with its EPS estimate of $1.24.

Reportedly, Qualcomm’s previous quarter revenues were published at $6.2 billion. Interestingly, this is similar to what predicts to be announced during the upcoming quarterly announcements. Moreover, Street analysts also expect the $70.93 billion business to report $6.12 billion net sales, well within QCOM’s Q1 revenue guidance of $5.7-6.5 billion. The California-based company also witnessed about $5.8 billion net sales for the prior year quarter.

AT&T Inc.

The analysts have also upheld AT&T’s consensus EPS estimate at 66 cents. This is consistent with the expectations held by analysts at However, the number suggests a decline of about 11% QoQ on bottom line as T reported 74 cents in EPS during the last quarter. Additionally, the company’s 4QFY15 EPS came in at 63 cents.

The $257.36 billion company is also expected by Wall Street to publish $42.1 billion revenue this season, consistent with 4QFY15. This is slightly lower than’s top line estimate of $42.17 billion. Furthermore, the Texas-based company reported $40.9 billion revenue for 3Q.

Tesla Motors Inc is refreshing Model S nosecone and adding a new design, as it prepares to increase the vehicle’s price for the first time

Tesla Motors Inc. (NASDAQ:TSLA) has kept the price of its best-selling luxury sedan, the Model S, unchanged since it hit the roads in 2012. The vehicle, which is headed into its fourth production cycle, is expected to see its first price hike shortly.

While experts have been anticipating the electric vehicle (EV) maker to offer some updates in return, CNET has confirmed that the company is indeed bringing in a series of updates to the premium sedan as early as this week. Tesla insiders told CNET that the company aims to both add some more luxurious features and simplify the vehicle’s manufacturing process.

It is essential for the company to make its vehicle’s complicated processes easier, as it plans to become a large-scale original equipment manufacturer (OEM). Meanwhile, it also needs to maintain its strong hold in the American and European markets, amid increasing popularity of its mass-market model, the Model 3. Morgan Stanley’s Adam Jonas has claimed that the mass-market sedan could outshine its predecessor, eventually leading to cannibalization of the world’s most successful EV.

The reports stated that the Model S’s front-end design would be refreshed. The nosecone has been altered and it is not that of the Model 3 or the Model X, although it will make the vehicle’s frontal appearance similar to them. New LED headlights will also be added to give it a cleaner look and new paint colors will be included in the Model S design studio.

Additionally, similar to the premium SUV, the Model S will have ventilated front seats and it will get some additional compartments for interior storage, such as door pockets. Additionally, the automaker is eliminating the production parts of all the previous Model S versions now. With these offers, the sources said that Tesla will increase the prices of its award-winning vehicle, but they didn’t mention by how much.

Last week, a TMC member posted an image of Model Ss with protective tape on the front and rear bumpers, parked outside the Fremont factory. Although the image is not clear, one could tell the nose has been altered.

The level of Tesla’s innovation cannot be overstated. The new design and features could give a new life to the Model S and bring on a degree of separation from its mass-market successor.

Budding fitness startup KFit acquires Groupon’s Indonesian unit, in a bid to expand its global reach

The provider of online deals, Groupon Inc. (NASDAQ:GRPN), has faced increasing pressure from its shareholders in the past three months, as the company witnessed a 26% decline in its share price, right after its first quarter earnings call. The ecommerce company has disclosed its intention of selling its Indonesian business to a budding fitness startup, KFit. While much of the deal’s financial implications remain a secret for now, under the deal Groupon will become a shareholder of the company.

KFit was founded by Joel Neoh back in April 2015 to provide customers unlimited access to fitness studios and gyms for a pre-defined monthly fee. The 1-year-old startup plans to expand its reach in the Indonesian market with the aforementioned acquisition and make use of Groupon’s strong local platform which is home to over thousands of merchants and a million subscribers. Furthermore, Groupon expects the entire acquisition to close by the end of the third quarter of 2016.

KFit CEO Joel Neoh shared his thoughts on the strategic merger with the online deal platform as he quoted: “Indonesia represents an untapped opportunity for us and serves as a natural expansion of our regional footprint in Southeast Asia. The combination of Groupon Indonesia’s established presence and KFit’s experience in building a mobile-first platform will propel us in a high-growth local commerce market, further accelerated by increasing mobile penetration.”

Groupon posted mixed financial results for its first quarter of 2016 in April. The company reported adjusted loss per share of one cent, compared to a consensus estimate of two cents. Revenues came in at $732 million, surpassing the Street’s expectations of $718.3 million. Groupon’s gross billings also slumped 5% to $1.47 billion, compared to same period last year.

Following its weak quarterly performance, analysts at RBC Capital cut their rating on the stock from Sector Perform to Underperform, highlighting the “deteriorating fundamentals” in the March quarter. The research firm also lowered its 12-month price target on the stock from $4 to $3. Groupon stock has now slipped more than 42% over the last 12 months, compared to the NASDAQ Composite Index which fell nearly 2.5% through the same period.