Connect with us

BenzingaEditorial

Carmakers- the knights the world deserves and needs right now!

Published

on

Solar vehicles stock news

As COVID-19 is only gaining momentum, more and more hospitals are warning they’re experiencing shortages in medical face masks, ventilators, gloves and other medical equipment. Pictures of nurses at one NY hospital that have been wearing trash bags instead of protective gear have told the whole story of what is going on in the medical supplies market. All of this is happening due to a lack of supplies and a limited number of companies that can produce face masks and protective wear. Consequently, there is chaos in the market. Many deliveries are just diverted from one buyer to another, without any understanding, agreement or mutual consent. This is everything but ok. The only solution to this problem is to increase the production of face masks and other medical equipment. Carmakers are part of this solution and are showing the way for the world to follow.

Chaos on the medical supplies market

Last week, German officials accused the US for “modern piracy” as the face masks that were purchased from the US producer 3M Company (NYSE:MMM) didn’t reach Germany as the package was intercepted in Bangkok and returned to the US. The Germans interpreted these actions as “wild west” methods.

Those masks were not delivered due to the invoked Defense Production Act. The Act allows the Federal Emergency Management Agency to buy medical equipment it needs by using its authority. It also helps the agency to keep all the necessary medical equipment in the country by limiting or even preventing export. It is quite logical to prevent mask exports especially when COVID-19 is gaining momentum in the US while at the same time, it is losing its strength in Germany. After all, Germany also imposed similar export restrictions in early March 2020. This is an excellent example of the mess that is unfolding on the medical supplies market. Germans are accusing the US because they did not get the masks they ordered, but anyone can also accuse them for being hypocrites as they have done pretty much the same and only a month ago. But this will not solve the problem. That road leads to nowhere. What we need is cooperation and joint effort so we can produce more protective equipment.

Carmakers showed how the joint battle for lives and healthcare should be fought

Medical face masks, ventilators, gears and gloves are weapons against the virus. We need them now more than ever. And we don’t have enough of them. It is the root of the problem. So, if we want to solve this problem, production increase is the only solution we all should focus on. It takes time to gain the necessary know-how and organize an efficient production. It would all go much faster if there were many suppliers instead of just a few of them.

General Motors – a knight the world needs!

The US carmaker General Motors (NYSE: GM) realized this and provided manufacturing blueprints for face mask production. All those blueprints, with detailed specifications materials, equipment and processes will be available to all companies that want to join the fight against COVID-19. So far, GM has sent production instructions to 600 suppliers willing to join the war. GM could be selfish, and it could keep this know-how just for itself and gradually increase production in times when market demand is huge. It will certainly help benefit its finances. But they were not selfish. They did what was right. Additionally, last week GM began face mask test production in Detroit. It is expected that up to 50,000 masks will be produced per day, once the production line is running at full capacity utilization.

Tesla is also making progress

Tesla Inc (NASDAQ: TSLA) engineers showed their medical ventilator prototype. Its design relies heavily on car parts, but that’s not the point. What’s important is that Tesla showed to the world that it can count on its contribution. Timeline for production was not specified but nevertheless, these are encouraging news.

Volkswagen- synonym for solidarity

Finally, German carmaker Volkswagen AG (OTC: VWAGY) showed what the word “solidarity” means. Recently, it agreed with its interior supplier Faurecia S.E. (OTC: FURCF) to produce face masks and gowns. Supplier’s production lines in Mexico were modified and now they are producing masks and gowns. It was announced that its factory is ready to produce approximately 250,000 masks and 50,000 gowns per week. Volkswagen decided to donate its first batch i.e. 75,000 units to NY State hospitals. The arrival of this personal protective equipment is expected this week.  They didn’t send it to Germany even though they could but they had sent them to where they are needed the most – New York, the new epicenter of COVID-19.

Cooperation is the only way forward

This is how we should all fight this unprecedented health crisis that has put the whole world on hold. We don’t need mutual accusations, but cooperation and mutual understanding. Carmakers that are now facing existential problems have shown us the way we all should behave! Not to be selfish but human. Well done, carmakers!

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com

BenzingaEditorial

Should Salesforce Shareholders Rejoice or Be Concerned?

Published

on

Mid Cap Stocks

Salesforce (NYSE: CRM) will have its annual meeting of stockholders on Thursday, June 11, 2020, but in virtual form. The stock of the global leader in CRM tumbled immediately following its recent first-quarter results. The months before and at the initial phase of the pandemic were exceptionally good. But it is the second-quarter and full-year fiscal 2021 guidance for the year ending Jan. 31, 2021 that resulted in a downgrade. Yet despite the damage and costs brought on by COVID-19, its shareholders have a lot of positive development to rejoice in.

Impressive growth considering the circumstances

Considering the global climate, the fact that Salesforce continued to grow at a fast pace is beyond admirable. Moreover, highlights from the start of the year include the largest deal that Salesforce ever booked and it is with AT&T (NYSE:T). The telecommunications giant will be building a new unified view of all its customer data using Salesforce. It will begin upgrading its services to create a better customer experience during summer.

Market domination

As for the fiscal 2021, the CRM giant clearly dominated the market with $20 billion of expected annual sales. In addition, the pandemic accelerated the switch to cloud computing. Over the recent months, businesses have rushed to implement work-from-home solutions. This is expected to only further boost the company’s SaaS businesses. As for 2019, it was well ahead of SAP SE (NYSE:SAP) and Oracle (NYSE:ORCL) with 18.4% in market share as opposed to 5.3% and 5.2% respectively, according to research firm IDC.

Altered Revenue Structure

While Salesforce has been known as a SaaS powerhouse throughout its entire 21-year existence, this has now changed. Its largest and fastest-growing business is now “Platform and Other” as it topped Service, Sales, Marketing and Commerce. Moreover, the shape of the enterprise is continually evolving. That’s a profound development for a company which occupies third place on the Cloud list. It is just behind the mighty Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). Moreover, this is a very clear indicator that the world’s top cloud providers are doing everything in their power to enhance their offerings. The cloud is after all becoming the new IT foundation of the digital economy.

Going strong despite headwinds

Overall, this software giant proved it managed to become and remain an essential ingredient of many organizations’ operational needs. And what’s even more impressive, it maintained its status during such difficult times. The mega-cap cloud computing leader that has a current market cap of $157 billion, along with growing sales of nearly 20% and a stable free cash flow amid a deep recession, is still in an admirable position. And one that is surely envied by its many peers. This tech giant has plenty of liquidity to continue aggressively investing its development along with taking care of both its customers and employees. Moreover, the pace of digital transformation is only accelerating with lifestyles getting significantly altered by COVID-19. And like one of the pioneers leading this transformation, Salesforce has nothing to fear as it is both changing and thriving in the current climate.

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com

Continue Reading

BenzingaEditorial

Slack Fails to Deliver Another COVID-19 Blockbuster

Published

on

Stock Market Tumble

Unlike Zoom Video Communications Inc (NASDAQ:ZM), Slack Technologies Inc (NYSE:WORK) didn’t manage to deliver a blockbuster quarter. By no means was it bad as the company reported steady revenue growth with usage increasing over the pandemic. Even Amazon (NASDAQ:AMZN) will be offering Slack to its employees. But expectations were quite higher  so shares ended up dropping 17% in extended trading on Thursday.

First quarter earnings report

Revenue of $201.7 million resulted in an adjusted loss of 2 cents per share. The company added a record 12,000 paid customers in the quarter. This is more than 5,000 in the two previous quarters. Slack’s top competitor, Microsoft’s Teams, saw an explosive expansion of 70% in April as it reached more than 75 million daily active users.

For the next quarter, the company’s guidance for revenue is $206 million to $209 million with an adjusted loss of 4 cents to 3 cents per share.

AWS investment

Besides Amazon offering Slack to its employees, Slack will adopt Amazon Web Services’ Chime video-calling technology to enhance its calling features. Slack amended its initial agreement with AWS where it commited to at least $250 million in a five-year period that ended in 2023. It will now pay least $425 million over a five-year period that ends in April 2025.

Slack didn’t board the blockbuster boat but still did good

Revenue growth was 50% which is pretty much the same as 49% in the previous quarter. Zoom pulled off a 169% revenue growth, more than doubling guidance and exceeding forecasts. Not to mention the skyrocketing usage of Microsoft Corporation (NASDAQ:MSFT) Microsoft Teams. Slack didn’t manage to board that boat. But Zoom’s executives have a different way of looking at it. They find it as a great indication that they are not apples-to-apples rivals as the products are not truly competitive with one another. If we exclude the after-hours move, its shares did go up about 70% since the beginning of the year. But can Slack afford not catching up to the popularity of Zoom and Microsoft is a question that subsequent quarters will answer. Yet, many analysts see the pandemic as the point that either makes or breaks such companies whose products benefit from social distancing. If not now, when?

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com

Continue Reading

BenzingaEditorial

Even Oil Giants Are Under Tremendous Pressure

Published

on

Canadian Oil

The global oil market is in a state of hysteria. And not only COVID-19 is to blame, although its impact is being felt all over the globe. It is inevitable for the near future to be filled with bankruptcies, cost savings and cuts in spending as businesses are looking for ways to get through this historically difficult period.

The troubled industry

The year already began with over supply thanks to decades worth of expansion in U.S. onshore production. The price war between OPEC and Russia only further amplified the oversupply problem. That issue has at least been resolved. But the real hit was the global economic shutdown from COVID-19 which resulted in a drop in demand. With too much oil and too little demand, oil prices have plummeted to historic lows.

Cutting dividends

The current headwinds are intense, and have led many energy companies to trim their dividends. Royal Dutch Shell (NYSE:RDS.B) and Equinor are two direct competitors that have taken this drastic step to ensure they have ample cash to survive and they have a long histories of reliably returning cash to investors. Even Helmerich & Payne (NYSE:HP) which had a streak of 47 annual dividend hikes under its belt along with a rock-solid balance sheet still felt it necessary to cut the dividend in March.

It’s only logical to question whether or not peers ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) will be forced to do the same.

Chevron cutting jobs

Chevron has increased its dividend annually for 33 consecutive years. At the end of the first quarter, Chevron’s total long-term debt had increased roughly 20% from the start of the year. At the end of May, it announced a 15 percent cut of its global workforce.

Exxon has no layoff plans

Exxon’s dividend streak is even longer as it has increased its dividend annually for 37 consecutive years. But Exxon’s long-term debt jumped even more than Chevron since the beginning of the year as it rose by nearly a third.

Top and bottom lines at Exxon and Chevron are clearly driven by the price of oil which reached historic lows. Even Russia’s second-largest oil producer PJSC Lukoil (OTC:LUKOY) hurt by lower oil prices as it reported a first-quarter net loss of $669 million on Wednesday.

Shell and Equinor Vs Exxon and Chevron

Thus, Shell and Equinor chose to preserve cash by cutting their dividends. Starting out with much lower leverage, Exxon and Chevron have more balance sheet flexibility and they are using to protect their dividends, for now. Paying a consistent and growing dividend is important to the boards of these energy giants. But the energy market is at a painful place right now.

The boards of Exxon and Chevron will make the hard call to cut their dividends if need be.

Whichever the scenario, the big guys actually have a shot at pulling through thanks to the help of the Trump Administration, unlike many of their small peers which won’t even be able to afford Chapter 11 bankruptcies.

Uncertain future

There have been multiple ups and downs in the historically cyclical energy sector over the last three decades. But the biggest change is yet to take place: the green revolution. Exxon and Chevron have taken steps toward the low-carbon future. Exxon is developing biofuels from algae, while Chevron has invested in solar, wind and geothermal power sources. But environmental activists say they haven’t done enough. So, even with the support of the Trump administration, oil has an uncertain future. And even oil giants will need to fight for survival in the post-COVID-19 era.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

Continue Reading
Advertisement

Submit an Article

Send us your details and the subject of your article and an IAM editor will be in touch with you shortly

Trending