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BenzingaEditorial

Big Tech – Too Much Value Concentrated in Only a Few Ecosystems

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Microsoft News

Microsoft (NASDAQ: MSFT) exceeded Wall Street expectations despite showing a slowdown in Azure revenue. But the story of Microsoft’s growth over the past several years has been made by its Intelligent Cloud business. The still-raging coronavirus outbreak only fuelled its already booming business. Other four Big Tech names, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) and Facebook (NASDAQ: FB) worth nearly $5 trillion kept the fireworks going. This week, Zoom Video communications (NASDAQ: ZM) confirmed that tech and software are in for the win as the pandemic fuelled their already-existing growth.

Big Tech has led much of the market’s gains. The outperformance of these companies against the broader market has already raised concerns that too much of the market’s momentum is concentrated in just a few names. But Big Tech is an elite group of companies with a market cap of more than $1 trillion. However, investors are just as excited about other software gainers are Dropbox Inc. (NASDAQ: DBX) Adobe Inc. (NASDAQ: ADBE) and Datadog (NASDAQ:DDOG).

Datadog provided businesses with an indispensable tool

With people working from home and companies being managed remotely, Datadog’s cloud monitoring became an indispensable tool. It was less than a year ago that Datadog made its public debut and its stock has surged 39% since it was priced at $27. The pandemic-induced lockdown made its services more valuable than ever, driving shares up 125% so far this year. More importantly, there is no end in sight.  In the second quarter, revenue grew by 68% year over year, although decelerating slightly from the 87% growth it from the first quarter. But while Datadog has captured hearts and minds of investors over the past year, it is facing fierce competitors. International Business Machines Corporation (NYSE: IBM), Microsoft, Amazon (NASDAQ: AMZN), Cisco (NASDAQ: CSCO) and Alphabet (NASDAQ: GOOG) are among its biggest and scariest competitors. But there are a number of younger upstarts as well, including Splunk Inc (NASDAQ: SPLK), Elastic, New Relic Inc (NYSE: NEWR) and Sumo Logic just to name a few.

Companies need to keep their operations going with maximum efficiency. To do that, they need to identify any potential issues that can result in downtime and significant costs ahead of time. Datadog goes even a step further, as it provides valuable analytics and useful feedback that get to the root of the problem which is the best prevention against it happening again.

Outlook

With the pedigree and deep pockets of its scary rivals, Datadog has to keep up the good performance if it wants to maintain its eye-catching growth. Its continued robust growth even helped it generate a profit for the second consecutive quarter which is impressive for a company that had its IPO debut less than a year ago. But all these extraordinary tech developments are causing ecosystems of companies to overlap more than ever before. Even Apple gained many new enemies by moving into the service-business. The business world is a jungle – and only the ones that provide the best value and service will win.

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

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BenzingaEditorial

Vaccine Updates

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Corona Virus and the Stock Market

Besides saving lives and the global economy, we are expecting three things from the upcoming COVID-19 vaccine: safety, immunogenicity and efficacy. But we never had a 100 per cent efficacy when it comes to respiratory viruses, so anything between 50 and 100% will be the best we’ve got as the WHO believes everything above 50 per cent efficacy is acceptable. So, how far away are we from this goal?

Buoyed by positive results in its earlier studies, Johnson & Johnson (NYSE: JNJ) has now entered the final stage of clinical trials for its COVID-19 candidate. Although they started a couple of months behind others in the US, its trials will by far be largest with 60,000 enrolled participants.

The advantage of J&J candidate – one dose and no sub-zero storage temperatures

J&J’s vaccine is made with slightly different technology than others as it is modeled on its prior Ebola vaccine. It could result in considerable advantages over some of its competitors in terms of dosage and storage. But it’s up to Phase 3 trials that compare the effects of a vaccine with those of a placebo to determine if a single dose is indeed effective.

Disadvantages of Moderna and Pfizer candidates – significant logistics hurdle

Adenovirus vaccines must be kept refrigerated but not frozen, unlike the two front-runner vaccines, by Moderna (NASDAQ: MRNA) and Pfizer (NYSE: PFE). These depend on bits of genetic material known as mRNA. Besides the freezing requirement that makes distribution problematic, there vaccines also need to be taken in two doses, a few weeks apart.

Side-effects

When participants received a dose more than double the strength of the current shot of Moderna vaccine, 20 per cent experienced significant adverse effects such as fever and severe headaches. AstraZeneca was forced to pause its study for the same reason. Although the trial resumed in the UK and elsewhere, the research remains on hold in the US.

Candidates – US

Johnson & Johnson is now the fourth company to begin large-scale clinical trials for a COVID-19 vaccine in the United States, behind Moderna, Pfizer/BioNTech (NASDAQ: BNTX) and AstraZeneca (NYSE: AZN). According to Anthony S. Fauci M.D., this is an unprecedented speed made possible by decades of progress in vaccine technology and a coordinated approach that expanded beyond the scientific community, supported by governments and industries.

Candidates- Global

Financial Times has reported that there is a total of more than 300 vaccine candidates, according to the World Health Organization. Less than half are being tested on humans. Only nine of those have reached phase 3 trails which is the final stage before possible implementation. One of the nine vaccines is UK’s Astrazaneca. Two of the most advanced US candidates come from pharmaceutical company Pfizer, in partnership with Germany’s BioNTech, and Moderna. Four vaccines are being produced in China by Sinovac Biotech and one in Russia by the Gamaleya Research Institute which just boarded the phase 3 train this month. Then, there are CanSino Biologics (OTC: CASBF) and Sinopharm (OTC: SHTDY), which has two different shots in development and one is being led by Johnson & Johnson. All nine have already signed purchase agreements with governments around the world.

Countries

According to data from Deutsche Bank, the UK has built the largest and most diversified vaccine portfolio, on a per-capita basis, having pre-ordered more than five doses per citizen spread across six leading vaccine candidates. It is closely followed by US, Canada and Japan.

When it comes to the overall spender, the US government’s Biomedical Advanced Research and Development Authority has distributed more than $10 billion in funding for vaccine candidates, either via direct financing or through vaccine procurement agreements.

Canada has allocated $1 billion to secure at least 154 million doses of a future vaccine, signing deals with Pfizer, Moderna Inc, Johnson & Johnson, and Novavax (NASDAQ: NVAX) and most recently, Sanofi (NASDAQ: SNY).

The goal

The stated objective of the AstraZeneca, Moderna, Pfizer/BioNTech and J&J vaccines is to prevent the life-endangering symptoms of Covid-19. Their goal is to prevent people being admitted to hospital, going to intensive care and dying, as summarized by Andrew Pollard, who is leading the AstraZeneca trials at Oxford university. But preventing an asymptomatic infection entirely is likely to be a much bigger hurdle. Given the growing chorus of experts warning that vaccines will only offer a temporary immunity, making subsequent shots just as important. Only Johnson and Johnson and CanSino Biologics Inc are aiming for single dose shots.

If successful, Johnson & Johnson expects the first doses to be up for emergency use authorization from the US FDA at the beginning of  next year, while on track to make a billion doses a year. If this is the case, it would greatly help efforts to curb the pandemic.

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

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BenzingaEditorial

Four Evolving Lighting Companies

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Solar Stocks and Corona Virus

To run their operations, companies need lighting – among other things. Moreover, this lighting has to be energy-efficient to give the world a shot at taking control over climate change. LED lighting market has been intensively growing over the last decade. Its strength is a direct consequence from energy efficiency regulations and reduced technology costs. An average building uses about 15% of its energy for lighting therefore the savings potential of LED lighting across the globe is immense. But, lighting has expanded beyond its traditional purpose of illumination to add additional value such as sustainability. Consequently, it has also become a highly competitive market. Below are four companies that are well-positioned to benefit from this growing trend.

Acuity Brands

Unfortunately, Acuity Brands Inc (NYSE:AYI), the parent company of Acuity Brands Lighting was among the S&P 500’s biggest fallers on Wednesday September 23. The stock experienced a 2.56% decline to $98.07. But this is not the bigger picture as widespread adoption of Far-UVC lighting could create a large retrofit revenue opportunity for this industrial technology company. It is better to wait for October 8th for the company to announce its fourth quarter results to get a better idea of this prominent company.

Acuity Brands provides lighting products for the whole range of applications: from commercial to residential. Their customers are electrical distributors, electric utilities, retail home improvement centers, and lighting showrooms. Their offerings include luminaires, lighting controls, lighting components, and integrated lighting systems that use a combination of light sources. The majority of the firms’ revenue is generated in the United States, but it has operations across Europe and Asia as well, counting 12,000 associates.

Orion Energy Systems Inc

Orion Energy Systems Inc (NASDAQ:OESX) is the provider of LED lighting systems while implementing IoT systems and providing ongoing maintenance service. When the company reported its FY2021 first quarter results, it revealed it secured a contract with a large speciality retailer. The company just announced that its CFO William T. “Bill” Hull, plans to retire in November following its second quarter results, so it is in for a new chapter this year.

Cree Inc

The stock of Cree Inc (NASDAQ:CREE) is soaring and is possibly approaching a major achievement in its business. It provides lighting-class LED for power and radio-frequency applications with an international presence spanning across the United States, China and Europe.  On June 28th 2020, the US$6.6 billion market-cap company posted a loss of US$191.7 million for its most recent financial year. Although its shareholders might be concerned after seeing the share price drop 13% in the last month, they have received really good returns over the last five years. In fact, the share price was 154% higher on September 23rd. To some, the recent pullback isn’t surprising after such a fast rise. But this does not change the fact that Cree has rewarded its shareholders with a total shareholder return of 22% during the last twelve months.

Energy Focus

Energy Focus Inc (NASDAQ:EFOI) recently won a $4.8 million indefinite-quantity contract to provide LED lighting to U.S. Navy for its demanding exterior shipboard use. LED lights use up to 80% less energy than traditional lighting, while meeting the required illumination levels for combat, and general operations.

Additionally, Energy Focus also reported that it has gained the right to serve all government agencies in the U.S. Its patent- pending EnFocus™ lighting control platform embodies the true spirit of “Triple Bottom Line” benefits:  financial, environmental, and health, while being affordable and accessible. In other words, EnFocus™ can enhance occupant well-being and maximize energy savings while being affordable and without increasing security risk. The beauty of its model is that it can span across industries.

Outlook

The global LED lighting market was estimated to be $67,714.7 million in 2019. This is an increase of 3.2% from 2018. Over the last two years, we have observed major players either selling a part of their business or being acquired by another company. Smart LEDs are wanted for the controllability they offer. Companies are going a step forward with circadian lighting that supports well-being. Leading lighting players are also working with healthcare facilities to accelerate the use of UVC LEDs to eliminate the threat of infection arising from contact. Horticultural lighting also did great in terms of demand during the past few years. To cut the story short, there will be many new chapters ahead when it comes to lighting.

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

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BenzingaEditorial

Tesla Battery Day Didn’t Live Up to Expectations

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Tesla Electric Vehicles

As expected, Elon Musk made some big announcements on Tesla’s (NASDAQ: TSLA) Battery Day event and a drive-in movie/shareholders meeting. What Musk teased to be a ‘very insane’ development turned out to be a revolutionary battery but news also included eliminating cobalt use, a new Plaid powertrain for the Model S and a new cathode plant.

Most importantly, with the new battery technology, Tesla now has a new goal: a $25,000 car. The Battery Day was expected to ease threats from Tesla’s upcoming competitors: Nikola (NASDAQ: NKLA), Rivian, Hercules and Atlis. Atlis just announced a partnership with innovative tonneau-cover producer Worksport (OTC: WKSP) to enhance its tech-advanced electric truck with the TerraVis solar-charging system.

The EV game is heating up as traditional automakers such as General Motors (NYSE: GM), Ford (NYSE: F) and Volkswagen (OTC: VWAGY) are also seriously upgrading their game for the electric era.

The key takeaway is that Musk aims to achieve a complete vertical integration and that would put Tesla ahead of any potential competitors.

Battery Cells to Improve Range

Tesla currently gets its batteries from Panasonic Corporation (OTC: PCRFY) but in-house production has been on Musk’s to-do list for quite a while. Back in 2018, Musk said Panasonic’s pace slowed down Tesla’s Model 3 and Model Y production. Tesla plans to manufacture its own batteries in the future. But, this battery will be “tabless” to improve the range and power of its vehicles. Being tabless means removing the tab that connects the cell and what is powering to make the battery up to six times more efficient and powerful by increasing the range by 16 percent. When it comes to range, every km counts.

Model S Plaid in 2021

The plaid powertrain also had its fair share of teases. But a plaid trim will cost more than other Tesla’s offerings as it is currently listed for $139,990. It will be available in its Model S but by the end of next year.

A New Cathode Plant

On its quest to reduce supply chain costs and simplify cathode production, Tesla will build a plant for its batteries. Although the location is unknown, Musk mentioned back in July that Tulsa, Oklahoma would be considered for future projects. It came second after Austin, Texas that Tesla chose for its next Gigafactory.

Eliminate Cobalt

Even though Tesla uses very little cobalt in its batteries, Musk already said in the past he wants to eliminate it entirely. Cobalt mining tends to violate human rights and it will become history for Tesla in the near-future.

A $25,000 EV

The final goal is to bring the selling price of Tesla’s models close enough to compete with that of traditional ICE vehicles so people can afford them. Reducing the cost of battery cells and packs is an essential step on this quest. But, this isn’t the first time Musk made this promise as back in 2018, he already said a $25,000 EV will be possible within three years.

Outlook – path towards affordability

Affordability is key to scale and Tesla has laid a clear path towards producing an affordable EV. But a battery prototype never appeared during the event and it remained unclear what has Tesla actually achieved. Elon Musk only delivered a promise of a revolutionary battery, but not the battery itself. Its specs appear to offer large performance gains in a few key areas. But several hundred investors sitting in their Teslas from a makeshift stage in the parking lot of the Tesla factory in Fremont, California, left without knowing how far has Tesla gone in realizing these upgrades. All EV players are promising revolutionary developments, but none of them has seen the light of the day yet. We don’t even know how well Tesla’s new cell scored at performance tests.

Meanwhile, traditional automakers have well-established systems, expertise and legacy. Tesla has yet to pass the test of time. Investors were underwhelmed by only hearing promises for developments that are far-off in the future. As a consequence, shares dropped 6.8% in the extended session.

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

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