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BenzingaEditorial

Big Tech Is Going Green

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Emerging Companies

The rapid adoption of digital care solutions during the pandemic is here to stay beyond this unprecedented year. Business leaders are looking beyond 2020 to use technology advancements to become better prepared for the next existential treat. As a result, tech firms are going beyond their usual aspirations as they attempt to go beyond existing practices and limitations.

The last decade has seen an exponential rise in the use of technology smart homes and energy efficiency yet this was not mirrored in healthcare. It took for COVID-19 to illustrate why this has to change as tech saved the day be enabling telehealth, telecare and telemedicine.

Technology connects people, empowers people to manage their own health and wellbeing, work better and live better by integrating our systems. Big Tech was served as our lifeboat during the lockdown. Can it save the planet is an entirely different question, but it is investing considerable effort to make it better.

Last week, Amazon (NASDAQ: AMZN) named the first recipients of capital from a $2 billion venture fund called The Climate Pledge Fund which debuted in June. The goal is to develop climate friendly technologies across all industries so along with Amazon, they can together achieve “net zero” carbon emissions by 2040. This is one decade sooner than Paris Agreement’s deadline. More precisely, Amazon plans to power its facilities and operations with 100% renewable energy by 2030 as well as electrify its fleet with 100,000 electric delivery vans it ordered from Rivian.

Meanwhile, Google (NASDAQ: GOOG) announced last week that it intends to run all of its data centers and corporate campuses around the world on 100% carbon-free power by 2030.

On September 15, Facebook (NASDAQ: FB) pledged to slash greenhouse gases and purchase enough renewable energy and offsets to cancel out carbon dioxide emissions from its global operations this year.

Apple (NASDAQ: AAPL) announced in July that it intended to become carbon neutral across its entire business, manufacturing supply chain, and product life cycle by 2030.

Back in January, Microsoft (NASDAQ: MSFT) pledged to cut its carbon emissions by 2050. This pledge includes all directly emitted carbon as well as indirect through electrical consumption. For this purpose, Microsoft is partnering with no other than BP p.l.c. (NYSE: BP) who will supply renewable energy for the tech giant as the oil giant evolves away from oil.

But, during the pandemic, there were many smaller players that played just as important roles in helping companies operate throughout the storm.

One such company is Datadog, Inc. (NASDAQ: DDOG). The monitoring cloud-based platform announced it is integrating with ServiceNow Service Graph Connector Program. Their customers will be provided an opportunity to better manage the health of their digital infrastructure and offered services. Moreover, it will equip them to better understand their overall business context.

Corporations going beyond the usual

There certainly isn’t a lack of commitments we are seeing from large corporations. The pandemic has redefined corporate imaging efforts as action needed to be taken and as soon as possible. Of course, it is also up to the government to support the digital infrastructure for technology to can truly enhance the way the world operates.

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

BenzingaEditorial

Snap Makes a Comeback

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Stock Market Tumble

Snap Inc (NYSE: SNAP) stock soared to a record high as the social media company smashed revenue estimates along with massive earnings beat. Shares were up more than 20% in after-hours trading. Snap’s earnings surprise fueled the stock of its social media peers. In after hours trading, Facebook (NASDAQ: FB) gained 3%, Twitter (NASDAQ: TWTR) jumped even more at 4.6% and Pinterest (NYSE: PINS) skyrocketed 5.8%. Prior to the earnings report, Snap stock skyrocketed more than 70% this year with investors sending its stock price up as much as 37% on Wednesday and lifting its market capitalization as high as $57 billion.

Q3 key figures

The Los Angeles-based delivered $679 million in revenue, smashing past Wall Street expectations at $555 million.Revenue jumped 52% YoY compared to the same period last year when, showcasing a huge comeback for the company which has faced some difficult quarters since making their debut.

The social media company unexpectedly reported an adjusted profit of 1 cent per share, topping Wall Street’s estimate of an adjusted loss of 5 cents. Snap reported daily active users of 249 million, up 18% from the year-ago period, exceeding its projections in the range of 242 million to 244 million as well as analysts’ estimates of 243 million. Net loss fell approximately 12%, from last year’s $227 million to $200 million.

Snap reported its daily active users at 249 million which marks approximately a 4% increase from the 238 million it reported in July and 19% up compared to the 210 million from the same quarter one year ago.

Capitalizing on Facebook’s ad boycott

The social media company used the third quarter as an opportunity to interact with brands that were looking to align their marketing efforts with platforms who share their corporate values. In other words, Snap took advantage of StopHateForProfit Facebook ad boycott, under which more than 1,000 advertisers paused their ads on the platform back in July. Although Facebook’s inaction to contain and fight hate speech and misinformation didn’t have any severe consequences on the giant as some brands already returned, Snap used this opportunity to interact with advertisers to show the value of its offering and future prospects.

Q4 forecasts

Snap expects YoY revenue growth in the range between 47% to 50% for the fourth quarter. It expects 257 million DAUs but also an increase in expenses.

Outlook

While uncertainty has become a new normal when it comes to the global macroeconomy, Snap is pleased with what it achieved and remains highly optimistic about its long term prospects. The adoption of augmented reality is happening faster than the company previously anticipated, and it is working hard to capitalize on this opportunity. Delivering unexpected, adjusted profit along with positive user and revenue growth in its third-quarter earnings shows Snap is headed in the right direction.

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 Has Both Another Profitable Quarter and Record Up Its Sleeve

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EV Stock Market

On Wednesday, Tesla (NASDAQ: TSLA) continued its meteoric rise as it delivered its fifth straight quarterly profit. Tesla has also set a revenue record, triggered by a boost in vehicle deliveries as well as sales of pollution credits to other automakers.

Key Q3 figures

Revenue rose 30% year-on-year, from $6.30 billion the same period last year to a record $8.77 billion. Analysts had expected revenue of $8.36 billion, according to Refinitiv. But Tesla would not have achieved a profitable quarter without sales of regulatory credits which amounted to $397 million. In fact, this is the fourth consecutive quarter that Tesla would not have been profitable without this revenue source that makes up 7% of total automotive revenue.

Net income was $331 million, which was more than triple its second quarter earnings which were impacted by the temporary plant shutdown due to the pandemic. Excluding items, profit amounted to 76 cents per share. Operating income also expanded to $809 million, improving operating margins to 9.2%.

Tesla is no longer starving for cash as it ended the quarter with $14.5 billion in cash on hand, marking a 69% increase in just three months.

Competition

Musk announced Cybertruck orders will be delivered in 2022 or the end of next year at earlierst. But on the same day, General Motors (NYSE: GM) revealed an electric version of its Hummer pickup truck is set to challenge Tesla’s futuristic Cybertruck. Back in September, Ford Motor (NYSE: F) also announced that it would be slashing the price on its Mustang Mach E to increase its competitiveness.

As more competitors enter the race, environmental regulatory credit will dry up as a source of revenue for Tesla. It has been a meaningful source of revenue for more than a year now.

Tech improvements

Back in September, Musk unveiled a sweeping new vision for Tesla’s battery manufacturing plans and a road map to achieving an affordable EV. Not to mention the ambitious plan to deliver up to 40% more EVs than last year. On Wednesday, the focus on improving manufacturing cost, efficiency and capacity as quickly as possible was evident. But Musk said the company won’t count on its own cell production before 2022, so it will continue relying on Panasonic Corporation (OTC: PCRFY) and other external partners for battery supplies. But its Berlin factory will begin production as early as next year while also building  its biggest battery and vehicle factory yet in Austin, Texas, and at great speed.

Solar improvements

While the automotive business is still the star of the show, Tesla’s solar and storage businesses showed significant improvements during the quarter. Musk continues to believe that Tesla’s energy business will ultimately be as large and successful as its EV business. Companies like Ideanomics (NASDAQ:IDEX) which announced today to invest in E-tractor company Solectrac show that Solar and EV are an interesting match.

Outlook

The target to deliver half a million vehicles by the end of this unprecedented year is still on. This implies Tesla will have to significantly ramp up its sales in the undergoing quarter. With a market cap exceeding $394 billion, Tesla already became the largest global automaker, despite lagging its competitors in key financial figures, namely sales, revenue and profit. But unlike its automotive peers, Tesla has defied the pandemic-induced downturn that drowned the whole auto industry as it surfed its way through the pandemic, with its shares gaining 400% this year. By the looks of it, Tesla has sufficient liquidity to fund Musk’s roadmap and long-term ambitions.

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

Regulators Pose a Bigger Threat to Comms Than COVID-19

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Global economy corona virus

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Twitter (NYSE: TWTR) and Facebook (NASDAQ: FB) have changed our everyday life for good. Besides its enormous ecosystem, Alphabet’s Google is indisputably the most popular search engine across the globe.  Twitter’s platform has become a soapbox for politicians, celebrities, and journalists. With their tweets, it became the source of real-time news. Facebook dominates generalized social media in the U.S. but it has not unseated Twitter in the microblogging universe. All three have dealt with positives in engagement and negatives in reduced ad spending during the pandemic. But the bottom line is each of these stocks have been pandemic-resilient.

Facebook

With a market cap of $700 billion, Facebook remains the 800-pound gorilla that is several multiples larger than Twitter, Pinterest (NYSE: PINS), and Snap (NYSE: SNAP) combined. Its umbrella of sites host 2.7 billion monthly active users, with 1.79 billion of them engaging daily. To further growth, Facebook gained a first mover advantage in VR. The 40% year-over-year increase in non-ad revenue in the second quarter confirms Facebook has capitalized on this lead. Facebook just announced its Messenger API has also been updated to allow businesses to manage their communications across Instagram, in addition to Messenger. Businesses using the API can also manage their Instagram presence, including their Profile, Shops and Stories, proving Facebook has also done a good job in catching the e-commerce wave.

Alphabet

Alphabet’s stock has risen nearly 30% over the past 12 months. Alphabet’s revenue rose 18% to $161.9 billion last year. Google’s ad revenue expanded 16% with non-ad revenue increasing by 21% but the ultimate winner being Google Cloud’s revenue that skyrocketed 53%. But during the first half of the year, that image was significantly altered. Alphabet’s revenue rose merely 6% year-over-year as it amounted to $79.5 billion. Google’s ad revenue grew less than 1% as ad spending was hampered by the pandemic. But, Google Cloud’s revenue surged 47% and even Google’s non-ad revenue expanded 24%.

Wall Street expects Alphabet’s revenue to rise 7% this year with a decline of 10% in earnings. But analysts also expect its revenue and earnings to rise 21% and 28% next year, under the assumption of a rebound in ad spending and the end of the pandemic. But Google’s antitrust challenges across the world remain, and they could significantly limit its ability to expand its ecosystems.

Twitter

Over the past 12 months, Twitter’s stock rose approximately 15%. Twitter generated 83% of its revenue from online ads in the first half of 2020, with the rest being generated by its “data licensing and other” business. But despite its popularity, Twitter has faced growth struggles as it must compete with Facebook, comparing to which is tiny in terms of market cap with its $31 billion.

Twitter’s business model was quite exposed to the pandemic. Revenue shrank 19% compared to the same quarter last year, leading to a quarterly loss of $1.56 per diluted share. It’s quite a difference compared to $1.43 per share it earned one year ago.

Revenue rose 14% to $3.46 billion last year, with advertising revenue rising 14% due to demand in the U.S. and its data licensing and other revenue also rising 10%. But 2020 brought an entirely different picture. During the first half of the year, revenue fell 8% YoY to $1.49 billion. Ad revenue dropped 12% as corporations needed to cut on ad spending. The drop has offset the 11% growth of its data licensing and other business segment. The operating margin turned negative and resulted in a net loss of $1.39 billion which is quite different from last year’s profit of $1.31 billion for the same period.

Analysts expect Twitter’s revenue to decline 5% this year and its earnings to stay in the red. But if the pandemic ends next year, revenue is expected to rebound 24% with a full-year profit. The slowdown could be short-lived but as the upcoming U.S. election could also bring more users to Twitter, despite the fact the platform banned political ads.

Outlook – the regulatory barrier

Facebook, Alphabet, and Twitter once again find themselves on the target of regulators. They seem to find themselves in the crosshairs of regulators, both in the U.S. and abroad, over and over again. They are constantly being criticized regarding antitrust and privacy issues. Although Big Tech has already proven its mighty power, hefty fines and new protocols could be costly and, consequently, erode profit margins. More importantly, being closely watched upon can hamper their growth prospects.

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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