Facebook Inc (NASDAQ:FB) To Take On YouTube, Hurt Twitter.
In a blog post on Wednesday, Facebook (NASDAQ:FB) finally announced something on the lines of what industry observers had been expecting for a while now. Facebook will soon launch Watch, a new way to discover and watch videos on the social network. Rumors have had it that Facebook was looking to getting into new content like TV shows. However, Watch looks more like a potential competitor to YouTube. Watch will allow users to discover videos that wouldn't appear in their feeds in the normal course, apart from giving them a way to create Watchlists, and follow videos made by their favorite artist or publisher like Major League Baseball, for instance. The feature will roll out to a limited set of users, and video content creators in the U.S. initially. These users will have access to a new Watch content tab starting today. And According to TechCrunch, partners or content creators who make original videos exclusively for Facebook will make 55% of the ad revenue generated via Watch, with Facebook taking the rest.
While this is clearly an attack on YouTube, it may not be restricted to just that. With so many players getting into video content, the move should help Facebook take on Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN), Walt Disney (NYSE:DIS) and Twitter (NYSE:TWTR) among others. While some of these players may have the resources to survive an onslaught from the social media giant, this is probably bad news for the likes of Twitter and Snap Inc (NYSE:SNAP). Both players have been working towards leveraging video content on their platforms, and if Facebook can encourage users to spend additional time on the network, they could very well hurt these smaller players. It's still early days, but if this works well for Facebook, expect to see more optimism around Facebook stock.
Apple's iPhone 8 Will Come Out On Time Says Famed Analyst.
Even as shares of global tech giant Apple Inc (NASDAQ:AAPL) reach new all-time highs, KGI Securities analyst Ming Chi Kuo has more good news for Apple shareholders. Kuo, who has an enviable track record of getting his product related predictions right, believes that widespread rumors of the iPhone 8’s delay could be baseless. According to Ming Chi Kuo, the highly anticipated smartphone should enter mass production in about a month from now, in mid-September. Kuo expects the new smartphone to be launch alongside the iPhone 7s and the iPhone 7s Plus. He also claims that it will be available in three colors, black, gold and silver.
According to Kuo, the iPhone 8 will be in short supply, with only 2-4 million units expected to be built this quarter. Quoting from a post on Investopedia, "This year, Kuo estimates that between 45 million and 50 million iPhone 8s will be assembled. As for the iPhone 7s and iPhone 7s Plus, the analyst estimates a respective 36.5 million and 19 million units will be assembled this year." Meanwhile, RBC Capital believes that Apple could be the first company to reach and sustain the $1 trillion market cap milestone. So, there's a fair amount of good news here for investors who own Apple stock.
Nvidia Stock Gets A Vote Of Confidence Ahead Of Earnings.
NVIDIA Corporation (NASDAQ:NVDA) shares have been surging throughout the year, and while conventional wisdom says you should book profits, at least partially, not everybody agrees. Instead of profit booking, particularly ahead of Nvidia’s second quarter earnings report today, Wall Street firm Jefferies is urging investors to buy the stock. In a research report issued on Wednesday, Mark Lipacis of Jefferies told clients that he expects the chipmaker to beat Wall Street expectations for the second quarter, aided by an upside in the gaming and data center markets.
Lipacis expects the success of Nintendo Switch to be one of the drivers this quarter, in addition to strong demand for its graphic cards on account cryptocurrency mining. The analyst has a buy rating on NVIDIA stock, with a $180 price target. A colleague at Amigobulls also recently highlighted the long term potential for NVDA stock. We think investors could use a staggered approach to buying Nvidia shares, by initiating a position in Nvidia stock, and adding to it on dips, if any, post the earnings release.
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