Apple sees $81 billion in market value erased as it unveils its first 5G iPhones



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iPhone 12 Apple

Apple tumbled as much as 4% on Tuesday as the company unveiled its latest iPhones.

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The tech giant revealed its first 5G-capable lineup of phones spread across four new models. The iPhone 12 will be available in a 6.1-inch size and as a 5.4-inch variant deemed the iPhone 12 mini. The premium iPhone 12 Pro will be sold in 6.1-inch and 6.7-inch sizes. The new phones will also boast more durable screens, upgraded cameras, and a faster processor.

Shares traded at an intraday loss before the event but slid further after the reveal began at 1 p.m. ET. At the stock’s intraday low of $119.65 per share, Apple saw $81 billion erased from its market capitalization.

Read more: Apple just unveiled the first iPhones that include 5G technology. A Neuberger Berman investment chief says he’s identified 3 overlooked ways to profit from the world-changing innovation.

The company also revealed the HomePod mini, a smaller and less expensive alternative to its smart speaker. The new speaker launches in November for $99.

Though much of the event brought highly anticipated additions to the new generation of iPhones, some elements of the launch may have rankled consumers. For one, the phones will be the first to lack wired earbuds and a power adapter in the box. Apple touted the items’ exclusion as a major step toward reaching full carbon neutrality.

Analysts expect the new iPhones to drive a stronger-than-usual cycle of upgrades among Apple customers. The inclusion of 5G marks the first major step forward in iPhone’s cellular technology since the iPhone 5 was released in 2013. The iPhone 12 also introduces the first major design overhaul for the handset since the iPhone X’s 2017 release.

Read more: MORGAN STANLEY: Buy these 44 cheap stocks poised

Maersk Raises Outlook as Shipping Giant Sees Demand Rebound

(Bloomberg) — A.P. Moller-Maersk A/S raised its full-year guidance amid a recovery in demand and sweeping efforts to cut costs.



a large ship in the background: Inside DP World Plc London Gateway Port


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Inside DP World Plc London Gateway Port

The container shipping company, which is eliminating hundreds of jobs, said earnings before interest, taxes, depreciation and amortization will be in the range of $7.5 billion to $8 billion, before restructuring and integration costs. That compares with an earlier forecast of $6 billion to $7 billion, according to a statement.

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“The upgrade underlines the strong earnings momentum,” Brian Borsting, a credit analyst at Danske Bank A/S, said in a client note.

Copenhagen-based Maersk, which transports about 15% of the globe’s seaborne freight, said there was a “continued recovery in demand” in the third quarter. It reported revenue of $9.9 billion for the quarter, and an EBITDA before costs of $2.4 billion.

Maersk is undertaking a major restructuring as the world’s biggest shipping company grapples with the effects of the Covid-19 pandemic. It’ll take restructuring costs of around $100 million in the third quarter related to around 2,000 job cuts, as it reorganizes its ocean and logistics and services operations.

The almost 20% increase in the full-year EBITDA guidance means analysts are likely to materially upgrade their estimates, Jefferies analyst David Kerstens said in a note.

Read More: Maersk Plans Major Restructuring Affecting Thousands of Jobs

The upgrade could also be more good news for holders of Maersk debt, as the borrower may see a change in the negative outlook that it’s been assigned by S&P Global Ratings, according to Danske’s Borsting. Moody’s Investors Service already recently lifted its outlook to positive, he said.

Spreads on the company’s euro bonds maturing in March 2026 tightened 2.5 basis points to 102.3 while its shares fell 1.1%, according to levels compiled by

ACCC code sees Google pause Australian rollout of News Showcase

Google has paused the Australian rollout of News Showcase, which is a news-based service pitched by the company as benefiting both publishers and readers.

News Showcase was only announced earlier this month, and when it was initially launched in Germany and Brazil, CEO Sundar Pichai explained the platform was aimed at paying publishers to “create and curate high-quality content for a different kind of online news experience”.

Although Google said it signed several agreements with Australian publishers for News Showcase in June, it has decided to pause its Australian plans as it is not sure if the product would be viable under the impending media bargaining code of practice published by the Australian Competition and Consumer Commission (ACCC).

Google has held firm that it is against the News Media Bargaining Code, saying previously it would force the tech giant to provide users with a “dramatically worse Google Search and YouTube”, which could lead to data being handed over to “big news businesses, and would put the free services you use at risk in Australia”.

“The agreements we have signed in Australia and around the world show that not only are we willing to pay to license news content for a new product, but that we are able to strike deals with publishers without the draft code’s onerous and prescriptive bargaining framework and one-sided arbitration model,” Google wrote in a blog post penned by Australia and New Zealand VP Mel Silva.

“We don’t oppose a code, and a system for resolving disputes between parties. But the arbitration system outlined in the draft is unworkable.”

The code, as drafted, adopts a model based on negotiation, mediation, and arbitration to “best facilitate genuine commercial bargaining between parties, allowing commercially negotiated outcomes suited to different business models used by Australian news media businesses”.

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Zoom Video Rises as Mizuho Sees ‘Best of Breed’ Tool

Shares of Zoom Video Communications  (ZM) – Get Report rose after Mizuho analysts initiated coverage of the videoconferencing company with a buy rating and a price target of $550 a share. 

The target represents 15% potential upside from the stock’s Thursday closing price. Zoom shares at last check rose 2% to $487.92. 

“Zoom’s meteoric rise during covid-19 has been driven by uptake of its best-of-breed videoconferencing tool, which became a global sensation almost overnight,” analyst Siti Panigrahi said.  

Year to date Zoom shares have jumped by more than a factor of seven as the work-from-home trend that had begun prior to this year accelerated because of the coronavirus pandemic and the subsequent lockdowns.

Zoom “can continue to deliver outsized revenue growth due to its position as a market leader, its global recognition, cross-sell opportunities, and its position in a growing and underpenetrated long-tail market,” the analyst wrote. 

With the popularity of video calls exploding, competitors are also raising their game to take market share away from Zoom. 

Last week, Google said its productivity app suite, which until now was known as G Suite, going forward will be known as Google  (GOOGL) – Get Report Workspace. 

The company also said the revamped “integrated user experience” for its productivity and communications apps/services that it first discussed in July is now generally available to paid subscribers, and that consumers will get it “in the coming months.”

Among the features covered by this integrated UI: Users can join video meetings from their Gmail inboxes, chat from their iOS  (AAPL) – Get Report and Android Gmail apps and share files and tasks within chats. 

And like Slack  (WORK) – Get Report for intercompany collaboration, Google Chat will let workers create rooms that include people outside their companies.

Square Invests $50M In Bitcoin; Dorsey Sees A Currency For The Internet



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Square (NYSE: SQ) announced Thursday that it has purchased $50 million in bitcoin.

“Square believes cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose,” the payments company said in a tweet. 

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Related Link: Square Reports Q4 Earnings Beat

Dorsey A Bitcoin Bull: Jack Dorsey is the CEO of Square as well as Twitter Inc (NYSE: TWTR). 

Dorsey recently said he believes bitcoin remains the most viable currency for the internet in an interview with Reuters.

The internet “wants a currency,” and bitcoin is the “best manifestation of that thus far,” he said. 

“I can’t see that changing given all the people who want the same thing and want to build it for that potential.”

Square is a financial services and mobile payments company based in San Francisco. The company markets several software and hardware payments products and has expanded into small business services.

SQ, Bitcoin Price Action: The price of one bitcoin was $10,746.86 at the time of publication Thursday.  

Square shares were trading 1.57% higher at $183 after the market open. 

 

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