Tag: Amazon.com Inc

Paramount’s Shari Redstone is open for business, but business may not be open for her

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Shari Redstone, president of National Amusements and controlling shareholder of Paramount Global, walks to a morning session at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, July 12, 2023.

David A. Grogan | CNBC

Shari Redstone may have missed her window.

Paramount Global‘s controlling shareholder is open to a merger or selling the company at the right price, according to people familiar with her thinking. And she has been open to it for several years, said the people, who asked not to speak publicly because the discussions have been private.

Spokespeople for Redstone and Paramount Global declined to comment.

The problem has been finding the right deal for shareholders. Market conditions have made a transformative transaction difficult at best and highly unlikely at worst.

“The market is crying out for reshaping media company portfolios and consolidation,” said Jon Miller, chief executive at Integrated Media and a senior advisor at venture firm Advancit Capital, which Redstone co-founded. “But the deck is stacked against large-scale transactions now because of both immediate concerns in terms of ad sales, subscription video numbers and the cost of debt. No one wants to transact at the current market valuations that these companies are given.”

Paramount Global is an archetype for the media industry’s consolidation conundrum. The company consists of Paramount Pictures, the CBS broadcast network, 28 owned-and-operated local CBS stations, the streaming service Paramount+, free advertising-supported Pluto TV, “Star Trek,” “SpongeBob SquarePants,” MTV, Nickelodeon, Comedy Central, BET and Showtime. It also owns the physical Paramount studio lot in Los Angeles, California.

From a sum-of-the-parts perspective, the company holds a strong hand. Many of Paramount Global’s assets would fit nicely within larger media companies.

“Paramount has a tremendous amount of assets in its content library and they own some pretty powerful sports rights in the form of the NFL contract, Champions League soccer and March Madness,” Guggenheim analyst Michael Morris told CNBC last week.

“But, they are still losing money on their streaming service,” Morris said. “They need to pull these things together, right-size the content, super charge that topline through pricing and penetration, and then we can see investors get excited about this idea again.”

Declining revenue from the acceleration of pay-TV cord-cutting, continued streaming losses and rising interest rates have put Redstone in a bind. The company’s market capitalization has slumped to $7.7 billion, nearly the company’s lowest valuation since Redstone merged CBS and Viacom in 2019. At the time, that transaction gave the combined company a market valuation of about $30 billion.

It’s unclear whether staying the course will help turn investor sentiment. Warren Buffett, CEO of Berkshire Hathaway, one of Paramount Global’s biggest shareholders, told CNBC in April that streaming “is not really a very good business.” He also noted that shareholders in entertainment companies “really haven’t done that great over time.”

Paramount Global’s direct-to-consumer businesses lost $424 million in the second quarter and $511 million in the first quarter. The company reports third-quarter earnings Nov. 2.

CEO Bob Bakish said 2023 will be the peak loss year for streaming. Paramount Global cut its dividend to 5 cents per share from 24 cents per share to “further enhance our ability to deliver long-term value for our shareholders as we move toward streaming profitability,” Bakish said in May.

Wells Fargo analyst Steven Cahall suggested earlier this year that Bakish should shut down the company’s streaming business entirely, despite the fact that Paramount+ has accumulated more than 60 million subscribers.

“We believe Paramount Global is worth a lot more either as a content arms dealer or as a break-up for sale story,” Cahall wrote in a note to clients in May. “Great content, misguided strategy.”

Big Tech lifeline

Bob Bakish, CEO of Paramount, speaks with CNBC’s David Faber on Sept. 6, 2023.

CNBC

Executives at Paramount Global continue to hold out hope that a large technology company, such as Apple, Amazon or Alphabet, will view the collection of assets as a way to bolster their content aspirations, according to people familiar with the matter.

Paramount+’s 61 million subscribers could help supersize an existing streaming service such as Apple TV+ or Amazon’s Prime Video, or give Alphabet’s YouTube a bigger foothold into subscription streaming beyond the National Football League’s Sunday Ticket and YouTube TV.

While Federal Trade Commission Chairman Lina Khan has been particularly focused on limiting the power of Big Tech companies, Apple, Amazon and Alphabet may actually be better buyers than legacy media companies from a regulatory standpoint. They don’t own a broadcast TV network, unlike Comcast (NBC), Fox or Disney (ABC). It’s highly unlikely U.S. regulators would allow one company to own two broadcast networks. Divesting CBS is possible, but it’s so intertwined with Paramount+ that separating the network from the streaming service would be messy.

“We believe Paramount Global is too small to win the streaming wars, but it is bite-size enough to be acquired by a larger streaming competitor for its deep library of film and TV content, as well as its sports rights and news assets,” Laura Martin, an analyst at Needham & Co., wrote in an Oct. 9 research note to clients.

Acquiring Paramount Global would be a relative drop in the bucket for a Big Tech company. Paramount Global’s market value was below $8 billion as of Friday. It also has about $16 billion in long-term debt.

Still, even with huge balance sheets and trillion-dollar valuations, there’s no evidence technology companies want to own declining legacy media assets such as cable and broadcast networks. Netflix has built its business specifically on the premise that these assets will ultimately die. Paramount’s lot and studio may be appealing for content creation and library programming, but that would leave Redstone holding a less desirable basket of legacy media assets.

Breakup difficulties

It’s possible Redstone could break up the company and sell off legacy media assets to a private equity firm that could milk them for cash. But Paramount Global’s diminished market valuation, relative to its debt, likely makes a leveraged buyout less appealing for a potential private equity firm.

Moreover, rising interest rates have generally slowed down take-private deals in all industries, as the cost of paying debt interest has soared. Globally, buyout fund deal volume in the first half of 2023 is down 58% from the same period a year ago, according to a Bain & Co. study.

If a full sale to Big Tech and a partial sale to private equity won’t happen, another option for Redstone is to merge or sell to another legacy media company. Warner Bros. Discovery could merge with Paramount Global, though putting together Warner Bros. and Paramount Pictures may hold up deal approval with U.S. regulators.

Beyond regulatory issues, recent history suggests big media mergers haven’t worked well for shareholders. Tens of billions of dollars in shareholder value have been lost in recent media mergers, including WarnerMedia and Discovery, Disney and the majority of Fox, Comcast/NBCUniversal and Sky, Viacom and CBS, and Scripps and Discovery.

Merger partners such as Warner Bros. Discovery also may prefer to sell or merge with a different company, such as Comcast’s NBCUniversal, if regulators allow a big media combination.

Redstone has recently dabbled around the edges, shedding some assets, such as book publisher Simon & Schuster, and engaging in talks to sell a majority stake in cable network BET.

But Paramount Global shelved the idea of selling a stake in BET in August after deciding sale offers were too low to outweigh the value of keeping the network in its cable network portfolio. With the total company’s market valuation below $8 billion, it’s difficult to convince buyers to pay big prices for parts. A change in broader investment sentiment that pushes the company’s valuation higher may help Redstone and other Paramount Global executives get more comfortable with divesting assets.

Selling National Amusements

If Redstone can’t find a deal to her liking, she could also sell National Amusements, the holding company founded by her father, Sumner Redstone, that owns the bulk of the company’s voting shares. National Amusements owns 77.3% of Paramount Global’s Class A (voting) common stock and 5.2% of the Class B common stock, constituting about 10% of the overall equity of the company.

Redstone took a $125 million strategic investment from merchant bank BDT & MSD Partners earlier this year to pay down debt, reiterating her belief in Paramount Global’s inherent value.

“Paramount has the best assets in the media industry, with an incredible content library and IP spanning all genres and demographics, as well as the No. 1 broadcast network, the leading free ad-supported streaming television service and the fastest-growing pay streaming platform in the U.S.,” Redstone said in a statement in May. “NAI has conviction in Paramount’s strategy and execution, and we remain committed to supporting Paramount as it takes the necessary steps to build on its success and capitalize on the strategic opportunities in our industry.”

Selling National Amusements wouldn’t alter Paramount Global’s long-term future. But it is a way out for Redstone if she can’t find a deal beneficial to shareholders.

Paramount Global isn’t actively working with an investment bank on a sale, according to people familiar with the matter. The company is content to wait for a shift in market conditions or regulatory officials before getting more aggressive on a transformational deal, said the people.

Still, Redstone’s predicament aptly sums up legacy media’s current problems. The industry is counting on a turn in market sentiment, while executives privately grumble that in the near term there’s little they can do about it.

WATCH: Mad Money host Jim Cramer weighs in on Paramount Global

Lightning Round: Paramount Global might drop another two to three points lower, says Jim Cramer

Disclosure: Comcast’s NBCUniversal is the parent company of CNBC.

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Top Wall Street analysts believe in the long-term potential of these stocks

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An Amazon delivery truck at the Amazon facility in Poway, California, Nov. 16, 2022.

Sandy Huffaker | Reuters

Investors are confronting several headwinds, including macro uncertainty, a spike in energy prices and the unanticipated crisis in the Middle East.

Investors seeking a sense of direction can turn to analysts who identify companies that have lucrative long-term prospects and the ability to navigate near-term pressures. 

To that end, here are five stocks favored by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performance.

Amazon

We begin this week’s list with e-commerce and cloud computing giant Amazon (AMZN). While the stock has outperformed the broader market year to date, it has declined from the highs seen in mid-September.

JPMorgan analyst Doug Anmuth noted the recent sell-off in AMZN stock and highlighted certain investor concerns. These issues include the state of the U.S. consumer and retail market, rising competition, higher fuel costs and the Federal Trade Commission’s lawsuit. Also on investors’ mind is Amazon Web Services’ growth, with multiple third-party data sources indicating a slowdown in September.

Addressing each of these concerns, Anmuth said that Amazon remains his best idea, with the pullback offering a good opportunity to buy the shares. In particular, the analyst is optimistic about AWS due to moderating spending optimizations by clients, new workload deployment and easing year-over-year comparisons into the back half of the third quarter and the fourth quarter. He also expects AWS to gain from generative artificial intelligence.

Speaking about the challenging retail backdrop, Anmuth said, “We believe AMZN’s growth is supported by key company-specific initiatives including same-day/1-day delivery (SD1D), greater Prime member spending, & strong 3P [third-party] selection.”

In terms of competition, the analyst contends that while TikTok, Temu and Shein are expanding their global footprint, they pose a competitive risk to Amazon mostly at the low end, while the company is focused across a broad range of consumers.

Anmuth reiterated a buy rating on AMZN shares with a price target of $180. He ranks No. 84 among more than 8,500 analysts tracked by TipRanks. His ratings have been profitable 61% of the time, with each delivering an average return of 16.6%. (See Amazon’s Stock Charts on TipRanks)  

Meta Platforms

Anmuth is also bullish on social media company Meta Platforms (META) and reaffirmed a buy rating on the stock. However, the analyst lowered his price target to $400 from $425, as he revised his model to account for higher expenses and made adjustments to revenue and earnings growth estimates for 2024 and 2025 due to forex headwinds.

The analyst highlighted that Meta is investing in the significant growth prospects in two big tech waves – AI and metaverse, while continuing to remain disciplined. (See META Insider Trading Activity on TipRanks)

“AI is clearly paying off in terms of incremental engagement from AI-generated content and Advantage+, and as discussed at Meta Connect, Llama 2 should drive AI experiences across the Family of Apps and devices, while Quest 3 is the most powerful headset Meta has ever shipped,” said Anmuth. Llama 2 is Meta’s new large language model.

The analyst expects Meta’s advertising business to continue to outperform, with AI investments bearing results and Reels anticipated to turn revenue-accretive soon. Overall, Anmuth is convinced that Meta’s valuation remains compelling, with the stock trading at 15 times his revised 2025 GAAP EPS estimate of $20.29.

Intel

We now move to semiconductor stock Intel (INTC), which recently announced its decision to operate its Programmable Systems Business (PSG) as a standalone business, with the intention of positioning it for an initial public offering in the next two to three years.

Needham analyst Quinn Bolton thinks that a standalone PSG business has several benefits, including autonomy and flexibility that would boost its growth rate. Operating PSG as a separate business would also enable the unit to more aggressively expand into the mid-range and low-end field programmable gate arrays segments with its Agilex 5 and Agilex 3 offerings.

Additionally, Bolton said that this move would help Intel drive a renewed focus on the aerospace and defense sectors, as well as industrial and automotive sectors, which carry high margins and have long product lifecycles. It would also help Intel enhance shareholder value and monetize non-core assets.  

“We believe the separation of PSG will further allow management to focus on its core IDM 2.0 strategy,” the analyst said, while reiterating a buy rating on the stock with a price target of $40.   

Bolton holds the No.1 position among more than 8,500 analysts on TipRanks. His ratings have been successful 69% of the time, with each rating delivering an average return of 38.3%. (See Intel Hedge Fund Trading Activity on TipRanks). 

Micron Technology

Another semiconductor stock in this week’s list is Micron Technology (MU). The company recently reported better-than-feared fiscal fourth-quarter results, even as revenue declined 40% year over year. The company’s revenue outlook for the first quarter of fiscal 2024 exceeded expectations but its quarterly loss estimate was wider than anticipated.  

Following the print, Deutsche Bank analyst Sidney Ho, who holds the 66th position among more than 8,500 analysts on TipRanks, reiterated a buy rating on MU stock with a price target of $85. 

The analyst highlighted that the company’s fiscal fourth quarter revenue exceeded his expectations, fueled by the unanticipated strength in NAND shipments through strategic buys, which helped offset a slightly weaker average selling price.

Micron’s management suggested that the company’s overall gross margin won’t turn positive until the second half of fiscal 2024, even as pricing trends seem to be on an upward trajectory. However, the analyst finds management’s gross margin outlook to be conservative.

The analyst expects upward revisions to gross margin estimates. Ho said, “Given that the industry is in the very early stages of a cyclical upturn driven by supply discipline across the industry, we remain confident that positive pricing trends will be a strong tailwind over the next several quarters.”

Ho’s ratings have been profitable 63% of the time, with each delivering a return of 21.5%, on average. (See Micron Blogger Opinions & Sentiment on TipRanks)  

Costco Wholesale

Membership warehouse chain Costco (COST) recently reported strong fiscal fourth-quarter earnings, despite macro pressures affecting the purchase of big-ticket items.

Baird analyst Peter Benedict explained that the earnings beat was driven by below-the-line items, with higher interest income more than offsetting an increased tax rate.

“Steady traffic gains and an engaged membership base underscore COST’s strong positioning amid a slowing consumer spending environment,” said Benedict.

The analyst highlighted other positives from the report, including higher digital traffic driven by the company’s omnichannel initiatives and encouraging early holiday shopping commentary.

Further, the analyst thinks that the prospects for a membership fee hike and/or a special dividend continue to build. He added that the company’s solid balance sheet provides enough capital deployment flexibility, including the possibility of another special dividend.   

Benedict thinks that COST stock deserves a premium valuation (about 35 times the next 12 months’ EPS) due to its defensive growth profile. The analyst reiterated a buy rating on the stock and a price target of $600.

Benedict ranks No. 123 among more than 8,500 analysts tracked on TipRanks. Moreover, 65% of his ratings have been profitable, with each generating an average return of 12.2%. (See COST’s Technical Analysis on TipRanks)

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A big climate change stress test is coming for Amazon sellers and suppliers

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As Amazon and other big businesses ramp up efforts to reduce their carbon footprint, they’re putting pressure on their suppliers to do the same, and those who don’t may pay a big price.

Starting in 2024, Amazon will require suppliers to share their emissions data, set emissions goals, and report on their progress, the e-commerce giant said in its recently released sustainability report. With that move, it joins Microsoft, Walmart, Apple, and others in saying that suppliers must step up decarbonization efforts. 

The mandates come as big businesses face more demand than ever to adopt eco-friendly practices. Consumers, investors, regulators, and governments are pushing firms for more progress and transparency.

“The pressure is coming at companies, who are then putting pressure on suppliers,” said Bob Willard, a corporate consultant and author of six books on sustainability. 

And in a cascade, those suppliers are leaning on their suppliers.

Businesses typically track three levels of emissions. Scope 1 come directly from operations. Scope 2 are from purchased energy such as electricity. And scope 3 relate to a company’s activities but come from indirect sources such as supplier emissions and emissions from customers using their products. An analysis of major industries by the non-profit CDP found that, on average, scope 3 accounts for about 75% of all emissions. 

Companies have much more control over their suppliers than many other areas of indirect emissions, says Andrew Winston, author of several sustainability-related business strategy books.

For instance, while a consumer goods company can’t force a detergent buyer to wash in cold water, it can be selective in working with eco-conscious suppliers. 

“The supply chain is where there’s going to be continued rising pressure and transparency because companies have a direct impact over that,” Winston said.  

Decarbonization mandates are getting tougher

Salesforce now requires suppliers to disclose scope 1, 2, and 3 emissions, deliver products and services on a carbon-neutral basis, and fill out a supply scorecard each year. AstraZeneca suppliers are expected to annually report emissions data to the CDP and set science-based goals. 

While Amazon doesn’t include suppliers in its scope 3 accounting, it’s effectively dealing with this in the way many other firms have started doing, by forcing suppliers to report emissions to them and set goals which emissions levels can then be tracked against. “We know that to further drive down emissions, we must ensure those in our supply chain make the operational changes necessary to decarbonize their businesses,” Amazon said in the sustainability report. 

Third-party sellers and suppliers — especially smaller ones — face a paradox as the climate mandates arise and become increasingly tougher. Even if they’re eco-conscious, many say they don’t have the resources to meet the tracking and reporting demands. 

Eight in ten small and medium-sized business owners say reducing emissions is a high priority, yet 63% also say they don’t have the right skills, and 43% say they lack the funds, according to a survey from the non-profit SME Climate Hub. In a survey from Intuit QuickBooks, two-thirds of small business owners said they were taking steps to reduce their environmental impact, such as recycling and using renewable materials. Businesses that weren’t acting cited a lack of money, time, and resources. 

“Tracking emissions data is no easy feat,” says Karen Kerrigan, president and CEO of the Small Business & Entrepreneurship Council. 

She says compliance costs can vary, but upfront expenses can be considerable, which is challenging for the many firms with a tight cash flow.

The information is out there to start getting a handle on the task. Yet, one of the first things that business owners will learn is that it is going to be time consuming, says small-business owner Chaitali Patel, who founded the sustainability advisory firm Evergood. She points to a 152-page document on scope 3 supply chain accounting and reporting from the Greenhouse Gas Protocol, which provides standards for measuring and managing emissions. 

“If you look at the process of data collection and recordkeeping alone to comply with these requirements, it will take up significant resources,” Patel said. 

Small businesses already under economic stress

Amid ongoing fears of recession, higher interest rates cutting into sources of capital, signs of weaker consumer demand, and labor market challenges, small businesses have focused more on employees and their bottom line than sustainability. When asked what issues matter most to them, nearly 40% said jobs and the economy, while 10% said the environment, according to the CNBC|SurveyMonkey Small Business Survey for the third quarter. 

Yet ready or not, suppliers big and small will have to step up soon. “This is coming,” he said. “The procurement arm of the business community is reaching into their supply chains and is starting to ask more pointed questions.”

In addition to the pressure from investors and politicians, another reason big companies will be looking farther down the supply chain is because they are currently coming up short in their emissions reduction goals. Amid the boom in consumer demand and global growth post-pandemic, many of the world’s largest corporations are producing more carbon emissions than they can reduce.

A recent review by the New York Times of climate documents for 20 major food and restaurant companies found that over half have made no progress in reducing emissions or are increasing emissions. The report found, as previous climate accounting has typically shown, that the majority of emissions come from suppliers.

A recent Just Capital report found that more companies than ever before are making carbon reduction commitments, but the results aren’t there yet in the disclosures. Of companies with existing science-based targets, only 26 out of 123 in the Russell 1000 disclosed emissions reductions. Meanwhile, among companies without specific targets — just general net zero targets — emissions have gone up.

Companies that want to retain high-quality suppliers are apt to help partners meet any sustainability requirements, says Mark Baxa, the present and CEO of the Council of Supply Chain Management Professionals.

Corporate giants are offering assistance that ranges from direct funding and better terms to training and access to clean tech.

For its part, Amazon said in its sustainability report that it will use its “scale, investment, and innovation to date to provide our suppliers with products and tools that will help them reach their goals — whether that’s transitioning to renewable energy or having more access to sustainable materials.”

But the retail giant also made clear that there may be consequences for partners that don’t measure up. “We will continue to look for suppliers that help us achieve our decarbonization vision as we select partners for business opportunities,” Amazon said in its report.

Amazon spokespeople declined to comment beyond its publicly available materials.

In the end, it comes down to suppliers choosing what works for their business.

“The suppliers themselves and the suppliers of suppliers have to come to their own independent decision on how they’re going to approach this,” Baxa said.

At the same time, companies have to address scope 3 emissions. “Often, they’ll go with a supplier who can comply,” he said. And for those that don’t, “Eventually, the hard conversation will take place.”

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AI is policing the package theft beat for UPS as ‘porch piracy’ surge continues across U.S.

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A doorbell camera in Chesterfield, Virginia, recently caught a man snatching a box containing a $1,600 new iPad from the arms of a FedEx delivery driver. Barely a day goes by without a similar report. Package theft, often referred to as “porch piracy,” is a big crime business.

While the price tag of any single stolen package isn’t extreme — a study by Security.org found that the median value of stolen merchandise was $50 in 2022 — the absolute level of package theft is high and rising. In 2022, 260 million delivered packages were stolen, according to home security consultant SafeWise, up from 210 million packages the year before. All in all, it estimated that 79% of Americans were victims of porch pirates last year.

In response, some of the big logistics companies have introduced technologies and programs designed to stop the crime wave. One of the most recent examples set to soon go into wider deployment came in June from UPS, with its API for DeliveryDefense, an AI-powered approach to reducing the risk of delivery theft. The UPS tech uses historic data and machine learning algorithms to assign each location a “delivery confidence score,” which is rated on a one to 1,000 scale.

“If we have a score of 1,000 to an address that means that we’re highly confident that that package is going to get delivered,” said Mark Robinson, president of UPS Capital. “At the other end of the scale, like 100 … would be one of those addresses where it would be most likely to happen, some sort of loss at the delivery point,” Robinson said.

Powered by artificial intelligence, UPS Capital’s DeliveryDefense analyzes address characteristics and generates a ‘Delivery Confidence Score’ for each address. If the address produced a low score, then a package recipient can then recommend in-store collection or a UPS pick-up point. 

The initial version was designed to integrate with the existing software of major retailers through the API —a beta test has been run with Costco Wholesale in Colorado. The company declined to provide information related to the Costco collaboration. Costco did not return a request for comment.

DeliveryDefense, said Robinson, is “a decent way for merchants to help make better decisions about how to ship packages to their recipients.”

To meet the needs of more merchants, a web-based version is being launched for small- and medium-sized businesses on Oct. 18, just in time for peak holiday shipping season.

UPS says the decision about delivery options made to mitigate potential issues and enhance the customer experience will ultimately rest with the individual merchant, who will decide whether and how to address any delivery risk, including, for example, insuring the shipment or shipping to a store location for pickup.

UPS already offers its Access Points program, which lets consumers have packages shipped to Michaels and CVS locations to ensure safe deliveries.

How Amazon, Fedex, DHL attempt to prevent theft

UPS isn’t alone in fighting porch piracy.

Among logistics competitors, DHL relies on one of the oldest methods of all — a “signature first” approach to deliveries in which delivery personnel are required to knock on the recipient’s door or ring the doorbell to obtain a signature to deliver a package. DHL customers can opt to have shipments left at their door without a signature, and in such cases, the deliverer takes a photo of the shipment to provide proof for delivery. A FedEx rep said that the company offers its own picture proof of delivery and FedEx Delivery Manager, which lets customers customize their delivery preferences, manage delivery times and locations, redirect packages to a retail location and place holds on packages.

Amazon has several features to help ensure that packages arrive safely, such as its two- to four-hour estimated delivery window “to help customers plan their day,” said an Amazon spokesperson. Amazon also offers photo-on delivery, which offers visual delivery confirmation and key-in-garage Delivery, which lets eligible Amazon Prime members receive deliveries in their garage.

Debate over doorbell cameras

Amazon has also been known for its attempts to use new technology to help prevent piracy, including its Ring doorbell cameras — the gadget maker’s parent company was acquired by the retail giant in 2018 for a reported $1 billion.

Camera images can be important when filing police reports, according to Courtney Klosterman, director of communications for insurer Hippo. But the technology has done little to slow porch piracy, according to some experts who have studied its usage.

“I don’t personally think it really prevents a lot of porch piracy,” said Ben Stickle, a professor at Middle Tennessee State University and an expert on package theft.

Recent consumer experiences, including the iPad theft example in Virginia, suggest criminals may not fear the camera. Last month, Julie Litvin, a pregnant woman in Central Islip, N.Y., watched thieves make off with more than 10 packages, so she installed a doorbell camera. She quickly got footage of a woman stealing a package from her doorway after that. She filed a police report, but said her building’s management company didn’t seem interested in providing much help.

Stickle cited a study he conducted in 2018 that showed that only about 5% of thieves made an effort to hide their identity from the cameras. “A lot of thieves, when they walked up and saw the camera, would simply look at it, take the package and walk away anyway,” he said. 

SafeWise data shows that six in 10 people said they’d had packages stolen in 2022. Rebecca Edwards, security expert for SafeWise, said this reality reinforces the view that cameras don’t stop theft. “I don’t think that cameras in general are a deterrent anymore,” Edwards said.

The best delivery crime prevention methods

The increase in packages being delivered has made them more enticing to thieves. “I think it’s been on the rise since the pandemic, because we all got a lot more packages,” she said. “It’s a crime of opportunity, the opportunity has become so much bigger.”

Edwards said that the two most-effective measures consumers can take to thwart theft are requiring a signature to leave a package and dropping the package in a secure location, like a locker.

Large lockboxes start at around $70 and for the most sophisticated can run into the thousands of dollars.

Stickle recommends a lockbox to protect your packages. “Sometimes people will call and say ‘Well, could someone break in the box? Well, yeah, potentially,” Stickle said. “But if they don’t see the item, they’re probably not going to walk up to your house to try and steal it.”

There is always the option of leaning on your neighbors to watch your doorstep and occasionally sign for items. Even some local police departments are willing to hold packages.

The UPS AI comes at a time of concerns about rapid deployment of artificial intelligence, and potential bias in algorithms.

UPS says that DeliveryDefense relies on a dataset derived from two years’ worth of domestic UPS data, encompassing an extensive sample of billions of delivery data points. Data fairness, a UPS spokeswoman said, was built into the model, with a focus “exclusively on delivery characteristics,” rather than on any individual data. For example, in a given area, one apartment complex has a secure mailroom with a lockbox and chain of custody, while a neighboring complex lacks such safeguards, making it more prone to package loss.

But the UPS AI is not free. The API starts at $3,000 per month. For the broader universe of small businesses that are being offered the web version in October, a subscription service will be charged monthly starting at $99, with a variety of other pricing options for larger customers.

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Here’s everything coming to Amazon’s Prime Video in September 2023

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Amazon’s Prime Video has high hopes for its September lineup, which includes the return of “The Wheel of Time” and a spinoff of “The Boys.”

After a two-year layoff, Season 2 of the sprawling fantasy epic “The Wheel of Time” (Sept. 1) picks up with Moraine (Rosamund Pike) and Rand (Josha Stradowski) now scattered and forced to regroup as the Dark One turns out to be far from defeated. Season 1 was one of Prime’s most-watched series ever, and Season 2 will reportedly be darker and more action-packed, spanning the second and third books of Robert Jordan’s series.

The end of the month will bring the premiere of “Gen V” (Sept. 27), set in “The Boys” universe and following a group of students with extraordinary abilities at a prestigious — and extremely competitive — college for superheroes-to-be. It looks every bit as depraved and violent as the massively popular “The Boys,” for better or worse.

Also see: What’s coming in September to Netflix | Hulu

Amazon’s
AMZN,
+1.08%
streaming service also has “Kelce” (Sept. 12), a feature documentary about Philadelphia Eagles All-Pro center Jason Kelce’s 2022-’23 season, which will serve as a prelude to the return of NFL Thursday Night Football (Sept. 14), which kicks off with the Eagles against the Minnesota Vikings.

Here’s the complete list of what else is coming to Prime Video in September (release dates are subject to change):

What’s coming to Prime Video in September 2023

Sept. 1

Spin City S1-6 (1997)
The Wheel of Time Season 2
10 Things I Hate About You (1999)
2001: A Space Odyssey (1970)
21 Grams (2004)
23:59 (2011)
A Bullet for Pretty Boy (1970)
A Force of One (1979)
A Man Called Sarge (1990)
A Matter of Time (1976)
A Rage to Live (1965)
Abbott and Costello Meet Frankenstein (1948)
After Midnight (1989)
Alakazam the Great (1961)
Alex Cross (2012)
All About My Mother (2000)
Amazons of Rome (1963)
American Ninja (1985)
American Ninja 2: The Confrontation (1987)
American Ninja 3: Blood Hunt (1989)
American Ninja 4: The Annihilation (1991)
Anaconda (1997)
And Your Name Is Jonah (1979)
Angel Eyes (2001)
Apartment 143 (2012)
April Morning (1988)
Arabian Nights (2000)
Are You in the House Alone? (2022)
Army of Darkness (1993)
As Above, So Below (2014)
Back to School (1986)
Bad Education (2020)
Bad News Bears (2005)
Bailout at 43,000 (1957)
Balls Out (2015)
Beer (1985)
Behind the Mask (1999)
Belly of an Architect (1990)
Berlin Tunnel 21 (1981)
Bewitched (2005)
Billion Dollar Brain (1967)
Blow (2001)
Body Slam (1987)
Born to Race (2011)
Bowling for Columbine (2002)
Boy of the Streets (1937)
Breakdown (1997)
Brides of Dracula (1960)
Brigadoon (1954)
Broken Embraces (2010)
Buster (1988)
Calendar Girl Murders (1984)
California Dreaming (1979)
Campus Rhythm (1943)
Captain Kidd and the Slave Girl (1954)
Carpool (1996)
Carry on Columbus (1992)
Carve Her Name With Pride (1958)
Chasing Papi (2003)
Cheerleaders Beach Party (1978)
Children of Men (2007)
Child’s Play (2019)
China Doll (1958)
Chrome and Hot Leather (1971)
Cocaine: One Man’s Seduction (1983)
Committed (2000)
Conan the Barbarian (2011)
Condor (1986)
Confidence Girl (1952)
Courage Mountain (1990)
Crossplot (1969)
Curse of the Swamp Creature (1966)
Curse of the Undead (1959)
Cycle Savages (1969)
Dagmar’s Hot Pants, Inc. (1971)
Damned River (1989)
Dancers (1987)
Danger in Paradise (1977)
Dangerous Love (1988)
Deep Blue Sea (1999)
Defiance (2009)
Deja Vu (2006)
Desert Sands (1955)
Desperado (1995)
Detective Kitty O’Day (1944)
Detective School Dropouts (1986)
Devil (2010)
Devil’s Eight (1969)
Diary of a Bachelor (1964)
Dogs (1977)
Don’t Worry, We’ll Think of a Title (1966)
Double Trouble (1992)
Down the Drain (1990)
Dr. Heckyl and Mr. Hype (1980)
Dracula (1931)
Drag Me to Hell (2009)
Driving Miss Daisy (1990)
Dust 2 Glory (2017)
Edge of Darkness (2010)
Eight Men Out (1988)
Eight on the Lam (1967)
Electra Glide in Blue (1973)
Elephant Tales (2006)
Europa Report (2013)
Evil Dead (2013)
Explosive Generation (1961)
Extraction (2015)
Face/Off (1997)
Fanboys (2009)
Fashion Model (1945)
Fatal Charm (1978)
Fearless Frank (1969)
Finders Keepers (2014)
Flight That Disappeared (1961)
Flight to Hong Kong (1956)
Fools Rush In (1997)
For the Love of Aaron (1994)
For the Love of It (1980)
For Those Who Think Young (1964)
Four Weddings and a Funeral (1994)
From Hollywood to Deadwood (1989)
Frontera (2014)
Fury on Wheels (1971)
Gambit (1967)
Ghost Story (1981)
Gigli (2003)
Grace Quigley (1985)
Grievous Bodily Harm (1988)
Hangfire (1991)
Haunted House (2023)
Hawks (1989)
Hell Drivers (1958)
Here Comes the Devil (2012)
Hollywood Harry (1986)
Honeymoon Limited (1935)
Hostile Witness (1969)
Hot Under the Collar (1991)
Hotel Rwanda (2005)
Hugo (2011)
I Am Durán (2019)
I Saw the Devil (2010)
I’m So Excited! (2013)
Inconceivable (2017)
Innocent Lies (1995)
Intimate Strangers (2006)
Invisible Invaders (1959)
It Rains in My Village (1968)
Jarhead (2005)
Jeff, Who Lives at Home (2011)
Joyride (2022)
Juan of the Dead (2012)
Kalifornia (1993)
Khyber Patrol (1954)
La Bamba (1987)
Labou (2009)
Lady in a Corner (1989)
Ladybird, Ladybird (1995)
Legally Blonde 2: Red, White and Blonde (2003)
Legend of Johnny Lingo (2003)
Little Dorrit (Part 1) (1988)
Little Dorrit (Part 2) (1988)
Little Sweetheart (1989)
Lost Battalion (1960)
Mama (2013)
Mandrill (2009)
Masters of the Universe (1987)
Matchless (1967)
Meeting at Midnight (1944)
Men’s Club (1986)
Mfkz (2018)
Midnight in the Switchgrass (2021)
Miss All American Beauty (1982)
Mission of the Shark (1991)
Mixed Company (1974)
Mystery Liner (1934)
National Lampoon’s Movie Madness (1983)
New York Minute (2004)
Nicholas Nickleby (2002)
Night Creatures (1962)
No (2012)
Observe and Report (2009)
Octavia (1984)
October Sky (1999)
Of Mice and Men (1992)
One Man’s Way (1964)
One Summer Love (1976)
Operation Atlantis (1965)
Overkill (1996)
Panga (1990)
Passport to Terror (1989)
Phaedra (1962)
Play Misty for Me (1971)
Portrait of a Stripper (1979)
Powaqqatsi (1988)
Predator: The Quietus (1988)
Private Investigations (1987)
Prophecy (1979)
Pulse (2006)
Quinceanera (1960)
Raiders of the Seven Seas (1953)
Red Dawn (1984)
Red Eye (2005)
Red Riding Hood (1988)
Red River (1948)
Reform School Girls (1969)
Riddick (2013)
Riot in Juvenile Prison (1959)
River of Death (1989)
Rocky (1976)
Rocky II (1979)
Rose Garden (1989)
Roxanne (1987)
Rumble Fish (1983)
Runaway Train (1985)
Running Scared (2006)
Safari 3000 (1982)
Season of Fear (1989)
Secret Window (2004)
Sense and Sensibility (1996)
Sergeant Deadhead (1965)
Seven Hours to Judgment (1988)
Sharks’ Treasure (1975)
She’s Out of My League (2010)
She’s the One (1996)
Sin Nombre (2009)
Sinister (2012)
Slamdance (1987)
Snitch (2013)
Son of Dracula (1943)
Space Probe Taurus (1965)
Spanglish (2004)
Spell (1977)
Stardust (2007)
Step Up (2006)
Sticky Fingers (1988)
Stigmata (1999)
Sugar (2009)
Summer Rental (1985)
Surrender (1987)
Sword of the Valiant (1984)
Tangerine (2015)
Tenth Man (1988)
The Adventures of Gerard (1978)
The Adventures of the American Rabbit (1986)
The Assisi Underground (1986)
The Bad News Bears (1976)
The Beast with a Million Eyes (1955)
The Birdcage (1996)
The Black Dahlia (2006)
The Black Tent (1957)
The Bourne Identity (2002)
The Bourne Legacy (2012)
The Bourne Supremacy (2004)
The Break-Up (2006)
The Cat Burglar (1961)
The Chronicles of Riddick (2004)
The Clown and the Kid (1961)
The Diary of a High School Bride (1959)
The Dictator (2012)
The Evictors (1979)
The Fake (1953)
The Family Stone (2005)
The Final Alliance (1990)
The Finest Hour (1991)
The Frog Prince (1988)
The Ghost in the Invisible Bikini (1966)
The Incredible 2-Headed Transplant (1971)
The Invisible Man (1933)
The Jewel of the Nile (1985)
The Late Great Planet Earth (1979)
The Legend of Zorro (2005)
The Little Vampire (2017)
The Living Ghost (1942)
The Locusts (1997)
The Machinist (2004)
The Manchu Eagle Murder Caper Mystery (1975)
The Manchurian Candidate (1962)
The Mask of Zorro (1998)
The Mighty Quinn (1989)
The Misfits (1961)
The Motorcycle Diaries (2004)
The Mouse on the Moon (1963)
The Mummy (1932)
The Naked Cage (1986)
The Night They Raided Minsky’s (1968)
The Possession (2012)
The Prince (2014)
The Program (1993)
The Ring (2002)
The Sacrament (2014)
The Savage Wild (1970)
The Secret in Their Eyes (2010)
The Sharkfighters (1956)
The Sisterhood of the Traveling Pants (2005)
The Spiderwick Chronicles (2008)
The Sum of All Fears (2002)
The Winds of Kitty Hawk (1978)
The Wolf Man (1941)
The Young Savages (1961)
Three Came To Kill (1960)
Three Kinds of Heat (1987)
Through Naked Eyes (1983)
Time Limit (1957)
To Catch a Thief (1955)
Tough Guys Don’t Dance (1987)
Track of Thunder (1967)
Transformations (1991)
Transporter 3 (2008)
Trollhunter (2011)
True Heart (1996)
Underground (1970)
Unholy Rollers (1972)
Unsettled Land (1989)
V/H/S (2012)
War, Italian Style (1967)
Warriors Five (1962)
We Still Kill the Old Way (1968)
When a Stranger Calls (2006)
Where the Buffalo Roam (1980)
Where the River Runs Black (1986)
Wild Bill (1995)
Wild Racers (1968)
Wild Things (1998)
Windows (1980)
Woman of Straw (1964)
Young Racers (1963)
Zack and Miri Make a Porno (2008)

Sept. 5
One Shot: Overtime Elite

Sept. 7
Single Moms Club (2014)

Sept. 8
Sitting in Bars with Cake

Sept. 12
Inside (2023)
Kelce

Sept. 14
Thursday Night Football

Sept. 15
A Million Miles Away

Wilderness

Written in the Stars

Sept. 19
A Thousand and One (2023)

Sept. 22
Cassandro (2023)

Guy Ritchie’s The Covenant (2023)

Sept. 26
The Fake Sheikh

Sept. 29
Gen V

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#Heres #coming #Amazons #Prime #Video #September

The Investing Club’s top things to watch in the stock market Friday

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The Club’s top things to watch Friday, August 25

1. Stocks edge up in premarket trading Friday after coming under pressure Thursday. The market is looking to Federal Reserve Chair Jerome Powell’s speech in Jackson Hole, Wyoming, at 10:05 a.m. ET. Investors expect Powell to argue interest rates will need to stay higher for longer in order to stamp out sticky inflation.

2. The Chinese government on Friday moves to ease its mortgage policies in order to boost China’s struggling property market, but it isn’t enough to generate a rally in Asian markets. The Shanghai Composite Index lost 0.6%, while Hong Kong’s Hang Seng Index fell 1.4%.

3. Chipmaker Marvell Technology (MRVL) delivers a quarter and guidance in line with Wall Street’s expectations, as strength in artificial-intelligence applications is offset by continued weakness in some of its legacy businesses like storage. The stock fell more than 3% in premarket trading Friday. The company increases its outlook for AI, with the expectation to exit the year at a $200 million quarterly run rate, or $800 million annualized. That may not be enough upside for today given the tepid reaction to Club name Nvidia‘s (NVDA) huge upside guide Wednesday, but still a good long-term story.

4. Elsewhere in the the world of AI, Baird says next week’s Google Cloud Next conference could show how Club holding Alphabet (GOOGL) is leveraging AI capabilities. Meanwhile, Oppenheimer reiterates its thesis that Club name Microsoft (MSFT) will be the “operating system for AI.”

5. Retailer Nordstrom (JWN) beats on earnings but reiterates a cautious full-year outlook. The company also notes losses from theft are at a historical high. Shares fell over 4% in extended trading Thursday. More broadly, retail earnings this season have showed that American consumers are spending with value top of mind.

6. Loop Capital on Friday upgrades Netflix (NFLX) to buy, from hold, while raising its price target to $500 a share, up from $425. The firm cites improving fundamentals, while noting the shares have corrected 15% from Netflix stock’s recent gains. Upgrading at this juncture is the right way to look at a sell-off in a high-quality company.

7. More ESPN partnerships on the way? Club holding Amazon (AMZN) is reportedly in talks with fellow Club name Walt Disney (DIS) about developing an ESPN streaming service, according to The Information. Disney currently owns 80% of the sports network.

8. Realty Income Corp (O) on Friday announces a $950 million investment in the real-estate assets of The Bellagio Las Vegas, acquiring a 21.9% indirect interest from Blackstone Real Estate Income Trust (BREIT) that values the property at $5.1 billion.

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Top Wall Street analysts pound the table on these 5 stocks

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Celebration at the Nasdaq during the Datadog IPO, September 19, 2019.

Source: Nasdaq

Selecting the right stocks against a backdrop of mixed economic data and earnings can be challenging for investors. One strategy is to track the investment ideas of Wall Street pros and glean valuable insights into making successful stock decisions.

To that end, TipRanks, a platform that ranks analysts based on their past performance, has identified five stocks well liked by top-ranking analysts. Learn more about these stocks below.

Amazon

E-commerce and cloud computing giant Amazon (AMZN) is this week’s first pick. Earlier this month, the company trounced analysts’ second-quarter earnings estimates and returned to double-digit revenue growth.

DBS analyst Sachin Mittal noted that, after seven quarters of losses due to macro headwinds, the company’s retail segment generated operating profit in the second quarter. The analyst expects the retail segment to be a key driver of AMZN’s share price appreciation from this year onwards.

He also noted that, with 32% share of the global cloud infrastructure market, AWS is the most valuable business for Amazon. It is worth noting that AWS accounted for only about 17% of AMZN’s overall revenue in the second quarter but generated 70% of the company’s profit.

Mittal increased his price target for AMZN to $175 from $150 and reaffirmed a buy rating on the stock, citing the company’s leadership position in e-commerce and dominant position in cloud through AWS.

The analyst is also optimistic about the robust growth opportunity for Amazon’s online advertising business. “More advertisers are turning to AMZN’s retail media network to deceive Apple’s privacy changes and get closer to shoppers,” Mittal said.

Mittal ranks No. 744 among more than 8,500 analysts on TipRanks. His ratings have been successful 75% of the time, with each rating delivering an average return of 18.4%. (See Amazon insider trading activity on TipRanks).

AppLovin

Mobile app technology platform AppLovin (APP) recently impressed Wall Street by surpassing second-quarter earnings estimates. The company also issued better-than-anticipated revenue guidance for the third quarter.

Following the Q2 print, Goldman Sachs analyst Eric Sheridan increased his price target for AppLovin to $50 from $25 and reiterated a buy rating. The analyst noted that the evolution of the company’s software platform drove revenue and margin upside in the second quarter, in the wake of improving industry trends.

The analyst raised his operating estimates to reflect higher revenue growth expectations, fueled by the launch of the company’s latest artificial intelligence (AI)-based advertising engine, Axon 2.0.

Despite near-term concerns about volatility in the advertising and gaming end markets, Sheridan is bullish on the stock. He continues “to look long-term at the collection of businesses under AppLovin as producing above average industry growth and a strong margin profile in a recovered mobile ads/mobile gaming landscape.”  

Sheridan holds the 188th position among more than 8,500 analysts on TipRanks. His ratings have been profitable 61% of the time, with each rating delivering an average return of 13.3%. (See AppLovin Stock Chart on TipRanks)

Datadog

Another Goldman Sachs analyst on this week’s list is Kash Rangan, who remains bullish on Datadog (DDOG) even after the cloud-based IT monitoring and security platform spooked investors with its lackluster revenue outlook for the third quarter. The company also trimmed its full-year revenue guidance.

Rangan noted that the slowdown in spending by Datadog’s larger customers and the pace of net new enterprise additions (80 in Q2 2023 compared to 130 in the previous quarter) disappointed investors.

Nevertheless, the analyst is encouraged by the solid second-quarter bookings, with remaining performance obligations (or RPO) increasing 42% year-over-year compared to the 33% growth seen in the first quarter. The growth in RPO was driven by higher average deal size and contract duration.   

Rangan reiterated a buy rating on DDOG stock with a price target of $114, saying that his long-term thesis remains intact. “Datadog maintains its competitive advantage as an E2E [end-to-end] observability platform as validated by product consolidation driving large deal sizes.”

The analyst also highlighted solid product stickiness, growing platform penetration, and product innovation as reasons for his optimism.

Rangan ranks 601 out of more than 8,500 analysts tracked on TipRanks. Also, 58% percent of his ratings have been profitable with an average return of 8%. (See Datadog’s Blogger Opinions & Sentiment on TipRanks)  

Royal Caribbean

We now move to cruise operator Royal Caribbean (RCL), which recently raised its full-year outlook and reported blockbuster second-quarter earnings. The company is enjoying strong business due to pent-up travel demand.

This week, Tigress Financial analyst Ivan Feinseth reiterated a buy rating on RCL and raised his price target to $139 from $102, citing stellar demand for cruise vacations, the company’s industry-leading position and its solid value proposition.

The analyst thinks that the company is well-positioned to gain from the reprioritization of consumer spending toward travel and experiences following the pandemic. He said that demand in North America remains strong. In particular, Feinseth expects RCL’s “Perfect Day at CocoCay” private island resort to be a key growth driver and industry differentiator, which could fuel significant incremental revenue growth and yields.

“RCL’s current liquidity and ramp-up in cash flow will enable the ongoing funding of its fleet expansion and upgrades, growth initiatives, and balance sheet optimization,” said Feinseth.

Feinseth holds the 266th position among more than 8,500 analysts on TipRanks. His ratings have been profitable 59% of the time, delivering an average return of 11.8%. (See RCL Financial Statements on TipRanks) 

Netflix

We end this week’s list with streaming giant Netflix (NFLX), which reported upbeat second-quarter earnings but fell short of analysts’ revenue expectations.

Despite the decline in NFLX shares since its Q2 results, JPMorgan’s Doug Anmuth reiterated a buy rating on the stock with a price target of $505. The analyst pointed out certain areas that investors are concerned about, including paid sharing monetization and how and when it will boost average revenue per membership.

While paid sharing monetization is happening at a slower pace than Anmuth’s initial forecast, he continues to expect it to be highly accretive to revenue over time. Of the more than 100 million password-sharing users globally, the analyst expects Netflix to monetize 18.8 million by the end of this year, 31 million by the end of 2024 and 38 million by the end of 2025.    

However, Anmuth, who ranks 92 out of more than 8,500 analysts tracked on TipRanks, expects advertising to be a bigger and more reliable revenue stream than paid sharing for Netflix in the future.

Calling Netflix a key beneficiary of the ongoing disruption of linear TV, the analyst said: “The recent launch of NFLX’s ad-supported tier, as well as the broader Paid Sharing launch, should further help re-accelerate subscriber & revenue growth while driving high-margin incremental revenue.”

Anmuth has a success rate of 61% and each of his ratings has returned 17.1%, on average. (See Netflix Hedge Fund Trading Activity on TipRanks).

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As Macy’s stock struggles, the retailer bets on private brands with more modern looks

Post By Business , , , , , ,

Macy’s launch event for its new private brand, On 34th, also marked one of the first public appearances by Tony Spring (left) since he was named incoming CEO. Spring is CEO of the company’s higher-end department store chain, Bloomingdale’s. He will succeed Jeff Gennette (right) in February.

Melissa Repko | CNBC

NEW YORK — Macy’s, the 165-year-old department store chain, is looking for ways to keep up with the newer kids on the block.

The retailer faces slumping sales, and its stock has struggled in a good year for the market. Now, it’s banking on a wave of new and refreshed private brands to attract shoppers, especially as some flee to popular direct-to-consumer brands, online giants like Shein and Amazon, and big-box players like Target.

On Wednesday, it showed off its newest private brand, On 34th, at its Macy’s Herald Square flagship. The brand, named after the legacy store’s Manhattan location, is made of up of women’s clothing and accessories. The brand is designed for women ranging from 30 to 50 who want modern, versatile and easy-to-wear looks.

The new brand is hitting store shelves and Macy’s website at a challenging time for the company and much of the retail industry. Consumers have cut back on discretionary spending at stores as they’re pinched by steeper grocery bills and rent, while they spend on experiences like concerts and summer vacations. The department store operator cut its full-year outlook last month, after seeing consumers pull back on purchases of clothing and other items.

On 34th is the first of four new private brands that Macy’s plans to launch by the end of 2025. It also plans to refresh some existing labels and phase out others.

Macy’s Chief Merchandising Officer Nata Dvir said On 34th’s debut comes after more than two years of customer research.

“They cared about fit, quality and value and had a tremendous amount of passion around what they were putting on every single day,” she said. “And they deserved better.”

The kickoff event previewed another piece of Macy’s future, too: It marked one of the first public appearances of Tony Spring, since he was named its next CEO. Spring, who currently leads the parent company’s higher-end department store Bloomingdale’s, will succeed Jeff Gennette in February.

Gennette said Wednesday that consumers’ financial stress continues to show up in the company’s sales trends.

Macy’s significantly cut its financial expectations in June. The department store operator, which includes Bloomingdale’s and beauty chain Bluemercury, said it expects comparable owned-plus-licensed sales to drop by 6% to 7.5% for the year. It expects earnings per share of $2.70 to $3.20 for the year.

Shares of Macy’s have reflected investors’ concerns. Macy’s stock was down more than 20% so far this year as of Wednesday. The S&P 500, by comparison, is up 19% this year.

Some of Wall Street’s worries are company-specific, as investors question whether the legacy department store can keep up with shoppers’ changing tastes.

Macy’s has sought to steady the ship in recent years while battered by other fast-changing dynamics. Led by Gennette, the department store kicked off a three-year turnaround plan in February 2020, about a month before the start of the Covid pandemic. It called for shuttering lagging stores, investing in its higher performing locations and stepping up online growth.

Macy’s is leaning into private brands to drive growth. Its newest brand, On 34th, is designed to be both fashion-forward and easy to wear. It ranges in price from $19.50 for a tank top to $299.50 for a leather jacket.

Melissa Repko | CNBC

Private brands are a common way that retailers offer lower-priced and exclusive merchandise to customers. The labels tend to be more profitable, since the companies have direct control, fewer middlemen and scale when making the items. Plus, since the items can’t be found anywhere else, the retailer isn’t going head to head on price with a competitor.

Macy’s sells a mix of private brands and national brands, including Ralph Lauren, Calvin Klein and Levi Strauss. It has about 25 private brands that cut across categories like apparel and home goods, including On 34th.

In the most recent fiscal year, private brands drove approximately 16% of sales. Yet Macy’s would like to get that closer to about 20%, a level that it hit in the past.

But the strategy comes with risks. Target is the poster child of private label success, after hatching and expanding many billion-dollar brands including children’s apparel brand, Cat & Jack, and activewear brand, All in Motion. On the other hand, some investors have pinned the downfall of now-bankrupt Bed Bath & Beyond in part to its expensive and aggressive rollout of private brands that customers didn’t want.

Gennette said Macy’s has been thoughtful about the push. It’s gathering customer input while developing the apparel and even made tweaks in recent weeks while testing the brand with customers at two New Jersey stores. Plus, he added, Macy’s has had years of experience selling private brands with a following, such as women’s apparel brand I.N.C. and home goods brand Hotel Collection.

The company has poached talent from retailers known for strong brands, too, including Emily Erusha-Hilleque, a 23-year veteran of Target, as its senior vice president of private brands. It also hired Bryan Riviere, previously of Gap-owned Banana Republic, Levi Strauss, Lululemon and Nike, as its senior vice president of private brand sourcing, product development and production.

Along with providing fresh looks, Macy’s wanted to step up the quality and fit of its clothing. Over the past three years, it has cut the number of factories and mills that it works with by about half, Riviere said. By working with fewer partners, it has the scale to negotiate better prices, savings to invest in better fabrics and knits and more buy-in from the factories that it works with.

It also worked with a technology company to standardize sizing across all Macy’s private brands. Universal sizing makes shopping less of a guessing game for customers and returns less likely, Erusha-Hilleque said.

On 34th will officially debut in mid-August with about 750 items that range from a basic tank top at $19.50 to a leather jacket for $299.50. Its shoe collection will launch in spring 2024.

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#Macys #stock #struggles #retailer #bets #private #brands #modern

Top Wall Street analysts favor these stocks for the long haul

Post By Business , , , , , , , , , ,

Sanjay Mehrotra, CEO, Micron

Scott Mlyn | CNBC

The S&P 500 and Nasdaq notched a solid performance in the first half of 2023, thanks to an impressive rally in major tech stocks. However, macro pressures have not abated, with minutes from the latest Federal Open Market Committee meeting hinting at more interest rate hikes to tame high inflation.

Given the ongoing uncertainty, investors could benefit by looking at stocks with strong fundamentals and long-term growth potential.

Here are five stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performance.

Micron

First up is chipmaker Micron (MU), which reported better-than-feared fiscal third-quarter results in late June. The company cautioned that the recently imposed ban on its products by China remains a major headwind. However, investors chose to focus on management’s commentary on improving business conditions, with artificial intelligence driving strong demand for Micron’s memory chips.

Goldman Sachs analyst Toshiya Hari expects Micron’s near-term financial performance to continue to be noisy due to several factors, including the revenue uncertainty associated with the Cyberspace Administration of China’s ban and inventory-related issues.

Nevertheless, the analyst maintained a buy rating on Micron with a price target of $80, saying, “We have confidence in the company’s ability to mitigate potential share loss in China and drive share gains in the HBM3 market over time, while executing on its DRAM and NAND technology roadmaps.”

Hari believes that the company’s solid position in the DDR5 market, which is the latest generation of high-performance memory chips, and the prospects for its high bandwidth memory HBM3 chips (mass production to begin in early 2024) position it well to take advantage of the rapid growth in the AI space.

Hari’s recommendations are worth considering, as he is ranked No. 155 among more than 8,400 analysts tracked on TipRanks. His ratings have been profitable 64% of the time, with each rating delivering an average return of 19.7%. (See Micron Stock Chart on TipRanks)

Texas Roadhouse

Restaurant chain Texas Roadhouse (TXRH) is facing elevated input costs due to sky-high inflation. Despite near- and medium-term margin pressures, Wedbush analyst Nick Setyan continues to believe in the company’s ability to gain further market share in the casual dining restaurant space.

Checks by the analyst’s firm indicate that TXRH is set to deliver second-quarter same-store sales growth ahead of the consensus estimate of 8.2%. Accordingly, Setyan raised his Q2 same-store sales growth estimate from 8.5% to 9.5% to reflect robust dine-in traffic, the impact of increased local marketing efforts, and a higher off-premise mix.

Setyan expects continued strength in the company’s sales to more than offset the ongoing food cost inflation, including beef. He slightly increased his 2023 and 2024 EPS estimates, given his expectation of top-line upside.     

In line with his investment thesis, Setyan reaffirmed a buy rating on the stock with a price target of $123. He explained that his price target reflects a premium valuation, which is “appropriate given our expectation of accelerating market share gains within casual dining for the foreseeable future.”

Setyan holds the 798th position among more than 8,400 analysts on TipRanks. Additionally, 51% of his ratings have been profitable, with an average return of 7.2%. (See TXRH Blogger Opinions & Sentiment on TipRanks)

Carnival

Next on this week’s list is cruise operator Carnival (CCL). After being battered by pandemic-led lockdowns, Carnival and several other travel stocks have bounced back strongly this year due to robust travel demand.

Tigress Financial analyst Ivan Feinseth expects Carnival to benefit from solid bookings, higher pricing, and the reprioritization in consumer spending on travel. He projects revenue, economic operating cash flow, and net operating profit after tax to exceed pre-pandemic record levels by mid-2023.

“CCL’s accelerating Business Performance trends and significant recovery in cash flow continue to enable the ongoing funding of key growth initiatives, fleet expansion/transition, upgrades, and debt reduction,” said Feinseth, who ranks 174 out of more than 8,400 analysts tracked on TipRanks.  

The analyst noted that Carnival paid down $1.4 billion of its debt in the fiscal second quarter. CCL is expected to reduce its debt levels to less than $33 billion by the end of 2023, supported by improved cash flows. The company’s debt peaked at over $35 billion due to the disastrous impact of the pandemic on cruise lines.    

Feinseth reaffirmed a buy rating on CCL and boosted his price target to $23 from $13. He has a success rate of 62% and each of his ratings has returned 13.1%, on average. (See CCL Insider Trading Activity on TipRanks)

MongoDB

Feinseth is also bullish on database software maker MongoDB (MDB), which delivered market-beating results for the fiscal first quarter ended April 30 and raised its full-year guidance. The company had more than 43,100 customers at the end of the period, after witnessing the highest net new customer additions in more than two years.

Feinseth expects the growing integration of generative AI tools and capabilities will drive increased adoption of MongoDB’s highly customizable and scalable database as a service platform by enterprise customers.

The analyst said the company will continue to use its solid cash flows to invest in growth initiatives, including innovation, strategic acquisitions, marketing efforts to attract more customers, and international expansion.

“MDB will continue to benefit from increasing enterprise IT spending driven by enterprises’ ongoing needs to leverage AI capabilities as a growing competitive advantage,” said Feinseth.

Even after the solid year-to-date rally in MDB shares, Feinseth sees further upside in the stock. Accordingly, he reiterated a buy rating and increased the price target to $490 from $365. (See MongoDB Financial Statements on TipRanks)   

Amazon

E-commerce giant Amazon (AMZN) is holding its much-awaited 9th annual Prime Day on July 11 and 12. Prime Day is an annual sales event exclusively held for Amazon Prime members, which helps the company deepen its relationship with existing members and win new ones. 

JPMorgan analyst Doug Anmuth expects the 2023 Prime Day to see elevated demand despite a tough macro backdrop. The analyst projects Prime Day will generate about $7 billion in revenue, up more than 12% year-over-over, with gross merchandise value expected to increase more than 13% to $11 billion.

Anmuth highlighted the initiatives taken by Amazon over the past two years to strengthen its network. In particular, the company doubled the size of its retail network, established a massive last-mile transport network, and implemented a new sortation network to increase the speed of delivery for long-distance orders.

Amazon has also transitioned from a national U.S. fulfillment network to a regional model comprising eight interconnected regions to optimize inventory placement and other processes, reduce delivery costs, and boost speed.

“As such, Amazon should be well-equipped for the elevated demand of Prime Day, & the event should also help AMZN right-size inventory ahead of heavier demand deeper into 2H around the holidays,” explained Anmuth.

Amazon continues to be Anmuth’s “best idea,” with a buy rating and a price target of $145. Anmuth is ranked No. 110 among more than 8,400 analysts tracked by TipRanks. His ratings have been profitable 61% of the time, with each rating delivering an average return of 16.7%. (See Amazon Hedge Fund Trading Activity on TipRanks)          

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Why Amazon built a second headquarters and how the pandemic reshaped HQ2

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Six years ago, Amazon kicked off a sweepstakes-style contest in search of where to build a second headquarters. The competition drew bids from 238 states, provinces and cities vying to be the next anchor for the nation’s dominant online retailer and second-largest private employer.

This week, Amazon formally opened the doors of the first part of its new East Coast headquarters, dubbed HQ2, in northern Virginia. The first phase, called Metropolitan Park, includes two 22-story office towers, which can accommodate 14,000 of the 25,000 employees Amazon plans to bring on in Arlington. About 2,900 employees have already moved in, and Met Park will be occupied by 8,000 employees in the fall.

Amazon built its headquarters in Seattle in 1994 partly because of the area’s deep pool of tech talent and the presence of Microsoft in nearby Redmond, Washington. The company’s Seattle campus now spans tens of millions of square feet across more than 40 office buildings, and the greater Puget Sound area has 65,000 corporate and technical Amazon employees.

It raises the question why Amazon, with its sprawling campus in Seattle and a growing real estate footprint globally, needed to build a second headquarters.

Around 2005, as Amazon’s business grew and its campus ballooned in Seattle, founder and then-CEO Jeff Bezos began to consider where the company should expand next.

At all-hands meetings, employees would ask Bezos “if we would ever be in one location at one time,” said John Schoettler, Amazon’s real estate chief, in an interview.

“I think that there was a romantic notion that we as a company would only be so big that we’d all fit inside one building,” Schoettler said. “[Bezos] had said, well, we have long-term leases and when those leases come up, I’ll work with John and the real estate team and we’ll figure out what to do next.”

John Schoettler, Amazon’s vice president of global real estate and facilities, walks Virginia Gov. Glenn Youngkin through HQ2.

Tasha Dooley

Originally, Bezos suggested Amazon stay around the Puget Sound area, but the conversation then shifted to recreating the “neighborhood” feel of its Seattle campus elsewhere, Schoettler said.

“We could have gone out to the suburbs and we could have taken some farmland and knocked some trees down, and we would’ve built a campus that would have been very inward-looking,” he said. “They generally have a north or south entrance and exit east or west. When you put yourself in the middle of the urban fabric and create a walkable neighborhood, an 18-hour district, you become very outward, and you become very part of the community, and that’s what we wanted.”

Holly Sullivan, Amazon’s vice president of economic development, said it would have been harder for Amazon to create that kind of environment had it “sprinkled these employees around 15 other tech hubs or 17 other tech hubs around North America.”

“So what HQ2 has provided is the opportunity for that more in-depth collaboration and being part of a neighborhood,” Sullivan said.

‘I don’t see us getting bigger in Seattle whatsoever’

Amazon’s highly publicized search for a second headquarters has faced some challenges. In 2018, Amazon announced it would split HQ2 between New York’s Long Island City neighborhood, and the Crystal City area of Arlington, Virginia. But after public and political outcry, Amazon canceled its plans to build a corporate campus in Long Island City.

The company’s arrival in Arlington has generated concerns of rising housing costs and displacement. The company said it has committed more than $1 billion to build and preserve affordable homes in the region.

Schoettler said Amazon intends to focus much of its future growth in Arlington and in Nashville, Tennessee, where the company’s logistics hub is based. It also plans to hire as many as 12,000 people in the Seattle suburb of Bellevue, he added.

“I don’t see us getting bigger in Seattle whatsoever,” Schoettler said. “I think that we’re pretty much tapped out there.”

HQ2 has some of the same quirks as Amazon’s Seattle campus. There’s a community banana stand staffed by “banistas” and white boards on the walls of building elevators. Amazon has a dog-friendly vibe at its Seattle office, which carried over to Metropolitan Park, where there’s a public dog park, and a gallery wall of the dogs of Amazon employees. The towers feature plant-filled terraces and a rooftop urban farm that echoes the feel of the “Spheres,” botanical gardenlike workspaces that anchor Amazon’s Seattle office.

Metropolitan Park is the first phase of Amazon’s new Arlington headquarters, called HQ2.

Tasha Dooley

Amazon is opening HQ2 at an uncertain time for the company and the broader tech sector. Many of the biggest companies in the industry, including Amazon, have eliminated thousands of jobs and reined in spending following periods of slowing revenue growth and fears of a recession ahead.

Companies have also been confronting questions about what work looks like in a post-pandemic environment. Many employees have grown accustomed to working from home and have been reluctant to return to the office. Amazon last month began requiring corporate employees to work from the office at least three days a week, which generated pushback from some workers who prefer greater flexibility.

Amazon tweaked the design of HQ2 around the expectation that employees wouldn’t be coming into the office every day.

Communal work spaces are more common, and there’s less assigned seating, Schoettler said. Employees may only be at a desk 30% of the day, with the rest of their time spent in conference rooms, or having casual coffee meetings with coworkers, he said.

“If we don’t come in that day, no one else will utilize the space,” Schoettler said. “And so that way, you can come in, the desk is open and it’s not been personalized with family photos and that type of thing. You can sit down and absolutely utilize the space, and then go off about your day.”

Amazon’s HQ2 features some of the same quirks as its Seattle headquarters, like a community banana stand.

Tasha Dooley

The shift to a hybrid working environment has also influenced the further development of HQ2. Amazon in March said it had pushed out the groundbreaking of PenPlace, the second phase of its Arlington campus. PenPlace is expected to include three 22-story office buildings, more than 100,000 square feet of retail space and a 350-foot-tall tower, called “The Helix,” that features outdoor walkways and inside meeting areas for employees surrounded by vegetation.

Amazon will observe how employees work in the two new Metropolitan Park buildings to inform how it designs the offices at PenPlace, Schoettler said.

Amazon didn’t say when it expects to begin development of PenPlace, but it is continuing to move forward with the permitting and preconstruction process, Schoettler said.

“We just want to be really mindful, since we’re just opening these buildings, to make sure we’re doing it right,” Sullivan said. “These are large investments for us. We own these buildings, and we want to give them a long shelf life.”

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