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Daily Archives: September 2, 2021
Google Intends To Insert Its Own Chips In Chromebook laptops By 2023 – Yahoo Finance
Posted: September 2, 2021 at 2:15 pm
Google is working on its own chips and intends to start inserting them in its Chromebook laptops from 2023, a move that could affect some of the leading chip manufacturers in the world.
US tech giant Google is currently working on its chips and intends to roll them out by 2023. This is according to an earlier report by Nikkei Asia, citing people familiar with the matter. According to the report, Google is developing its central processors for its tablet and notebook computers.
This latest development implies that Google considers in-house chip development as a crucial component for the company to remain competitive. The chips are key to the function of any device. They operate as the brains, ensuring that every aspect of a device runs as expected.
At the moment, Google utilizes chips manufactured by other tech giants like Intel and AMD to power its tablet and notebook computers. However, the Google chip currently in design is based on a design by British chip designer Arm.
Google considers the move to be crucial as other leading tech companies, including Amazon, Facebook, Microsoft, Tesla, Baidu and Alibaba Group Holding, are working towards developing their own semiconductors to use for their cloud services and electronic products.
The report added that Google is also working on building mobile processors for its Pixel smartphones. The tech giant was inspired by Apples success in developing its own semiconductor components for its iPhones. Apple is also looking to replace Intel chips with its own CPUs for cloud services and electronic products.
Google has been one of the best performing tech stocks in the market, seeing its price surge by more than 60% year-to-date. GOOGL started 2021 trading at $1,722 per share but has gained more than 60%.
GOOGL stock chart. Source: FXEMPIRE
GOOGL is currently trading at $2,923 per share, up by 1% over the past 24 hours. The companys performance has also been reflected in its earnings and revenue over the past few months.
Story continues
This article was originally posted on FX Empire
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Bidens alliance with Big Tech signals a power shift in the US – Mint
Posted: at 2:15 pm
It would normally be awkward asking a group of companies worth more than $4 trillion for help. But the leaders of Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet Incs Google sat up and listened when US President Joe Biden sought their cooperation last week in protecting American infrastructure from cyber threats. They werent just being polite.
Three of the firms have faced lawsuits or probes from both the US Federal Trade Commission and Justice Department. They need to maintain cordial relations with the US government. Biden probably didnt bring that up during his discussions with Apples Tim Cook or Googles Sundar Pichai at the White House cyber security summit on 25 August, but it must have hung in the air like an unpleasant smell, detected by all but never remarked upon.
A new wave of antitrust probes over the past year could see regulators break up or fundamentally crimp the way Big Tech does business. That means big-tech companies must keep steady diplomatic ties with whoever is in the White House. At the summit, they pledged billions of dollars towards bolstering the security of their products in support of the governments initiative, and that is just the start.
A more challenging task will be finding new ways of working with the US to rein in the growth of ransomware attacks or intellectual property thefts. Remember Edward Snowdens revelations eight years ago? We learned back then that the National Security Agency had probed the data centres of Google and Yahoo! Inc to collect information on millions of US account holders. That disclosure, among others, put a wedge between Silicon Valley and Washington DC.
Tech companies became more privacy focused. Facebook rolled out end-to-end encryption across its messaging services, and Apple refused to build a back-door for law enforcement into iPhones. Tech giants portrayed themselves less as protectors of Americas national security needs, and more as global actors obligated to protect users across many different countries.
Now circumstances have changed. Americans are looking more than ever to their government for help on issues from health to security.
Last year was the one of the worst on record for cybersecurity, with more than 150 million people affected by data breaches, according to Statista. Ransomware attacks spiked. Russian hackers infiltrated thousands of US government and corporate targets by launching hacks from inside American servers. The so-called SolarWinds attack was one of the worst cyber espionage incidents in American history, and pointed to a major blind spot for the NSA.
Since Snowden, the agency hasnt been able to monitor domestic networks en masse, and its director, General Paul Nakasone, recently complained to US Congress that foreign hackers were exploiting the NSAs inability to see all of the dots."
Enter Silicon Valley. The August summit between the tech giants and the US government was like a reunion between high school sweethearts years after a horrible breakup. Theyre both older and wiser. One has a stunningly high salary. And now they need to make the relationship work. The phrase public-private partnership has been making the rounds. One chief executive who attended the meeting told The Wall Street Journal that discussions had focused more on partnerships" than regulations. Nakasone has also touted public-private-partnerships on cyber security.
What does that mean? In practice, it could mean a better targeted approach to surveillance. Apples move to analyse photographs on iPhones for potential child sex abuse images is one example. That decision caused outrage among privacy advocates, but it is notably different from the pre-Snowden vacuum-cleaner approach of sucking up masses of data. In this case, Apple can say that it isnt invading a users privacy unless its system flags them as a person of interest.
For his part, on the day after the 25 August summit, Snowden tweeted: How long do we have left before the iPhone in your pocket begins quietly filing reports about encountering extremist political material, or about your presence at a civil disturbance?"
Timing could be everything. Apple launched its controversial and unprecedented device-tracking tech in the middle of a crackdown in Chinaone of its biggest marketsagainst technology firms. For all its power and its trillion-dollar market cap, Apple is more beholden to governments at the moment. So are its big tech peers. Biden will find it easier than usual to ask for help with Americas national security blind spots.
Parmy Olson is a Bloomberg Opinion columnist covering technology
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The rumored Apple Watch features hint at the tech giant’s bigger plans to make the wearable an indispensable, – Business Insider India
Posted: at 2:15 pm
Ahead of Apple's expected 2021 keynote event, rumors are circulating on features the company will eventually add to its Apple Watch.
One of the most popular theories is that the watch will include a new blood pressure monitor and a built-in thermometer, according to The Wall Street Journal.
The thermometer is intended to help with fertility planning, and could be available as soon as next year, according to the Journal.
Apple is expected to release its Apple Watch 7 in the coming weeks, but its more ambitious health-related features aren't expected before 2022, the Journal reported.
Health monitoring and tracking have always been popular features among wearers of the technology. Apple's Series 6 watch introduced customers to blood oxygen readings, measure an electrocardiogram, and detect hard falls. With the latest rumored updates, it is expected Apple will insert itself further into the wearable healthcare scene, following Samsung's Galaxy 4 Watch release which also includes blood pressure monitoring.
Apple Watches currently include features to help its wearers meet exercise goals, improve sleep, and monitor their overall well-being. In June, Apple announced its watchOS8 software, which added more health-related capabilities for its wearers including a mindfulness app and new Tai Chi and Pilates workout types.
In the oncoming years, Apple wants its wearable technology to detect sleep apnea and eventually spot diabetes, sources told The Journal.
The Apple Watch is usually announced alongside the iPhone during the company's September events, but reports by Nikkei Asia say it could be delayed because of difficulties in production due to the complexity of the design and the watch's new healthcare features. The report also mentions Apple's distributors are still recovering from supply chain issues due to disruptions from the COVID-19 pandemic.
Apple didn't respond to a request for comment.
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A former Google recruiter offers 4 reasons why engineers should quit their jobs at tech giants like Facebook, Apple and Amazon for crypto startups -…
Posted: at 2:15 pm
Bitcoin
Nurphoto / Getty Images
Dan McCarthy spent seven years as a recruiter convincing engineers to join Google. Now, as the talent partner at crypto-focused investment firm Paradigm, he's making a case for the engineers he once recruited to leave their ivory towers in Mountain View for cryptocurrency startups.
"I think the FAANG [Facebook, Apple, Amazon, Netflix, and Google] companies have kind of been the talent magnet that everyone is fighting against for a very long time," said McCarthy.
When at Google trying to recruit engineers for products like Gmail and Google Maps, McCarthy would tout a good compensation package, the ability to work on products that have high name recognition, and a relatively low-risk path to American citizenship. Now he's using similar points to argue for why engineers should leave those jobs for crypto.
Insider spoke exclusively with McCarthy about the four key reasons why he believes engineers should now quit their jobs at Facebook, Amazon, and other top tech companies for a cryptocurrency startup.
Replacing stock-based equity with token-based compensation. McCarthy's key point is that the existing equity compensation model is "dramatically unfavorable to people who join startups." He points to employees who have waited 10 years for their startups to see a successful exit, and in some cases, end up with nothing. On the other hand, "token-based compensation is capable of providing employees with a faster path to liquidity."
He also sees this as a general movement towards a trend that is already happening in Silicon Valley. "Over the past couple of months, Google and Stripe have moved to a model where their equity now vests monthly, like coming in the door, as opposed to having a one-year cliff," he said. "I think the bottom line is, especially as early engineers have more market power, solutions that are more favorable to them will start to become more common."
A return to the decentralized, open web. As a tech recruiter, McCarthy said he is a big believer in startups in general, but he is also a big believer in decentralization. He is wary of the amount of power that a handful of platform companies have in controlling what reaches the average consumer. He's also concerned about the "invasive tracking of user behavior to make money." McCarthy believes that most engineers also share this ideology, but up until now, have lacked viable job alternatives. "I think crypto is sort of unique as a wedge that can help provide people with incentives to move that they may not have had before," he tells Insider.
No more secrets. McCarthy points out that over the past decade, the most cutting-edge research has taken place in secretive labs within the FAANG companies. Think of X, Google's moonshot factory. Now, engineers who want to work on groundbreaking technologies with the potential for real-world impact have a better choice, he argues. Within crypto, research is built on open-source principles and public experimentation. "When I talk with our engineers internally [about a hire], they want to see people's GitHubs, they want to see people's code samples."
Being in the US is less critical. The FAANGs have historically enjoyed a built-in advantage with any candidate who needs visa sponsorship to work in the US, said McCarthy. But the rise of remote work during the pandemic has made physically being in the US less critical for career growth. Simply being in an "attractive time zone" and having access to a high-speed internet connection is enough so employees no longer need to be in Mountain View to contribute in a meaningful way, he said.
Still, he thinks the big tech giants might still have a major recruiting advantage among immigrants who seek the American dream. "As long as the visa process is a bureaucratic nightmare - the FAANGs will have a major recruiting advantage among immigrants," he said.
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Hurricane Ida impacts around the Gulf Coast – WXXV News 25
Posted: at 2:14 pm
Multiple houses in Gulfport near 27th street are damaged from a possible tornado.
Gusts really picking up in Hancock County.
Views higher up from the Biloxi Bay Bridge.
Hwy 90 in Pass Christian near Espy Ave.
S Beach Blvd in Hancock Co completely flooded
Roadways over by Mikeys on the Bayou in Ocean Springs.
Storm surge flooding from Hurricane Ida on Beach Boulevard in Pascagoula, Mississippi. Video: Pascagoula PD.
GULFPORT, MS Portions of Jones Park and the Port of Gulfport are underwater as storm surge from Hurricane Ida continues to push onshore. Parts of U.S. 90 are impassable.
Video from Jones Park in Gulfport, Mississippi
Video from Long Beach, Mississippi
Video from Clermont, Harbor in Bay St. Louis
Port of Gulfport
Intersection of Arlington St and Coleman Ave in Waveland. Water rising fairly quickly on Coleman Ave.
Conditions in Bay St. Louis along S Beach Blvd.
Gulfport
11:30 a.m.-Water is beginning to rise at the Bay St. Louis Municipal Harbor.
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No reason to go halfway: Behind the scenes of the Cubs trade deadline that turned the organization upside down… – The Athletic
Posted: at 2:14 pm
There were less than 23 hours remaining until the trade deadline when Anthony Rizzo received a phone call from Vijay Tekchandani, the Cubs director of major league travel and clubhouse operations. Rizzo was hanging out with his wife, Emily, and his parents, John and Laurie, in the players parking lot next to Wrigley Field after a July 29 loss to the Reds. Tekchandani told Rizzo that he needed to sign a baseball which was a request for a young fan and that Cubs manager David Ross needed to see him in the office.
Rizzo crossed Waveland Avenue and walked toward the teams underground clubhouse. During that homestand, word spread among the Wrigley Field gameday staff about Rizzos father reaching out to stadium workers to thank them for taking care of his family over the years during their frequent visits to the 1914 Club, the VIP area behind home plate. Cubs president of baseball operations Jed Hoyer had already finalized the Ryan Tepera deal with the White Sox that day, making it two in-game trades in four days. During a July 26 night game, fans in the bleachers had informed the Cubs bullpen that Andrew Chafin was reportedly on the verge of getting traded to Oakland.
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The Remnants of Ida to Spread Life-Threatening Flooding Rain Threat Into New England – msnNOW
Posted: at 2:14 pm
Ida's Remnants Continue to Affect the Northeast
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The remnants of Ida have teamed up with a stalled front to produce widespread heavy rainfall and a significant threat of flooding rain, along with isolated tornadoes, in the Northeast.
Ida inflicted widespread wind and flood damage in southeast Louisiana on Sunday, including in the New Orleans metro area. See this link for the latest details on those impacts and the recovery ahead.
Ida's low-pressure system has tracked through the South and is moving into the Northeast. This combination of ingredients could cause life-threatening flooding from the New York City area into New England into early Thursday.
Several flash flood emergencies were issued Wednesday afternoon and evening due to heavy rainfall. These emergency alerts are issued when life-threatening rainfall is ongoing. These emergencies can be found in pink in the graphic below.
WHAT TO DO: If you're caught in both a flash flood warning AND a tornado warning: Head to the lowest DRY floor of your home or building and move to an interior room.
Radar indicated a few spots closing in on 10 inches between Tuesday and Wednesday from eastern Pennsylvania to New Jersey.
For the latest on impacts in the mid-Atlantic and Northeast see this link.
On Wednesday morning, multiple houses were flooded in West Library, Pennsylvania, and a school bus became stuck in water in Stowe Township. A second bus was rescued along with its 11 passengers in Thurmont, Maryland, Wednesday afternoon.
But flooding escalated Wednesday evening.
More than 4 inches of rain was reported across a wide area of the Mid-Atlantic and Northeast on Tuesday and Wednesday, especially in Pennsylvania and into the New York City metro area. Rain also came down fast. Newark Airport received 3.9 inches of rain in less than 90 minutes Wednesday evening, including a half-inch of rain in 6 minutes. New York's Central Park has also had its wettest day ever.
This kind of rainfall has turned roads - the ones that didn't collapse - into raging rivers and has caused roofs to collapse in New Jersey. Seven people were injured in Kearny, New Jersey, when a 30-foot by 30-foot hole in the ceiling of a U.S. Post Office building fell in due to the weight of heavy water. Cars floated on main streets and near homes and businesses in feet of water. Newark Airport was submerged in feet of water and the New York City subways were shut down. Hundreds of rescues were needed.
The potential for heavy rainfall will expand northward across the Northeast through Wednesday night and then could linger into early Thursday along the Northeast coast. Ida's remnant should push off the East Coast by later Thursday, giving way to a drier weather pattern for the end of the workweek.
Flood watches have been posted by the National Weather Service for this flood threat, from the mid-Atlantic to portions of New England. Where flooding is occurring and poses a significant threat to life, flash flood emergencies have been issued. Those are found in pink below.
In addition, NOAA's Weather Prediction Center (WPC) has issued a rare "high risk" excessive rainfall outlook for Wednesday night from northern New Jersey to the New York City area, much of Connecticut and Rhode Island and into southeastern Massachusetts. When a high risk is issued, the WPC expects severe, widespread flash flooding, potentially including areas that don't normally experience flash flooding.
Some of these areas were recently hit by heavy rain from Tropical Storm Fred and/or Hurricane Henri.
Flash flooding, particularly where bands of rain stall for a period of a few hours and over hilly or mountainous terrain, is expected in these areas through early Thursday.
Flooding of rivers, creeks and streams is likely in at least some locations. Multiple river gauges in parts of the mid-Atlantic and Northeast already are or are forecast to see major river flooding, according to NOAA forecasts. At least one river in eastern Pennsylvania was four feet higher than the previous record crest due to the extraordinary rainfall on Wednesday.
Do not drive through flooded roads and if you live in a location prone to flooding, then be sure to have a way to receive warning information.
WPC expects the mid-Atlantic to Southern New England to receive 3 to 8 inches of rainfall with localized heavier totals through Thursday.
Isolated tornadoes are frequently a concern with inland remnants of tropical systems.
The potential for a few tornadoes, along with damaging wind gusts, will continue in southeastern New England Wednesday night.
Several tornadoes have already occurred, including one that touched down near Annapolis, Maryland, Wednesday afternoon. Two tornadoes touched down around the Philadelphia metro area, Wednesday evening. A tornado also touched down near Burlington, New Jersey.
Ida began as Tropical Depression Nine on Aug. 26 while south of the Cayman Islands. Just over six hours later, an Air Force Reserve Hurricane Hunter mission found its winds were strong enough to upgrade to Tropical Storm Ida.
A burst of thunderstorms near Ida's center then allowed it to rapidly intensify into a hurricane on Aug. 27 as it moved over western Cuba.
Ida then took advantage of very warm Gulf water, winds aloft spreading apart and plenty of moist air to rapidly intensify again from Cat. 1 to Cat. 4 status in 24 hours from Saturday to Sunday morning prior to its landfall.
Ida's center crossed the coast near Port Fourchon, Louisiana, at 11:55 a.m. CDT Sunday. Maximum sustained winds were 150 mph, making Ida a high-end Category 4 hurricane.
Ida tied two other hurricanes for the strongest landfall on record in the state of Louisiana based on maximum wind speeds. Laura had 150-mph winds when it tracked into southwest Louisiana last year. The other hurricane to make landfall in Louisiana with winds that high was in 1856.
(MORE: Hurricane Ida Gives Louisiana Cat. 4 Landfalls in Back-to-Back Season For First Time)
Ida also made landfall on the 16th anniversary of Hurricane Katrina's landfall in 2005.
Storm Surge
Storm surge pushed water into many areas outside levee protection in southeast Louisiana, as well as along the coast in Mississippi.
Several NOAA gauges captured peak inundation from 6 to 7 feet above dry ground in Waveland, Mississippi, and Shell Beach, Louisiana during and even after Ida's landfall as strong onshore winds continued to pile water ashore.
Serious storm surge flooding was accompanied by wind gusts over 100 mph in Grand Isle, Louisiana, and multiple homes were reportedly removed from their foundations by storm surge in Galliano, about 25 miles northwest of Grand Isle.
In Plaquemines Parish, overtopping of a levee submerged the town of Braithwaite, also flooded from Hurricane Isaac in 2012. In Jefferson Parish, flooding swamped areas south of New Orleans including Lafitte and Barataria.
Water almost up to a stop sign was seen flowing through the Venetian Isles neighborhood in New Orleans East, an area under mandatory evacuation outside of protection from levees, according to WDSU TV.
Several feet of storm surge from Lake Pontchartrain coupled with torrential rain was captured in video in LaPlace, about 25 miles west-northwest of downtown New Orleans, entering homes and trapping residents.
The combination of storm surge and torrential rain prompted the NWS to issue rare flash flood emergencies for the lakeshore area of metro New Orleans, and also for St. John the Baptist and St. Charles Parishes, including LaPlace Sunday night.
Post-storm surveys will likely find higher storm surge inundation values near the coast once meteorologists examine buildings for high-water marks.
Winds
The National Weather Service issued several extreme wind warnings for parts of southeast Louisiana Sunday, a rarely-issued warning for tornado-like winds of 115 mph or greater in the eyewall of Ida.
According to NOAA's Best Track database, no Category 3 or stronger hurricane had taken a northward path just west of New Orleans similar to Ida in almost 106 years.
(MORE: Why New Orleans took such a damaging strike from Ida)
Numerous wind gusts over 100 mph were clocked in far southeast Louisiana near the coast, including in Galliano and Dulac. A gust to 172 mph was measured aboard a ship in Port Fourchon as Ida made landfall, one of the strongest hurricane gusts on record in the U.S.
Damage was reported in many areas of southeast Louisiana, particularly in Lafourche and Terrebonne Parishes.
In the New Orleans metro area, wind gusts up to 99 mph not only downed trees and power lines, but also damaged or destroyed some older buildings. Damage was captured on video in the French Quarter, and in other parts of the city.
The winds knocked out power to all of Orleans Parish due to what Entergy referred to as "catastrophic transmission damage". Over 1 million customers lost power in Louisiana from Ida.
Downed trees littered a stretch of Interstate 10 outside of New Orleans Monday, leaving only one lane passable, according to a video posted in social media.
In Mississippi, winds gusted up to 68 mph at Gulfport-Biloxi International Airport. Trees were downed in parts of central and southern Mississippi, and just over 90,000 customers lost power.
Rainfall Flooding
As if water surging from the Gulf of Mexico wasn't enough, Ida dumped torrential rain in parts of Louisiana, Mississippi, Alabama and the western Florida Panhandle.
Up to almost 14 inches of rain was measured in New Orleans before rain ended early Monday. Rigolets-Slidell, Louisiana, reported 15.73 inches of rainfall from Ida.
In Jackson County, Mississippi, an estimated 300 homes were flooded and 150 road closures were prompted. Between more than 10 inches of rain fell near Bay St. Louis and in Hancock. Streets were also flooded in Hattiesburg and Meridian.
Parts of southern Alabama picked up 7 to 9 inches of rain and Wilmer, Alabama, measured 11.24 inches. Walnut Hill, Florida, tallied 8.20 inches of rain.
More than 4 inches of rainfall was reported in parts of Tennessee and Kentucky, including in Athens, Tennessee, and Hanson, Kentucky.
Tornadoes
Monday, a damaging tornado touched down just north of Mobile, Alabama, damaging a motel, downing trees and flipping an 18-wheeler in Saraland.
Another apparent tornado was observed in video in Pike County, southeast of Troy, Alabama.
Other damage possibly from tornadoes was documented in Jackson County, Mississippi, and Clarke County, Alabama, Monday.
The Weather Companys primary journalistic mission is to report on breaking weather news, the environment and the importance of science to our lives. This story does not necessarily represent the position of our parent company, IBM.
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Oceania Cruises resumes operations with the Marina – Travelweek
Posted: at 2:13 pm
MIAMI For the first time in 524 days, passengers walked up the gangway to board an Oceania Cruises ship.
The cruise line, which has been on pause since the start of the global pandemic, resumed operations on Aug. 29 with the Marina, its first cruise ship to sail from the port of Copenhagen since 2019. From Copenhagen, Marina will sail to ports in Germany, Denmark, Sweden, Lithuania, Latvia, Estonia and Finland prior to concluding in Stockholm.
Speaking on the day of departure, Bob Binder, President and CEO of Oceania Cruises, said: Today is one of those days we will all remember for a lifetime as we reunite with our shipboard families and our guests to start exploring the world once again.
After its inaugural voyage, the Marina will spend the remainder of the summer and autumn cruising Western Europe, the Mediterranean and the Greek Isles prior to setting sail for Miami where it will arrive on Dec. 1.
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Earnings growth outpaced the respectable 53% return delivered to Oceania Healthcare (NZSE:OCA) shareholders over the last year – Simply Wall St
Posted: at 2:13 pm
The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Oceania Healthcare Limited (NZSE:OCA) share price is 50% higher than it was a year ago, much better than the market return of around 10% (not including dividends) in the same period. That's a solid performance by our standards! It is also impressive that the stock is up 38% over three years, adding to the sense that it is a real winner.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
See our latest analysis for Oceania Healthcare
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Oceania Healthcare went from making a loss to reporting a profit, in the last year.
We think the growth looks very prospective, so we're not surprised the market liked it too. Inflection points like this can be a great time to take a closer look at a company.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. Dive deeper into the earnings by checking this interactive graph of Oceania Healthcare's earnings, revenue and cash flow.
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Oceania Healthcare the TSR over the last 1 year was 53%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
We're pleased to report that Oceania Healthcare rewarded shareholders with a total shareholder return of 53% over the last year. That includes the value of the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 15%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Oceania Healthcare (of which 1 is a bit unpleasant!) you should know about.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NZ exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. *Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
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Why Global Expansion is Key for Spotifys Success – TheStreet
Posted: at 2:13 pm
Despite being surrounded by many able competitors, Spotify (SPOT) - Get Spotify Technology SA Reportremains dominant in the global audio streaming space. The company has been delivering positive subscriber net adds each quarter. But how can the company maintain the growth pace for years to come?
The secret probably lies in the company's underexplored markets. Emerging countries are the key to gaining even more subscribers, maybe even faster. MavenFlix discusses how below.
Figure 1: Spotify platform being played on tablets.
Unsplash
(Read more from MavenFlix:Spotify Stock: 3 Reasons To Buy Right Now)
Currently present in 178 countries, Spotify already has a diverse number of customers. However, there are still several markets to be explored.
Consider the company's penetration in Latin America: 33 million subscribers out of a total population of 600 million, for a ratio of 7.5%. Applying this same ratio to other global regions like Africa, Asia and Oceania, it is not a stretch to assume that the company could produce 460 million new subscribers.
With an eye on the growth opportunity, Spotify has increasingly invested in new markets and protected those in which it is already dominant.
Figure 2: Spotify subscribers.
Spotify
It makes sense that Spotifys growth efforts should focus on emerging countries despite understanding that the ARPU (per-unit revenue) opportunity would not be as great as it is in developed nations. Between 2019 and 2027, these markets are expected to represent more than 70% of all global growth in the music streaming space.
Spotify has taken note. In the first quarter of 2020, Latin America and the rest of the world (Asia, Africa and Oceania) accounted for 73% of all new subscribers in the period, an increase of 130% compared to the same quarter last year.
Figure 3: Percentage of emerging market' Spotify users.
Spotify
However, conversion from free users to subscribers has been slower in these markets. People tend to test the product longer before buying the service, even at lower prices than in developed markets. But more aggressive user and subscriber CAGR (annualized growth) should help to make up for some of the soft conversion metrics.
Figure 4: Spotify monthly active users.
Business of Apps
Even though audio streaming companies dont usually differentiate much on product features (the top three players offer the same 70 million song titles, for example), Spotify still seems to have an advantage in the space.
The company has more subscribers than all its competitors and it is present in more countries than most. In addition, the company does not need to compete so much on price, which could be a weakness, but on other types of audio content that it makes available (podcasts, for example) and user experience.
Figure 5: Paying users.
Business of Apps
For the reasons above, we remain bullish on Spotify stock and confident in the future of the company. Spotify has been aligned with industry trends and aims to expand its customer base in the face of the many opportunities presented by emerging markets.
If the assumptions are confirmed, SPOT share price could appreciate in the long term, especially off current levels that are 35% below all-time highs.
(Read more from the MavenFlix:Netflix Stock: Should You Buy It In September?)
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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting MavenFlix)
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Why Global Expansion is Key for Spotifys Success - TheStreet
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