GOAL IS SMOOTH
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Twitter Inc. (NYSE: TWTR) shares reached a new multiyear high in Monday’s session after the company reportedly launched a new global general news network partnership with Bloomberg Media. While this news moved the stock initially, one key analyst piled on to the stock and helped Twitter rise even higher.
It’s not uncommon for news junkies or millennials to turn to Twitter for essentially instant but non-curated news coverage. The downside is consumers can never be quite sure that the news is real. If Bloomberg can quickly verify news posted by consumers, this could be a big deal.
Justin Smith, Bloomberg Media CEO, commented:
The launch of this new network further reinforces our strategy of driving innovation through exciting new products and services that touch a broad audience around the world. … [C]onsumers will be able to watch live news and the conversation around it at the same time, all while a dedicated team of Bloomberg editors verifies the facts. We’re leveraging our journalism and data to reach and inform an intelligent audience on Twitter around the world.
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JPMorgan’s Doug Anmuth this morning raised his rating on the shares to Overweight from Neutral and raised his price target to $27 from $20, implying an upside of 21.5% from Twitters most recent closing price of $22.23.
Anmuth detailed in his report:
Twitter is increasingly focused on live video as part of its mission to be the place for real-time content. Twitter streamed 830 live events during 3Q, 74% of which went to a global audience. Importantly, all of the 16 live-streaming content partnerships announced at the Digital NewFronts in May will be funded and will launch, and Twitter also added 30 new partnerships during 3Q. As shown in Figure 1 below, video content is heavily focused across sports, news, and entertainment. We are optimistic on TicToc by Bloomberg, the 24/7 global news network that will launch on Twitter today.
Overall, Anmuth believes that Twitter will continue on this course of grow as the result of its growing number of daily active users. In fact Twitter has grown daily active users by at least 10% for the past four quarters.
Shares of Twitters were last seen up 8% at $24.03, with a consensus analyst price target of $18.80 and a 52-week range of $14.12 to $24.17.
STOCK IS UP
HOME SALES UP
DECEMBER NEWSLETTER 2
The bitcoin crash has come, but will it go away? The digital currency lost 22% in value over the past week, falling to $15,180.
The case made for bitcoin value in the past year is that people can buy ever more things with the currency. In other words, it has come closer and closer to “mainstream” instead of what has been in the past, almost only a way for speculators to trade it and make money. Recently, however, an apartment in Dubai sold for 50 bitcoin, or about $240,000 based on how bitcoin was priced then. That sort of activity has become increasingly less of an isolated story.
Those who believe bitcoin is overvalued fall into two categories. The first takes the other side of whether bitcoin will become mainstream. They argue that bitcoin will never become widely used by major retailers or for real estate transactions. Its usefulness will fade because its spot in the real world of commerce, made via current major currencies like the dollar, will disappear.
The other major argument against the present value of bitcoin is that it is a bubble, and it will have to collapse to return to a valuation that matches its real usefulness for commerce. That value is up 1,587% in the past year, which is a bubble by almost any reasonable measurement of a relatively new basis of transactions. It exceeds the rise in any traditional currency, stock market or real estate market, at least in recent memory. This argument is based on the fact that sustaining such a sharp appreciation of value is not possible, particularly if the argument that it is not mainstream enough is true.
Bitcoin’s value has been attacked by a number of financial executives and many economists and currency traders. They argue that the sort of collapse going on now is only the start of one that will take it back to levels of a year ago or earlier. A 22% fall may just be a beginning.
UNMANNED FUEL TANKER
VALUE DROPS 22%
The National Association of Realtors (NAR) reports that the seasonally adjusted annual rate of existing home sales in November jumped by 5.6% to a seasonally adjusted annual rate of 5.81 million from an upwardly revised total of 5.50 million in October. This marks the third consecutive month of sales increases, the strongest pace of growth in nearly 11 years.
The consensus estimate called for sales to reach 5.52 million, according to economists polled by Bloomberg. Total sales in 2016 came in at 5.45 million to surpass 2015’s total of 5.25 million as the most sales since 2006, when 6.48 million homes were sold.
The NAR’s chief economist, Lawrence Yun, said:
Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end, As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month. The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better.
The anticipated rise in mortgage rates next year could further cut into affordability if these staggeringly low supply levels persist. Price appreciation is too fast in a lot of markets right now. The increase in homebuilder optimism must translate to significantly more new construction in 2018 to help ease these acute inventory shortages.
Housing inventory decreased by 7.2% in November to 1.67 million homes, equal to a supply of 3.4 months, down from 4.0 months in November 2016, and it has fallen year over year for 30 consecutive months. Inventory is down 9.7% from 1.85 million in November 2016.
According to the NAR, the national median existing home price for all housing types in November was $248,000, up 5.8% compared with November 2016, the 69th consecutive month of rising home prices. In October the national median price was $247,000.
The percentage of first-time buyers dropped from 32% in November of 2016 to 29%. For all of 2016, first-time buyers accounted for 35% of sales.
Sales of single-family homes rose 4.5% from the October total of 4.4.87 million to a seasonally adjusted annual rate of 5.09 million and are up 3.2% compared with November 2016. Sales of multifamily homes increased by 14.3% in November to a seasonally adjusted annual rate of 720,000 units.
All homes were on the market for an average of 40 days in November, up month over month by six and down from 43 days in November 2016. Foreclosure (3%) and short (1%) sales accounted for 4% of all November sales, flat with the prior month and down 6% compared with October 2016.
The NAR also reported the following regional data:
November existing-home sales in the Northeast jumped 6.7% an annual rate of 800,000 compared with October and are flat with November 2016 sales. The median price in the Northeast was $273,600, up 4% compared with November of last year.
In the Midwest, existing-home sales leaped 8.4% to an annual rate of 1.42 million in November and were 6.8% above the November 2016 rate. The median price in the Midwest was $196,100, up 8.8% from a year ago.
Existing-home sales in the South rose 8.3% in November to an annual rate of 2.34 million and are now 4% above November 2016 sales. The median price in the South was $216,200, up 4.8% from a year ago.
Existing-home sales in the West dropped 2.3% to an annual rate of 1.25 million in November, up 0.8% compared with October 2016 totals. The median price in the West was $375,100, but still up 2.5% compared with the November 2016 median.24/7 Wall St.
Boeing Co. (NYSE: BA) on Tuesday showed for the first time the aircraft the company plans to enter into a competition to build an unmanned aircraft system (UAS) to refuel U.S. Navy jets operating from aircraft carriers. The Navy quietly released a final request for proposals in October and expects to make a decision by September 2018.Competing against Boeing are Lockheed Martin Corp. (NYSE: LMT) and privately held General Atomics Aeronautical Systems. Northrop Grumman Corp. (NYSE: NOC) pulled out of the bidding in late October saying it would not be able to meet the Navy’s contract terms.The refueling drone, dubbed the MQ-25 Stingray, is being designed for in-flght refueling of carrier-based fighter planes and the drone must be capable of operating from a carrier as well. The Stingray program was conceived originally as a stealthy drone capable of multiple missions and has been gradually winnowed to a refueling tanker. An additional contract requirement is that the drone tanker use existing aerial refueling systems to cut down on project development time, cost and risk.Boeing showed off its version of the drone on Tuesday in St. Louis. This photo accompanied the press release:
Source: The Boeing Co.
The MQ-25 must be capable of refueling the Navy’s F/A-18 Super Hornet and the EA-18G Growler (both Boeing aircraft) and the F-35C Joint Strike Fighter from Lockheed Martin.Lockheed has only revealed a partial illustration, while General Atomics has released an illustration of the Sea Avenger version of the company’s Avenger drone. Here’s the General Atomics concept drawing:The chief of naval operations wants the first carrier flight of the refueling drone by 2019, and program officers are aiming at having the drones operational in the 2020s. The number of MQ-25As included in the contract has not been specified.24/7 Wall St.
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