Netflix continues to be in debt

netflixLast week, Netflix presented very solid figures for the first quarter. Even before, I had assumed that the company would soon raise more money in the bond market. And that’s exactly what you do now. With an improved credit rating and rising EBITDA profits, the video streaming giant is going on.

What’s new?
On Monday morning, Netflix announced it would raise about $ 1.5 billion from another bond sale. No wonder – since the fall of 2016, the company reliably sells senior notes every six months.

The magnitude of this this cash-raising – had increased from time to time. At first it was 800 million dollars, then 1.3 billion and then another 1.6 billion dollars. This time it is “only” $ 1.5 billion.

As always, these funds are used for “general business purposes,” but above all to support the capital-intensive creation of Netflix’s original series and films.

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What should be considered when Starbucks reports its results?

starbucksStarbucks  will announce the second quarter 2018 results after the close of trading on April 26. With the media rightly focusing on the incident in early April in a Philadelphia store, where one employee called the police and two African-American men were arrested, management is looking forward to making positive headlines this time around.

There will certainly be questions about the incident, especially as the company plans to shut down all its US-owned stores on May 29 to run anti-racism training for all employees. But there are also other things that investors need to be aware of, including whether or not like-for-like sales growth in the US is improving and how China is doing after it has taken over the full operation of all Starbucks stores in the country.

Let’s take a look at these topics and the details that are most important to investors.

The importance of combating racist prejudice
Starbucks’ growth has slowed in recent quarters. Growth in the US was 2% last quarter, the lowest in consolidated terms for nearly a decade. At the teleconference, management said that several factors contributed to the weak performance, including weaker customer traffic in stores, which rely on retail customers for much of their business, and weak footwear sales. The question in the minds of many investors: Can Starbucks reverse the trend?

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How Amazon wants to crack India

amazon india

Amazon  sees a great opportunity in India, where the company already sells $ 8 billion worth of goods annually through its marketplace. Only Flipkart can boast of a greater online market share in the country. While Amazon has expressed interest in buying a stake in Flipkart, it seems very likely that Wal-Mart will take over a large part of the company in the near future.

A cash injection for his rival would certainly be a challenge for Amazon. But core North America and cloud computing continue to produce billions of free cash flow that Amazon could use to fund efforts in India and other emerging markets. India is particularly rewarding, with analysts predicting that online revenue will rise from $ 30 billion last year to $ 200 billion in a decade.

After this setback, Amazon plans to invest more in groceries, which is already the largest product category on Amazon, measured by the number of units sold in India. Amazon’s head in India, Amit Agarwal, expects to launch food delivery within two hours in the foreseeable future. Food could pave the way for broader e-commerce growth in the region.

Building on the tab
More than two years ago, Amazon started supplying food in the city of Bangalore, southern India, and since then, food sales in all regions have grown rapidly. Flipkart has failed to launch a food service since 2015 and launched a pilot program late last year. Meanwhile, Amazon has built a strong base of online shoppers. Continue reading “How Amazon wants to crack India”

Facebook stock shoots at record high

facebook

Facebook founder Mark Zuckerberg is pleased about good numbers.
The share of the social network has reached a record high after good quarterly figures. The profit rose by 71 percent.

The bubbling advertising business has once again let the cash register on Facebook. Second-quarter earnings soared 71 percent to $ 3.89 billion. Sales were also up sharply. The social network grew 45 percent over the previous year to $ 9.32 billion. After presenting the numbers, the stock jumped to a record high of around $ 173 on Wednesday in after-hours trading.

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Adidas will make a lot more money

adidas

Investors are excited about the new business figures, the stock price rises to the highest value ever.

The sporting goods manufacturer boosted its earnings expectations for this year on Thursday evening and delighted the investors.
Immediately after the opening of trading, the price of the DAX jumped and, at more than 190 euros, was 9 per cent higher at an all-time high.

To an unprecedented extent, the three-strip brand has raised the forecast. Thus, the measures adopted by CEO Kasper Rorsted , who came from Henkel exactly one year ago as a member of the Executive Board, and then from October 1 as Herbert Hainer’s successor, increased the pressure for necessary changes.

Based on the preliminary figures for the second quarter, the Group now expects a currency-adjusted increase in sales of 17 to 19 percent; previously, a plus of 12 to 14 percent based on sales adjusted for company sales of 18.48 billion euros was assumed.

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Snap crashes on the stock exchange

snapchat

The company behind the Snapchat app is experiencing another debacle: the stock price falls to a new record low after-hours. A major reason for the misery is Facebook.

At the euphoria of the IPO follows the great disillusionment: the operating company of the photo app Snapchat has disappointed investors with the second quarterly report after its IPO. In the three months to the end of June, the loss increased from 116 million to 443 million dollars (376 million euros) compared to the previous year, as Snap announced on Thursday after the US market close. Although sales rose by over 150 percent to 182 million dollars, but remained below the forecasts of analysts. The stock crashed temporarily 14 percent after the stock market.

User growth also failed to convince investors. The number of daily active users climbed to 173 million, an increase of 21 percent year-on-year and 4 percent compared to the previous quarter. Revenues per user increased from 50 cents a year earlier to $ 1.05, but the market was expected to grow even more.

Snapchat’s parent company Snap went public in New York at the beginning of March, but recently investors got cold feet. After the stock market, the price was a record low below $ 12, the issue price of the shares had been at $ 17. At the close on Thursday, it still brought Snap to a market value of over 16 billion dollars. Although the company is miles behind the big rivals Facebook , but is rated nearly five billion dollars higher than Twitter.

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Rocket Internet has an eye on the 2018 profit zone

Rocket-Internet

The start-up blacksmith Rocket Internet from Berlin keeps an eye on the profit zone for certain holdings after further reduced losses in 2017. “For 2018, we expect further progress,” said CEO Oliver Samwer on Friday. Specifically, he did not want to commit himself, however, from what time which money should contribute to the coffers.

“Most companies are strong enough to formulate their own goals.” The past year has been very successful, emphasized Samwer. Rocket had failed to reach the goal of bringing three of his companies to profitability.

HelloFresh and Delivery Hero want in the black
The cooking box sender HelloFresh and the food delivery service Delivery Hero announced in recent weeks that they want to hit the black in the current business this year. Both companies have been listed since last year. According to media reports, the furniture retailer Home24 and the African retailer Jumia go public, but Samwer did not want to comment on that.

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Air China records stellar profits boosted by cargo market and stronger yuan

air china

Air China Ltd yesterday posted its strongest profit since 2011, albeit missing analyst forecasts, as a strong cargo market and appreciating  yuan helped boost earnings.

The earnings miss, however, caused its Hong Kong shares to slide more than 3 per cent to their lowest since early February, with analysts saying that the operating costs posted by China’s flag carrier were surprisingly on the high side.

Air China’s results showed  2017 profit attributable to shareholders rose 6.3 per cent from a year earlier to 7.24 billion yuan (RM4.44 billion).

That compared with the 9.22 billion yuan average of 17 analyst estimates in a Thomson Reuters poll. Revenue rose 7.7 per cent to 121.4 billion yuan.

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The tax filing season cometh

lhdn-tax time

Individuals who are resident and with employment income must submit their taxes by April 30. Failure to do so by the stipulated date will result in penalties.

The earlier you submit your returns, the faster you will get your refunds (if any).

Here’s a guide that you can refer to for filing personal income tax claims for the Year of Assessment 2017. But before you proceed with doing so, you want to know…

If you are a resident of Malaysia earning :

  • Above RM34,000 per year (after EPF deductions) or RM2,833. 33 per month (after EPF deductions)
  • Above RM38,202.25 per year (before EPF deductions) or RM3,183.52 per month (before EPF deductions)

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Malaysian government debt quite high, says Moody’s

moodys

Malaysia’s government debt to gross domestic product ratio of 51 per cent is “quite high” compared with other countries with an “A” sovereign credit rating, Moody’s Investors Service said.

But the saving grace was that the debt  was largely denominated in ringgit, mitigating external risks to the Southeast Asian nation.

“Just to put things into perspective, Malaysia’s government debt-to-GDP is about 51 per cent and the median for A-rated sovereigns is 41 per cent,” Moody’s sovereign risk analyst Anushka Shah said.

“When you look at the debt profile, we find that almost all the debt – about 97 per cent – is funded in the local currency and that acts as a mitigating factor in the event there is a currency or interest rate shock,” she told a media briefing .

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