Amazon (AMZN) Offering Possible 40.85% Return Over the Next 24 Calendar Days

Amazon's most recent trend suggests a bullish bias. One trading opportunity on Amazon is a Bull Put Spread using a strike $1780.00 short put and a strike $1770.00 long put offers a potential 40.85% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $1780.00 by expiration. The full premium credit of $2.90 would be kept by the premium seller. The risk of $7.10 would be incurred if the stock dropped below the $1770.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Amazon is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Amazon is bullish.

The RSI indicator is at 51.79 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

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Netflix Price Cuts Are Heating Up India’s Streaming War
Mon, 23 Dec 2019 10:00:00 +0000
(Bloomberg) — Netflix Inc. and its rivals are facing a price war in India as a jump in the cost of watching video on mobile phones threatens to slow demand in what is shaping up as a key growth market globally for streaming.The country’s three wireless carriers hiked data tariffs by as much as 41% earlier this month, leaving some customers in India, where most streaming is done on phones, with less to spend on entertainment services like Netflix, Apple Inc.’s TV+ service — which debuted there last month — and those of local competitors.Cheap broadband, a well-established film culture and a vast English-speaking population have helped make India a lucrative streaming battleground, with Netflix targeting 100 million subscribers in the country, almost 25 times the customer base as of this year. But an increase in data costs, coupled with a wider slowdown in the economy, could make customers more sensitive to how much they pay for content, just as players like Apple and Amazon.com Inc.’s Prime try to dig a foothold in the market.“This is a challenge that will affect growth, as the mobile data boom has been a big factor driving adoption in India,” said Utkarsh Sinha, managing director of Bexley Advisors, a boutique investment bank focused early-stage deals in tech and media. “The Indian user has largely used data like running water without thought.”Netflix is already trying to get ahead of the move, slashing prices by as much as half for subscribers that commit to at least three months. Most of the country’s streaming services, including Apple TV+, Amazon Prime and Walt Disney Co.’s Hotstar have also offered discount deals this year and subscriptions at prices well below those in other markets. Apple’s new TV+ service, for example, sells for about $1.40 a month in India, compared with about $5 in the U.S. and Japan.Netflix said in a statement that its users may value the flexibility that comes from being able to pay for a few months at once. “As always, this is a test and we will only introduce it more broadly if people find it useful,” a spokeswoman in India said. Representatives for Amazon, Apple and Hotstar in India declined to comment.“As all platforms become equally competitive on content, pricing will be a key lever to pull to draw in customers and encourage churn,” said Sinha. “Netflix has introduced an India-only price, and Amazon is already subsidizing its Prime offering through a package deal.”Apple TV Squeezing Into India Market With $1.40 a Month ServiceRead more on how Netflix’s Indian ambitions face a wall of cheaper rivalsThe price pressures add to what is already a cutthroat streaming market, with some 30 operators hawking online video services in the country of 1.3 billion people. Viu, a smaller streaming player run by Hong Kong-based PCCW Ltd.’s media arm, recently decided to exit the market because it lacks the cash to challenge bigger rivals, India’s Economic Times reported Dec. 16, citing an executive it didn’t name at Viu. Mubi, a U.K.-based curated streaming service, became the latest to take a crack at the market.While the effect of higher mobile phone tariffs will ripple across the industry, services that draw higher-income Indians who can easily afford to pay a little more for wireless access are somewhat insulated, said Mihir Shah, India vice president at Media Partners Asia in Mumbai. Free services — like Bytedance Inc.’s TikTok and social media video sites will take a more direct hit as it becomes more expensive to watch on wireless devices, he said.In aggregate, streaming services will continue to grow, even as costs rise, he said.What the Streaming Wars Mean for the Future of TV: QuickTakeWhile the big streaming brands are competing on price, they’re also spending money on content to offer India’s viewers more.Netflix Chief Executive Officer Reed Hastings has said the company wants to become “more Indian” in its content offering and plans to spend as much as $420 million to create local TV and films. Disney’s Hotstar has drawn hundreds of millions of active users to exclusive sports programming, especially cricket, the nation’s most popular game. For its part, Apple is adding to its TV+ offering a series based on the bestselling novel Shantaram about a convicted Australian bank robber and heroin addict who escapes from prison and lands in the slums of Mumbai.(Updates with Netflix statement in sixth paragraph)\–With assistance from Ragini Saxena.To contact the reporter on this story: P R Sanjai in Mumbai at psanjai@bloomberg.netTo contact the editors responsible for this story: Dave McCombs at dmccombs@bloomberg.net, Thomas PfeifferFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Archie Black, CEO of SPS Commerce: How retailers are starting to catch up with Amazon
Mon, 23 Dec 2019 10:00:00 +0000
SPS Commerce knows just what products are (and aren't) selling on the shelves and websites of America's biggest retailers.

Behind Samsung’s $116 Billion Bid for Chip Supremacy
Mon, 23 Dec 2019 00:50:33 +0000
(Bloomberg) — Technology giants are increasingly designing their own semiconductors to optimize everything from artificial intelligence tasks to server performance and mobile battery life. Google has the Tensor Processing Unit, Apple Inc. has the A13 Bionic and Amazon.com Inc. has the Graviton2. What the titans all lack, however, is a factory to build the new chips they are dreaming up.Enter Samsung Electronics Co., which is planning a decade-long, $116 billion push for their business. The South Korean company is investing heavily in the next step in miniaturizing semiconductors, a process called extreme ultraviolet lithography (EUV). It’s by far the priciest manufacturing upgrade Samsung has ever attempted, a risky bid to move beyond its established business of cranking out commoditized silicon and to leapfrog the incumbent leaders in the $250 billion foundry and logic-chip industry.“A new market is opening up,” Yoon Jong Shik, executive vice president of Samsung’s foundry business, said at a forum recently held in Seoul. “Companies like Amazon, Google and Alibaba, which lack experience in silicon design, are seeking to make chips with their own concept ideas in order to boost their services. I think this would bring a significant breakthrough for our non-memory chip business.”Samsung is a relative underdog in this growing field. The foundry business — as the manufacturing of chips for companies like Google and Qualcomm Inc. is known — is dominated by Taiwan Semiconductor Manufacturing Co. with more than half the market, according to TrendForce Corp. data that puts Samsung at 18%.TSMC also took over Apple’s A-series processor manufacturing from Samsung, which was the original production partner. Samsung plans to spend about $10 billion per year on equipment, research and development over the next decade, but TSMC is even more ambitious with capital expenditure of around $14 billion for this year and next.“It is not just a matter of willingness,” said CW Chung, head of pan-Asia technology at Nomura Financial Investment Co., in assessing Samsung’s chances of success. “Chip-making is like a composite art. Unless there are enough supports for all-round social infrastructures, it’d be a scarcely achievable goal.”To win over clients, top Samsung executives are touring major cities from San Jose to Munich to Shanghai, hosting foundry forums and negotiating deals. ES Jung, president and general manager for the foundry business, is the frontman delivering Samsung’s “can-do” spiel at every gathering, where his practiced joke is to suggest that his initials stand for “engineering sample.”“The complexity of the lines drawn by the EUV equipment is similar to building a spaceship,” said Jung while unveiling a $17 billion EUV plant in Hwaseong earlier this year, flanked by Samsung heir and de-facto boss Jay Y. Lee and South Korean President Moon Jae-in. The fab is planned to start mass production in February 2020.A single EUV machine from ASML Holding NV costs $172 million and Samsung is setting up dozens of them in Hwaseong in an effort to be first with the technology. TSMC and Samsung are both expected to reach 5-nanometer production processes with EUV in the new year, which means they’ll have only each other to compete with in a market that’s only set to expand. And once they ramp up and achieve economies of scale, the overall process cycle time is likely to decrease by 20% and the foundry capacity output will increase by 25%, according to a Citigroup Inc. research report.“TSMC is too busy with orders pouring in for new products as we enter into the 5G era,” said Greg Roh, senior vice president at Hyundai Motor Securities. “For Samsung, that’s bringing a good chance to expand their market share by offering lower prices and delivery schedules to meet clients’ needs.”Samsung is collaborating with major clients on designing and manufacturing custom chips and that work is already starting to add to its revenue, according to one Samsung executive who has direct knowledge of the matter. The push toward bespoke processors in Silicon Valley and China is opening up fresh opportunities and Samsung already has established relationships, as demonstrated by its recent announcement that it’ll produce an AI chip for Baidu Inc. early next year.Officials at Samsung believe the company has a competitive edge from its experience building both the chips and the devices that they go into. It is thus able to foresee and address the engineering requirements of its clients. Samsung believes its other trump card is an ability to package memory and logic chips into a single module, improving power and space efficiency. Analysts do warn, however, that some companies are wary about outsourcing production to a direct competitor in the consumer electronics market — lest Samsung learns and copies their chip designs in its own products.“Ultimately, the success of Samsung’s logic chip business depends on its market positioning,” Hsu said. “On the foundry side, Samsung needs to eliminate its clients’ suspicions of Samsung LSI being a potential competitor.”Samsung is reaching out to smartphone-making rivals and has already agreed to sell 5G Exynos chips to Vivo. At the same time, it’s going to be manufacturing Qualcomm’s 5G mobile chipset using the same EUV process. On yet another front, the company is competing with foundry customer Sony Corp. in the growing market for image sensors, having this year unveiled an unprecedented 108-megapixel camera for smartphones. “I think Samsung’s CMOS image sensor business will continue to do well, riding on the industry boom,” said Bloomberg Intelligence analyst Anthea Lai.If Samsung can move ahead technologically, it should find no shortage of customers for its varied semiconductor offerings. Though China is increasingly turning to domestic suppliers for all things tech, the greater efficiency of EUV chips may be key in helping Samsung solicit business from the world’s second-biggest economy.“The increased demand for in-house chips spells good news for the growth of the foundry industry,” TrendForce analyst Chris Hsu said.\–With assistance from Debby Wu.To contact the reporter on this story: Sohee Kim in Seoul at skim847@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, Vlad Savov, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Shipping deadlines to receive last-minute gifts under the tree on time
Sun, 22 Dec 2019 22:07:19 +0000
Amazon Prime’s cutoff is tonight and Target is offering same-day delivery through Christmas Eve.

How to separate the winners from the losers in cloud-software stocks for 2020
Sat, 21 Dec 2019 18:59:00 +0000
The cracks began last quarter as many cloud-software, or software-as-a-service (SaaS), companies saw their shares plummet even as they beat analysts’ financial estimates. For 2020, the winners will be further separated from the losers by posting stable earnings growth. Sentiment started shifting in the third quarter for SaaS companies.

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