Apple and Amazon pass $1 trillion – which company is next?

The $1 trillion valuation mark is now behind both Apple and Amazon, but two more technology companies are quickly closing in on the milestone.

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Microsoft and Alphabet are the next biggest companies racing to a $1 trillion market capitalization, each closing in on the mark yet still over $100 billion away. Here’s what it would take to get the 10 U.S. companies behind Apple and Amazon to $1 trillion:

Wall Street expected Amazon shares to rise about 15 percent over the next year (as of Aug. 3, the day after Apple hit $1 trillion) — but it rose more than 10 percent in the past month, soaring past the milestone. Microsoft is a bit behind and will not likely surpass $1 trillion over the next 12 months, according to analysts. And while Wall Street expects Facebook to grow the most over the next year, it still has a very long way to go to reach the four comma club.

Apple is expected to cool off, with Wall Street projecting a small amount of growth for the company.

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Correction could wipe out record gains before year's out, Invesco top market watcher warns

Invesco’s Kristina Hooper is confident September will build on August’s all-time stock market gains — even though it’s historically known as the year’s worst month for the major averages.

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However, that’s where the record run may end.

According to Hooper on CNBC’s “Futures Now,” a correction could hit stocks as soon as next month.

“Think of it as something analogous to what we saw in February. So about a 5 to 10 percent sell-off,” the firm’s chief global market strategist said Tuesday.

She’s predicting the downdraft due to trouble brewing on the trade and economic policy fronts.

Right now, Hooper said, U.S. assets are very attractive to investors because there’s an assumption the U.S. will likely win the trade war. She is not in that camp.

“It is a significant issue even though investors, for the most part, have really tried to ignore it,” Hooper said. “The U.S.’ current trade policy is one that really runs counter to global growth, and could, in fact, also impact U.S. economic growth … We have a lot of economic policy uncertainty that could tamp down capex [capital expenditure] and could tamp down hiring plans.”

She calls herself “risk aware” — a cautious bull, of sorts. If her sell-off prediction materializes, Hooper says, a “swift recovery” would take hold, and it would be a buying opportunity.

“For those with a very long time horizon, they probably should stay put, and stick with their long-term plan,” Hooper said. “For those with a short time horizon, this, of course, is the time to get more tactical.”

She recommends overweighting domestic technology and small-cap stocks while monitoring the situation closely.

But her forecast comes with a caveat: A recovery may not push stocks back to early September levels. Hooper’s S&P 500 year-end price target is 2850 to 2950. The index closed at 2896.72 on Tuesday.

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Elon Musk attacks British cave diver for a third time, calling him a 'child rapist'

Elon Musk has once again attacked a British man who helped rescue a boys’ soccer team trapped in a flooded cave in Thailand, calling him a “child rapist.”

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In an email to BuzzFeed News, the Tesla chief executive launched a third attack on cave diver Vernon Unsworth, who called Musk’s idea to rescue the trapped boys and their coach with a miniature submarine a “PR stunt.”

Musk accused Unsworth in the email of being a “child rapist,” in perhaps the strongest words the billionaire has had for the explorer since referring to him as a “pedo guy” in July.

Tesla shares were down 1.1 percent in premarket trading Wednesday.

Representatives for Musk and three of his companies — Tesla, SpaceX and The Boring Company — did not immediately reply to CNBC requests for comment.

Musk’s initial tweet in July dampened investor sentiment in Tesla, with shares falling on the day on concerns over the executive’s leadership, public image and his presence on Twitter.

Musk told BuzzFeed on Tuesday: “I suggest that you call people you know in Thailand, find out what’s actually going on and stop defending child rapists, you f—— a——.” Musk had said the email was off the record, but BuzzFeed said it didn’t agree to the condition.

Musk alleged that Unsworth had traveled to and lived in Thailand for “30 to 40 years” and claimed — without providing evidence — that he eventually moved to Chiang Rai to find a child bride. Unsworth denied those claims, according to the news site.

Chiang Rai is the province in which the Wild Boar youth soccer team became trapped in the flooded cave. The boys and their coach were subsequently saved after weeks of efforts by local and international rescuers.

“As for this alleged threat of a lawsuit, which magically appeared when I raised the issue (nothing was sent or raised beforehand), I f—— hope he sues me,” Musk said in the email to BuzzFeed.

According to the publication, Unsworth attorney L. Lin Wood said Musk’s conduct “demonstrates that his recklessness is intentional and designed to harm Mr. Unsworth.”

Unsworth’s lawyers did not immediately provide comment on Musk’s latest attack on the cave diver.

A solicitor representing Unsworth told CNBC last week that the spelunker is preparing a case against Musk for libel damages.

Wood, an Atlanta-based attorney, has handled several high-profile libel claims, including that of Richard Jewell, the security guard who was falsely accused of bombing the Centennial Olympic Park in Atlanta in 1996.

In a letter to Musk on Aug. 6, Wood said he was preparing a civil complaint against the Tesla boss.

“You published through three different tweets to your twenty-two million followers that Mr. Unsworth engages in the sexual exploitation of Thai children, and you did so at a time when he was working to save the lives of twelve Thai children,” Wood wrote at the time, adding: “You did so without any basis.”

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A.I. could spur global growth as much as the steam engine did, study shows

Artificial intelligence could contribute an additional 1.2 percent to annual gross domestic product growth for at least the next decade, according to a simulation from McKinsey Global Institute.

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Overall, AI could deliver $13 trillion in additional global economic activity by 2030, putting its contributions to growth on par with the introduction of other transformative technologies such as the steam engine, McKinsey said in a report released Wednesday morning Hong Kong time.

The institute’s model expects about 70 percent of companies will adopt at least one form of AI by 2030, and that a significant portion of large firms will use a full range of the technology.

AI uses large data sets and algorithms to mimic human behavior. The world’s two largest economies, the U.S. and China, are both racing to invest heavily in the technology. Beijing, in particular, has made AI part of its five-year plan that runs through 2020 and wants to become a leader in the technology by 2030, the McKinsey report pointed out.

“Without AI, China might face a challenge to achieve its target growth rate,” Jeongmin Seong, one of the report’s authors and a senior fellow at McKinsey Global Institute in Shanghai, said in an interview with CNBC.

He noted that China’s labor productivity is below the global average, while the economy is transitioning to one reliant on consumption. Seong said he expects AI to have a significant impact in sales and marketing, which could boost consumer spending.

He also predicted AI will produce notable returns for supply chain and manufacturing businesses.

The McKinsey report laid out how AI will likely impact the economy through multiple channels, including helping or augmenting human labor, substituting it, expanding available products and services, increasing global data flows and creating wealth.

But the report noted the implementation of the technology will likely incur a range of corporate and societal restructuring costs, as well as disrupt employment, reducing consumption.

“The productivity enhancing, labor-saving technology is a challenging issue for all of the economies in the world,” Takashi Miwa, chief Japan economist at Nomura, said at a press briefing on Tuesday. Technologies such as AI will likely lead to greater income inequality, he said.

The McKinsey analysis found that countries that establish themselves as AI leaders — mostly developed economies— could capture 20 to 25 percent more in economic benefits compared to current levels. Emerging economies may only gain half of that, the report said.

“This inequality is not given,” Seong said. “The future is up to us to shape.”

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Cramer Remix: Amazon's trillion-dollar valuation seems too low

After Amazon’s market cap reached $1 trillion on Tuesday, making it the second public U.S. company to hit the milestone valuation after Apple, CNBC’s Jim Cramer floated a theory for what brought the e-commerce giant to new heights.

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“Here’s a perfect example of what happens when Wall Street views a company not as an earnings-per-share situation — where Facebook finds itself — but as what’s known as a total addressable market, or TAM, play,” the “Mad Money” host said.

Calling Facebook’s recent stock punishment a symptom of investors questioning its growth prospects, Cramer said Amazon’s situation was entirely the opposite.

He asked investors to look at Amazon through the lens of its total addressable market (TAM), a concept used by analysts to estimate what would happen if a given company performed incrementally better in its areas of business.

“When you judge Amazon by its total addressable market, that trillion-dollar valuation … seems too low as long as the company can keep executing,” the “Mad Money” host said. “And look, I’m not even talking about Amazon’s opportunities in entertainment or distribution.”

Here’s why Cramer sees even more runway for Amazon.

Most professional money managers dread the month of October when it comes to investing, but not Jim Cramer.

“Me? I can’t wait until we get to October, that’s how much I dislike September,” the “Mad Money” host said Tuesday.

Some of Cramer’s distaste has to do with timing. September tends to bring droves of market-wide selling, driven in part by mutual funds that tend to ring the register before the end of their fiscal year in October.

But part of the selling caused simply by investors’ fear of the month of October, which is only worsened by television doomsayers, Cramer said.

“I’m going to prepare you for September. It does tend to be especially tough on the market’s best performers,” he warned. “People love to take profits on their winners at this time of year. So you should be ready to buy them into weakness.”

What kinds of winners should investors be eyeing? For Cramer, few stocks look more attractive than the market’s most rapid secular growers: the cloud kings.

Click here to find out why Cramer’s backing these software sovereigns.

With shares of Autodesk hovering near their 52-week highs, CNBC’s Jim Cramer feels like he owes investors an apology.

“I’m always coming out here telling you that if you want to succeed as an investor, you need to have conviction and patience,” the “Mad Money” host said Tuesday. “If you believe in a high-quality company, you should be prepared to stick with its stock even when the market turns against it for a brief period of time.”

But when Autodesk, the Cramer-fave software giant serving industries from engineering to entertainment, reported a quarterly miss last November, Cramer didn’t stick with it.

“The stock just absolutely got beaten around the head,” he recalled. “I got nervous … and I told you Autodesk needed to prove itself again. I said this had become a show-me stock. I warned you to be cautious.”

Now, Cramer realizes his earlier call “was just a huge mistake.” Click here to find out where he went wrong.

Later, Cramer’s vision of a nationwide “industrial renaissance” was reaffirmed by Alan McKim, the chairman, president and CEO of waste disposal giant Clean Harbors.

In an interview, McKim touted his oil, gas and chemical waste-focused company’s growth in recent years, saying that it has all but left the weakness from the 2014 collapse in oil prices in the past.

“We’re seeing a lot of new opportunities. The economy is really strong,” McKim told Cramer on Tuesday. “We’re seeing new chemical plants being built in the Gulf and our incineration utilization is running very strong. The volumes of hazardous waste being collected and handled by us are at record amounts right now. So we’re really excited about the economy right now.”

To watch McKim’s full interview, click here.

Analysts are getting extra-cautious about the recent surge in retail stocks, but on Tuesday, Cramer cautioned investors not to take Wall Street’s word as gospel.

“I’d say the real risk in retail is that you miss this stunning move,” the “Mad Money” host said. “That’s especially true since the downside for all but the worst retailers is pretty mild.”

Cramer pointed to the action in shares of Dick’s Sporting Goods, which dipped in late July before springing back with a vengeance. He also reiterated his morning call on Nike and highlighted the stock of Walmart, which has given up a lot of the gains from its latest quarter.

“Put yourselves in the heads of some of these retail analysts. They really don’t know what to do,” he said. “Long story short: at this point, the strength in retail should not come as a surprise to anybody. The analysts may be too afraid to fully embrace this run, but you don’t need to imitate them. I’d take the other side of the trade.”

In Cramer’s lightning round, he rattled off his take on callers’ favorite names:

Tyson Foods, Inc.: “No. Ix-nay on Tyson-nay. They missed the last quarter badly. I prefer in that sector Conagra. They figured out some millennial buying patterns.”

Citigroup: “I think that [CEO] Michael Corbat is doing a remarkable job. I think they’re buying back stock left and right. I think this is one of the cheapest- no, it’s the cheapest bank stock. My charitable trust owns it; you can follow along at ActionAlertsPlus.com.”

Disclosure: Cramer’s charitable trust owns shares of Amazon, Apple, Facebook and Citigroup.

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