U.S. markets open in 2 hours 17 minutes

  • S&P Futures

    3,557.50
    +25.00 (+0.71%)
     

  • Dow Futures

    29,206.00
    +214.00 (+0.74%)
     

  • Nasdaq Futures

    11,894.50
    +74.50 (+0.63%)
     

  • Russell 2000 Futures

    1,722.50
    +15.10 (+0.88%)
     

  • Crude Oil

    40.62
    -0.50 (-1.22%)
     

  • Gold

    1,878.00
    +4.70 (+0.25%)
     

  • Silver

    24.31
    -0.00 (-0.00%)
     

  • EUR/USD

    1.1816
    +0.0006 (+0.05%)
     

  • 10-Yr Bond

    0.8850
    0.0000 (0.00%)
     

  • Vix

    24.17
    +0.72 (+3.07%)
     

  • GBP/USD

    1.3158
    +0.0040 (+0.31%)
     

  • USD/JPY

    104.9520
    -0.1470 (-0.14%)
     

  • BTC-USD

    16,222.86
    +120.52 (+0.75%)
     

  • CMC Crypto 200

    312.44
    +8.06 (+2.65%)
     

  • FTSE 100

    6,311.07
    -27.87 (-0.44%)
     

  • Nikkei 225

    25,385.87
    -135.01 (-0.53%)
     

Here's What Analysts Are Forecasting For Datadog, Inc. (NASDAQ:DDOG) After Its Third-Quarter Results

Simply Wall St
·4 min read

It's been a mediocre week for Datadog, Inc. (NASDAQ:DDOG) shareholders, with the stock dropping 10% to US$90.01 in the week since its latest third-quarter results. Sales of US$155m came in 7.2% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.05, a 14% miss. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Datadog

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the current consensus from Datadog's 18 analysts is for revenues of US$798.4m in 2021, which would reflect a sizeable 48% increase on its sales over the past 12 months. Losses are forecast to balloon 655% to US$0.19 per share. Before this earnings announcement, the analysts had been modelling revenues of US$773.4m and losses of US$0.18 per share in 2021. So it's pretty clear consensus is mixed on Datadog after the new consensus numbers; while the analysts lifted revenue numbers, they also administered a per-share loss expectations.

There was no major change to the consensus price target of US$101, with growing revenues seemingly enough to offset the concern of growing losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Datadog, with the most bullish analyst valuing it at US$140 and the most bearish at US$80.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Datadog'shistorical trends, as next year's 48% revenue growth is roughly in line with 51% annual revenue growth over the past three years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% next year. So it's pretty clear that Datadog is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Datadog analysts - going out to 2024, and you can see them free on our platform here.

Before you take the next step you should know about the 5 warning signs for Datadog (1 is a bit unpleasant!) that we have uncovered.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Latest Stories

  • Dow Sinks As McConnell Digs In On Stimulus; This Warren Buffett Stock Breaks Out

    The Dow Jones fell as Mitch McConnell threw cold water on hopes for a larger stimulus bill. Meanwhile a Warren Buffett stock passed a buy point.

  • Dow Futures Climb As Arizona Recount Win Cements Biden White House Path; COVID Infection Surge Caps Gains

    The value of all the world's tradeable stocks rose past the $95 trillion mark for the first time ever this week as a post election, and pre vaccine, rally continues to boost markets at home and abroad.

  • Elon Musk Takes COVID-19 PCR Test After Seeing Symptoms, Mixed Rapid Test Results

    Tesla Inc (NASDAQ: TSLA) CEO Elon Musk said he took four tests for COVID-19 on Thursday, two of which came out positive.What Happened: Musk said on Twitter that something "extremely bogus is going on" as he was tested for COVID-19 four times. "Two tests came back negative, two came back positive. Same machine, same test, same nurse."The billionaire entrepreneur said he was administered rapid antigen tests from Becton Dickinson and Co. (NYSE: BDX). > Symptoms of a typical cold. Nothing unusual so far.> > -- Elon Musk (@elonmusk) November 13, 2020The CEO also said on social media that he was opting to get polymerase chain reaction (PCR) tests from another laboratory and that it would take 24 hours to get the results.> If it's happening to me, it's happening to others. I'm getting PCR tests from separate labs. Results will take about 24 hours.> > -- Elon Musk (@elonmusk) November 13, 2020Musk concurred with a Twitter user who theorized that the revenues from the tests are "likely not bogus [and] very consistent."Why It Matters: Musk had called for an end to lockdowns tweeting "FREE AMERICA NOW" amid the pandemic.He had argued in the favor of reopening the economy with "care [and] appropriate protection" and equated lockdowns with house arrest. Managers at Tesla's Fremont, California factory asked some employees to return to work in April despite health orders to the contrary prevailing in the area.In March, Musk had tweeted that children are "essentially immune" from COVID-19, drawing Twitter Inc (NYSE: TWTR) into the controversy over non-removal of the post, the Verge reported.Price Action: Tesla shares closed nearly 1.30% lower at $411.76 on Thursday and fell 0.18% in the after-hours session.See more from Benzinga * Click here for options trades from Benzinga * Tesla's China-Made Model Y Threatens Nio's Growing Dominance, Bloomberg Analysts Say * Rivian Says All Its Electric Vehicles Will Now Come With Driver Assistance System(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • 7 Bank Stocks to Buy for the Dividends

    Income investors can still look to financials. Bank stocks have been particularly hard hit in 2020 by the pandemic, with major sector exchange-traded funds such as the $17 billion Financial Select Sector SPDR Fund (ticker: XLF) down more than 10% this year even while the S&P 500 has moved about 10% higher over the last 11 months or so. For the most part, these are modest, commercially focused banks that don't take on big investment risks or other sophisticated operations.

  • Raymond James: These 3 Stocks Are Poised to Surge by Over 80%

    We’re a little over one week past the Presidential election, and the market reaction shows that that investors are pleased. While the election margins were razor thin, the will of the voters came through: they rejected Donald Trump, and his brash, in-your-face style, but they also rejected the Democratic Party on policy; the Dems lost seats in the House, will likely not take control of the Senate, and also lost ground at the State level. America’s voters seem to be tired of drama, whether it comes from Donald Trump or the Democrats’ push to the political left. They want a government that will simply plod straight along.And it looks like they will get just that. With power split in the White House and the Chambers of Congress, we’re about to be reminded of a feature of the checks and balance system: that gridlock is a result of a closely divided electorate. Change won’t happen unless one side or the other gets a large majority, or a small majority over several terms. Neither of those is in the cards for now.The immediate result is a multi-day market rally. The implication is clear – the markets sentiment has calmed since the election, and investors look forward to government settling into a more normal mode in the coming months.To this end, investors are sure to find solid options in the near term. Writing from Raymond James, analyst Ric Prentiss has recently published three reviews on mid-cap stocks, pointing out why, in his view, they offer high return potential with more settled markets in the coming year. The stocks all fit a profile: they are at the lower end of the mid-cap range, with market valuations between $2 billion and $3 billion; they inhabit the telecom ecosystem, and they all have, according to Raymond James, over 80% upside potential. We ran the the three through TipRanks database to see what other Wall Street's analysts have to say about them.Telephone & Data Systems (TDS)First on our list, Telephone & Data Systems, is a Chicago-based company providing a range of telecom services to over 6 million customers. The company offers broadband over cable and wireline, wireless products and services, and TV and voice services. TDS operates the country’s fifth-largest cellular carrier.TDS has dramatically outperformed expectations in 2020, despite the ongoing coronavirus. Revenues, at $1.32 billion, are about level with the pre-corona report ($1.34 billion in Q4 2019), while earnings jumped in 1Q20 and have remained high ever since. The Q3 earnings, at 66 cents, beat the forecast by 153%. It was an impressive performance, made more so by the 266% year-over-year growth.On another bright note for investors, TDS has maintained its dividend payment through the year. The 17-cent per common share payout annualizes to 68 cents, and offers a yield of 3.6%, nearly double the average yield found among S&P-listed companies.TDS has shown strong business through the year, but its weak point has been in the fiber and wireline niche. However, Raymond James’ Ric Prentiss looks at the half-full glass, noting: "WFH policies have continued to result in some slower approvals from municipalities and electrical utilities associated with building aerial fiber. And in some cases, TDS is pivoting to alternatives with better economics. Still, TDS Telecom grew fiber service addresses 5% y/y and is seeing better-than-expected take rates around 30-40%, depending on the market. Moreover, 34% of Wireline customers are now served by fiber, compared to 29% a year ago, and TDS expects acceleration throughout the rest of 2020."Prentiss rates TDS as a Strong Buy, and increased his price target by 6% to $34. At that level, he sees an 81% upside for the stock over the next months. (To watch Prentiss’s track record, click here)This stock also holds a Strong Buy rating from the analyst consensus, based on 3 unanimous Buy reviews set in recent weeks. Shares are priced at $18.73 and the average target of $34.83 suggests a one-year upside of 85.5%. (See TDS stock analysis on TipRanks)ViaSat, Inc. (VSAT)Next up, ViaSat, is a high-speed satellite broadband provider. The California company serves commercial and defense markets, building on the broad need, across industries, for secure communications.Social lockdown measures took a toll on the company’s business, especially the shutdowns of airlines. Commercial air traffic relies heavily on satellite communications, and that slowdown is still weighing on ViaSat.The headwinds are partially offset by a backlog in services ordered. Revenues have remained stable over the past four quarters, between $530 million and $588 million, with the $554 million recorded in Q3 being solidly in the middle of that range. Earnings have bounced back into positive territory after turning negative in Q2. The third quarter EPS was only 3 cents, but that was a dramatic sequential improvement from the previous 20-cent net loss.In his look at VSAT, Prentiss notes, “Government Systems and Commercial Networks remain strong, while the IFC business continues to navigate significant headwinds related to COVID-19… On the positive side, social distancing and Safer-At-Home policies are driving more residential broadband data usage and pushing ARPUs higher…”Prentiss rates VSAT an Outperform (i.e. Buy) while his $63 price target suggests an 87% upside potential.Overall, ViaSat gets a Moderate Buy rating from the analyst consensus, based on 3 reviews that include 2 Buys and 1 Hold. The shares have an average price target of $53.33, which implies a 12-month upside of 59% from the trading price of $33.39. (See VSAT stock analysis on TipRanks)EchoStar Corporation (SATS)Last but not least is EchoStar, another satellite operator. This company controls a constellation of communications satellites, offering satcom capabilities to the media and private enterprises, as well as both civilian and military US government agencies. In addition, EchoStar provides satellite broadband in 100 countries around the world.At the top line, EchoStar's revenues have held steady for the past three quarters, coming in at $465 million, $459 million, and $473 million. And while earnings were negative in Q1 and Q2, the Q3 results showed a net profit of 26 cents per share.The sequential Q3 improvements at the top and bottom lines come along with increases in the EchoStar’s subscriber base, to more than 1.54 million in total. The company also boasts a strong balance sheet, having more than $2.5 billion in cash on hand and no net debt.Covering SATS, Ric Prentiss is upbeat about near- and mid-term prospects. He writes, “SATS [has] strategic optionality in a time when others, especially higher levered satellite companies, are cash starved facing significant maturities or capex programs… we think a number of organic and inorganic growth options are being considered, including the future deployment of SBand spectrum after lining up anchor tenant(s). Lastly, we believe EchoStar's recently announced collaboration with Inmarsat to provide capacity for In-Flight Connectivity should provide over time high margin cash flows, and we note the deal is not exclusive.”These comments back another Strong Buy rating, and Prentiss’s $57 target price indicates room for 123% growth in the next year. In terms of other analyst activity, it has been relatively quiet. 1 Buy and 1 Hold ratings assigned in the last three months add up to a ‘Moderate Buy’ analyst consensus. In addition, the $43.50 average price target puts the upside potential at ~74%. (See SATS stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

  • Tesla rival Xpeng is differentiating itself in the electric car market

    Yahoo Finance chats with Xpeng vice chairman and president Brian Gu about the Chinese electric car maker's path forward after its first quarter as a public company.

  • 7 Stocks That Could Benefit From Pfizer's COVID-19 Vaccine That Requires Cold Chain Storage

    Pfizer Inc.'s (NYSE: PFE) coronavirus vaccine candidate may have turned in strong efficacy results, but the logistics it requires could impact the vaccine's eventual uptake. Opportunity In Adversity: The mRNA vaccine jointly developed by Pfizer and BioNTech SE - ADR (NASDAQ: BNTX) requires a storage temperature of negative 70 degrees Celsius.This poses logistics challenges, especially in poorer nations that do not have the infrastructure or cold chain in place to handle the vaccine.This hurdle is likely to turn out to be an opportunity for companies that operate along the supply chain.Freezer Box Manufacturers: Companies such as Carrier Global Corp (NYSE: CARR) and Trane Technologies PLC (NYSE: TT) are supply chain plays that stand to benefit from vaccine approval.Trane Tech's Thermo King brand provides intelligent end-to-end temperature-controlled cold chain solution for vaccine shipments. In late September, the company launched cold storage solutions to support COVID-19 vaccine distribution."Considering the urgent, global need for a COVID-19 vaccine, the world can't afford breaks in the cold chain," said Dave Regnery, COO of Trane Technologies."Our new Cold Storage Solutions can maintain temperatures of -70 degrees Celsius for an extended period of time, can be leveraged to help reduce degradation of a vaccination, and most importantly, could prevent vaccine 'deserts' or lack of accessibility."Related Link: Startup Democratizes Freight Broker Financing Carrier Global announced in early October a collaboration with Amazon.com, Inc.'s (NASDAQ: AMZN) AWS to co-develop a new Lynx digital platform."This suite of tools will provide Carrier customers around the world with enhanced visibility, increased connectivity, and actionable intelligence across their cold chain operations to improve outcomes for temperature-sensitive cargo, including food, medicine, and vaccines," Carrier Global said in the release announcing the collaboration.Thermo Fisher Scientific Inc. (NYSE: TMO) manufactures ultra-low temperature freezers that can maintain temperature of about negative 80 degree Celsius.Dry Ice Manufacturers: Germany's Linde PLC (NYSE: LIN) and France-based L Air Liquide Ord ADR (OTC: AIQUY) are suppliers of liquid ice, which is nothing but solidified carbon dioxide.While transporting vaccines, they should be kept under dry ice in thermal containers to maintain their efficacy.Delivery Services Companies: Pfizer is planning to distribute its COVID-19 vaccine in about 12 trucks per day that will set forth from its formulation-and-fill facility in Kalamazoo, Michigan, Supply Chain Dive reported, citing an email from a Pfizer spokesperson.The company reportedly plans to use FedEx Corporation (NYSE: FDX), United Parcel Service, Inc. (NYSE: UPS) and DHL to distribute the vaccine throughout the U.S.Related Link: PowerFleet Secures COVID-19 Healthcare Supplies Across Africa See more from Benzinga * Click here for options trades from Benzinga * 5 Top Semiconductor Stocks As Post-Election Plays * Nio, Li Auto Make Big Moves Following Xpeng's Q3 Results(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Tesla's China-Made Model Y Threatens Nio's Growing Dominance, Bloomberg Analysts Say

    Chinese electric vehicle manufacturer Nio Inc (NASDAQ: NIO) faces increased competition from Tesla Inc (NASDAQ: TSLA), which will only become more intense with the launch of the latter's China-made Model Y vehicle, according to Bloomberg Intelligence analysts.What Happened: The Elon Musk-led company's locally-made compact SUV could give the Nio a run for its money, as per the analysts. "Tesla's brand cachet and wider distribution network could lift its Model Y unit sales above Nio's," they said, as reported by Bloomberg on Thursday.Competition is also reportedly intensifying as conventional automakers such as Volkswagen AG (OTC: VWAGY), Toyota Motor Corporation (NYSE: TM), and Daimler AG (OTC: DDAIF) jump on the EV bandwagon.Nio CEO William Li appears to be unfazed by the threat posed by the Elon Musk-led company. "There is a clear differentiation in branding" between Nio and Tesla, Li said this month.Why It Matters: Tesla will start producing the Model Y in Shanghai by December, according to Tesmanian. Tianfeng Securities predicts that Tesla would lower the price of the SUV in China to $41,000 from the current price of $49,990 charged in the United States. The firm predicts that Model Y monthly sales could reach 30,000 units.The starting price of a Nio ES6 SUV is $54,000. Bloomberg analyst Steve Man said, "another wave of price cuts for premium electric vehicles in China may be on the horizon, stirring up what could be an intense rivalry."Nio is behind Tesla in terms of sales volumes, reporting more than 5,000 monthly sales for the first time in October. Tesla registrations have been in the range of 11,000-12,000 units for the past few months, data from China Automotive Information Net indicates.Other local EV makers are also heating up the competition in the space. Xpeng Inc. (NASDAQ: XPEV) reported 342.5% year-over-year rise in revenue for the third quarter at $293.1 million on Thursday. Other players like Li Auto Inc. (NASDAQ: LI) and Warren Buffett-backed BYD Company Ltd. (OTC: BYDDF) are also reporting strong demand for their electric vehicles.Price Action: Nio shares closed 12.14% higher at $48.30 on Thursday and gained 1.47% to $49.01 in the after-hours session. On the same day, Tesla shares closed 1.29% lower at $411.76 and fell 0.18% in the after-hours session. Latest Ratings for TSLA DateFirmActionFromTo Oct 2020CitigroupMaintainsSell Oct 2020Morgan StanleyMaintainsEqual-Weight Oct 2020Canaccord GenuityMaintainsHold View More Analyst Ratings for TSLA View the Latest Analyst RatingsSee more from Benzinga * Click here for options trades from Benzinga * Rivian Says All Its Electric Vehicles Will Now Come With Driver Assistance System * Rivian Starts Taking Pickup Orders, With Pricing That Tops Tesla Cybertruck(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Palantir earnings beat expectations, here's what the secretive data company does

    Big data firm Palantir announced its first earnings report as a public company, beating analysts' expectations.

  • Jim Cramer: Buy These 2 Stocks Off Alibaba's Singles Day

    When you spend $100 billion as consumers did in China during Alibaba's Singles Day, you have a real needle mover for many U.S. companies. If you see companies that have sold a lot that day you are tempted to buy them.

  • My grandson says my financial adviser is steering me wrong and double-charging me. What should I do?

    In addition, I had to pay big sales commissions (my grandson calls them “loads”) when I first bought these funds. If she had put all my money into just one company, I would have gotten a discount on the sales commissions. Finally, her firm is charging me a “management fee” every quarter; my grandson says her firm is being amply compensated by the mutual funds, and these charges are in effect double-charging me.

  • China President Xi Jinping Personally Ordered Halt Of Jack Ma's Ant IPO: WSJ

    China's President Xi Jinping personally made the decision to halt Alibaba Group Holdings (NYSE: BABA)-backed Ant Group's initial public offering, touted to be the world's largest IPO, a Wall Street Journal report claims.What Happened: Ant Group could have raised $37 billion in its dual listing in China and Hong Kong, valuing the financial services company at more than $280 billion, but Chinese regulators suspended the listing, citing tighter regulations to protect the financial interests of consumers and investors.The new regulations will force the Ant Group to rework its business model of being a bridge between borrowers and banks. If all rules were to be implemented, it would require Ant to raise more capital to back the loans it grants to customers and seek national licenses to continue its operations.Reportedly, Alibaba founder Jack Ma irked the regulators in his speech on Oct. 24, where he criticized the Chinese government for tight financial regulations and holding back technological development. Ma said that he wanted to help solve China's financial problems through innovation.Xi and other senior leaders, who read government reports about the speech, were furious. Reportedly, Xi ordered Chinese regulators to investigate and possibly shut down the IPO.Why It Matters: The problems between wealthy entrepreneurs' growing influence in China and the state is not new. "Xi doesn't care about if you made any of those rich lists or not. What he cares about is what you do after you get rich, and whether you're aligning your interests with the state's interests," a Chinese official said, as per the Journal.Ant's mobile payment system Alipay is used by roughly 70% of the Chinese population, disrupting the financial system. Ant has favored serving companies and small businesses ignored by the traditional banking system and has made loans to more than 20 million small businesses and roughly half a billion individuals. Reportedly, regulators wanted to rein in Ant for long as it has been spared from the tough regulations and capital requirements that commercial banks have to adhere to. Some analysts expect Ant's valuation to halve to $140 billion due to the IPO suspension and the new regulations.Image Courtesy: WikimediaSee more from Benzinga * Click here for options trades from Benzinga * These Tech Giants Will Take The Brunt Of China's Antimonopoly Rules, As Per Morgan Stanley * Another Alibaba-Backed Grocer Suffers Massive Data Breach(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • DraftKings Reports Earnings Friday. Place Your Wagers Now.

    Options markets imply a post-earnings move between 10% and 13%. Whether that’s up or down remains to be seen.

  • 5 Top Semiconductor Stocks As Post-Election Plays

    The dust is settling down after the long-drawn U.S. presidential election, and at this juncture, BofA Securities sees a handful of semiconductor stocks as post-election plays that present attractive buying opportunities.Bullish On Chipmakers With Cloud, Auto Exposure: Despite uncertainty around vaccines and the volatility associated with market rotation, owning fundamentally strong stocks exposed to structural "stay-at-home" trends, and reopening-driven acceleration provides a well-balanced framework, analyst Vivek Arya said in a note.On that count, BofA favors secular growth cloud-computing exposed leaders NVIDIA Corporation (NASDAQ: NVDA), Advanced Micro Devices, Inc. (NASDAQ: AMD) and Marvell Technology Group Ltd. (NASDAQ: MRVL).The firm also prefers cyclically-exposed, automotive chipmakers such as Analog Devices, Inc. (NASDAQ: ADI) and NXP Semiconductors NV (NASDAQ: NXPI).BofA's top 5 cloud + car beneficiaries are poised to report average year-over-year sales growth of 15% and pro forma EPS growth of 31% for calendar year 2021, well above the 10-11% growth for the overall semiconductor sector.Related Link: Goldman's Semiconductor Pair Trade: Buy AMD, Sell IntelFocus On Growth Over Value: During a similar regime change from late 2016 into early 2017, value outperformed, but was displaced by growth stocks, Arya noted. Cloud and cars appear to be two end markets that will produce the most dependable growth.Additionally, BofA's top picks benefit from announced M&A and the resumption of strong returns.Cautious On Semicap Equipment and 5G Components: Despite preferring semicap equipment and 5G smartphone/RF component vendors, Arya thinks it's prudent to await better 5G sell-through trends that could drive near- to medium-term trends."While we are bullish on 5G adoption longer-term, we believe the US ecosystem has not yet made a compelling case for customer adoption," the analyst wrote in the note.Any hiccups or 5G smartphone inventory build in China could pressure smartphone vendors and in turn memory-levered semicap vendors, he said.Post-election Changes: A Democrat as U.S. president will mean lower tensions with China, a greater emphasis on domestic U.S. priorities such as a more measured stance on reopening the economy, and greater emphasis on green energy."While there continues to bipartisan support for more domestic US semiconductor manufacturing, any tangible benefits could be a few years out in our view," said Arya.The firm sees a greater possibility of Intel Corporation (NASDAQ: INTC) outsourcing its fab capacity to Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) in the next two years, rather than TSMC or others building new capacity before 2023/2024.The Ratings/Price Targets: BofA has the following ratings and price targets for its top five semiconductor stocks: * Nvidia: Buy/$650 * AMD: Buy/$110 * Marvell Technology: Buy/$50 * Analog Devices: Buy/$145 * NXP Semiconductor: Buy/$160See more from Benzinga * Click here for options trades from Benzinga * Nio, Li Auto Make Big Moves Following Xpeng's Q3 Results * Moderna Achieves COVID-19 Case Number For First Interim Readout: What's Next?(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Brothers Build $22 Billion Fortune on Hope for Covid-19 Vaccine

    (Bloomberg) -- The stock rally sparked by Pfizer Inc.’s promising Covid-19 vaccine trial results boosted many investors’ fortunes, but none so dramatically as a pair of German brothers.Andreas and Thomas Struengmann have collectively added about $8 billion to their wealth this year thanks to their stake in BioNTech SE, the German firm that’s developing the vaccine with Pfizer. BioNTech’s American depositary receipts surged this week after the U.S. drug giant reported the shot they’re working on prevented 90% of symptomatic infections in tens of thousands of volunteers.At $22 billion, the twins have one of the world’s biggest health-care fortunes, according to the Bloomberg Billionaires Index. The brothers, 70, formed their empire by reinvesting the proceeds of their family’s generic drugs businesses.They “have reshaped their fortune by simply believing in science,” said Paul Westall, co-founder of family office recruitment firm Agreus Group.The Struengmanns didn’t respond to requests for comment.Athos ServiceThe brothers set up their family office, Athos Service, soon after Novartis AG announced in 2005 it was buying their drugmaker, Hexal, along with their stake in affiliate EON Labs for a combined 5.7 billion euros ($6.7 billion).Thomas Struengmann said in a December interview with German newspaper Handelsblatt that the brothers initially promised themselves they wouldn’t invest more than 1 billion euros in the biotech sector because of the risks and requisite patience. They ended up exceeding that cap after seeing glimpses of promise.“You want to see your little plants continue to grow,” he said.Their bet on BioNTech epitomizes their ambition of funding transformational drugs. They helped to give the firm 150 million euros in seed money in 2008 and now own about half of the company. Its stock rally has also boosted the fortune of BioNTech Chief Executive Officer Ugur Sahin to more than $4 billion, according to the Bloomberg index, putting him on the cusp of joining the world’s 500 richest people.The Struengmanns also backed Sahin’s previous venture, Ganymed Pharmaceuticals AG, a cancer-treatment company the Turkish-born scientist founded with now-wife Ozlem Tureci.‘Big Elephants’After taking over family-owned drug company Durachemie from their father Ernst in 1979, the brothers sold it seven years later and used the proceeds to set up Hexal. They started with about two-dozen employees in an apartment building near Munich and grew it into the world’s fourth-largest generic-drug company.“Our strength is speed and flexibility,” Thomas, who has a doctorate in business management, said in a 2004 interview. “While the big elephants are making their decisions, we have already taken action.”BioNTech’s U.S. initial public offering last year capped off a busy decade for the brothers.Since 2010, they’ve co-invested with EQT AB in a hearing-aid business from Siemens AG, sold German lender Suedwestbank AG for more than double what they paid for it in 2004 and snapped up stakes in numerous biotech firms including Immatics NV, which recently merged with Arya Sciences Acquisition Corp.Not all their bets have paid off.Immatics’s share price has fallen about a third since it began trading on the Nasdaq in July, while 4SC AG, a German cancer-drug firm in which the Struengmanns are majority shareholders, is down more than a fifth this year. BioNTech had a rocky start, pricing its IPO below its target range, though its shares have since surged 580%.“For us, it’s not primarily about returns,” Thomas said in the Handelsblatt interview. It’s “above all about generating highly effective medical innovations.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Cisco Shares Jump Over 8% After Earnings Beat; Target Price $55 in Best Case

    Cisco, the world’s leading provider of IP-based networking solutions, reported better-than-expected revenue and profit in the first quarter of fiscal 2021 as demand for its network services, teleconferencing tools and cybersecurity software surged amid COVID-19 pandemic, sending its shares up over 8% in after-hours trading on Thursday.

  • Dow Jones Futures: As Market Rally Whipsaws On Coronavirus News, This 'Safe Haven' Should Worry You; Li Auto Keeps Soaring

    With coronavirus news whipsawing the stock market rally, an unsettling safe haven has appeared: China stocks. Meanwhile, Li Auto stock kept soaring on results.

  • Chinese President Xi Jinping decided to halt Ant's IPO - WSJ

    China's President Xi Jinping personally decided to pull the plug on Ant Group's $37-billion initial public offering, the Wall Street Journal reported on Thursday, citing Chinese officials with the knowledge of the matter. The decision to stop what would have been the world's largest ever IPO, came days after the fintech giant's billionaire founder Jack Ma launched a public attack on the country's financial watchdogs and banks. President Xi ordered Chinese regulators to investigate and effectively shut down Ant's stock market flotation, the report said https://www.wsj.com/articles/china-president-xi-jinping-halted-jack-ma-ant-ipo-11605203556?mod=hp_lead_pos4.

  • The number of 401(k) and IRA millionaires reach record high amid pandemic

    The number of retirement investors with at least $1 million saved in their accounts hit a record high in the third quarter, even as the pandemic’s second wave approached and the economic outlook remained uncertain.

  • Aurora Cannabis Feels the Heat of Share Dilution; Analyst Weighs In

    Investors’ pain can hardly have been more acute over the last 18 months than for those putting their trust in Aurora Cannabis (ACB). The nascent Canadian cannabis industry’s problems over the last year and a half have been well documented, and Aurora’s slide has been one of the more eye-catching descents.  November has been particularly volatile for investors. Joe Biden’s presidential win has brought with it almost certain marijuana reform at the federal level which will allow Aurora and fellow Canadian LPs to enter the U.S. market. Cannabis investors evidently liked this development- particularly Aurora investors - who sent shares up by a barely believable 153% over the past week.But what goes up usually goes down, and history has shown that is certainly true in Aurora’s case. The stock is sinking again after Aurora took advantage of the outsized gains by announcing it plans to sell more shares. On Tuesday, Aurora announced a $125 million share offering in order to raise much needed capital. At a price of $7.50 per unit, and consisting of approximately 16.7 million units, the sell will lead to dilution of at least 17% based on Tuesday’s closing price. With a notable history of share dilution, disgruntled investors were once again scurrying to the exit doors. But the latest development is hardly surprising, says Jefferies analyst Owen Bennett.The analyst had already argued the massive share gains were down to “a combination of retail FOMO and a short squeeze,” and anticipated Aurora might take advantage of the “inflated valuation.” And that is what the company has done. However, with the very real possibility of the U.S. market now opening up, Bennett says the move is a clever one.“Aurora is likely to get criticism for this move, one of the main bear points on the stock in the past being significant dilution,” Bennett said. “And while we agree it is a bit harsh on retail investors that bought into the stock in recent days, it is also a shrewd move. Aurora has current debt/lease obligations of C$141mn, US CBD represents a compelling opportunity, and there is also the possibility that the US THC market opens up sooner rather than later. For all of these the company needs cash.”Overall, there’s no change to Bennett’s rating which stays a Hold, while the C$6.9 ($5.28) price target remains, too. This figure implies a 25% downside from current levels. (To watch Bennett’s track record, click here)Wall Street backs Bennett’s caution here, as TipRanks analytics reveal ACB as a Hold. Based on 14 analysts tracked in the last 3 months, 12 rate the stock a Hold while 2 issue a Sell on the stock. The 12-month average price target stands at $21.00, marking a 19% upside from where the stock is currently trading. (See ACB stock analysis on TipRanks)To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.