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Fly News Breaks for December 5, 2019
FFIV, VMW, AMZN, GOOG, AKAM
Dec 5, 2019 | 06:17 EDT
BofA/Merrill analyst Tal Liani double-downgraded F5 Networks (FFIV) to Underperform from Buy with a price target of $140, down from $185. The analyst warns about pressure on the company's revenue growth amid a "secular shift in demand from appliance-based Application Delivery Controllers to software and cloud-based solutions", which has weighed on pricing and also brought in competition from VMware (VMW), Amazon (AMZN), Google (GOOG) along with content delivery network providers like Akamai (AKAM). Liani's new price target assumes a forward earnings multiple of 13-times, down from 16.5-times in his prior model.
News For FFIV;VMW;AMZN;GOOG;AKAM From the Last 2 Days
AMZN
Feb 19, 2020 | 08:07 EST
Tech Data (TECD) announced that it has partnered with nOps, a provider of a software-as-a-service, or SaaS, cloud management platform for Amazon (AMZN) Web Services, or AWS. The nOps solution offering will empower Tech Data's U.S. partners to help their end-user customers build, manage, and run secure and optimized AWS infrastructures. It will also ensure Tech Data partners can maintain their customers through continuous alignment with the AWS well-architected framework and other industry best practices.
GOOG
Feb 17, 2020 | 19:44 EST
Catch up on the weekend's top five stories with this list compiled by The Fly: 1. In a statement regarding quarterly guidance, Apple (AAPL) said that: "As the public health response to COVID-19 continues, our thoughts remain with the communities and individuals most deeply affected by the disease, and with those working around the clock to contain its spread and to treat the ill. [...] Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated. As a result, we do not expect to meet the revenue guidance we provided for the March quarter due to two main factors. The first is that worldwide iPhone supply will be temporarily constrained. While our iPhone manufacturing partner sites are located outside the Hubei province - and while all of these facilities have reopened - they are ramping up more slowly than we had anticipated. [...] The second is that demand for our products within China has been affected. All of our stores in China and many of our partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic." 2. Bombardier (BDRBF) announced that it has made the strategic decision to focus exclusively on business aviation and plans to accelerate its deleveraging through the sale of its rail business. Bombardier has signed a memorandum of understanding with Alstom SA (ALSMY) and the Caisse de depot et placement du Quebec for the sale of its Transportation business to Alstom. Under the transaction, Bombardier and la Caisse will sell their interests in Bombardier Transportation to Alstom on the basis of an enterprise value of $8.2B. Total proceeds, after the deduction of debt-like items and transferred liabilities, including pension obligations, and net of BT cash, are expected to be approximately $6.4B, subject to upward adjustments of up to $440M. After deducting la Caisse's equity position between $2.1B-$2.3B, Bombardier would receive net proceeds of between $4.2B-$4.5B, including $550M of Alstom shares for a fixed subscription price of EUR 47.50, monetizable after a three-month lock-up post-closing, subject to closing adjustments, indemnities and the EUR to USD exchange rate. 3. Pier 1 Imports (PIR) announced that it has entered into a Plan Support Agreement with a majority of its term loan lenders and is pursuing a sale of the company. To facilitate an orderly sale process and implement the PSA, the company and its subsidiaries have commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Virginia. The company also intends to use this process to complete the previously announced closure of up to 450 store locations, which includes the closure of all its stores in Canada. 4. For months now, regulators, legislators, activists, and presidential candidates have been calling out the toxic impact that big tech platforms are having on privacy, security, and consumer choice, and there are signs that regulation is starting to hurt, Eric Savitz wrote in this week's edition of Barron's. But it is actually the self-imposed checks that could be most damaging to tech's bottom line in the months to come, with Google (GOOGL) beginning to limit cookies in its Chrome browser and Apple adding a feature in its iPhone software that alerts consumers when an app tracks their location, the author noted. Meanwhile, Facebook (FB) is starting to feel the effects of restrictions on both ad targeting and measurement, as the company says that "the majority of that impact lies in front of us." 5. ViacomCBS (VIAC) subsidiary Paramount's "Sonic the Hedgehog" set a record for a video game adaption with a three-day domestic opening of $58M and $70M for the four days. Overseas, the movie launched to $43M from 40 markets for a global bow of $101M through Sunday and $113M through Monday. "Sonic the Hedgehog" sports an A CinemaScore and a 63% Rotten Tomatoes rating.
AMZN
Feb 17, 2020 | 13:29 EST
Amazon Web Services, an Amazon company (AMZN), announced that 3M (MMM) is moving its enterprise IT infrastructure to AWS. As part of a company-wide enterprise IT transformation initiative, 3M is migrating its enterprise resource planning system, including accounting, supply chain management, manufacturing, product lifecycle management, and e-commerce, along with business-critical enterprise IT applications.