The Trefis Top 5 – April 12 Insights
The following is a collection of today’s top insights regarding Netflix (NASDAQ:NFLX), Adobe (NASDAQ:ADBE), ConocoPhillips (NYSE:COP), Google (NASDAQ:GOOG), and Alcoa (NYSE:AA).
Cord Cutting Continues, But Be Cautious On Netflix Upside
- Up 27% Year To Date, Will Q1 Results Drive Netflix Stock Higher?
- Netflix On A Roll As It Benefits From Paid Sharing And Ads. Is The Stock Undervalued At $610?
- Up 50% Over Last Year, Will Q4 Earnings Drive Netflix Stock Higher?
- Will Netflix Stock Rally 40% To Return To Pre-Inflation Shock Highs?
- How Will The Password Sharing Crackdown Help Netflix Q3 Results?
- Will Netflix Stock Return To Pre-Inflation Shock Highs Of Over $650?
A recent study by Convergence Consulting Group indicates that the phenomenon of cord cutting picked up significantly in 2010. “Cord cutting” refers to the trend of cable subscribers cutting their cable service in favor of watching TV programs online. After an estimated 550,000 homes terminated their pay-TV service in 2009, the figure increased to about 1 million in 2010. So is Netflix (NASDAQ:NFLX) really one of the factors influencing this change as the study suggests? To some extent, probably, given Netflix’s low-cost proposition. That’s good news for Netflix as the company stands to gain from continued cord cutting…
Read the full article on Netflix here
Adobe Banking on a Mid-Cycle Software Release to Spark Sales
In its latest earnings report, Adobe (NASDAQ:ADBE) mentioned that it will introduce a mid-cycle release of creative software version 5 (CS 5). Adobe maintains a dominant position in the creative software market with its leading photo editing, publishing and web design products like Photoshop, Dreamweaver, Flash Professional and InDesign. It competes mainly with Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Quark and Corel in the creative software market. Historically, Adobe’s market share has fluctuated in the range of 40%-50%, and its share has risen with the releases of new software versions…
Read the full article on Adobe here
ConocoPhillips Looks to Grow Oil & Gas Assets
In an interview with Financial Times, ConocoPhillips’ (NYSE:COP) chief executive Jim Mulva said that the company is looking to expand capital spending this year for the right kind of opportunity in deepwater and shale patch. ConocoPhillips is considering a variety of options to partner with companies on exploration and development in the Gulf of Mexico and West Africa. The company is also considering picking up exploration blocks offshore Angola…
Read the full article on ConocoPhillips here
Google’s Search Business Gets Stronger with ITA Acquisition
The U.S Department of Justice recently approved Google’s (NASDAQ:GOOG) acquisition of ITA, with some conditions. This is a good news for Google as it further strengthens the company’s dominant position in the online search advertising market, in which it competes with Microsoft (NASDAQ:MSFT), Yahoo (NASDAQ:YHOO), and AOL (NYSE:AOL). We discussed the implications of this deal in detail last year (see ITA Acquisition Helps Google in Online Travel Search). We believe that the deal gives Google an edge over Microsoft Bing in the booming travel search market, as Bing currently provides a much better travel search experience…
Read the full article on Google here
Chinese Curb on Aluminum Smelters Could Lift Aluminum Prices
Recent reports suggest that the Chinese government may look to stem overcapacity in the aluminum industry by suspending approval of new smelters. This is good news for Alcoa (NYSE:AA), one of the world’s largest suppliers of alumina. According to the China Nonferrous Metals Industry Association (as cited by the Shanghai Daily), China produced just under 18 million tons of aluminum last year. This represents roughly 85% of total capacity, which stands at around 21 million. Other reports suggest that capacity utilization actually fell closer to 60%. Whether the actual number falls closer to 60% or 85%, the overcapacity of the industry is evident…