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Friday, 15 April 2016

Technology Sector Update for 04/14/2016: MSFT, AAPL, IBM, CSCO, GOOGL, FB, TSM

Top Technology Stocks:
MSFT: -0.1%
AAPL: -0.6%
IBM: flat
CSCO: +0.1%
GOOGL: +0.2%
Technology shares were mixed in pre-market trade on Thursday.
Apple (
AAPL
) edged lower in pre-market trading following comments from analysts at UBS who said that the world's largest technology company by revenue faces several "existential" threats including "messenger bots" like those being launched by social-networking company Facebook (
FB
). The first threat the firm noted would occur if customers felt satisfied with "good enough" phones and thus were no longer willing to pay a premium for Apple products, especially given historical trends toward hardware commoditization. However, UBS said, loyalty and its differentiation from other products on the market may play a role in Apple's sales. Another threat lies in the potential for messenger bots -- software that automates tasks -- to displace apps. A large component of Apple's business is its App Store, which UBS noted "has been critical in transforming Apple from a linear pipeline to a platform company." However, it added, "messaging could take on many of the roles apps provide." The warning from UBS comes after Facebook on Tuesday unveiled a Messenger Platform with bots. Amid that launch, UBS's analysts are questioning whether Apple's App Store may lose market share. The roadblocks China could put up to favor local smartphone vendors represent another threat to Apple, UBS said. It noted China represents two-thirds of Apple's growth and is the source of many of its newest customers.
AAPL shares were down 0.6% at $111.47, with a 52-week range of $92.00 - $134.54. FB shares were up 0.2% at $110.78, with a 52-week range of $72.00 - $117.59.
Taiwan Semiconductor (
TSM
) reported Q1 net income of NT$64.78 billion, or NT$2.50 per share, down from NT$78.99 billion, or NT$3.05 per share, in the prior year period but topping analyst estimates of NT$2.49 per share. Total revenues of NT$203.50 billion were down from NT$222.03 billion in Q1 2015 but exceeded the Street projection of NT$202.30 billion. In US dollars, first quarter revenue was $6.14 billion, which decreased 12.8% year-over-year, the company said. The company guided Q2 revenue in a range of NT$215 billion to NT$218 billion. Gross profit margin is expected to be between 49% and 51% and operating profit margin is expected to be between 38.5% and 40.5%. TSM shares were down 4.5% at $25 with a 52-week range of $17.32 - $26.62.
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NEW YORK: Stocks across the globe rose to their highest levels of 2016 on Thursday and the US dollar gained for a third day as investors embraced risk ahead of top policymaker and oil producer meetings.

Singapore's normally conservative central bank unexpectedly eased its exchange-rate based monetary policy, at a time when several hundred economists polled by Reuters said economic growth and inflation across the globe will lose further momentum this year despite years of ultra-easy mon ..

NEW YORK: Stocks across the globe rose to their highest levels of 2016 on Thursday and the US dollar gained for a third day as investors embraced risk ahead of top policymaker and oil producer meetings.

Singapore's normally conservative central bank unexpectedly eased its exchange-rate based monetary policy, at a time when several hundred economists polled by Reuters said economic growth and inflation across the globe will lose further momentum this year despite years of ultra-easy mon ..

NEW YORK: Stocks across the globe rose to their highest levels of 2016 on Thursday and the US dollar gained for a third day as investors embraced risk ahead of top policymaker and oil producer meetings.

Singapore's normally conservative central bank unexpectedly eased its exchange-rate based monetary policy, at a time when several hundred economists polled by Reuters said economic growth and inflation across the globe will lose further momentum this year despite years of ultra-easy mon ..

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