Apple (AAPL) – Get Report shares surged Monday and the reason shouldn’t surprise anyone. The company is unveiling its iPhone 12 Tuesday, but there is a lot of information incorporated into the stock move.
The stock rose more than 6% to about $124 a share by 2 PM EDT Monday. After a nasty correction in September, when the stock fell as much as 20% — a technical bear market — investors have been willing to pay a roughly 30 times multiple on the next 12 months of earnings. That’s against analysts’ estimates of 8% compounded earnings growth for the next several years. However, analysts TheStreet has spoken with admit short-term and long-term earnings estimates have significant upside across businesses, legacy hardware, wearables and services.
The stock move Tuesday brings Apple’s earnings multiple to just under 35, which may seem stretched to some. Bullish Apple analysts around The Street note that upside 5G sales estimates are a plausible scenario and argue that some analysts are too conservative in their forecasts.
The iPhone 12 release is expected to feature more 5G capability than previous versions. Apple’s iPhone business has seen a significant downward bend in its innovation curve in the last several years and although the 5G cycle is an industry growth driver rather than an Apple-specific one, it’s a strong tailwind that Apple is happy to accept. The lofty multiple may remain in place as stock gains potentially moderate if analysts soon revise hardware estimates on the back of a successful iPhone 12 launch. Apple shares tend to post muted moves after these product events, which often involve heavy anticipation.
Analysts currently expect Apple to sell about 75 million iPhones in each of the next few quarters, up from about 65 million expected just a few weeks ago. Analyst
Nearly four hours after reporting that some users were experiencing performance issues on Slack, the company said it’s seeing signs of improvement but “we’re not out of the woods yet.”
Slack said Monday its service is having performance issues — which could mean trouble for the many companies that rely on the workplace communication tool to keep remote teams running.
The company noted around 10 am ET that some users might be experiencing slowness with the Slack’s desktop, mobile and browser applications. It said the issue was causing delays in some messages and calls. About two hours later, Slack said some users may be unable to connect to the service, while others are still experiencing “general performance issues,” adding that the company is “continuing to dig in on our side” and will provide updates.
It later said some users may be unable to connect, and the search function was also affected. Just after 2 pm ET, the company added that it continues to “see improvement, but some users may still be experiencing delays,” and that it would continue providing updates.
With millions of people unable to work in their offices, Slack and rival Microsoft Teams have become crucial communications tools to keep many businesses up and running during the pandemic. Slack has more than 12 million daily active users, including many major tech companies and news organizations.
“Our teams are aware and are investigating the issue,” a Slack spokesperson said in a statement to CNN Business. “We know how important it is for people to stay connected and we are working hard to get everyone running as normal. For the latest updates please keep an eye on @slackstatus and status.slack.com.”
Slack declined to say how many users are affected. The website Down Detector listed as many
WASHINGTON (Reuters) – The U.S. House of Representatives Judiciary Committee’s antitrust subcommittee is expected to release a much-anticipated report into antitrust allegations against four of America’s largest tech companies as soon as Monday, according to a source with direct knowledge of the matter.
The chief executives of four of the world’s largest tech companies, Amazon.com Inc, Facebook Inc, Apple and Alphabet’s Google, testified before the panel in July.
During the hearing, the four CEOs parried a range of accusations that they crippled smaller rivals in their quest for market share. The four companies have a combined market value of about $5 trillion.
The House antitrust subcommittee plans to hold a hearing on Friday on proposals to strengthen antitrust laws and restore online competition as it nears the release of this long-awaited report on Big Tech.
The date of release of the report can still be moved, the source said.
The U.S. Justice Department is also probing the big four tech platforms. Facebook and Amazon are also facing inquiries by the Federal Trade Commission, while U.S. states attorneys general are looking at Facebook and Google.
Reporting by Nandita Bose; Editing by Sandra Maler and Leslie Adler
A website for Wisconsinites to sign up for free coronavirus testing by Wisconsin National Guard teams went offline Monday evening.
Most people waiting in line at five testing sites in the state when the website went down were still tested but some were sent home without getting tested.
The website — register.covidconnect.wi.gov — allows people to register for testing in advance with their personal information and gives them a QR code to scan at a testing site. They also get an email with their test results rather than a phone call.
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Wisconsin National Guard spokesman Maj. Joseph Trovato said the website outage is likely linked to a much larger Microsoft outage affecting many different web platforms on Monday.
The website was working as Tuesday morning.
The Wisconsin National Guard’s coronavirus testing task force started experiencing issues with the website around 3 p.m. It affected people waiting to get tested at two sites in Milwaukee: UMOS on the city’s south side and Barack Obama School of Career and Technical Education on the north side.
Also affected were test sites at the Waukesha County Expo, University of Wisconsin-Platteville and La Crosse, which is experiencing the nation’s second-highest rate of coronavirus infection by population. A few of the sites closed a little earlier than scheduled.
Trovato said he doesn’t know if anyone was turned away but said people waiting in line at those sites should still have been tested, with their contact information taken manually.
One man said he was in line at 4:30 p.m. at Obama School and did not get tested