Everybody complains Apple isn’t innovating, but R&D spending and patents tell a different story

Apple Chief Executive Officer Tim Cook greets customers at the grand opening of the new Apple Carnegie Library store in Washington, May 11, 2019. The analysts say that investors are focusing on the “apparent lack of ongoing innovation at Apple,” but that they believe that Apple is appropriately investing in new product categories. “When the iPhone (once in a generation product) becomes the basis of comparison, everything else, however successful, looks incremental,” the analysts write. Apple had


Apple Chief Executive Officer Tim Cook greets customers at the grand opening of the new Apple Carnegie Library store in Washington, May 11, 2019. The analysts say that investors are focusing on the “apparent lack of ongoing innovation at Apple,” but that they believe that Apple is appropriately investing in new product categories. “When the iPhone (once in a generation product) becomes the basis of comparison, everything else, however successful, looks incremental,” the analysts write. Apple had
Everybody complains Apple isn’t innovating, but R&D spending and patents tell a different story Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: kif leswing
Keywords: news, cnbc, companies, billion, granted, technologies, wearables, apple, patents, complains, spending, everybody, tell, different, according, product, 2018, iphone, innovating, isnt, rd


Everybody complains Apple isn't innovating, but R&D spending and patents tell a different story

Apple Chief Executive Officer Tim Cook greets customers at the grand opening of the new Apple Carnegie Library store in Washington, May 11, 2019.

Apple’s research and development spending has increased from $1 billion in 2009 to a projected $13 billion this year, not including stock-based compensation, according to a Thursday note from Bank of America analyst Wamsi Mohan.

The amount of money going into R&D in Cupertino shows that Apple is spending heavily both to fend off new technologies which could threaten its dominance in smartphones and tablets, as well as investing in technologies that could help the iPhone maker enter into new product categories, such as wearables, fitness and health.

“The patents around wearables suggest that Apple could be targeting AirPods with biometric sensors, Apple Watch with UV monitoring, gesture recognition for AR/VR applications, machine learning projects to enable autonomous driving and integration of various existing devices with a car,” according to the note.

The analysts say that investors are focusing on the “apparent lack of ongoing innovation at Apple,” but that they believe that Apple is appropriately investing in new product categories.

“When the iPhone (once in a generation product) becomes the basis of comparison, everything else, however successful, looks incremental,” the analysts write.

Apple’s massive scale can also mask how large some of its smaller product lines are.

“The wearables business in just 4 years is the size of a fortune 200 company with [estimated] $15 billion in sales (similar to Netflix, Paypal etc.) but the sheer size of the iPhone of $155 billion in 2018 (similar to General Motors) dwarfs the rapid growth of the relatively smaller businesses, ” Mohan writes.

Apple had 2,160 patents granted in 2018, down 3% from 2017, according to research from IFI Claims. Eight companies had more patents granted during that year, including Samsung, Qualcomm, Microsoft, and IBM, which led the table with 9,100 patents granted in 2018.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: kif leswing
Keywords: news, cnbc, companies, billion, granted, technologies, wearables, apple, patents, complains, spending, everybody, tell, different, according, product, 2018, iphone, innovating, isnt, rd


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Symantec CEO Greg Clark steps down, stock drops

Symantec stock fell more than 15% Thursday after the security company said its president and CEO, Greg Clark, has stepped down. Symantec director Richard Hill, formerly CEO of Novellus Systems, was named interim president and CEO, effective immediately, according to a statement. Clark arrived at Symantec earlier that year through the acquisition of security company Blue Coat, of which he was CEO. Earlier in his career Clark was an executive at IBM after it acquired Dascom, a security company Cla


Symantec stock fell more than 15% Thursday after the security company said its president and CEO, Greg Clark, has stepped down. Symantec director Richard Hill, formerly CEO of Novellus Systems, was named interim president and CEO, effective immediately, according to a statement. Clark arrived at Symantec earlier that year through the acquisition of security company Blue Coat, of which he was CEO. Earlier in his career Clark was an executive at IBM after it acquired Dascom, a security company Cla
Symantec CEO Greg Clark steps down, stock drops Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: jordan novet
Keywords: news, cnbc, companies, symantec, fiscal, security, clark, drops, ceo, company, steps, stock, 2018, named, greg, hill


Symantec CEO Greg Clark steps down, stock drops

Symantec stock fell more than 15% Thursday after the security company said its president and CEO, Greg Clark, has stepped down. The company is looking for a permanent replacement.

Symantec director Richard Hill, formerly CEO of Novellus Systems, was named interim president and CEO, effective immediately, according to a statement.

In late April Clark made it clear that he wanted to spend more time with his aging father, Hill told analysts on a Thursday conference call. Hill also said that “for anyone, and certainly someone with the pride of Greg, he doesn’t like to see the results that happened in the fourth quarter.”

On Thursday Symantec reported earnings for the fourth quarter of its 2019 fiscal year, which ended on March 29. The company said it had 39 cents in earnings per share, excluding certain items, in line with the Refinitiv analyst consensus estimate. Revenue of $1.20 billion was just under the $1.21 billion estimate.

The company’s guidance, for both the first quarter of fiscal year 2020 and the full 2020 fiscal year, was lower than analysts had expected.

“When you’re at the top of the pyramid, sometimes things happen,” said Hill, 67.

Clark became CEO in 2016, replacing Michael Brown. Clark arrived at Symantec earlier that year through the acquisition of security company Blue Coat, of which he was CEO. Earlier in his career Clark was an executive at IBM after it acquired Dascom, a security company Clark had founded.

In 2016 at the time that Symantec announced that Brown, who had been in the CEO position for less than two years, would be stepping down, it did not yet have a replacement. The $4.7 billion Blue Coat deal came less than two months later. Brown in 2014 replaced Steve Bennett, who spent less than three years as CEO.

Symantec shares have risen less than 8% since Clark took the company’s helm, lagging behind the S&P 500, which has grown 32% in the same period. Clark received $17.3 million in total compensation in the 2018 fiscal year, which ended in March 2018, according to a filing.

Symantec’s stock fell after it disclosed results for the 2018 fiscal year, guidance for the 2019 fiscal year and an investigation, the company said in its most recent annual report. Following that, the company said, Clark opted to forgo a equity award for the 2019 fiscal year and decided that none of its named executive officers would see a bump in base salaries.

“A year ago Symantec began an investigation that happily resulted in our albeit late fiscal year 2018 10-K filing with no adverse material finding,” Hill said on the call. “Around the start of the investigation I had reached out to a board member of Symantec to offer my assistance. Several weeks later, unbeknownst to me, Peter Feld, managing partner at Starboard, a friendly activist investor, reached out to Greg Clark and the Symantec board to see if they could help. Peter went to his bullpen for a left-handed pitcher, and voila, I’m here.”

Additionally Symantec named its new chief financial officer: Vincent Pilette, who was previously Logitech’s chief financial officer. Pilette replaces Nicholas Noviello, whose departure was announced in January.

WATCH: Watch CNBC’s exclusive interview with Symantec CEO Greg Clark


Company: cnbc, Activity: cnbc, Date: 2019-05-09  Authors: jordan novet
Keywords: news, cnbc, companies, symantec, fiscal, security, clark, drops, ceo, company, steps, stock, 2018, named, greg, hill


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Its costs $73,160 a year to go to MIT—but here’s how much students actually pay

Over the past several decades, the cost of attending college — any type of college — has increased significantly. According to the College Board’s 2018 2018 Trends in College Pricing Report, from 1988 to 2018, sticker prices tripled at public four-year schools and doubled at public two-year and private non-profit four-year schools. Despite these costs, earning a four-year degree — especially at a top-ranking university — continues to be a high-yield investment. In 2018, college graduates earned


Over the past several decades, the cost of attending college — any type of college — has increased significantly. According to the College Board’s 2018 2018 Trends in College Pricing Report, from 1988 to 2018, sticker prices tripled at public four-year schools and doubled at public two-year and private non-profit four-year schools. Despite these costs, earning a four-year degree — especially at a top-ranking university — continues to be a high-yield investment. In 2018, college graduates earned
Its costs $73,160 a year to go to MIT—but here’s how much students actually pay Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: abigail hess
Keywords: news, cnbc, companies, public, college, schools, costs, mitbut, pay, 73160, 2018, heres, students, mit, graduates, fouryear, investment, salaries, earning, actually


Its costs $73,160 a year to go to MIT—but here's how much students actually pay

Over the past several decades, the cost of attending college — any type of college — has increased significantly.

According to the College Board’s 2018 2018 Trends in College Pricing Report, from 1988 to 2018, sticker prices tripled at public four-year schools and doubled at public two-year and private non-profit four-year schools.

Despite these costs, earning a four-year degree — especially at a top-ranking university — continues to be a high-yield investment. In 2018, college graduates earned weekly wages that were 80 percent higher than those of high school graduates.

Massachusetts Institute of Technology (MIT) is widely regarded as one of the most prestigious schools in the world and its graduates earn some of the highest salaries. According to an analysis from salary comparison site PayScale, MIT graduates are the second highest-earning workers in the country, with early-career salaries of about $83,600 on average and mid-career salaries of about $150,400 on average.

But earning an MIT diploma requires meeting rigorous academic standards and a significant financial investment. Today, the cost of attending MIT is about $73,160 per year. Exactly how much student spends earning an MIT diploma however, can vary dramatically and many students end up paying far less.


Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: abigail hess
Keywords: news, cnbc, companies, public, college, schools, costs, mitbut, pay, 73160, 2018, heres, students, mit, graduates, fouryear, investment, salaries, earning, actually


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Homebuilder CEO saw momentum shift in Q1: ‘The consumer is definitely more engaged’

TRI Pointe Group CEO Douglas Bauer on Tuesday told CNBC he saw a “momentum shift” in the first quarter of 2019. “The consumer is definitely more engaged,” he said in a one-on-one interview with “Mad Money’s” Jim Cramer. An amalgamation of local housing companies, TRI Pointe has surged more than 19% this year along with the homebuilding sector, which is up more than 25%. Lower mortgage rates have helped return buyers to the housing market, Cramer noted. TRI Pointe wants to build in the Carolinas,


TRI Pointe Group CEO Douglas Bauer on Tuesday told CNBC he saw a “momentum shift” in the first quarter of 2019. “The consumer is definitely more engaged,” he said in a one-on-one interview with “Mad Money’s” Jim Cramer. An amalgamation of local housing companies, TRI Pointe has surged more than 19% this year along with the homebuilding sector, which is up more than 25%. Lower mortgage rates have helped return buyers to the housing market, Cramer noted. TRI Pointe wants to build in the Carolinas,
Homebuilder CEO saw momentum shift in Q1: ‘The consumer is definitely more engaged’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: tyler clifford
Keywords: news, cnbc, companies, momentum, rest, saw, tri, q1, 2018, housing, sales, results, ceo, runway, shift, engaged, definitely, homebuilder, pointe, market, bauer, consumer


Homebuilder CEO saw momentum shift in Q1: 'The consumer is definitely more engaged'

TRI Pointe Group CEO Douglas Bauer on Tuesday told CNBC he saw a “momentum shift” in the first quarter of 2019.

“The consumer is definitely more engaged,” he said in a one-on-one interview with “Mad Money’s” Jim Cramer.

An amalgamation of local housing companies, TRI Pointe has surged more than 19% this year along with the homebuilding sector, which is up more than 25%. Lower mortgage rates have helped return buyers to the housing market, Cramer noted.

TRI Pointe lags in the home construction group in part because the stock fell about 8% after reporting mixed first-quarter results on Thursday, delivering a top-line beat but a bottom-line miss.

Revenue from home sales was down 15% compared to the first quarter of 2018, which could be attributed to a 12% decrease in new house construction.

However, Bauer expressed positive sentiment about the rest of the year. He said first-quarter results reflected weakness in the housing market in the second half of 2018 when the SPDR S&P Homebuilders ETF slumped nearly 20%.

“We’ve got about a 23% margin in our backlog, and we’ve got a good runway for the rest of the year,” he said. “A lot of wood to chop, but the market’s looking good.”

If job and wage growth remains strong, Bauer thinks demand will continue to pick up for housing in the long run. The industry has also been helped in the interim by the Federal Reserve’s decision to stop raising interest rates in 2019, he added.

The regulatory environment in California is still tough, but TRI Pointe’s 11,000 lots in the state give the company “great runway” to pull margins, Bauer said.

Now in its 10th year of business, the CEO said they’re focused on the southeast part of the country to continue to grow its market share. TRI Pointe wants to build in the Carolinas, Georgia, Florida, and Tennessee, he said.

“It’s our 10 year anniversary. We went from zero to $3.2 billion [in 2018 home sales revenue]. Our goal for the next 10 [years] is double that,” Bauer said. “So those are great markets for us to grow in, in addition to Texas and the rest of the Southwest.”


Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: tyler clifford
Keywords: news, cnbc, companies, momentum, rest, saw, tri, q1, 2018, housing, sales, results, ceo, runway, shift, engaged, definitely, homebuilder, pointe, market, bauer, consumer


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Here’s why SoftBank’s $100 billion Vision Fund places bets on unprofitable tech companies

Japan’s SoftBank has gone from telecoms giant to being known worldwide as a powerhouse in tech investment. An executive at the company’s $100 billion Vision Fund gave some insight Monday into how the tech-focused fund decides on what companies it invests in — and why making money isn’t necessarily a deal breaker. That means companies that are “addressing markets that are massive, with a product that clearly satisfies their needs.” For context, Varma was speaking alongside Rishi Khosla, co-founde


Japan’s SoftBank has gone from telecoms giant to being known worldwide as a powerhouse in tech investment. An executive at the company’s $100 billion Vision Fund gave some insight Monday into how the tech-focused fund decides on what companies it invests in — and why making money isn’t necessarily a deal breaker. That means companies that are “addressing markets that are massive, with a product that clearly satisfies their needs.” For context, Varma was speaking alongside Rishi Khosla, co-founde
Here’s why SoftBank’s $100 billion Vision Fund places bets on unprofitable tech companies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: ryan browne
Keywords: news, cnbc, companies, tech, unprofitable, companies, billion, bets, softbank, addressing, executive, fund, heres, places, varma, oaknorth, 2018, firms, softbanks, vision


Here's why SoftBank's $100 billion Vision Fund places bets on unprofitable tech companies

Attendees walk in front of a monitor displaying SoftBank Group Corp. Chairman and Chief Executive Officer Masayoshi Son deliverinig a keynote speech during the SoftBank World 2018 conference on July 19, 2018 in Tokyo, Japan.

Japan’s SoftBank has gone from telecoms giant to being known worldwide as a powerhouse in tech investment. And its bets on household names from Uber to WeWork have made headlines, not least because of such firms’ struggles to make a profit.

An executive at the company’s $100 billion Vision Fund gave some insight Monday into how the tech-focused fund decides on what companies it invests in — and why making money isn’t necessarily a deal breaker.

“We look for businesses that are addressing very significant pain points,” the fund’s managing partner for EMEA and Asia Munish Varma said at a fintech, or financial technology, trade show in London Monday. That means companies that are “addressing markets that are massive, with a product that clearly satisfies their needs.”

For context, Varma was speaking alongside Rishi Khosla, co-founder and CEO of online lender OakNorth, which SoftBank’s fund invested in earlier this year. OakNorth — unlike many tech firms that haven’t yet booked a profit — has been profitable since 2017.


Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: ryan browne
Keywords: news, cnbc, companies, tech, unprofitable, companies, billion, bets, softbank, addressing, executive, fund, heres, places, varma, oaknorth, 2018, firms, softbanks, vision


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Russia drops out of top 5 global military spenders while US and China up the ante

The five biggest spenders in 2018 were the U.S., China, Saudi Arabia, India and France, which together accounted for 60% of global military spending. Independent think tank SIPRI, which monitors developments in military expenditure worldwide and publishes its “Military Expenditure Database” every year, noted that the decrease comes after a period of expansion. “Russia’s major military modernization programme, which started in 2010, led to significant annual increases in military spending (betwee


The five biggest spenders in 2018 were the U.S., China, Saudi Arabia, India and France, which together accounted for 60% of global military spending. Independent think tank SIPRI, which monitors developments in military expenditure worldwide and publishes its “Military Expenditure Database” every year, noted that the decrease comes after a period of expansion. “Russia’s major military modernization programme, which started in 2010, led to significant annual increases in military spending (betwee
Russia drops out of top 5 global military spenders while US and China up the ante Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: holly ellyatt
Keywords: news, cnbc, companies, china, billion, russian, global, military, spending, spend, 2018, data, russia, ante, expenditure, spenders, drops, sipri


Russia drops out of top 5 global military spenders while US and China up the ante

Military spending by the U.S. increased for the first time since 2010, while spending by China grew for the 24th consecutive year, the Swedish research institute noted.

The five biggest spenders in 2018 were the U.S., China, Saudi Arabia, India and France, which together accounted for 60% of global military spending.

Total world military expenditure rose to $1.8 trillion in 2018, according to new data from the Stockholm International Peace Research Institute (SIPRI), marking an increase of 2.6% from 2017 and the highest total spend since 1988.

Russia has dropped out of the top five countries with the largest defense spend for the first time since 2006, according to new international data Monday.

While the U.S. increased spending by 4.6%, to reach $649 billion in 2018, China increased its spending by 5%, to $250 billion.

Meanwhile, Russia was the sixth-largest nation in terms of military spend, at $61.4 billion, but its spending decreased by 3.5% compared with 2017.

Independent think tank SIPRI, which monitors developments in military expenditure worldwide and publishes its “Military Expenditure Database” every year, noted that the decrease comes after a period of expansion.

“Russia’s major military modernization programme, which started in 2010, led to significant annual increases in military spending (between 4.9% and 16%) through 2015. Starting in 2016 Russia’s military budget has trended downwards.”

Due to a one-off government debt repayment of almost $11.8 billion to Russian arms producers in 2016, spending rose by 7.2% that year. Without this payment, Russian military spending would have fallen by 11%, SIPRI noted. “The payment also explains a large part of the sharp 19% drop in 2017: excluding the repayment, spending would have decreased by 2.8%,” SIPRI said.

Although Russia’s spending fell again in 2018, it is still 27% higher than in 2009, SIPRI noted.

Military spending in several central and eastern European countries shows a certain nervousness at a powerful and often provocative neighbour Russia. For example, military spending in Poland rose by 8.9% in 2018 (to $11.6 billion) and was up 21% in Ukraine, to $4.8 billion.

Russia annexed Crimea from Ukraine in 2014 and has supported separatists in the east of the country. Russia has also had recent disputes with NATO countries in its backyard, such as the Baltic nations of Latvia and Lithuania, following various air and sea provocations, sorties and military drills in the Baltic Sea.

SIPRI data showed military spending by Bulgaria, Latvia, Lithuania and Romania also grew (ranging from 18% to 24%) in 2018.

“The increases in Central and Eastern Europe are largely due to growing perceptions of a threat from Russia,” Pieter Wezeman, a senior researcher with the SIPRI AMEX program, said of the data.

“This is despite the fact that Russian military spending has fallen for the past two years.”

Despite the data, President Vladimir Putin has not wasted opportunities to promote new weapons being developed and tested by Russia. In his State of the Nation address last March, he announced a raft of “cutting-edge, high-tech weapons,” including a hypersonic missile that cannot be tracked by anti-missile systems, that could join its arsenal by 2022.

Although part of a decline in defense spending could be due to the aims of its modernization program being met, Russia is nonetheless constrained to reduce spending amid lower oil prices and tighter economic conditions.

It is subject to international sanctions for its annexation of Crimea, meddling in the 2016 U.S. election and suspected poisoning of the former Russian spy Sergei Skripal in the U.K, among other factors.

SIPRI military expenditure refers to all government spending on current military forces and activities, not only arms and equipment purchases.

WATCH: Trump’s military spending pledge


Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: holly ellyatt
Keywords: news, cnbc, companies, china, billion, russian, global, military, spending, spend, 2018, data, russia, ante, expenditure, spenders, drops, sipri


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San Francisco Bay Area home prices fall for the first time in 7 years

The median price of a San Francisco Bay Area home sold last month fell slightly compared with the prior-year period, marking the first annual drop since the bottom of the last housing crash, seven years ago, according to CoreLogic. In March, the median price was $830,000, down 0.1% compared with March 2018. Before last month, the median sale price had risen annually for 83 consecutive months since April 2012. Both May and June 2018 had the highest ever median sale price: $875,000. Prices follow


The median price of a San Francisco Bay Area home sold last month fell slightly compared with the prior-year period, marking the first annual drop since the bottom of the last housing crash, seven years ago, according to CoreLogic. In March, the median price was $830,000, down 0.1% compared with March 2018. Before last month, the median sale price had risen annually for 83 consecutive months since April 2012. Both May and June 2018 had the highest ever median sale price: $875,000. Prices follow
San Francisco Bay Area home prices fall for the first time in 7 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: diana olick
Keywords: news, cnbc, companies, prices, francisco, 2018, price, san, bay, fall, sale, month, spiked, summer, months, compared, sales, area, median


San Francisco Bay Area home prices fall for the first time in 7 years

The median price of a San Francisco Bay Area home sold last month fell slightly compared with the prior-year period, marking the first annual drop since the bottom of the last housing crash, seven years ago, according to CoreLogic.

In March, the median price was $830,000, down 0.1% compared with March 2018. The decline came as price gains had been shrinking for several months. Before last month, the median sale price had risen annually for 83 consecutive months since April 2012. Both May and June 2018 had the highest ever median sale price: $875,000.

Prices follow sales, and sales have been running extraordinarily low since last summer, when mortgage rates spiked.


Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: diana olick
Keywords: news, cnbc, companies, prices, francisco, 2018, price, san, bay, fall, sale, month, spiked, summer, months, compared, sales, area, median


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San Francisco Bay Area home prices fall for the first time in 7 years

The median price of a San Francisco Bay Area home sold last month fell slightly compared with the prior-year period, marking the first annual drop since the bottom of the last housing crash, seven years ago, according to CoreLogic. In March, the median price was $830,000, down 0.1% compared with March 2018. Before last month, the median sale price had risen annually for 83 consecutive months since April 2012. Both May and June 2018 had the highest ever median sale price: $875,000. Prices follow


The median price of a San Francisco Bay Area home sold last month fell slightly compared with the prior-year period, marking the first annual drop since the bottom of the last housing crash, seven years ago, according to CoreLogic. In March, the median price was $830,000, down 0.1% compared with March 2018. Before last month, the median sale price had risen annually for 83 consecutive months since April 2012. Both May and June 2018 had the highest ever median sale price: $875,000. Prices follow
San Francisco Bay Area home prices fall for the first time in 7 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: diana olick
Keywords: news, cnbc, companies, san, sale, price, prices, month, bay, fall, area, summer, spiked, months, sales, compared, francisco, 2018, median


San Francisco Bay Area home prices fall for the first time in 7 years

The median price of a San Francisco Bay Area home sold last month fell slightly compared with the prior-year period, marking the first annual drop since the bottom of the last housing crash, seven years ago, according to CoreLogic.

In March, the median price was $830,000, down 0.1% compared with March 2018. The decline came as price gains had been shrinking for several months. Before last month, the median sale price had risen annually for 83 consecutive months since April 2012. Both May and June 2018 had the highest ever median sale price: $875,000.

Prices follow sales, and sales have been running extraordinarily low since last summer, when mortgage rates spiked.


Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: diana olick
Keywords: news, cnbc, companies, san, sale, price, prices, month, bay, fall, area, summer, spiked, months, sales, compared, francisco, 2018, median


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Here’s why SoftBank’s $100 billion Vision Fund places bets on unprofitable tech companies

Japan’s SoftBank has gone from telecoms giant to being known worldwide as a powerhouse in tech investment. An executive at the company’s $100 billion Vision Fund gave some insight Monday into how the tech-focused fund decides on what companies it invests in — and why making money isn’t necessarily a deal breaker. That means companies that are “addressing markets that are massive, with a product that clearly satisfies their needs.” For context, Varma was speaking alongside Rishi Khosla, co-founde


Japan’s SoftBank has gone from telecoms giant to being known worldwide as a powerhouse in tech investment. An executive at the company’s $100 billion Vision Fund gave some insight Monday into how the tech-focused fund decides on what companies it invests in — and why making money isn’t necessarily a deal breaker. That means companies that are “addressing markets that are massive, with a product that clearly satisfies their needs.” For context, Varma was speaking alongside Rishi Khosla, co-founde
Here’s why SoftBank’s $100 billion Vision Fund places bets on unprofitable tech companies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: ryan browne
Keywords: news, cnbc, companies, bets, 2018, heres, unprofitable, vision, billion, companies, softbanks, softbank, varma, oaknorth, firms, fund, executive, places, addressing, tech


Here's why SoftBank's $100 billion Vision Fund places bets on unprofitable tech companies

Attendees walk in front of a monitor displaying SoftBank Group Corp. Chairman and Chief Executive Officer Masayoshi Son deliverinig a keynote speech during the SoftBank World 2018 conference on July 19, 2018 in Tokyo, Japan.

Japan’s SoftBank has gone from telecoms giant to being known worldwide as a powerhouse in tech investment. And its bets on household names from Uber to WeWork have made headlines, not least because of such firms’ struggles to make a profit.

An executive at the company’s $100 billion Vision Fund gave some insight Monday into how the tech-focused fund decides on what companies it invests in — and why making money isn’t necessarily a deal breaker.

“We look for businesses that are addressing very significant pain points,” the fund’s managing partner for EMEA and Asia Munish Varma said at a fintech, or financial technology, trade show in London Monday. That means companies that are “addressing markets that are massive, with a product that clearly satisfies their needs.”

For context, Varma was speaking alongside Rishi Khosla, co-founder and CEO of online lender OakNorth, which SoftBank’s fund invested in earlier this year. OakNorth — unlike many tech firms that haven’t yet booked a profit — has been profitable since 2017.


Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: ryan browne
Keywords: news, cnbc, companies, bets, 2018, heres, unprofitable, vision, billion, companies, softbanks, softbank, varma, oaknorth, firms, fund, executive, places, addressing, tech


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Why Amazon’s ad sales growth has slowed (and why it may pick up again)

But the huge growth rates that came in recent quarters have cooled as advertisers seem to begin spending more carefully on the platform. But that ad business growth is slowing as the hype around Amazon’s ad business has faded and advertisers are thinking more carefully about which platforms provide the highest amounts of sophistication and return on investment. When Amazon opened its floodgates, advertisers rushed in,” said Abby McNabb, an associate media director who leads the Amazon Advertisin


But the huge growth rates that came in recent quarters have cooled as advertisers seem to begin spending more carefully on the platform. But that ad business growth is slowing as the hype around Amazon’s ad business has faded and advertisers are thinking more carefully about which platforms provide the highest amounts of sophistication and return on investment. When Amazon opened its floodgates, advertisers rushed in,” said Abby McNabb, an associate media director who leads the Amazon Advertisin
Why Amazon’s ad sales growth has slowed (and why it may pick up again) Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-27  Authors: megan graham
Keywords: news, cnbc, companies, sales, growth, ad, advertising, 2018, amazons, strategy, theyre, advertisers, slowdown, slowed, amazon, think, pick


Why Amazon's ad sales growth has slowed (and why it may pick up again)

Jeff Bezos, Chairman and CEO of Amazon, speaks at the George W. Bush Presidential Center’s Forum on Leadership in Dallas, Texas, U.S., April 20, 2018. Rex Curry | Reuters

Amazon’s ad business is still growing at a healthy clip. But the huge growth rates that came in recent quarters have cooled as advertisers seem to begin spending more carefully on the platform. Amazon, which reported its Q1 2019 results Thursday, said its “other” segment consisting primarily of advertising sales slowed to 36% in the first quarter from the previous year, at $2.72 billion. On an adjusted basis, the year-over-year growth rate in that “other” segment in Q4 2018 was 38%, and ranged between 51% and 73% in previous quarters last year. Some say, though, it’s only a matter of time before growth amps up again. Amazon has quickly become a contender to take on the Google and Facebook duopoly that has dominated the digital advertising ecosystem. But that ad business growth is slowing as the hype around Amazon’s ad business has faded and advertisers are thinking more carefully about which platforms provide the highest amounts of sophistication and return on investment. Asked by analysts on the Thursday earnings call about whether that acceleration would ever occur again and why the company was seeing that slower growth, Amazon’s CFO Brian Olsavsky declined to comment on any deceleration of growth but said the company was “early on in this venture” and that he is optimistic about its outcome in the advertising space if Amazon is able to improve the inputs and grow traffic to the site.

What advertisers are saying

Nina Hale, a performance digital marketing agency, has seen some of that slowdown firsthand. “There was massive growth initially. When Amazon opened its floodgates, advertisers rushed in,” said Abby McNabb, an associate media director who leads the Amazon Advertising + Marketing practice at Nina Hale. “But now, brands are taking a step back and trying to better understand how Amazon fits” into their overall strategy, McNabb said. “They’re tightening up their strategy a little bit. With that comes less ad spend. They’re not throwing the kitchen sink at Amazon anymore.” Google has made strides with its optimization features and providing high return for advertisers who may see Amazon as being in its infancy and more unsophisticated in comparison, she said. Sellwin Consulting, an Amazon-focused consultancy that’s part of Dentsu Aegis Network,hasn’t seen that slowdown. Its president Travis Johnson said its growth with Amazon is upwards of 60% year-over-year. He believes any slowdown is coming more from sellers on the platform who have decided to keep their spend steady rather than continuing to increase it. “I think 2018 was just a year of substantial growth because of more ad placements, better platforms, more ad opportunities,” he said. “I think it was just a year of ‘Wow, Amazon is a real contender and has a lot more opportunity than I thought.’ Now, I think the industry, both agencies and sellers, [is] far more familiar and sophisticated when it comes to spending that money.” Forrester analyst Collin Colburn said some of the the big consumer packaged goods spenders who have been playing on Amazon for a couple years will focus their approach in 2019. “The first year was throwing money at a wall and [seeing] does this stuff work,” he said. “The second year, 2018, was like, let’s actually create a strategy around this.” That strategy entailed figuring out which keywords to use, and getting acclimated with Amazon Media Group and its demand-side platform, which lets advertisers programmatically buy ads to reach audiences across the web. He thinks this year those marketers will be more open to other e-commerce websites and their offerings. “I think this is opening their eyes to other areas like Walmart or Target or Best Buy or Kroger or any of these other major e-commerce websites also ramping up their digital capabilities, because they’ve seen what Amazon has done,” Colburn said. Colburn said some brands see Amazon’s current ad system as limiting their ability to scale, report and make the sophisticated ad buys they’re used to making on Facebook or Google. “Maybe some of these [consumer packaged goods brands] are finding they’re not able to scale their ad strategy on Amazon as well as they are on another ad channels because the capabilities aren’t built out yet,” he said. “They’ve been a little slow, especially compared to the rest of the advertising industry, which tends to be very fast.”

Returning to acceleration


Company: cnbc, Activity: cnbc, Date: 2019-04-27  Authors: megan graham
Keywords: news, cnbc, companies, sales, growth, ad, advertising, 2018, amazons, strategy, theyre, advertisers, slowdown, slowed, amazon, think, pick


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