PayPal surges 8% after strongest earnings results in at least a year, seeing growth in Venmo

Total payment volume — a closely watched metric for PayPal and its peers — came in at $178.7 billion, also above expectations. Revenues also outperformed, with $4.38 billion in the quarter vs. the $4.35 billion expected. Despite not yet breaking even for its parent company, the app saw 64% growth in payment volume year over year. “We see a lot of good runway in front of Venmo,” Shulman said. The roll-off from eBay, which used to own PayPal, is seen as a headwind for earnings into the next two ye


Total payment volume — a closely watched metric for PayPal and its peers — came in at $178.7 billion, also above expectations.
Revenues also outperformed, with $4.38 billion in the quarter vs. the $4.35 billion expected.
Despite not yet breaking even for its parent company, the app saw 64% growth in payment volume year over year.
“We see a lot of good runway in front of Venmo,” Shulman said.
The roll-off from eBay, which used to own PayPal, is seen as a headwind for earnings into the next two ye
PayPal surges 8% after strongest earnings results in at least a year, seeing growth in Venmo Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-24  Authors: kate rooney
Keywords: news, cnbc, companies, billion, results, seeing, paypal, growth, expected, venmo, ebay, surges, shulman, quarter, ellis, earnings, strongest, payment


PayPal surges 8% after strongest earnings results in at least a year, seeing growth in Venmo

Total payment volume — a closely watched metric for PayPal and its peers — came in at $178.7 billion, also above expectations. That growth accelerated 25%, better than the past two quarters and all of 2018, according to MoffettNathanson.

“PayPal’s 3Q19 results were the strongest we’ve seen in at least a year,” Lisa Ellis, research analyst at Moffett Nathanson, said in a note to clients Thursday. “All in all, a very clean, strong, quarter.”

The company reported 61 cents of adjusted earnings per share for the quarter, vs. 52 cents expected by analysts polled by Refinitiv. Revenues also outperformed, with $4.38 billion in the quarter vs. the $4.35 billion expected. Its forward guidance for next year was in line with expectations.

PayPal shares were up nearly 8%, a day after the payments company beat Wall Street’s estimates across the board for the third-quarter results.

Its mobile payment app Venmo was a key bright spot. Despite not yet breaking even for its parent company, the app saw 64% growth in payment volume year over year. Venmo also processed more than $27 billion in the quarter. On a call with analysts, CEO Dan Shulman called the app “an incredibly powerful platform for engaging consumers” and that he was “pleased” with its monetization progress.

“We see a lot of good runway in front of Venmo,” Shulman said. PayPal ended the third quarter with an annual revenue run rate just shy of a $400 million, compared to $200 million last quarter.

William Blair analyst Robert Napoli told clients in a note Thursday morning that “Venmo losses are moderating, which is supporting margin expansion.”

PayPal also announced good news in China. After years in the works, PayPal got approval from the People’s Bank of China to acquire a 70% stake in Shanghai-based GoPay. The start-up has digital payment licenses in China. That deal is expected to close in December, and will make PayPal the first licensed foreign-payment platform to operate there.

“This is a very significant development for us and has the potential to dramatically expand our total addressable market and our long-term growth prospects,” Shulman said on the call.

Still, some investors had been worried about an upcoming expiration of the PayPal-eBay exclusive operating agreement. The roll-off from eBay, which used to own PayPal, is seen as a headwind for earnings into the next two years.

But MoffettNathanson’s Ellis said by dissolving that exclusive partnership, PayPal can ramp up at least four new high-growth platforms: Paymentus, Facebook, Mercado Libre, and Uber.

“PayPal will emerge from the eBay transition in a stronger competitive position and healthier financial position,” Ellis said. “The primary uncertainty in the eBay roll-off is its exact timing (how much in 2020, 2021, or beyond) – its overall magnitude is well-defined.”


Company: cnbc, Activity: cnbc, Date: 2019-10-24  Authors: kate rooney
Keywords: news, cnbc, companies, billion, results, seeing, paypal, growth, expected, venmo, ebay, surges, shulman, quarter, ellis, earnings, strongest, payment


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Relativity, a company 3D printing entire rockets, raises $140 million from Mary Meeker and others

Space start-up Relativity Space just raised the money it needs to transform the rocket supply chain in the U.S. with 3D printing. Relativity announced on Tuesday it closed $140 million in new fundraising, led by Mary Meeker’s Bond Capital and recently-formed Tribe Capital. Relativity’s board of directors has grown to five, with Bond’s Noah Knauf now joining Ellis, Relativity co-founder Jordan Noone, Social Capital’s Jay Zaveri and Playground Global’s Jory Bell. Relativity aims to build entire ro


Space start-up Relativity Space just raised the money it needs to transform the rocket supply chain in the U.S. with 3D printing. Relativity announced on Tuesday it closed $140 million in new fundraising, led by Mary Meeker’s Bond Capital and recently-formed Tribe Capital. Relativity’s board of directors has grown to five, with Bond’s Noah Knauf now joining Ellis, Relativity co-founder Jordan Noone, Social Capital’s Jay Zaveri and Playground Global’s Jory Bell. Relativity aims to build entire ro
Relativity, a company 3D printing entire rockets, raises $140 million from Mary Meeker and others Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-01  Authors: michael sheetz
Keywords: news, cnbc, companies, mary, ellis, entire, company, relativity, rockets, companys, space, build, supply, printing, million, rocket, meeker, raises


Relativity, a company 3D printing entire rockets, raises $140 million from Mary Meeker and others

Relativity co-founders Tim Ellis (left) and Jordan Noone stand next to a 3D printed second stage of the company’s Terran 1 rocket.

Space start-up Relativity Space just raised the money it needs to transform the rocket supply chain in the U.S. with 3D printing.

The four-year-old company in Los Angeles, Calif., said it has the funds it needs to reach orbit. Relativity announced on Tuesday it closed $140 million in new fundraising, led by Mary Meeker’s Bond Capital and recently-formed Tribe Capital. Meeker spun Bond out of Kleiner Perkins last year and her $1.3 billion fund’s investment in Relativity is its first in the space industry.

“We were looking for the very top of the top in investors in the world,” Relativity CEO Tim Ellis told CNBC, adding that Meeker’s team has “built dozens of very iconic household names.”

Relativity has now raised $185 million since its founding. In addition to Meeker, the company’s latest fundraising also attracted investments from former Tiger Global partner Lee Fixel, Creative Arts Agency founder Michael Ovitz, Zillow co-founder Spencer Rascoff, Republic Labs, and Jared Leto.

“While these investors may not come from the space industry, they’re extremely savvy about business,” Ellis said.

Leto’s appearance on the company’s cap table may seem surprising, until one notes the actor’s portfolio of technology investments.

“He’s got a ridiculous tech portfolio: AirBnB, Uber, Spotify, Stripe and more,” Ellis said of Leto. “And, obviously he’s head of the band, ’30 Seconds to Mars,’ so there’s some connection there to our long-term business.”

Relativity’s board of directors has grown to five, with Bond’s Noah Knauf now joining Ellis, Relativity co-founder Jordan Noone, Social Capital’s Jay Zaveri and Playground Global’s Jory Bell.

While Relativity had a valuation of about $100 million before this round of fundraising, Ellis declined to comment on the company’s new valuation.

“It’s clearly a large step up,” Ellis said.

Relativity aims to build entire rockets using 3D printing. With the rise of new competitors such as SpaceX, the rocket building industry has undergone a decade of transformation as cost-cutting became a central focus. But with a factory of its Stargate printers and its $10 million Terran 1 rocket, Relativity is working to build rockets in weeks – rather than years. According to Ellis, it takes companies between 24 months to 36 months to build available rockets.

“Because you have to order the materials and then there is a long lead time in the supply chain, that has hundreds of thousands of suppliers,” Ellis.

By comparison, Ellis says Relativity’s factory of 3D printers will have very little in the way of a supply chain or traditional rocket manufacturing techniques.

“We’ll build rockets in 60 days and 60 days later we can build a better version,” Ellis, adding that it would create “a hyper-evolvable development cycle.”


Company: cnbc, Activity: cnbc, Date: 2019-10-01  Authors: michael sheetz
Keywords: news, cnbc, companies, mary, ellis, entire, company, relativity, rockets, companys, space, build, supply, printing, million, rocket, meeker, raises


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Jack Dorsey is having an epic year — and he’s not talking about it

Twitter CEO and co-founder Jack Dorsey gestures while interacting with students at the Indian Institute of Technology (IIT) in New Delhi on November 12, 2018. Shares of Twitter and Square — the two San Francisco-based companies he leads — have both rallied more than 45% in 2019 so far. Nevertheless, Dorsey is producing solid financial metrics this year and with very few public comments about them. “Sarah was more than a CFO – she also had operations responsibilities and was essentially a ‘shadow


Twitter CEO and co-founder Jack Dorsey gestures while interacting with students at the Indian Institute of Technology (IIT) in New Delhi on November 12, 2018. Shares of Twitter and Square — the two San Francisco-based companies he leads — have both rallied more than 45% in 2019 so far. Nevertheless, Dorsey is producing solid financial metrics this year and with very few public comments about them. “Sarah was more than a CFO – she also had operations responsibilities and was essentially a ‘shadow
Jack Dorsey is having an epic year — and he’s not talking about it Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-30  Authors: kate rooney
Keywords: news, cnbc, companies, hes, growth, squares, dorsey, ceo, dorseys, jack, street, ellis, talking, square, epic, twitter, twitters, having


Jack Dorsey is having an epic year — and he's not talking about it

Twitter CEO and co-founder Jack Dorsey gestures while interacting with students at the Indian Institute of Technology (IIT) in New Delhi on November 12, 2018. Prakash Singh | AFP | Getty Images

Jack Dorsey is on a winning streak this year, but unlike some Silicon Valley CEOs, you probably won’t hear him discuss it. Shares of Twitter and Square — the two San Francisco-based companies he leads — have both rallied more than 45% in 2019 so far. Twitter’s performance marks a sharp turnaround from the stock’s lows two years ago, and Square continues to launch new products and remains one of the most loved names in the mobile payments business. Other CEOs have run two companies — most notably Steve Jobs who successfully ran Apple and Pixar — but Wall Street has been hesitant about the long-term viability of a similar track for Dorsey. Nevertheless, Dorsey is producing solid financial metrics this year and with very few public comments about them. Jeffrey Sonnenfeld, senior associate dean for leadership studies at Yale School of Management, said Dorsey’s performance speaks for itself. He is a “a genius who, unlike [Tesla CEO Elon] Musk, doesn’t have to throw in your face,” Sonnenfeld said, and unlike WeWork founder and CEO Adam Neumann, “doesn’t just pretend to be one.” “He truly is brilliant and dedicated – while avoiding the temptations of vanity and flamboyance his own technology offers some with less discipline,” Sonnenfeld told CNBC. “Like Steve Jobs spanning the leadership of three companies, Dorsey is in rarefied air.” The 42-year-old founded Square in 2009, three years after starting Twitter, and has led as CEO there since day one. Dorsey’s chief executive job at Twitter has been more fluid. He has moved to and from the executive chairman role in the past decade. He took over as CEO for a second time in 2015 after Dick Costolo’s departure and what was announced as an interim leadership role became permanent.

Driving results

Twitter is recovering from political controversy after questions over foreign influence on social media platforms in the 2016 election, which led Dorsey to testify before two Congressional committees. The social media platform is also navigating questions over free speech and online abuse. Meanwhile, Wall Street analysts have questioned Twitter’s user growth. Twitter’s future is looking brighter after this recent quarter though. Revenue was up 18% year over year, the company said, due to domestic growth and it reached an average of 139 million monetizable daily active users in the second quarter — a 14% increase year over year. Twitter beat analyst estimates on the top and bottom lines last week, which helped boost the stock by 8.9%. The rally last week added more than $2.6 billion to Twitter’s market cap and shares are up more than 45% this year. Square meanwhile is adding to its years-long ascent in share price and reports second-quarter results on Thursday. Analysts have bid up the stock thanks to a slew of new product launches, e-commerce opportunities and growth in its popular peer-to-peer cash app. Lisa Ellis, a partner at MoffettNathanson and head of the payments, processors and IT services business, said Dorsey is widely viewed as being “truly visionary” and mission-centric. At Square, she said those qualities have led to the invention of payments hardware, pace of product introductions and ability to attract talent. Despite Square’s 45% rally year to date, it’s still lagging payment bellwethers Mastercard, Visa, and PayPal — known as the “MVP” stocks — year over year. While Square’s 25% performance over a year isn’t bad, “payments is just white-hot,” Ellis said. Square and Twitter both declined to comment on Dorsey’s performance.

Making room at the top

One downside for Dorsey though, according to Ellis, is investors’ concern about his ability to “create space” for strong leaders around him. The stock dropped doubled digits on the day after CFO Sarah Friar announced her departure last fall. Many viewed her as next in line for the top job at Square, and her role as a necessary push-back for the ambitious and entrepreneurial Dorsey. Square hired former Blizzard Entertainment CFO Amrita Ahuja to fill Friar’s shoes in January. “The departure of Square’s long-time CFO, Sarah Friar, last fall continues to be quite controversial,” Ellis said. “Sarah was more than a CFO – she also had operations responsibilities and was essentially a ‘shadow CEO / President’ to Jack.” The company has been focused on growth in their consumer products like the Cash App, and it is applying for a bank charter. But Ellis highlighted Square’s payment volumes, which have been slowing for four quarters in a row, and said its point of sale business is under competitive pressure. And while Dorsey is undoubtedly entrepreneurial — Ellis said that may trait not suit Square’s next chapter. “I worry a bit that Jack is extremely entrepreneurial, so [he] is the right guy to run a company for the first 8 to 10 years, but not necessarily the right guy to take it for the next 10 years, through a period of a lot less glamorous, less sexy growth,” she said.

Celebrity CEO

Wall Street and Main Street seem equally fascinated with Jack Dorsey. The nose-ring-wearing, St. Louis, Missouri-born executive has gained favor with cryptocurrency fanatics for his early days in the coding and hacking community. He was also widely embraced by bitcoin communities after Square added the ability to trade the cryptocurrency on its popular peer-to-peer Cash App last January.

Jack Dorsey, chief executive officer of Twitter Inc. and Square Inc., speaks during an Empowering Entrepreneurs events at Ryerson University in Toronto, Ontario, Canada, on Tuesday, April 2, 2019. Bloomberg | Getty Images

And even if his business moves are being applauded this year, Dorsey’s lifestyle choices are consistently under the microscope. His methods for reaching peak cognitive performance — from fasting, to ice baths, to journaling — are the subject of countless podcasts and blogs. The New York Times likened his lifestyle influence to “Gwyneth Paltrow for Silicon Valley.” Dorsey’s public appearances have been limited this year and have largely focused on self-care and health instead of corporate metrics. Dorsey did interviews with Rolling Stone and went on The Bill Simmons Podcast earlier this year to talk about the state of the company, which resulted in a slight drop in Twitter shares. He also appeared on ultra-marathoner Rich Roll’s podcast to talk about solitude and self-care. Doresy spent 10 days in Myanmar for a meditation retreat, which excluded “devices, reading, writing, physical exercise, music, intoxicants, meat, talking, or even eye contact with others,” Dorsey tweeted at the time. Critics accused him of being tone deaf as Myanmar stands accused of carrying out a mass genocide and crimes against an ethnic minority group.

Next chapter


Company: cnbc, Activity: cnbc, Date: 2019-07-30  Authors: kate rooney
Keywords: news, cnbc, companies, hes, growth, squares, dorsey, ceo, dorseys, jack, street, ellis, talking, square, epic, twitter, twitters, having


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Ex-Trump campaign chief Paul Manafort sentenced to 47 months for fraud in Mueller case

A federal judge on Thursday sentenced President Donald Trump’s former campaign chairman Paul Manafort to serve 47 months in prison, a far shorter length of time than prosecutors in the case had argued for. The decision from federal judge T.S. Manafort is expected to serve only 38 more months of the 47-month sentence because of time he has already spent incarcerated. In addition to the sentence, Ellis ordered Manafort to pay a $50,000 fine, the lowest fine provided for by guidelines that recommen


A federal judge on Thursday sentenced President Donald Trump’s former campaign chairman Paul Manafort to serve 47 months in prison, a far shorter length of time than prosecutors in the case had argued for. The decision from federal judge T.S. Manafort is expected to serve only 38 more months of the 47-month sentence because of time he has already spent incarcerated. In addition to the sentence, Ellis ordered Manafort to pay a $50,000 fine, the lowest fine provided for by guidelines that recommen
Ex-Trump campaign chief Paul Manafort sentenced to 47 months for fraud in Mueller case Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-07  Authors: kevin breuninger, tucker higgins
Keywords: news, cnbc, companies, chief, fraud, trump, sentencing, sentenced, months, mueller, case, manafort, campaign, sentence, paul, judge, federal, manaforts, special, extrump, ellis


Ex-Trump campaign chief Paul Manafort sentenced to 47 months for fraud in Mueller case

A federal judge on Thursday sentenced President Donald Trump’s former campaign chairman Paul Manafort to serve 47 months in prison, a far shorter length of time than prosecutors in the case had argued for.

The decision from federal judge T.S. Ellis in Virginia comes less than a week before Manafort’s second sentencing hearing in another case in Washington, D.C., district court. Both cases were brought on charges lodged by special counsel Robert Mueller in his ongoing probe of Russia’s election meddling and possible collusion with the Trump campaign.

Manafort is expected to serve only 38 more months of the 47-month sentence because of time he has already spent incarcerated. In addition to the sentence, Ellis ordered Manafort to pay a $50,000 fine, the lowest fine provided for by guidelines that recommended a fine between $50,000 and $24 million.

Manafort, seated in a wheelchair and clad in a green prison jumpsuit during the hearing, spoke of the hardship he has faced as a prime figure in the high-profile Mueller investigation.

“The last two years have been the most difficult for my family and I,” Manafort said in his plea for compassion from the judge.

“To say I have been humiliated and ashamed would be a gross understatement,” he said.

Before delivering his sentence, Ellis said that Manafort has “been a good friend to others, a generous person.”

The judge added: “He has lived an otherwise blameless life.”

Manafort had been convicted in the Virginia court last summer on eight counts of bank fraud, tax fraud and failing to file a foreign bank account report. The charges mostly pertained to Manafort’s past work for Ukraine’s Russia-backed president at the time, Viktor Yanukovych.

Manafort was not convicted on 10 other criminal counts in that case, which were deadlocked by the 12-person jury.

Manafort’s lawyer argued in court that the amount of time Manafort spent talking to prosecutors — 50 hours in total — reflects significant cooperation in the government’s investigation.

But Mueller’s team said bluntly that Manafort’s interviews only took so long because he misled them.

“Fifty hours with us was because he lied,” prosecutor Greg Andres told Ellis. “He lied, so it took longer to provide the truth to him.”

Manafort “did not provide valuable information to the special counsel that wasn’t already known,” Andres said.

In a sentencing memo last week, Manafort’s attorneys argued that Manafort should receive a sentence “substantially below” the 19-to-24-year prison length suggested by federal guidelines. Manafort is a “first-time offender,” they wrote, and noted that he admitted his guilt on separate charges launched by Mueller in Washington, D.C., federal court.

Ellis apparently agreed that the guidelines were too high, calling the calculated range “excessive.”

Still, Ellis said before delivering the sentence that he was “surprised” he did not hear Manafort “express regret” in his remarks.

Manafort’s attorneys also accused the special counsel of attempting to “vilify Mr. Manafort as a lifelong and irredeemable felon,” as well as “spreading misinformation about Mr. Manafort to impugn his character in a manner that this country has not experienced in decades.”

But Mueller countered in a Tuesday night filing that Manafort’s request for leniency should be ignored at his sentencing, arguing that Manafort has not taken responsibility for his crimes. The special counsel also highlighted additional wrongdoing Manafort is alleged to have done since his cases began, including witness tampering and lying to investigators.

While Ellis had often been curt and impatient toward prosecutors during Manafort’s three-week trial, most of his rulings before announcing Manafort’s sentence appeared to favor the government’s position.

Ellis reportedly shot down multiple objections from Manafort’s lawyers regarding a pre-sentence report prepared by federal probation officials. The judge also declined to give Manafort any credit for accepting responsibility for his crimes.

Both the defense and the prosecution agreed to delay a decision about Manafort’s restitution until after his second sentencing in D.C. next week.

Trump has consistently and aggressively denounced the Mueller probe as “illegal” and a “witch hunt” motivated by partisan politics. His fiery criticisms have raised alarm among Mueller’s defenders, who suspect Trump may be considering a pardon for Manafort or other targets of the Russia probe.

“It’s very sad, what happened to Paul,” Trump said of Manafort in November. “I have not offered any pardons,” he said at that time, but added, “I’m not taking anything off the table.”

New York authorities are reportedly prepping charges against Manafort if Trump does pardon his crimes.


Company: cnbc, Activity: cnbc, Date: 2019-03-07  Authors: kevin breuninger, tucker higgins
Keywords: news, cnbc, companies, chief, fraud, trump, sentencing, sentenced, months, mueller, case, manafort, campaign, sentence, paul, judge, federal, manaforts, special, extrump, ellis


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Air Force grants 3D rocket printer Relativity Space a ‘premier’ launch pad in Florida

Relativity Space, a three-year-old start-up that aims to build rockets using 3D printers, announced a contract Thursday with the U.S. Air Force to build and operate a launch facility at Cape Canaveral Air Force Station in Florida. “Cape Canaveral is the premier launch site in the U.S.,” Relativity CEO Tim Ellis told CNBC. The five-year “multi-user” agreement means Relativity can begin operating out of Launch Complex 16, or LC-16, the historic location of hundreds of American space launches. Ther


Relativity Space, a three-year-old start-up that aims to build rockets using 3D printers, announced a contract Thursday with the U.S. Air Force to build and operate a launch facility at Cape Canaveral Air Force Station in Florida. “Cape Canaveral is the premier launch site in the U.S.,” Relativity CEO Tim Ellis told CNBC. The five-year “multi-user” agreement means Relativity can begin operating out of Launch Complex 16, or LC-16, the historic location of hundreds of American space launches. Ther
Air Force grants 3D rocket printer Relativity Space a ‘premier’ launch pad in Florida Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: michael sheetz, relativity space
Keywords: news, cnbc, companies, grants, canaveral, site, florida, rocket, exclusive, launch, space, ellis, pad, force, air, contract, premier, printer, relativity


Air Force grants 3D rocket printer Relativity Space a 'premier' launch pad in Florida

Relativity Space, a three-year-old start-up that aims to build rockets using 3D printers, announced a contract Thursday with the U.S. Air Force to build and operate a launch facility at Cape Canaveral Air Force Station in Florida.

“Cape Canaveral is the premier launch site in the U.S.,” Relativity CEO Tim Ellis told CNBC.

The five-year “multi-user” agreement means Relativity can begin operating out of Launch Complex 16, or LC-16, the historic location of hundreds of American space launches. There is no monetary exchange or lease payment to the Air Force for this contract. The agreement includes an option to extend for an exclusive 20-year term.

“We have a very clear path toward having this be an exclusive use site for us in the future,” Ellis said.


Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: michael sheetz, relativity space
Keywords: news, cnbc, companies, grants, canaveral, site, florida, rocket, exclusive, launch, space, ellis, pad, force, air, contract, premier, printer, relativity


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Sell IBM shares because its profits are in an ‘irreversible structural decline,’ analyst says

IBM’s shares will struggle as most of its profits are in a “likely irreversible structural decline,” according to MoffettNathanson. “Even after shedding >$20B in revenues, we believe IBM will continue to struggle to return to growth.” The analyst estimated that only about 25 percent to 30 percent of IBM’s revenue comes from growth businesses. “The ‘growth scales’ are still tipped heavily in the wrong direction for IBM,” Ellis said. IBM shares are essentially flat for the year, while the S&P 500


IBM’s shares will struggle as most of its profits are in a “likely irreversible structural decline,” according to MoffettNathanson. “Even after shedding >$20B in revenues, we believe IBM will continue to struggle to return to growth.” The analyst estimated that only about 25 percent to 30 percent of IBM’s revenue comes from growth businesses. “The ‘growth scales’ are still tipped heavily in the wrong direction for IBM,” Ellis said. IBM shares are essentially flat for the year, while the S&P 500
Sell IBM shares because its profits are in an ‘irreversible structural decline,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-04  Authors: fred imbert, scott mlyn
Keywords: news, cnbc, companies, profits, ibm, ibms, sell, decline, structural, growth, analyst, price, struggle, ellis, irreversible, revenue, icon, shares, stock


Sell IBM shares because its profits are in an 'irreversible structural decline,' analyst says

IBM’s shares will struggle as most of its profits are in a “likely irreversible structural decline,” according to MoffettNathanson.

Analyst Lisa Ellis initiated the stock with a sell rating and a 12-month price target of $150 a share, which is about 2 percent below Wednesday’s closing price of $153.22.

“We love this 100+ year-old American icon, and support management’s turnaround strategy, but six+ years in, the company’s recovery remains protracted and uncertain,” Ellis wrote in a note to clients Thursday. “Even after shedding >$20B in revenues, we believe IBM will continue to struggle to return to growth.”

Ellis noted that IBM’s struggles will continue as most of its revenue still comes from areas with limited growth. The analyst estimated that only about 25 percent to 30 percent of IBM’s revenue comes from growth businesses. “The ‘growth scales’ are still tipped heavily in the wrong direction for IBM,” Ellis said. “Much of the rest of IBM’s portfolio (we estimate ~$33B) is in structurally declining areas of Enterprise IT, so while the declines may be slowed, they cannot be reversed.”

The company has been struggling to move away from its enterprise technology business as its main source of revenue. Its cloud business, meanwhile, is lagging that of competitors such as Amazon and Microsoft.

IBM shares are essentially flat for the year, while the S&P 500 tech sector is up nearly 20 percent and is the best performer of 2018.

“As much as we are rooting for this American icon, and believe the management team is taking the right steps to turn around the company, we see little upside to the stock over the next year,” Ellis said.

IBM declined to comment.


Company: cnbc, Activity: cnbc, Date: 2018-10-04  Authors: fred imbert, scott mlyn
Keywords: news, cnbc, companies, profits, ibm, ibms, sell, decline, structural, growth, analyst, price, struggle, ellis, irreversible, revenue, icon, shares, stock


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Mueller gets more time to decide whether to retry Manafort

A federal judge on Thursday gave special counsel Robert Mueller extra time he had requested to decide whether to seek a retrial for former Trump campaign boss Paul Manafort on the 10 criminal charges that jurors deadlocked on last week. Manafort was convicted of eight tax crimes and bank fraud charges in the case in U.S. District Court in Alexandria, Virginia. Mueller originally had until Wednesday to decide whether to retry Manafort on those counts or to have them dismissed. Ellis’ ultimate rul


A federal judge on Thursday gave special counsel Robert Mueller extra time he had requested to decide whether to seek a retrial for former Trump campaign boss Paul Manafort on the 10 criminal charges that jurors deadlocked on last week. Manafort was convicted of eight tax crimes and bank fraud charges in the case in U.S. District Court in Alexandria, Virginia. Mueller originally had until Wednesday to decide whether to retry Manafort on those counts or to have them dismissed. Ellis’ ultimate rul
Mueller gets more time to decide whether to retry Manafort Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-30  Authors: dan mangan, kevin breuninger, dana verkouteren
Keywords: news, cnbc, companies, judge, sept, gets, ellis, manafort, deadlocked, charges, motions, retry, court, mueller, decide


Mueller gets more time to decide whether to retry Manafort

A federal judge on Thursday gave special counsel Robert Mueller extra time he had requested to decide whether to seek a retrial for former Trump campaign boss Paul Manafort on the 10 criminal charges that jurors deadlocked on last week.

But exactly how much time Mueller will have remains to be seen.

Manafort was convicted of eight tax crimes and bank fraud charges in the case in U.S. District Court in Alexandria, Virginia.

Jurors reportedly deadlocked by a vote of 11-1 in favor of conviction on the remaining 10 charges against the 69-year-old Republican operative.

Mueller originally had until Wednesday to decide whether to retry Manafort on those counts or to have them dismissed.

But on Wednesday, he asked Judge T.S. Ellis for additional time to make that decision, citing the fact that Manafort’s defense team had yet to file post-trial motions. Ellis’ ultimate rulings on those expected motions could affect Mueller’s decision on whether to go to the trouble of trying to convict Manafort of the deadlocked charges.

In his order issued Thursday, Ellis noted that Mueller has not objected to the request by Manafort’s lawyers to extend the deadline for filing post-trial motions. That deadline will now be around Sept. 20.

The judge said Mueller would have until “one week after this Court has ruled on any pre-trial motions filed by the defendant” to decide whether to seek the retrial.

Manafort is due to go on trial starting Sept. 17 in U.S. District Court in Washington, D.C., where he is charged with money laundering, failing to register as a foreign agent and witness tampering.

Both that case and the one in Virginia relate to consulting work that Manafort did for pro-Russia politicians in Ukraine in the years before he joined President Donald Trump’s campaign in 2016.

Manafort has pleaded not guilty in both cases.


Company: cnbc, Activity: cnbc, Date: 2018-08-30  Authors: dan mangan, kevin breuninger, dana verkouteren
Keywords: news, cnbc, companies, judge, sept, gets, ellis, manafort, deadlocked, charges, motions, retry, court, mueller, decide


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Deadline nears for Mueller to decide whether to retry Manafort on 10 counts in Virginia case

Attempting to retry those charges would benefit neither Manafort nor Mueller, said former federal prosecutor Elie Honig. Manafort, 69, faces a second trial against Mueller’s prosecutors in Washington, D.C., federal court in mid-September. If asked to redo 10 counts, Ellis may have even less patience to spare for the prosecutors. That would potentially push back the Washington trial, which has already been delayed once, even further. “He’s facing more than sufficient time under the counts he’s be


Attempting to retry those charges would benefit neither Manafort nor Mueller, said former federal prosecutor Elie Honig. Manafort, 69, faces a second trial against Mueller’s prosecutors in Washington, D.C., federal court in mid-September. If asked to redo 10 counts, Ellis may have even less patience to spare for the prosecutors. That would potentially push back the Washington trial, which has already been delayed once, even further. “He’s facing more than sufficient time under the counts he’s be
Deadline nears for Mueller to decide whether to retry Manafort on 10 counts in Virginia case Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-27  Authors: kevin breuninger, brendan smialowski, afp, getty images
Keywords: news, cnbc, companies, prosecutors, federal, case, retry, trial, decide, washington, muellers, cotter, nears, deadline, counts, virginia, ellis, mueller, manafort


Deadline nears for Mueller to decide whether to retry Manafort on 10 counts in Virginia case

White House faces fallout from Cohen and Manafort legal drama 8:22 AM ET Wed, 22 Aug 2018 | 02:36

Federal prosecutors on Mueller’s team now have until Wednesday to inform Ellis whether they plan to try again for guilty verdicts on those remaining counts or whether they will dismiss them from Manafort’s indictment.

Attempting to retry those charges would benefit neither Manafort nor Mueller, said former federal prosecutor Elie Honig.

“If they do retry, you’re looking at three trials for the same guy,” Honig said, suggesting that doing so would be inefficient and a waste of resources.

Manafort, 69, faces a second trial against Mueller’s prosecutors in Washington, D.C., federal court in mid-September. He’s charged with seven counts, including money laundering, failing to register as a lobbyist and conspiring against the United States.

Both trials involve work Manafort did as a consultant for a pro-Russian political party in Ukraine.

Retrying the Virginia trial, even in a limited form, could pose other challenges for the prosecutors. Ellis had regularly admonished Mueller’s attorneys to speed through their case, which spanned 10 days, 27 witnesses and more than 360 evidence exhibits.

On a few occasions, tempers appeared to flare between the judge and the team of U.S. attorneys; at one point, the prosecutors filed a motion asking the judge to retract one of his criticisms to avoid unfairly prejudicing the jury against them.

If asked to redo 10 counts, Ellis may have even less patience to spare for the prosecutors.

And while Ellis could postpone the retrial until after Manafort’s Washington trial has finished, he could also order it to begin beforehand. That would potentially push back the Washington trial, which has already been delayed once, even further.

Patrick Cotter, a former New York federal prosecutor, said there is “absolutely no legal reason” to retry the counts.

“He’s facing more than sufficient time under the counts he’s been convicted of” without even factoring in the upcoming Washington trial, Cotter said.

But, Cotter added, there’s a chance the U.S. attorneys will still tell Ellis they intend to retry the 10 counts come Wednesday.

“It wouldn’t shock me,” Cotter said. “Any lawyer likes to keep their options open as long as possible.”


Company: cnbc, Activity: cnbc, Date: 2018-08-27  Authors: kevin breuninger, brendan smialowski, afp, getty images
Keywords: news, cnbc, companies, prosecutors, federal, case, retry, trial, decide, washington, muellers, cotter, nears, deadline, counts, virginia, ellis, mueller, manafort


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Judge in Paul Manafort trial says he has been threatened and is now under US Marshal protection

Ellis, the man presiding over the criminal trial of former Trump campaign chief Paul Manafort, said Friday that he has received threats about the case — and now travels with protection from the U.S. “I don’t feel right if I release their names.” “I have no reason to believe that if those names are unsealed there won’t be threats against them,” Ellis said of the jurors, who do not have protection by U.S. Media outlets including NBC News had requested the names and addresses of the jurors be unsea


Ellis, the man presiding over the criminal trial of former Trump campaign chief Paul Manafort, said Friday that he has received threats about the case — and now travels with protection from the U.S. “I don’t feel right if I release their names.” “I have no reason to believe that if those names are unsealed there won’t be threats against them,” Ellis said of the jurors, who do not have protection by U.S. Media outlets including NBC News had requested the names and addresses of the jurors be unsea
Judge in Paul Manafort trial says he has been threatened and is now under US Marshal protection Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-17  Authors: dan mangan, kevin breuninger, getty images
Keywords: news, cnbc, companies, threatened, judge, outside, manafort, court, ellis, manaforts, threats, jurors, names, release, paul, trial, marshal, protection


Judge in Paul Manafort trial says he has been threatened and is now under US Marshal protection

Judge T.S. Ellis, the man presiding over the criminal trial of former Trump campaign chief Paul Manafort, said Friday that he has received threats about the case — and now travels with protection from the U.S. Marshal Service.

Speaking at a hearing outside of jurors’ presence, Ellis also said he has no plan to release the names and home addresses of those 12 people now deliberating Manafort’s fate because he is worried about their “peace and safety.”

“I had no idea this case would excite these emotions, I can tell you that frankly,” Ellis said, as jurors continued their second day of deliberations in U.S. District Court in Alexandria, Virginia. “I don’t feel right if I release their names.”

“I have no reason to believe that if those names are unsealed there won’t be threats against them,” Ellis said of the jurors, who do not have protection by U.S. Marshals.

Media outlets including NBC News had requested the names and addresses of the jurors be unsealed.

They also were asking Ellis to unseal discussions Ellis had with prosecutors and defense lawyers outside of the earshot of others in court during Manafort’s trial, where he is charged with bank fraud and tax crimes.


Company: cnbc, Activity: cnbc, Date: 2018-08-17  Authors: dan mangan, kevin breuninger, getty images
Keywords: news, cnbc, companies, threatened, judge, outside, manafort, court, ellis, manaforts, threats, jurors, names, release, paul, trial, marshal, protection


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Prosecutors rest their case in trial of former Trump campaign chair Paul Manafort

Prosecutors on Monday rested their tax evasion and bank fraud case against Paul Manafort, a longtime Washington operator and President Donald Trump’s former campaign chairman. Defense attorneys have called Gates a liar, philanderer and embezzler as they’ve sought to undermine his testimony. The trial is the first to emerge from Mueller’s investigation into Russian meddling in the presidential election, but neither Manafort nor Gates have been charged in connection with their Trump campaign work.


Prosecutors on Monday rested their tax evasion and bank fraud case against Paul Manafort, a longtime Washington operator and President Donald Trump’s former campaign chairman. Defense attorneys have called Gates a liar, philanderer and embezzler as they’ve sought to undermine his testimony. The trial is the first to emerge from Mueller’s investigation into Russian meddling in the presidential election, but neither Manafort nor Gates have been charged in connection with their Trump campaign work.
Prosecutors rest their case in trial of former Trump campaign chair Paul Manafort Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-13  Authors: brendan mcdermid
Keywords: news, cnbc, companies, rest, case, gates, paul, attorneys, bank, ellis, loans, defense, campaign, judge, prosecutors, trial, manafort, manaforts, trump, chair


Prosecutors rest their case in trial of former Trump campaign chair Paul Manafort

Prosecutors on Monday rested their tax evasion and bank fraud case against Paul Manafort, a longtime Washington operator and President Donald Trump’s former campaign chairman.

The case now goes to Manafort’s defense team, which is expected to lay the blame for wrongdoing with Rick Gates, the former Manafort protege who says the two committed crimes together. Defense attorneys have called Gates a liar, philanderer and embezzler as they’ve sought to undermine his testimony.

The trial is the first to emerge from Mueller’s investigation into Russian meddling in the presidential election, but neither Manafort nor Gates have been charged in connection with their Trump campaign work.

Still, the proceedings have drawn international attention — as well as Trump’s — for what the case reveals about people in the combative president’s orbit as Mueller examines the same circles for any election interference or obstruction.

Trump has distanced himself from Manafort, who was chairman of the campaign from May to August 2016 — with Gates at his side. Gates struck a plea deal with prosecutors and provided much of the drama of the trial so far.

The government says Manafort hid around $16 million in income from the IRS between 2010 and 2014 by disguising money he earned advising politicians in Ukraine as loans and hiding it in foreign banks. Then, after his money in Ukraine dried up, they allege he defrauded banks by lying about his income on loan applications.

Gates said he helped Manafort commit crimes in an effort to protect Manafort’s finances. Defense attorneys called Gates a liar interested in avoiding jail time under a plea deal. Gates was forced to admit embezzling hundreds of thousands of dollars from Manafort and an extramarital affair.

The prosecution has introduced a trove of documentary evidence as they’ve sought to prove Manafort defrauded banks and concealed millions of dollars in offshore bank accounts from the IRS. Along the way, they’ve not only faced an aggressive defense team but tongue-lashings from U.S. District Judge T.S. Ellis III, who presides over the case. The admittedly impatient judge has pushed the government to speed up its case.

Before prosecutor Greg Andres told Ellis the government rested its case on Monday afternoon, the court heard testimony from a bank executive who said he found several red flags with Manafort’s finances while he was being considered for around $16 million in bank loans.

James Brennan, a vice president at Federal Savings Bank, says Manafort failed to disclose mortgages on his loan application. He said he also found several “inconsistencies” in the amount of income Manafort reported for his business.

That information led senior executives to reject one of the loans. But Brennan said Federal Savings Bank chairman Stephen Calk overruled that decision.

“It closed because Mr. Calk wanted it to close,” Brennan said.

Other witnesses have said Calk pushed the loans through because he wanted a plum post in the Trump administration.

Brennan said the Chicago-based bank lost $11.8 million because it had to write off a significant portion of two loans it made to Manafort. He said they were the two largest loans the bank had made when they were issued in late 2016 and early 2017.

On Friday, proceedings were halted for hours by mysterious backstage discussions between the judge and attorneys for both sides. U.S. District Judge T.S. Ellis III recessed the trial without explanation after huddling with his bailiff and attorneys from special counsel Robert Mueller’s office and Manafort’s lawyers for more than 20 minutes.

At one point on Friday, Ellis left the courtroom and headed toward the jury room. After bringing court back into session, he reminded jurors several times that they weren’t to discuss the tax evasion and bank fraud case at all. That included telling them to not even comment on the attire of any witnesses.


Company: cnbc, Activity: cnbc, Date: 2018-08-13  Authors: brendan mcdermid
Keywords: news, cnbc, companies, rest, case, gates, paul, attorneys, bank, ellis, loans, defense, campaign, judge, prosecutors, trial, manafort, manaforts, trump, chair


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