Jeremy Siegel: Stocks could add another 5% onto record rally by year-end thanks to the Fed

After four 0.25% hikes last year, the target range for the fed funds overnight bank lending rate stands at 2.25% to 2.5%. The final Fed increase in borrowing costs in 2018 came in December when the stock market was melting down. At the shorter end of the bond yield curve, the 3-month Treasury rate has actually been higher than the 10-year. That so-called inverted yield curve, when shorter-term bonds deliver higher rates than longer-term ones, historically has signaled a recession on the horizon.


After four 0.25% hikes last year, the target range for the fed funds overnight bank lending rate stands at 2.25% to 2.5%. The final Fed increase in borrowing costs in 2018 came in December when the stock market was melting down. At the shorter end of the bond yield curve, the 3-month Treasury rate has actually been higher than the 10-year. That so-called inverted yield curve, when shorter-term bonds deliver higher rates than longer-term ones, historically has signaled a recession on the horizon.
Jeremy Siegel: Stocks could add another 5% onto record rally by year-end thanks to the Fed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, add, higher, stocks, jeremy, stock, yield, rally, funds, yearend, week, rate, record, siegel, fed, thanks, market, curve


Jeremy Siegel: Stocks could add another 5% onto record rally by year-end thanks to the Fed

The stock market has been hitting all kinds of records this week, and Wharton School professor Jeremy Siegel told CNBC on Friday that he does not see that stopping anytime soon.

“I think fair market value does give us another 5% or 6% this year” on the S&P 500 with the Federal Reserve signalling interest rate cuts ahead, the longtime stock bull said on “Fast Money Halftime Report.”

“But we may go up 10% or 12% before we sell off,” Siegel added, noting the Fed tends to overshoot on both the downside and the upside when adjusting rates.

Fed Chairman Jerome Powell — who dropped rate-cut hints over two days of congressional economic testimony this week — has been widely criticized by Wall Street and President Donald Trump for hiking too aggressively.

After four 0.25% hikes last year, the target range for the fed funds overnight bank lending rate stands at 2.25% to 2.5%. The final Fed increase in borrowing costs in 2018 came in December when the stock market was melting down.

Siegel said he hopes the Fed cuts rates by a half percentage point at its upcoming July 30-31 meeting, though he acknowledges that such a bold move would be unlikely.

Around midday Friday, the CME FedWatch tracker was putting only about a 25% probability on a 0.5% reduction in the fed funds and much larger 75% odds on a 0.25% cut.

The reason Siegel would like to see a deeper cut is because he’s concerned about the fed funds rate being higher than the 10-year Treasury yield, which was around 2.1% on Friday.

At the shorter end of the bond yield curve, the 3-month Treasury rate has actually been higher than the 10-year.

That so-called inverted yield curve, when shorter-term bonds deliver higher rates than longer-term ones, historically has signaled a recession on the horizon.

“The biggest factor here is we really did see an inversion in that yield curve,” Siegel said. “I’ve gone through history, it is one of the most single reliable indicators of a recession. And I worry about that.”


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, add, higher, stocks, jeremy, stock, yield, rally, funds, yearend, week, rate, record, siegel, fed, thanks, market, curve


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Here’s where the jobs are — in one chart

The U.S. labor market rebounded in June after May’s lackluster jobs report thanks to another strong month for health-care hiring, which has repeatedly led industry-based employment gains over the last year. But the Labor Department’s Friday report on the employment situation also showed robust hiring in the business and professional services sector, including jobs in consulting and computer system design. CNBC studied the net changes by industry for June jobs based on the data from the Labor Dep


The U.S. labor market rebounded in June after May’s lackluster jobs report thanks to another strong month for health-care hiring, which has repeatedly led industry-based employment gains over the last year. But the Labor Department’s Friday report on the employment situation also showed robust hiring in the business and professional services sector, including jobs in consulting and computer system design. CNBC studied the net changes by industry for June jobs based on the data from the Labor Dep
Here’s where the jobs are — in one chart Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: thomas franck
Keywords: news, cnbc, companies, labor, yearbut, employment, thanks, heres, hiring, month, studied, chart, jobs, report, system


Here's where the jobs are — in one chart

The U.S. labor market rebounded in June after May’s lackluster jobs report thanks to another strong month for health-care hiring, which has repeatedly led industry-based employment gains over the last year.

But the Labor Department’s Friday report on the employment situation also showed robust hiring in the business and professional services sector, including jobs in consulting and computer system design.

CNBC studied the net changes by industry for June jobs based on the data from the Labor Department contained in the jobs report. The government said the U.S. economy added a hefty 224,000 jobs last month, far more than the 165,000 increase expected by economists polled by Dow Jones.


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: thomas franck
Keywords: news, cnbc, companies, labor, yearbut, employment, thanks, heres, hiring, month, studied, chart, jobs, report, system


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Gold prices could reach fresh 6-year highs thanks to a slew of positive drivers

The Fed news, and the nomination of the International Monetary Fund’s managing director, Christine Lagarde, to lead the European Central Bank, created an even more bullish environment for gold, Cooper said Wednesday in an email to CNBC. “Leading up to this recent rally, investors had been very underweight in gold. “We think gold prices should see good technical support around $1,373, so dips below $1,375 look [like] attractive levels to enter back into the gold market,” Cooper said. “We’re expec


The Fed news, and the nomination of the International Monetary Fund’s managing director, Christine Lagarde, to lead the European Central Bank, created an even more bullish environment for gold, Cooper said Wednesday in an email to CNBC. “Leading up to this recent rally, investors had been very underweight in gold. “We think gold prices should see good technical support around $1,373, so dips below $1,375 look [like] attractive levels to enter back into the gold market,” Cooper said. “We’re expec
Gold prices could reach fresh 6-year highs thanks to a slew of positive drivers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: lizzy gurdus
Keywords: news, cnbc, companies, reach, gold, risk, negative, investors, continued, cooper, think, debt, thanks, trade, 6year, fresh, prices, slew, drivers, rally, highs, positive


Gold prices could reach fresh 6-year highs thanks to a slew of positive drivers

Gold is glistening.

The precious metal has rallied 11% this year, with much of the move occurring in the last several months, as concerns around slowing global growth and U.S.-China trade tensions took hold among investors. It continued to tick up on Wednesday after President Donald Trump said he intended to nominate two dovish candidates to the Federal Reserve’s board of governors.

And there’s still room for gold to run, even as far as its six-year highs, according to Suki Cooper, executive director of precious metals research at Standard Chartered Bank.

“There are a number of macro factors that have turned very positive for gold, and even though we’ve seen a little bit of a pullback, we think this is actually a healthy correction,” she said Tuesday on CNBC’s “Futures Now,” referring to the yellow metal’s dip in the previous session.

“Those key drivers of a weaker dollar, falling yields and the continued uncertainty and potential risk that we might see a widespread recession are spurring investors to turn to gold once again as a safe haven asset,” Cooper said.

The Fed news, and the nomination of the International Monetary Fund’s managing director, Christine Lagarde, to lead the European Central Bank, created an even more bullish environment for gold, Cooper said Wednesday in an email to CNBC.

“Dovish central banks, growing negative yielding debt coupled with the impact of trade protectionism on global growth create a favourable cocktail for gold upside risk,” she wrote. “We continue to expect the Fed to cut by 25 [basis points] in July and then again in December, but the market has started pricing in some of the risk much sooner. ”

Compounding this action is a recent surge in gold ETF inflows, she said. In June, gold-based funds saw their highest inflows since the U.K.’s Brexit vote in 2016.

“Leading up to this recent rally, investors had been very underweight in gold. We’re starting to see that move into speculative positioning,” Cooper said. “There’s still much more room to the upside, particularly when it comes to retail demand.”

What really ignited gold’s 2019 rally were worries around U.S.-Mexico trade relations, Cooper said. In late May, Trump threatened to slap tariffs on all Mexican imports if Mexico did not meet his demands regarding border security. The president later reached an agreement with Mexico to hold off on the tariffs “indefinitely.”

Now, the yet-unresolved trade dispute with China, rising tensions in the Middle East and negative debt yields around the world are all also providing fuel for gold’s rally, she said.

“We think gold prices should see good technical support around $1,373, so dips below $1,375 look [like] attractive levels to enter back into the gold market,” Cooper said.

But the second half will likely take the yellow metal to new highs not seen since 2013, she said.

“We’re expecting gold prices to pass $1,400 and average $1,450 in [the fourth quarter],” Cooper said Tuesday. “Particularly as negative debt around the world has continued to grow, we think that’s going to be one of the key, major backdrops that continue to support gold prices.”

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: lizzy gurdus
Keywords: news, cnbc, companies, reach, gold, risk, negative, investors, continued, cooper, think, debt, thanks, trade, 6year, fresh, prices, slew, drivers, rally, highs, positive


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Your iPhone will soon be able to identify dogs and cats thanks to Apple’s new detector

The software shows Apple’s continued efforts to take complicated and tricky machine learning techniques, and package them as part of the iPhone operating system. Computer vision is also a core underlying technology for self-driving cars and augmented reality glasses. Apple’s Photos app has been able to identify cats and dogs from user photos since 2016. The software is part of Apple’s Vision framework, which gives developers tools for image recognition, and it isn’t intended for end users. It wa


The software shows Apple’s continued efforts to take complicated and tricky machine learning techniques, and package them as part of the iPhone operating system. Computer vision is also a core underlying technology for self-driving cars and augmented reality glasses. Apple’s Photos app has been able to identify cats and dogs from user photos since 2016. The software is part of Apple’s Vision framework, which gives developers tools for image recognition, and it isn’t intended for end users. It wa
Your iPhone will soon be able to identify dogs and cats thanks to Apple’s new detector Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-26  Authors: kif leswing
Keywords: news, cnbc, companies, thanks, software, iphone, dogs, soon, apples, framework, able, identify, vnanimaldetector, computer, cats, detector, vision, photos, users


Your iPhone will soon be able to identify dogs and cats thanks to Apple's new detector

A new feature in an upcoming version of Apple’s iOS will enable iPhones to look at images and identify which parts of that picture are cats or dogs.

The software, called VNAnimalDetector, basically draws a digital rectangle around any part of a photograph containing an animal and labels it as either a cat or dog.

The software shows Apple’s continued efforts to take complicated and tricky machine learning techniques, and package them as part of the iPhone operating system.

It also emphasizes Apple’s large investment into computer vision, a subset of computer science that focuses on enabling cameras and other sensors to “see” and understand the real world. Computer vision is also a core underlying technology for self-driving cars and augmented reality glasses.

The detector also suggests that Apple is very aware of how many pictures of their fuzzy friends iPhone users take. Apple’s Photos app has been able to identify cats and dogs from user photos since 2016.

The software is part of Apple’s Vision framework, which gives developers tools for image recognition, and it isn’t intended for end users. Instead, the Vision framework is designed to be built into apps. Apple also built a detector for humans, which can take an image as input, and draw rectangles around any people in the picture.

It was previously possible to identify cats or people using machine learning. Lots of computer scientists and big companies have made pet detectors in the past. But VNAnimalDetector makes it easier to build into apps, in as little as four lines of code, according to a presentation at Apple’s annual developer’s conference earlier this month.

Other new advancements in the Vision framework include the ability to identify whether two images are similar, additional facial recognition abilities and the ability to identify which objects are in a photo, even if they’re not pets.

Additional technical information about the Vision API is available on Apple’s website. Additional cat photos can be found all over the internet.


Company: cnbc, Activity: cnbc, Date: 2019-06-26  Authors: kif leswing
Keywords: news, cnbc, companies, thanks, software, iphone, dogs, soon, apples, framework, able, identify, vnanimaldetector, computer, cats, detector, vision, photos, users


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Morgan Stanley sees 17% upside at Disney thanks to its new streaming service

Morgan Stanley on Thursday raised its forecast for Disney shares as interest in the media giant’s new streaming service puts it on a path for healthy long-term profit. Disney posted $7.08 earnings per share in fiscal year 2018. “Stepping back and admittedly taking the long view, investing in Disney shares is a play on the durability of its IP,” Swinburne said. Disney shares rose 1.4% in premarket trading following the Morgan Stanley note. The service will cost subscribers $6.99 per month, or $69


Morgan Stanley on Thursday raised its forecast for Disney shares as interest in the media giant’s new streaming service puts it on a path for healthy long-term profit. Disney posted $7.08 earnings per share in fiscal year 2018. “Stepping back and admittedly taking the long view, investing in Disney shares is a play on the durability of its IP,” Swinburne said. Disney shares rose 1.4% in premarket trading following the Morgan Stanley note. The service will cost subscribers $6.99 per month, or $69
Morgan Stanley sees 17% upside at Disney thanks to its new streaming service Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: thomas franck
Keywords: news, cnbc, companies, upside, morgan, disney, swinburne, subscribers, thanks, sees, million, stanley, 17, fiscal, service, shares, streaming, share


Morgan Stanley sees 17% upside at Disney thanks to its new streaming service

Morgan Stanley on Thursday raised its forecast for Disney shares as interest in the media giant’s new streaming service puts it on a path for healthy long-term profit.

Analyst Benjamin Swinburne hiked his price target to $160 from $135, predicted over 130 million over-the-top subscribers around the world by 2024 and wrote that Disney+ should boost the company’s adjusted earnings per share over $11 over the next five years.

Disney posted $7.08 earnings per share in fiscal year 2018.

“Stepping back and admittedly taking the long view, investing in Disney shares is a play on the durability of its IP,” Swinburne said. “Encouragingly, consumers are voting with their wallets today, spending an estimated $15-20bn a year for movies and TV product that will ultimately make its way to Disney Plus.”

Disney shares rose 1.4% in premarket trading following the Morgan Stanley note. The stock is up about 24% so far this year. The platform, which was unveiled by Disney’s top brass in April, should attract about 13 million subscribers at the end of fiscal 2020 and 70 million by 2024, the analyst wrote.

And while Morgan Stanley isn’t the only brokerage positive on Disney+, much of the bullish case behind the new service centers around its extensive film and television catalog as well as the promise of new shows featuring favorite characters from Pixar Studios to “Star Wars.”

“Disney already incurs significant marketing costs supporting its brands, notably its films, and as a narrower service, it is not trying from a content perspective to be all things to all people, therefore requiring less content volume,” Swinburne added. “We believe the market has often overstated the risk and underappreciated the reward of the transition to streaming.”

The service will cost subscribers $6.99 per month, or $69.99 per year, which is at the high end of what many analysts had expected.


Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: thomas franck
Keywords: news, cnbc, companies, upside, morgan, disney, swinburne, subscribers, thanks, sees, million, stanley, 17, fiscal, service, shares, streaming, share


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Amazon can pay human warehouse workers more thanks to robots, top exec says

Far from taking over warehouse workers’ jobs, robots are actually helping Amazon pay humans higher wages, according to the company’s CEO of its worldwide consumer division, Jeff Wilke. He said small robots bring inventory to workers in the warehouse so they can stay put. “Those small robots have made the job safer, and they’ve made it more efficient, which has allowed us to pay higher wages,” Wilke said. As artificial intelligence has become more advanced, workers in low-skill jobs have feared t


Far from taking over warehouse workers’ jobs, robots are actually helping Amazon pay humans higher wages, according to the company’s CEO of its worldwide consumer division, Jeff Wilke. He said small robots bring inventory to workers in the warehouse so they can stay put. “Those small robots have made the job safer, and they’ve made it more efficient, which has allowed us to pay higher wages,” Wilke said. As artificial intelligence has become more advanced, workers in low-skill jobs have feared t
Amazon can pay human warehouse workers more thanks to robots, top exec says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: lauren feiner
Keywords: news, cnbc, companies, exec, amazons, wage, workers, robots, wages, jobs, wilke, amazon, bezos, warehouse, pay, thanks, human


Amazon can pay human warehouse workers more thanks to robots, top exec says

Far from taking over warehouse workers’ jobs, robots are actually helping Amazon pay humans higher wages, according to the company’s CEO of its worldwide consumer division, Jeff Wilke.

“We are using robotics and AI to make the job safer and make it easier for people to do what they do best, which is be creative and use their mind,” Wilke said in an interview with CNBC’s Jon Fortt from Amazon’s re:MARS conference in Las Vegas. He said small robots bring inventory to workers in the warehouse so they can stay put.

“Those small robots have made the job safer, and they’ve made it more efficient, which has allowed us to pay higher wages,” Wilke said.

As artificial intelligence has become more advanced, workers in low-skill jobs have feared their roles could be filled by robots. A recent report by the Brookings Institution found that a quarter of U.S. jobs are at “high-risk” for becoming automated. But Amazon’s head of robotics fulfillment Scott Anderson recently told reporters that fully automated warehouses were still “at least 10 years” away, according to Engadget.

Amazon has often been challenged on its warehouse working conditions, including from workers themselves, who have protested the company. Democratic presidential candidate Sen. Bernie Sanders had been a vocal critic of Amazon’s wages for workers, even introducing legislation called the “Stop Bad Employers by Zeroing Out Subsidies, or Bezos, Act,” which proposed taxing corporations for every dollar their low-wage workers get in government benefits for health-care and food costs.

Sanders later praised CEO Jeff Bezos for rising to the occasion when the company announced in October it would raise the minimum wage to $15 per hour for all U.S. employees.

In his annual letter to shareholders, Bezos challenged other companies to match Amazon’s pay and benefits.

“Today I challenge our top retail competitors (you know who you are!) to match our employee benefits and our $15 minimum wage. Do it! Better yet, go to $16 and throw the gauntlet back at us. It’s a kind of competition that will benefit everyone,” Bezos wrote.

Subscribe to CNBC on YouTube.

Watch: Amazon is making one-day shipping the new standard for Prime members


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: lauren feiner
Keywords: news, cnbc, companies, exec, amazons, wage, workers, robots, wages, jobs, wilke, amazon, bezos, warehouse, pay, thanks, human


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The cost of your shoes could jump thanks to the US-China trade war

The cost of your sneakers or high heels could soon jump, thanks to another round of tariffs under consideration by the Trump administration as part of an ongoing trade war with China. The list includes footwear — everything from sneakers to sandals, golf shoes, rain boots and ski shoes. Should the tariff increase ultimately take effect, analysts say consumers would feel the brunt of the impact. FDRA said a popular type of canvas “skate” sneaker, currently retailing at $49.99, with a 25% tariff,


The cost of your sneakers or high heels could soon jump, thanks to another round of tariffs under consideration by the Trump administration as part of an ongoing trade war with China. The list includes footwear — everything from sneakers to sandals, golf shoes, rain boots and ski shoes. Should the tariff increase ultimately take effect, analysts say consumers would feel the brunt of the impact. FDRA said a popular type of canvas “skate” sneaker, currently retailing at $49.99, with a 25% tariff,
The cost of your shoes could jump thanks to the US-China trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: lauren thomas
Keywords: news, cnbc, companies, war, footwear, billion, jump, shoes, increase, trade, thanks, tariff, cost, tariffs, 25, china, working, uschina


The cost of your shoes could jump thanks to the US-China trade war

The cost of your sneakers or high heels could soon jump, thanks to another round of tariffs under consideration by the Trump administration as part of an ongoing trade war with China.

The White House on Monday released a fresh list of about $300 billion in Chinese goods that could get hit with 25% tariffs, if President Donald Trump decides to move forward with his threat. The list includes footwear — everything from sneakers to sandals, golf shoes, rain boots and ski shoes.

Should the tariff increase ultimately take effect, analysts say consumers would feel the brunt of the impact. And the American footwear industry is particularly dependent on China.

In 2017, China accounted for about 72% of all footwear imported into the U.S., according to the American Apparel and Footwear Association. The U.S. imported $11.4 billion worth of footwear from China last year, according to data from the U.S. Census Bureau.

“While brands have moved their production into other countries in Asia because labor costs are lower there, everybody is still making shoes in China,” said Matt Powell, a sports analyst for NPD Group. “The Chinese have years of expertise. They tend to be the best at making high-value product.”

Both Nike and Adidas — the top two sneaker makers in the U.S. by sales — have steadily been easing their reliance on China, shifting production to Vietnam instead. Both companies declined to comment when reached by CNBC.

Puma has said it’s working to do more of the same. But China still dominates when it comes to footwear manufacturing.

“For a lot of working families who buy shoes at Walmart, Target and these other retailers … a ton of volume runs through [China], ” said Matt Priest, the president and CEO of the Footwear Distributors and Retailers of America, a trade organization. The proposed tariffs on footwear “are concerning to say the least,” he said. “It’s every single type of shoe.”

FDRA said a popular type of canvas “skate” sneaker, currently retailing at $49.99, with a 25% tariff, could increase to $65.57. The price of a typical hunting boot would increase from $190 to $248.56. And a popular performance running shoe could jump from $150 to $206.25, FDRA said.

Ultimately, a 25% tariff on footwear could cost shoppers more than $7 billion each year, Priest said — what he called a “conservative” estimate.

— CNBC’s Jessica Golden contributed to this reporting.

WATCH: Cramer explains which businesses have the most exposure to the trade war


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: lauren thomas
Keywords: news, cnbc, companies, war, footwear, billion, jump, shoes, increase, trade, thanks, tariff, cost, tariffs, 25, china, working, uschina


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Uber employee No. 1 is a billionaire, and he got the job thanks to a tweet

On Jan 5, 2010, Ryan Graves sent a tweet to Uber co-founder Travis Kalanick suggesting himself as a potential hire for what was then a new start-up. On March 1, 2010, he became the first employee at Uber thanks to that tweet. “I was hitting Craigslist, Twitter, and other channels looking for the right candidate,” Kalanick wrote in a 2010 blog post about Uber’s early days. Because of his equity in the company, Graves, 35, is a very rich man, worth more than $1 billion, according to Forbes. Kalani


On Jan 5, 2010, Ryan Graves sent a tweet to Uber co-founder Travis Kalanick suggesting himself as a potential hire for what was then a new start-up. On March 1, 2010, he became the first employee at Uber thanks to that tweet. “I was hitting Craigslist, Twitter, and other channels looking for the right candidate,” Kalanick wrote in a 2010 blog post about Uber’s early days. Because of his equity in the company, Graves, 35, is a very rich man, worth more than $1 billion, according to Forbes. Kalani
Uber employee No. 1 is a billionaire, and he got the job thanks to a tweet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-10  Authors: catherine clifford, mark neuling
Keywords: news, cnbc, companies, ubers, silicon, job, billion, graves, billionaire, according, employee, wrote, uber, company, 2010, kalanick, thanks


Uber employee No. 1 is a billionaire, and he got the job thanks to a tweet

It would turn out to be a billion-dollar tweet.

On Jan 5, 2010, Ryan Graves sent a tweet to Uber co-founder Travis Kalanick suggesting himself as a potential hire for what was then a new start-up.

Graves, who was at the time working as a leader in a management training program in information technology at General Electric, got hired.

On March 1, 2010, he became the first employee at Uber thanks to that tweet.

“I was hitting Craigslist, Twitter, and other channels looking for the right candidate,” Kalanick wrote in a 2010 blog post about Uber’s early days. “What resulted was the Awesomest job post and response I’ve ever seen.”

Now of course, Uber is a multibillion-dollar company. It was valued at more than $75 billion based on it’s $45 a share IPO on Thursday, and shares were hovering between about $42 and $44 when it started trading on the New York Stock Exchange Friday.

Because of his equity in the company, Graves, 35, is a very rich man, worth more than $1 billion, according to Forbes.

Kalanick (worth over $5 billion, according to Forbes) has said that Graves, “hit the ground running,” at Uber after he was hired. “From the day he got going, we spent about 15-20 hours a week working together going over product, driver on-boarding, pricing model, the whole nine. He learned the startup game fast and worked his a– off to build the Uber team and make the San Francisco launch and subsequent growth a huge success,” Kalanick wrote in the 2010 blog post.

Graves’ tenure at Uber included an almost year-long stint as the CEO and an almost seven-year run as the senior vice president of global operations.

Of course, Graves’ time at Uber was not without controversy, and he announced his resignation from Uber in August 2017, two months after Kalanick was forced to resign when investigations into Uber’s culture revealed sexual harassment and discrimination.

“We should have taken more time to reflect on our mistakes and make changes together,” Graves said in an email sent to Uber staff at the time. “There always seemed to be another goal, another target, another business or city to launch. Confucius said that reflection is the noblest method to learn wisdom, and fortunately, our new found reflection and introspection has become an asset to us and we have evolved and grown considerably.”

Graves still sits on Uber’s board of directors. He now lives with his family in Hawaii, according to Forbes, and is running the investment firm he founded, Saltwater. Saltwater’s portfolio includes independent San Francisco beer company Fort Point beer, cannabis company Caliva and women’s health and fertility services company Kindbody.

Though Graves’ money tweet may sound like a Silicon Valley fairy tale, it’s not entirely unique. Adam Lyons was the 25-year-old founder of car-insurance start-up The Zebra when he guessed Mark Cuban’s email address, shot him a note and ended up getting an investment from the billionaire star of ABC’s “Shark Tank.” And Elon Musk recently suggested a Reddit user “should interview at Tesla” for the analysis he posted of his Tesla’s self-driving car technology.

And it’s not just Silicon Valley: Hafthor Bjornsson who stars as “The Mountain” on HBO’s “Game of Thrones,” got an audition for the role via an unsolicited Facebook Messenger message.

See also:

Hedge fund billionaire Ray Dalio to younger self: ‘Why are you so stupidly arrogant!?!’

Pinterest’s employee No. 2 left before his equity vested—here’s what he says of the decision that cost him millions

Google execs reveal secrets to success they got from Silicon Valley’s ‘trillion dollar’ business coach


Company: cnbc, Activity: cnbc, Date: 2019-05-10  Authors: catherine clifford, mark neuling
Keywords: news, cnbc, companies, ubers, silicon, job, billion, graves, billionaire, according, employee, wrote, uber, company, 2010, kalanick, thanks


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Robot food delivery may be coming to a campus near you

Campus food delivery is getting a surprising pick-me-up, thanks to autonomous robots offering food-and-beverage delivery right to the dorm room. The first college to do this is George Mason University in Fairfax, Virginia. It teamed up with Sodexo and Starship Technologies to launch the service in late January. So far, more than 10,000 deliveries have been made by 40 roaming robots from local haunts like Blaze Pizza, Dunkin’, Subway and Steak and Shake, and plans are to make this a 24-hour servi


Campus food delivery is getting a surprising pick-me-up, thanks to autonomous robots offering food-and-beverage delivery right to the dorm room. The first college to do this is George Mason University in Fairfax, Virginia. It teamed up with Sodexo and Starship Technologies to launch the service in late January. So far, more than 10,000 deliveries have been made by 40 roaming robots from local haunts like Blaze Pizza, Dunkin’, Subway and Steak and Shake, and plans are to make this a 24-hour servi
Robot food delivery may be coming to a campus near you Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: lori ioannou, dan bukszpan, special to cnbccom, caroline gao
Keywords: news, cnbc, companies, food, robot, virginia, robots, thanks, teamed, university, surprising, near, delivery, service, campus, coming, technologies


Robot food delivery may be coming to a campus near you

Campus food delivery is getting a surprising pick-me-up, thanks to autonomous robots offering food-and-beverage delivery right to the dorm room.

The first college to do this is George Mason University in Fairfax, Virginia. It teamed up with Sodexo and Starship Technologies to launch the service in late January. So far, more than 10,000 deliveries have been made by 40 roaming robots from local haunts like Blaze Pizza, Dunkin’, Subway and Steak and Shake, and plans are to make this a 24-hour service.

The service also has created 20 jobs on campus for students.


Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: lori ioannou, dan bukszpan, special to cnbccom, caroline gao
Keywords: news, cnbc, companies, food, robot, virginia, robots, thanks, teamed, university, surprising, near, delivery, service, campus, coming, technologies


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

A controversial part of Robinhood’s business tripled in sales thanks to high-frequency trading firms

The revenue Robinhood gets from a controversial practice of selling customer trades to high frequency trading firms is skyrocketing, according to new research. The company sends customers’ orders to high-frequency trading firms like Virtu or Citadel Securities instead of a stock exchange like the NYSE. As a private company, Robinhood is not required to disclose its income statements, which would paint a better picture of its revenue components. According to a Bloomberg report last year, Robinhoo


The revenue Robinhood gets from a controversial practice of selling customer trades to high frequency trading firms is skyrocketing, according to new research. The company sends customers’ orders to high-frequency trading firms like Virtu or Citadel Securities instead of a stock exchange like the NYSE. As a private company, Robinhood is not required to disclose its income statements, which would paint a better picture of its revenue components. According to a Bloomberg report last year, Robinhoo
A controversial part of Robinhood’s business tripled in sales thanks to high-frequency trading firms Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-18  Authors: kate rooney
Keywords: news, cnbc, companies, business, trades, customers, sales, firms, orders, trading, tripled, highfrequency, revenue, robinhood, robinhoods, thanks, rowady, controversial, practice, company


A controversial part of Robinhood's business tripled in sales thanks to high-frequency trading firms

The revenue Robinhood gets from a controversial practice of selling customer trades to high frequency trading firms is skyrocketing, according to new research.

The popular millennial stock-trading app brought in $69 million in order routing revenue in 2018, according to a new estimate from Alphacution Research, three times what the company brought in a year earlier. So-called “payment for order flow,” is a common practice on Wall Street.

“This certainly means they’re growing,” Paul Rowady, director of research at Alphacution, told CNBC. “There’s a lot more flow going through Robinhood’s platform.”

The Menlo Park, California-based company has ushered in 6 million users and a $5.6 billion valuation in its five-year existence. Its no-fee model for stock trading has been successful in attracting millennials and put pressure on incumbents like Charles Schwab and TD Ameritrade, which charge $4.95 and $6.95, for trades, respectively.

Robinhood has faced criticism over its reliance on high-frequency traders, especially considering a founding ethos that some have categorized as “anti-Wall Street.” The company sends customers’ orders to high-frequency trading firms like Virtu or Citadel Securities instead of a stock exchange like the NYSE. These trades are executed in what’s known as a dark pool, which as the name suggests, lacks some transparency.

Critics of high-frequency trading say the practice, which takes milliseconds, can result in big market swings and also allow institutional investors to gain an upper hand over smaller retail investors.

“The question is, what does that suggest about the underlying execution quality? Are they are going to be biased based on who is paying the most?” Rowady said. “There’s a feeling that maybe because of mass tech and speed in everything, that there’s still some games being played.”

But the practice is hardly unique on Wall Street. Roughly 40 percent of all trading is done outside of exchanges — up from just 10 percent a decade ago, according to CFA Institute, a group of investment professionals. There are also regulations that require broker dealers to execute trades at the best price.

The entire industry saw a roughly 42 percent increase in overall order-routing revenue, according to Alphacution. TD Ameritrade for example, saw 43 percent growth in order-routing revenue year over year. Robinhood’s outsized percentage increase accounts for the fact that it was much smaller to start, Rowady said.

Robinhood makes money by taking a fraction of a cent per dollar from each trade order and collecting interest on customers’ deposits. It also has a paid subscription service called “Robinhood Gold,” unveiled in September 2016.

As a private company, Robinhood is not required to disclose its income statements, which would paint a better picture of its revenue components. As a registered broker-dealer, though, it does have certain required disclosures, which Alphacution used to estimate its totals.

According to a Bloomberg report last year, Robinhood brought in more than 40 percent of its revenue in early 2018 from selling its customers’ orders to high-frequency trading firms, or market makers. Robinhood’s co-founder and CEO Vlad Tenev defended the practice in a blog post.

Tenev said like its broker-dealer peers, the start-up “participates in rebate programs which help customers get additional price improvement for their orders by creating competition amongst the exchanges and liquidity providers who fill the orders, often resulting in superior execution quality.”

“We send your orders to the market maker that’s most likely to give you the best execution quality,” Tenev said a blog post. The company also said it does not take rebates into consideration. “All market makers with whom we work have the same rebate rate.”

Robinhood declined to comment on the 2018 revenue figures.

The growth in Robinhood’s revenue came alongside a massive increase in customers. The start-up jumped from 5 million to 6 million customers in a matter of months last year.

It also ended 2018 with a major misstep, though. The company announced in December that it would launch checking and savings accounts with an eye-popping, industry leading interest rate. Just a day later, Robinhood’s co-founders said they were re-naming and re-launching after regulators and Wall Street sounded the alarm.

“Robinhood is growing and their business plan seems to be working,” Rowady said. “It’s just a question of when you look below the components of revenue — is it sustainable, and how far can it go?”


Company: cnbc, Activity: cnbc, Date: 2019-04-18  Authors: kate rooney
Keywords: news, cnbc, companies, business, trades, customers, sales, firms, orders, trading, tripled, highfrequency, revenue, robinhood, robinhoods, thanks, rowady, controversial, practice, company


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post