Turbotodd

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IBM Reports 2017 Second-Quarter Results

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IBM reported 2017 second-quarter results…highlights:

  • Diluted EPS from continuing operations: GAAP of $2.48; Operating (non-GAAP) of $2.97
  • Revenue from continuing operations of $19.3 billion
  • Strategic imperatives revenue of $34.1 billion over the trailing 12 months, up 11 percent (up 12 percent adjusting for currency); represents 43 percent of IBM revenue
    • First half revenue up 8 percent (up 10 percent adjusting for currency)
    • Second quarter revenue up 5 percent (up 7 percent adjusting for currency
  • Cloud revenue of $15.1 billion over the trailing 12 months
  • As-a-service annual exit run rate of $8.8 billion in the quarter, up 30 percent year to  year (up 32 percent adjusting for currency)
  • Maintains full-year EPS and free cash flow expectations

“In the second quarter, we strengthened our position as the enterprise cloud leader and added more of the world’s leading companies to the IBM Cloud,” said Ginni Rometty, IBM chairman, president and chief executive officer.  “We continue to innovate, adding regtech capabilities to our portfolio of Watson offerings; developing solutions based on emerging technologies such as Blockchain; and reinventing the IBM mainframe by enabling clients to encrypt all data, all the time.”

More details here.

Written by turbotodd

July 18, 2017 at 3:10 pm

Posted in 2017, earnings, ibm, wall street

Apple Earnings And AirPods

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Apple announced its latest earnings report, and while the company doesn’t typically break out sales of its Apple Watch, Cook did note that the revenue in the last year from Apple’s wearables business was “the size of a Fortune 500 company.”

As The Verge pointed out, the smallest Fortune 500 company “pulled in $5.1 billion in revenue last year.”

The Apple announced its latest earnings report, and while the company doesn’t typically break out sales of its Apple Watch, Cook did note that the revenue in the last year from Apple’s wearables business was “the size of a Fortune 500 company.” wearables business consists of the Apple Watch, the Beats headphones, and the company’s newest entrant, AirPods (more on those in a moment).

As The Verge pointed out, the smallest Fortune 500 company “pulled in $5.1 billion in revenue last year.”

The Apples wearables business consists of the Apple Watch, the Beats headphones, and the company’s newest entrant, AirPods (more on those in a moment).

CNBC reported that Apple iPhone unit shipments were off the mark, selling 50.8M against a 52M expectation. And while 451 Research highlights that smartphone buying intent has fallen to a nine-year low, Wall Street projections suggest some 300M iPhones could be set for an upgrade this fall.

It could be needed, as Mac growth was tepid at 4 percent YOY, iPad units fell 13 percent YOY, and Apple’s China sales fell 12 percent YOY.

On the upside, the App Store was up 40 percent and Apple’s developer community grew by over 20 percent, according to Cook.

Now back to those AirPods.

They seem to be a sleeper hit. You can’t find them anywhere, save for maybe Craig’s List, and I’ve been told there’s at least a six week wait.

So while Apple may have missed on their AirPods demand forecast, those folks who *do* have them in hand (or, in ear, as it were) seem to love them madly.

Tech.pinion’s Ben Bajarin partnered with Experian to track down 942 people willing to take a quick AirPods user survey. Customer sat with the AirPods is at 98%! — that’s 82 percent “Very Satisfied” and 16% “Satisfied.”

That’s a record for customer sat for a new product from Apple, according to Bajarin. He points out that the iPhone had a 92 percent customer sat level when it was released in 2007, and the Apple Watch came close at 97 percent in 2015.

The Net Promoter Score for AirPods is also off the charts at 75 (the iPhone’s NPS is 72).

Writes Bajarin: Product and NPS specialists will tell you anything above 50 is excellent and anything above 70 is world class.

So what gives? Bajarin suggests it’s partially the fact that AirPods users are most likely early adopters, so they’re going to be inclined to love the product.

But I also have to think the fact that these are the first wireless ear buds from Apple, ones which automagically synch up with Apple devices (Macs, iPhones, iPads, etc.), and have good sound and battery life are big contributors to their speedy success.

And, based on some of the survey verbatims, they just seem to work better than prior Bluetooth headphones.

Imagine that. A new product that just works.

CNBC reported that Apple iPhone unit shipments were off the mark, selling 50.8M against a 52M expectation. And while 451 Research highlights that smartphone buying intent has fallen to a nine-year low, Wall Street projections suggest some 300M iPhones could be set for an upgrade this fall.

It could be needed, as Mac growth was tepid at 4 percent YOY, iPad units fell 13 percent YOY, and Apple’s China sales fell 12 percent YOY.

On the upside, the App Store was up 40 percent and Apple’s developer community grew by over 20 percent, according to Cook.

Now back to those AirPods.

They seem to be a sleeper hit. You can’t find them anywhere, save for maybe Craig’s List, and I’ve been told there’s at least a six week wait.

So while Apple may have missed on their AirPods demand forecast, those folks who *do* have them in hand (or, in ear, as it were) seem to love them madly.

Tech.pinion’s Ben Bajarin partnered with Experian to track down 942 people willing to take a quick AirPods user survey. Customer sat with the AirPods is at 98%! — that’s 82 percent “Very Satisfied” and 16% “Satisfied.”

That’s a record for customer sat for a new product from Apple, according to Bajarin. He points out that the iPhone had a 92 percent customer sat level when it was released in 2007, and the Apple Watch came close at 97 percent in 2015.

The Net Promoter Score for AirPods is also off the charts at 75 (the iPhone’s NPS is 72).

Writes Bajarin: Product and NPS specialists will tell you anything above 50 is excellent and anything above 70 is world class.

So what gives? Bajarin suggests its partially the fact that AirPods users are most likely early adopters, so they’re going to be inclined to love the product.

But I also have to think the fact that these are the first wireless ear buds from Apple, ones which automagically synch up with Apple devices (Macs, iPhones, iPads, etc.), and have good sound and battery life are big contributors to their speedy success.

And, based on some of the survey verbatims, they just seem to work better than prior Bluetooth headphones.

Imagine that. A new product that just works.

Written by turbotodd

May 3, 2017 at 9:52 am

IBM and NUS Partner On FinTech and Blockchain Training in Singapore

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FinTech Week NYC may have swung into full hyperledger mode, but IBM continues to forge new blockchain initiatives and partnerships around the world.

Most recently, the National University of Singapore (NUS) School of Computing and the IBM Center for Blockchain Innovation (ICBI), a part of IBM Research, have announced a collaboration to jointly develop a module on financial technology, to better equip students with essential knowledge and skill sets in this area.

Blockchain is a fast growing area across the globe, with banking, healthcare and the government leading the way in terms of adoption. According to studies by IBM’s Institute of Business Value, these three industries are investing heavily in blockchain and commercial solutions are expected to be in place in the next few years.

  • Leading the pack in blockchain banking: Trailblazers set the pace: Fifteen percent of banks and 14 percent of financial market institutions interviewed by IBM intend to implement full-scale, commercial blockchain solutions in 2017. 65 percent of banks are expecting to have blockchain solutions in production in the next three years.
  • Healthcare rallies for blockchains: Keeping patients at the center: Healthcare institutions are going all-in – investing heavily in blockchain pilots, with nine in ten respondents planning to invest by 2018 across all business areas IBM surveyed them about.
  • Building trust in government: Nine in ten government organizations surveyed plan to invest in blockchain for use in financial transaction management, asset management, contract management and regulatory compliance by 2018.

The Singapore government’s strategic goal to become a Smart Financial Centre has put focus on blockchain for Singapore. Through its Financial Sector Technology & Innovation (FSTI) scheme, the Monetary Authority of Singapore (MAS) has committed S$225 million (US$157 million) over a five-year period to provide support for the creation of a vibrant fintech ecosystem.

Among the projects that have been backed by the scheme is a decentralized record-keeping system based on blockchain technology aimed at preventing duplicate invoicing in trade finance.

The new module on financial technology is expected to be introduced in January 2018, and will focus on blockchain and distributed ledger technologies. It seeks to equip students with an understanding of the fundamentals of the technology behind distributed ledgers, and its diverse use cases, from banking to digital currencies to supply chain management. 

NUS faculty members will co-develop the curriculum of the new module with IBM researchers at ICBI to enable students to learn about the latest developments in blockchain technology, and encourage them to contribute to developing the technology further. 

The module will be co-taught by NUS academic staff and ICBI staff who will use financial technology software such as Hyperledger Fabric, one of the five projects under the Hyperledger umbrella, to deliver the course content. Hyperledger Fabric was initially contributed by IBM. Such software will also be made available to NUS researchers for research purposes.  Such software will also be made available to NUS researchers for research purposes. 

Under the collaboration, ICBI will provide technology support in the form of access via the IBM Cloud to the Hyperledger Fabric blockchain framework. IBM is an early contributor Hyperledger, a Linux Foundation project, which now contains more than 129 member organizations.

You can learn more about IBM Blockchain initiatives here.

Written by turbotodd

April 25, 2017 at 9:15 am

Three Essential Blockchain Adoption Principles

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IBM today announced that it has identified three key elements of enterprise blockchain adoption for c-suite leaders to consider when evaluating the technology for business use.

Blockchain, or distributed ledger technology, is quickly making its way into the enterprise, potentially becoming as revolutionary a technology for business transactions as the internet was for communications in the late 1990s.

In the supply chain and logistics industry alone, the technology could potentially help save billions of dollars annually and significantly reduce delays and spoilage. Its potential impacts are far-reaching; according to the World Economic Forum, reducing barriers within the international supply chain could increase worldwide GDP by almost five percent and total trade volume by 15 percent.  

To best derive value from blockchain technology, IBM recommends that enterprise adopters across supply chains and other key industries including financial services, retail, energy and others develop a close understanding of five key elements of the technology:

  • Blockchain has the potential to transform trade, transactions and business processes. The two concepts underpinning blockchain are “business network” and “ledger.” Taken together, these are what make blockchain a smart, tamper-resistant way to conduct trade, transactions and business processes. Network members exchange assets through a ledger that all members share access to. The ledger is synced across the network with all members needing to confirm a transaction of tangible or intangible assets before it is approved and stored on the blockchain. This shared view helps establish legitimacy and transparency, even when parties are not familiar with one another.
  • The value is in the ecosystem as the blockchain network grows. As a business network, blockchain can include several different types of participants. Depending on the number of participants in a blockchain network, the value of assets being exchanged and the need to authorize members with varying credentials, adopters should observe the difference between “permissioned” and “permissionless” blockchain networks. The real value for blockchain is achieved when these business networks grow. With a strong ecosystem, business networks can more easily reach critical mass allowing the users to build new business models and reinvent the transaction process.
  • Blockchain can significantly improve visibility and trust across business. Blockchains can reduce transaction settlement times from days or weeks to seconds by providing visibility to all the participants. The technology can also be used to cut excess costs by removing intermediary third-parties typically required to verify transactions. Because blockchain is built on the concept of trust, it can help reduce risks of illicit practices carried out over payment networks, helping to mitigate fraud and cybercrimes.

 

Speed, cost efficiency and transparency are among blockchain’s most significant benefits in the enterprise and within ecosystems of companies conducting trade. 

IBM, Walmart and Tsinghua University
, for example, are exploring the use of blockchain to help address the challenges surrounding food safety. By allowing members within the supply chain to see the same records, blockchain helps narrow down the source of a contamination.

Blockchain is being rapidly explored today 

Real-world use of blockchain is underway. Everledger, a company that tracks and protects diamonds and other valuables via the blockchain, has started building a digital business network using IBM Blockchain to power its global certification system.

When combined with a highly secure cloud environment, blockchain technology can be used to help protect suppliers, buyers and shippers against theft, counterfeiting and other forms of corruption, while simultaneously demonstrating the origin of high-value goods for essential parties.

IBM is also working with multiple stock exchanges to test trading over blockchain in low-liquidity markets. A case study that supports findings from ‘Leading the pack in blockchain banking’ and ‘Blockchain rewires financial markets’ predicts that 15 percent of banks and 14 percent of broader financial markets institutions expect to have blockchain in-production at commercial scale this year, and 53 percent of banks believe they will move to a live blockchain network over the next two years.

You can learn more about IBM Blockchain solutions here.

Written by turbotodd

April 24, 2017 at 9:02 am

IBM Reports 1Q2017 Financial Results

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IBM today announced first-quarter earnings results for 2017.

Highlights included:

  • Diluted EPS from continuing operations: GAAP of $1.85; Operating (non-GAAP) of $2.38
  • Revenue from continuing operations of $18.2 billion
  • Strategic imperatives revenue of $7.8 billion in the quarter, up 12 percent (up 13 percent adjusting for currency)
  • Strategic imperatives revenue of $33.6 billion over the last 12 months represents 42 percent of IBM revenue
  • Cloud revenue of $14.6 billion over the last 12 months
  • Cloud as-a-Service annual exit run rate of $8.6 billion in the quarter, up 59 percent year to year (up 61 percent adjusting for currency)
  • Maintains full-year EPS and free cash flow expectations.

 

“In the first quarter, both the IBM Cloud and our cognitive solutions again grew strongly, which fueled robust performance in our strategic imperatives,” said Ginni Rometty, IBM chairman, president and chief executive officer.  “In addition, we are developing and bringing to market emerging technologies such as blockchain and quantum, revolutionizing how enterprises will tackle complex business problems in the years ahead.”

You can see the full announcement here.

Written by turbotodd

April 18, 2017 at 3:11 pm

A Stock Picking Machine

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If you’re looking for a little AI-related news, yesterday didn’t disappoint.

The New York Times reported that the largest fund company in the world, BlackRock, will be throwing a counterpunch against all those little pesky computer-driven funds that have sprouted up over the past several years.

Founder Laurence D. Fink, founder and CEO of BlackRock, “has cast his lot with the machines,” wrote the Times.

Meaning what, exactly?

BlackRock has laid out a plan to consolidate a large number of actively managed (read: by humans) mutual funds with peers that rely more on algorithms and models to pick stocks.

“The democratization of information has made it much harder for active management,” Mr. Fink said in an interview. “We have to change the ecosystem — that means relying more on big data, artificial intelligence, factors and models within quant and traditional investment strategies.”
– via www.nytimes.com

 

With Paul Bunyan, it was Man v. Machine…with the stock pickers, it’s the “quants” vs. the bots.

And oh, the sweet, sweet irony, to re-visit now last week’s comments from former Goldman Sachs banker and now Secretary of the Treasury Steve Mnuchin, who, when asked about the arrival of impactful artificial intelligence, suggested it was 50 to 100 years out.

Uh, how about next week, Mr. Secretary??

Oh yeah, if you want a great read about the looming possibilities and threats of AI, look no further than Vanity Fair.

None other than Maureen Down goes deep into the AI Matrix with Elon Musk, Greg Brockman, and a host of other tech thought leaders to try and ascertain how far and how fast humanity should build out AI capabilities, and the consequences of going both too slow and too quickly.

A conundrum? Sure, but one the machines will be able to figure out in no time…if we let them.

Written by turbotodd

March 29, 2017 at 9:22 am

A Public Snap

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Tech earnings season kicked into high gear this week. A few synthesized highlights…

Apple reported $78.4B in Q1 2017 revenue, with 78.3M iPhones sold and a 19% decline in iPad sales. Apple said developers earned $20B from the App Store in 2016, a 40% increase.

Microsoft reported Q2 revenue of $26.1B, indicating Office 365 revenue grew 10% for the quarter. Microsoft indicated its Azure revenue increased 116% in the most recent quarter, “doubling usage.” Surface was down 2% YOY, Phone revenue down 81%.

Facebook reported Q4 revenue of $8.81B, indicating its mobile ad revenue was on a trajectory of bringing in 84% of all ad revenue. Their Monthly Active Users was 1.86B, up 3.91% for the quarter, and last quarter the company said it’s expecting to run out of ad space in mid-2017. It’s not clear whether this sent digital media buyers everywhere scurrying or not.

Amazon reported Q4 revenue of $43.7B, up 22% YOY, and AWS continued to chug forward growing at 47% and delivering revenue of $3.53B. AWS noted it had migrated more than 18K databases using the company’s service in 2016. Echo sales were up 9X compared to last holiday season. “Alexa, crank up the volume.”

And finally, there’s Snap (formerly known as Snapchat). TechCrunch reported their official IPO filing has their revenues at $404M in 2016 with some 158M daily users. That was 500% YOY growth, according to its S-1, but that also incurred a $513M net loss. But Snap has asserted it has a very aggressive “time spent per user” and has strong international growth in Western Europe and Australia. It also recently introduced its Ads API to widen the aperture on its advertising efforts. Its IPO is expected to be the largest tech float since Alibaba in 2014.

Written by turbotodd

February 3, 2017 at 9:16 am

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