Tag Archives: Analysts
(Reuters) – Shares in Apple Inc (AAPL.O) and its suppliers fell on Thursday after a raft of analysts read a prediction of softer smartphone sales from Taiwan Semiconductor Manufacturing Co Ltd (2330.TW) as driven chiefly by concern about demand for iPhones.
TSMC, the world’s largest contract chipmaker and a major Apple supplier, revised its full-year revenue target to the low end of its earlier forecast.
“Apple represents nearly 20 percent of TSMC’s revenue so the outlook potentially points to weaker-than-anticipated iPhone demand,” Atlantic Equities analyst James Cordwell told Reuters.
Others, some asking not to be quoted, said baldly that the warning was “exactly” about Apple.
Mizuho Securities USA said in a client note that its checks continue to point to soft demand for iPhone X, the Cupertino-based firm’s tenth anniversary phone released last November, in addition to a steady fall in iPhone 8 and 8 Plus orders.
Apple’s shares were last down 2.5 percent and were the biggest drag on the tech-heavy Nasdaq index.
“Until the new iPhones in the Fall start driving the production food chain in Q3, mobile’s going to be weak,” Elazar Advisors analyst Chaim Siegel said.
TSMC, also a supplier to Qualcomm and Nvidia Corp (NVDA.O), said it expects growth this year of 5 percent for the global semiconductor industry, weaker than an earlier forecast of 5-7 percent.
Data provider TrendForce had earlier estimated 2018 global smartphone production at around 1.5 billion units, 2.8 percent up on 2017 but down from a previously expected 5 percent.
TSMC on Thursday estimated 8 percent growth for contract chipmakers, compared with its previous forecast of 9-10 percent.
U.S.-listed shares of TSMC (TSM.N) were down 6 percent, while other chip equipment makers such as Applied Materials Inc (AMAT.O) and Lam Research Corp (LRCX.O) fell about 5 percent and ASML Holding NV (ASML.O) lost 3.6 percent.
Another big industry bellwether, chip equipment maker Lam Research, said on Wednesday its shipments missed consensus estimates for the first time in five years.
Reporting by Sonam Rai in Bengaluru; Editing by Maju Samuel and Patrick Graham
Twitter surprised investors and followers Thursday with revenue gains and its first profit, but some analysts say the company is still withholding vital information.
Twitter (twtr), on its earnings conference call, declined to give hard daily active user (DAU) statistics, simply saying it achieved its fifth consecutive quarter of double digit DAU growth, with a 12% year-over-year increase. That’s all well and good, say analysts, but without actual numbers, it’s a relatively meaningless boast.
“The DAU growth metric is literally the FIRST THING in their shareholder letter,” said Wedbush Securities’ Michael Pachter via Twitter. “Their excuse that they won’t disclose is lame. If they can’t tell us the numbers, why brag about growth? It’s either important (and should be disclosed) or not (and should be ignored).”
Pachter’s frustration grew as the call went on.
And he wasn’t the only critic.
Relying on percentage growth figures without giving any sort of base is an old trick of corporations. The reigning king of this strategy is Amazon, which has yet to give hard numbers regarding Amazon Prime members, though it has regularly touted the service’s membership growth.
While Twitter won’t disclose the number of daily users, it did, however, shed some light on monthly active users. That number was roughly the same as the prior quarter at 330 million, a lower-than-projected total that the company attributed in part to stepped-up efforts to reduce spam, malicious activity, and fake accounts.
The Communications segment provides Internet access services and devices, including dial-up, mobile broadband, digital subscriber line (NASDAQ:UNTD), e-mail, Internet security, Web hosting, and voice services. The Content & Media segment offers social …