Who Wins When Tech’s ‘Four Horsemen’ Face Off?

Despite the domineering presence of global tech behemoths Amazon.com Inc. (AMZN), Apple Inc. (AAPL), Facebook Inc. (FB) and Alphabet Inc. (GOOG), their future is far from secure, according to NYU’s Scott Galloway. As the giants are pitted against each other in key markets, increasingly eyed by regulators around the globe, they will face competition from other tech giants, most notably sharing economy unicorn Airbnb. (See…


What is a basis point (BPS)?


A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form. Likewise, a fractional basis point like 1.5 basis point is equivalent to 0.015% or 0.00015 in decimal form.

In most cases, basis point refers to changes in interest rates and bond yields.



Can Puerto Rico Default on Its Debt?

The Puerto Rican debt conundrum reared its head again Monday, just weeks after Hurricane Maria wiped out the island, leaving most residents without power, water and other necessities. As the local government grapples with the huge financial bill that lies ahead, investors are anxiously awaiting details on how the Commonwealth plans to deal with its already escalating debt obligations.

The problem of Puerto Rico’s $73…


Stock Split

What is a ‘Stock Split’

A corporate action in which a company divides its existing shares into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because the split did not add any real value. The most common split ratios are 2-for-1 or 3-for-1, which…


Paychex Stock Moves Higher, Ends Day Uncertain

Paychex, Inc. (PAYX) shares soared more than 3.6% on Tuesday after the company reported its latest financial results. During the first quarter, the company’s revenue jumped 4% to $816.8 million – missing consensus estimates by $3.87 million – while net income of 62 cents per share beat consensus estimates by two cents per share. Payroll service revenue jumped 2%, while human resource services revenue increased 7% for…


Can Oracle Win in the Cloud Space Against Amazon?

At Oracle Corp.’s (ORCL) annual OpenWorld conference, Chairman Larry Ellison focused his keynote speech on the tech giant’s new database, Oracle 18c, while spending a significant amount of time bashing Amazon.com Inc.’s (AMZN) rival product.

Amazon fired back at the Oracle co-founder with a representative of the e-commerce and cloud computing giant indicating that Ellison has “no facts, wild claims, and lots of…


What does a merger or acquisition mean for the target company’s employees?


Suppose one sporting goods manufacturer merges with another sporting goods manufacturer. Before the merger and acquisition (M&A) deal, each company had its own production capital, dedicated labor to producing, advertising, analyzing, accounting and other tasks. Following the M&A deal, some of these labor inputs might be redundant. In the short term, this means that employees for both companies may need to be…


Largest Shareholders of Lloyds Bank

Now that the British government has sold its final stake in Lloyds Banking Group plc (LON: LLOY), its top shareholders are primarily mutual funds and institutions.

The British government had bailed out Lloyds during the financial crisis in 2008 and 2009 by buying a 43 percent stake for $20.3 billion British pounds. With the improving economy, the Treasury has been steadily reducing its holdings in Lloyds each month. When…


Opportunity Cost

What is an ‘Opportunity Cost’

Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action. Stated differently, an opportunity cost represents an alternative given up when a decision is made. This cost is, therefore, most relevant for two mutually exclusive events. In investing, it is the difference in return between a…


Precious Metals Pullback Suggests It Is Time to Buy

Declining volatility levels over much of the past month have perplexed investors due to factors such as the heightened possibility of military conflict in regions such as North Korea. The trend toward complacency by so many retail investors seems ill timed, especially given this type of fundamental catalyst, but also because of the upcoming Q3 earnings season.

It seems like a flock to safety and an accompanying increase in…