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Twitter & Best Buy: Diluting Shareholders & Renew Blue

These are our articles posted on Seeking Alpha. Click "READ MORE" if you would like to read the rest of the articles.

It's Put Up Or Shut Up Time For Twitter

Summary

  • The earnings announcement disappoints again.
  • The company is losing steam and advertisers.
  • Direction of the company doesn’t seem clear.
  • The company sits on cash while diluting its shareholders big time.

If Twitter could tweet away its stock, would it do that too? I hope not!

Twitter (NYSE: TWTR) reported second quarter 2016 earnings recently and the news was not good. I'm not even sure where to begin with this one, so I'll just start with the numbers.

Revenue was below expectations and earnings were negative. Analysts were looking for sales of $608 million. TWTR reported $595 million. Now, while earnings did beat consensus estimates of a loss of $0.10 a share (coming in at negative $0.07), that's still not good news for the reasons explored below.

The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data). As you can see, TWTR has never been profitable in all the time it has been a public company... READ MORE



Is Best Buy Your Best Bet?

Summary

  • BBY’s revenue per retail square foot has been on the rise. But not for the right reasons.
  • The softness in mobile phone category has hurt BBY’s top-line more than any other factor.
  • BBY’s efforts to develop the online business are fully justified.
  • The rapidly enlarging market for large screen TVs and 4Ks, in particular, represents a good opportunity for BBY.

It has been nearly 4 years since Best Buy (NYSE:BBY) launched its 'Renew Blue' program to improve comp store sales and achieve major cost savings and in all honesty, noticeable progress has been made. Still, BBY is far from being in a comfortable position in an increasingly competitive consumer electronics retail space.

BBY did not have a stellar fiscal 2016 despite good performance in categories like wearables and home theater, and advancements made against the Renew Blue Phase 2 cost reduction program. Revenue declined for the third straight year even though the company managed to deliver an unprecedented 13% growth in domestic online sales. The international segment was hit hard by a strong dollar but even if we exclude the foreign currency impact, BBY's financial results were far from convincing... READ MORE

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