Hedgefund News Wrap: Week Ending 01/29/16


(Fox Business) – The world’s largest online retailer has displayed not-so-juicy fourth-quarter revenue results and people are not happy. In early trading hours Thursday about $24 billion or so had been added to the company’s market value and by the end of the day poof! It had vanished.

Responsibility for the decline falls on the company’s total operating expenses surging more than 20 percent to $34.64 billion in the fourth quarter. Factors like adding more services for Prime membership holders, such as one-hour delivery and TV programming, are included in those operating expenses. An analyst with RBC Capital Markets, Mark Mahaney, mentioned that the last three quarters Amazon has exceeding Wall Street’s expectations, but they no have a sour taste in their mouth after yesterday’s performance.

But of course, not all is lost as net sales rose 21.8 percent $35.75 billion, but missed analysts’ expectations of $35.93 billion. Furthermore, Amazon’s net sales in North America increased 24 percent to $21.5 billion.

Mad about your losses? Jeff Bezos, Amazon Founder and CEO, lost more than $6B yesterday, so cheer up.

Read the entire article at Fox Business
More coverage: The New York Times and MarketWatch


(USA Today) – Xerox has officially announced it will become two publicly traded entities, an $11 billion document technology company based around namesake copier and scanner hardware and a $7 billion provider of services to government and industries such as health care and transportation.

Following the announcement, shares were up more than 5 percent Friday to $9.74. But, the last year hasn’t been too friendly to Xerox as shares have fallen about 30 percent, but hopefully the split can catapult them back into the green. Piggy backing the split is a three-year restructuring program concentrated on saving $2.4 billion.

These “significant actions … define the next chapter of our company,” said Chairman and CEO Ursula Burns in a conference call Friday morning from Xerox’s headquarters in Norwalk, Conn.

Does this story sound familiar? It is, as Hewlett Packard also split into two companies in November 2015. It looks like it’s a hard time for the printer business.

Read the entire article at USA Today
More coverage: Bloomberg


(CNN Money) – Your internal battle of choosing between hauling a cab or spending the extra cash for an Uber are over. Rates for UberX have dropped by 15 percent in New York City today, making it cheaper to ride than a taxi.

An Uber representative stated that the cut is based on seasonality, apparently ride requests drop in the winter months. But do not fear, this is not a a promotional stunt or marketing scheme, it was implemented along with some other changes. Now drivers have a new hourly guarantee, $30 to $40 an hour, depending on the time of the day.

But wait wait wait, surge pricing? Yeah, it’s still very much there.

Read the entire article at CNN Money
More coverage: Time Money