Editor’s Note: Related tickers: Apple Inc. (NASDAQ:AAPL), Facebook Inc (NASDAQ:FB), Bank of America Corp (NYSE:BAC), Yahoo! Inc. (NASDAQ:YHOO), Cirrus Logic, Inc. (NASDAQ:CRUS), Michael Kors Holdings Ltd (NYSE:KORS), VIVUS, Inc. (NASDAQ:VVUS), Amazon.com, Inc. (NASDAQ:AMZN), Google Inc (NASDAQ:GOOG), Wells Fargo & Company (NYSE:WFC)
Apple Supplier Cirrus Warns of Weak Results (WSJ)
Cirrus Logic, Inc. (NASDAQ:CRUS) -13.46% a supplier for Apple Inc. (NASDAQ:AAPL) -4.16% said it expects to record a significant inventory reserve charge in the fourth quarter and that its margins for the period will be weaker than expected. The chip maker’s shares dropped 14% to $13.72 in early trading Wednesday as the company late Tuesday also offered downbeat first-quarter revenue guidance. Cirrus Logic makes energy and audio chips, and its share price has lately fluctuated along with the perceived fortunes of Apple, its biggest customer. Apple’s iPads and iPhones use Cirrus audio chips, boosting the chip maker’s top line dramatically in recent quarters.
Amazon gains against Apple’s iTunes in music downloads (EconomicTimes)
Amazon.com, Inc. (NASDAQ:AMZN) has grabbed more than a fifth of the market for digital music downloads, helped by the launch of its own tablet computers and aggressive pricing, according to an industry study released on Tuesday. AmazonMP3, the online retailer’s digital music business, had 22 per cent of the market for music downloads in the United States in last year’s fourth quarter, research firm the NPD Group said in its Annual Music Study. That compares with 15 per cent in 2011, 13 per cent in 2010, 10 per cent in 2009 and 7 per cent in 2008, NPD data showed. Apple Inc. (NASDAQ:AAPL)‘s iTunes store, which turns 10 years old on April 28, was still dominant with 63 per cent of the market in the fourth quarter of 2012. But that was down from 68 per cent in 2011 and 69 per cent in 2009, according to NPD.
Apple Named in China Porn App Investigation (WSJ)
Apple Inc. (NASDAQ:AAPL) -4.66% is once again in the pages of the People’s Daily, this time in an article listing a number of websites and app stores that have been investigated for providing pornographic content in China. The Cupertino, Calif., company’s appearance on the list (in Chinese), which mostly includes relatively obscure websites, has spurred concern on the Chinese Internet that this may represent the beginning of another campaign by the government against Apple. But Apple’s most recent appearance in state media is markedly different from the March attacks that prompted an apology from Chief Executive Tim Cook.
Facebook Is Said to Hire Apple Maps Executive in Mobile Push (BusinessWeek)
Facebook Inc (NASDAQ:FB) has nabbed another member of Apple Inc. (NASDAQ:AAPL)’s original iPhone team, hiring Richard Williamson, the manager who had led Apple’s mapping efforts, according to people with knowledge of the hire. Williamson joined Facebook in the past couple of weeks to be a manager within its expanding mobile-software group, said two of the people, who declined to be identified because the information isn’t public. Williamson, who worked at Apple for more than a decade, was one of the engineers assigned by Apple co-founder Steve Jobs to build software for the iPhone. He was later put in charge of the effort to replace Google Inc (NASDAQ:GOOG)’s mapping service for the iPhone and iPad. Williamson was fired by Apple in November as part of a management shakeup after its mapping product was criticized for misguided directions and inaccurate landmark locations.
Apple Inc. (NASDAQ:AAPL) should make Google Maps the default mapping app says Schmidt (USMarketBuzz)
After Apple Inc. (NASDAQ:AAPL) made a mess of Apple Maps on its iPhone 5 and its iOS6 operating software, the company had to make a climb-down and advise its customers, that they could use Google Maps on their mobiles. Apple Maps was supposed to replace Google Maps, as Apple did not want to be too dependent on Google, which was not quite amenable to complying with the iPhone maker’s demands. There also have been rumours about Apple being unwilling to submit to Google’s user data conditions for adding features such as turn-by-turn navigation to iOS Google Maps. Google, never a company to bear a grudge, still went on updating its maps to suit Apple’s new OS.
Apple Inc. (AAPL) At War With Samsung In India (InsiderMonkey)
Apple Inc. (NASDAQ:AAPL) does not make it a habit to compete on price alone. While the company is not opposed to price cuts on some products and offering deals on others, it is safe to say that it is never going to sit at the bottom of the market as far as cost is concerned. However, Apple Inc. (NASDAQ:AAPL) is finding itself in the middle of a price war with Samsung in India. While the two companies are slugging it out for supremacy across the globe, things in this country are just beginning to pick up. We have talked about both company’s offering discounts as a means of attracting a growing number of customers.
Industry watchdog fines Bank of America Corp’s Merrill Lynch $1 million (EconomicTimes)
A Wall Street regulator on Tuesday announced it fined Bank of America Corp (NYSE:BAC)‘s Merrill Lynch $1 million in a civil action for not getting the best execution price for customer transactions involving non-convertible preferred securities and failing to properly supervise the process. The Financial Industry Regulatory Authority also ordered Merrill to pay more than $323,000 in restitution to customers affected by the transactions, FINRA, an industry regulator, said. Merrill, in a settlement with FINRA, neither admitted nor denied FINRA’s findings. A Merrill spokesman said the matter predated Bank of America’s 2009 acquisition of Merrill Lynch. A processing error that caused the problem has been corrected, the spokesman said. Merrill has also compensated clients affected by the problem, he said.
Merrill Headcount Down But Average Revenue Rises (WSJ)
Merrill Lynch appears to be doing more with fewer advisers. Bank of America Corp (NYSE:BAC) -4.75% (BAC) Global Wealth and Investment Management group, which is mostly Merrill Lynch, saw its full-service adviser headcount continue to steadily decline in the first three months of the year, but average revenue generated per adviser actually increased, according to the bank’s first-quarter results. The results bode well for the wealth-management unit and suggest its strong fourth-quarter was not a blip. Prior to early September 2012, Merrill’s efforts to attract top new talent were flailing due to perceived problems with its parent bank, according to advisers and recruiters.
Bank of America Struggles for Growth (WSJ)
Bank of America Corp (NYSE:BAC) -4.84% shares dropped Wednesday after first-quarter results fell short of expectations and showed the financial giant was struggling to boost growth in its core lending business. Revenue dropped 8.4% when an accounting charge related to the bank’s debt was excluded. First-quarter profit of 20 cents a share was up strongly from a year earlier but came in two cents short of Wall Street’s expectations. The results show that despite the bank’s efforts to shrink its size and balance sheet, growth remains elusive amid low interest rates and intensified government regulation.
Bank of America in $500 million settlement with mortgage investors (Reuters)
Bank of America Corp (NYSE:BAC) has reached a record $500 million settlement with investors who claimed they were misled by its Countrywide unit into buying risky mortgage debt. The settlement is the largest to resolve federal class-action litigation over mortgage-backed securities, surpassing a $315 million accord with the bank’s Merrill Lynch unit that won court approval last May. Wells Fargo & Company (NYSE:WFC) in November won approval of a $125 million settlement of similar claims. Bank of America said the settlement resolves claims on about 80 percent of the unpaid principal balance of Countrywide-issued residential mortgage-backed securities, and 70 percent of similar claims against the bank overall.
US Amasses Big Data on 10 Million Consumers as Bankers Protest (MoneyNews)
The new U.S. consumer finance watchdog is gearing up to monitor how millions of Americans use credit cards, take out mortgages and overdraw their checking accounts. Their bankers aren’t happy about it. The Consumer Financial Protection Bureau is demanding records from the banks and is buying anonymous information about at least 10 million consumers from companies including Experian Plc. While the goal is to sharpen enforcement and rule-making, banking executives have questioned why the bureau is collecting so much without being more specific about the benefits. “Do they need the reams and reams and reams of data we’re having to provide to them?” Susan Faulkner, senior vice president at Bank of America Corp (NYSE:BAC), asked at a banking conference in March. “Don’t we have to find a healthier balance here?”
Yahoo’s Ad Struggles Persist (WSJ)
Yahoo! Inc. (NASDAQ:YHOO) -0.55% stock price is sharply higher since the hiring of Marissa Mayer last year, but the new chief executive has so far provided little evidence of a turnaround for the Internet company. Yahoo on Tuesday posted a 36% jump in profit for its first quarter on the robust performance of China-based e-commerce giant Alibaba Group Holding Ltd., in which Yahoo holds a 24% stake. But quarterly revenue fell 7% from a year ago as Yahoo’s core online-advertising business deteriorated while its biggest clients—advertising agencies—have become more vocal about their impatience with Ms. Mayer’s management.
Is Yahoo! Inc. (YHOO) Worth Buying? (InsiderMonkey)
Is Yahoo! Inc. (NASDAQ:YHOO) a healthy stock for your portfolio? Investors who are in the know are getting less bullish. The number of long hedge fund positions dropped by 2 in recent months. We should take note of this, because Yahoo’s first quarter profit was $0.38 per share–14 cents above analysts’ estimates. Revenue was also essentially flat year-over-year. Let’s see what the smartest investors think. According to most market participants, hedge funds are viewed as underperforming, outdated investment vehicles of years past. While there are more than 8000 funds in operation today, we hone in on the elite of this club, close to 450 funds. It is estimated that this group oversees most of the smart money’s total capital, and by keeping an eye on their top stock picks, we have unsheathed a number of investment strategies that have historically outpaced the broader indices.
On the Call: Yahoo CEO Marissa Mayer (BusinessWeek)
Before taking questions from analysts Tuesday, Yahoo! Inc. (NASDAQ:YHOO) CEO Marissa Mayer used the release of the company’s first-quarter earnings report to update investors on the changes she has made during her first nine months on the job. Since defecting from a top job a Google Inc (NASDAQ:GOOG), Mayer has overseen makeovers of the home page on Yahoo’s website, its email service and its Flickr photo service. She also has been trying to bring in more talented engineers through small acquisitions and recruiting from other employers.
Cirrus Logic Price Target Cut to $34.00 by Analysts at Stifel Nicolaus (CRUS) (Zolmax)
Stifel Nicolaus decreased their price target on shares of Cirrus Logic, Inc. (NASDAQ:CRUS) from $42.00 to $34.00 in a research note issued on Wednesday, ARN reports. The firm currently has a “buy” rating on the stock. Several other analysts have also recently commented on the stock. Analysts at Needham & Company downgraded shares of Cirrus Logic from a “strong-buy” rating to a “buy” rating in a research note to investors on Wednesday. They now have a $30.00 price target on the stock, down previously from $45.00. Separately, analysts at Canaccord Genuity cut their price target on shares of Cirrus Logic from $35.00 to $30.00 in a research note to investors on Thursday, March 21st. They now have a “buy” rating on the stock. Finally, analysts at Sterne Agee reiterated a “buy” rating on shares of Cirrus Logic in a research note to investors on Friday, March 15th. They now have a $34.00 price target on the stock, down previously from $42.00.
Cirrus Logic (CRUS) Prelim. Q4 Revs Miss Views (StreetInsider)
Cirrus Logic, Inc. (NASDAQ:CRUS) announced preliminary net revenue of approximately $206.9 million, based on unaudited financial results for the fourth quarter, which ended March 30, 2013. The company also announced that it will record a total net inventory reserve of $23.3 million of which approximately $20.7 million is due to a decreased forecast for a high volume product as the customer migrates to one of Cirrus Logic’s newer components. The $20.7 million inventory reserve is expected to result in a decrease in gross margin for the quarter of slightly more than 10 percent to approximately 40.4 percent, below the company’s previous guidance range of 50 to 52 percent. Additionally, combined R&D and SG&A expenses are expected to be approximately $50 million, which includes roughly $6 million of stock based compensation and other charges.
Michael Kors Holdings Ltd Lowered to Neutral at Zacks (KORS) (MideastTime)
Michael Kors Holdings Ltd (NYSE:KORS) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a note issued to investors on Tuesday, AnalystRatingsNetwork.com reports. They currently have a $68.00 target price on the stock. Michael Kors Holdings Ltd (NASDAQ: KORS) traded down 2.48% on Tuesday, hitting $52.66. Michael Kors Holdings Ltd has a 1-year low of $35.50 and a 1-year high of $65.10. The stock’s 50-day moving average is currently $56.89. The company has a market cap of $10.511 billion and a price-to-earnings ratio of 31.65.
Michael Kors Holdings Ltd Coverage Initiated by Analysts at Credit Agricole. (KORS) (DailyPolitical)
Credit Agricole started coverage on shares of Michael Kors Holdings Ltd (NYSE:KORS) in a research note released on Friday morning, TheFlyOnTheWall.com reports. The firm issued an underperform rating on the stock. A number of other analysts have also recently weighed in on KORS. Analysts at TheStreet reiterated a hold rating on shares of Michael Kors Holdings Ltd in a research note to investors on Wednesday, April 3rd. Finally, analysts at Goldman Sachs reiterated a conviction-buy rating on shares of Michael Kors Holdings Ltd (NYSE:KORS) in a research note to investors on Monday, March 18th. They now have a $80.00 price target on the stock.
Vivus gets FDA nod to sell diet pill via retail pharmacies (Reuters)
VIVUS, Inc. (NASDAQ:VVUS) President Peter Tam said U.S. health regulators’ approval to sell its diet pill Qsymia through retail pharmacies removed “a major barrier” to the drug’s adoption and paved the way for a direct-to-consumer campaign to be launched later this year. Vivus shares rose as much as 6 percent to $12.35 on Tuesday afternoon on the Nasdaq and closed at $11.78. Shares of other obesity drug makers Arena Pharmaceuticals Inc and Orexigen Therapeutics Inc also closed up 2 percent each. “We are keeping all options open in terms of increasing the commercialization support for Qsymia,” Tam told Reuters in a phone conversation from his Mountain View, California office.
VIVUS, Inc. (VVUS) Sees a Rare Jump in Near-Term Call Volume (SchaeffersResearch)
VIVUS, Inc. (NASDAQ:VVUS) was trending higher on Tuesday, after the Food and Drug Administration (FDA) granted the firm approval to sell its weight-loss drug, Qsymia, in retail pharmacies. As a result, bullish traders flooded the options pits yesterday, with roughly 24,000 calls crossing the tape during course of the session. This was almost seven times the norm, and more than triple the number of puts exchanged.
