Apple and Alphabet's Google have responded to the U.K. watchdog's probe of their dominance in mobile ecosystems under the country's new tech competition rules.
Apple said it was concerned about the broad scope of the Competition and Markets Authority's investigation, saying it "covers a very significant proportion of Apple's overall business activities, in a wide and potentially unfocused manner."
The regulator is trying to work out whether mobile ecosystems controlled by Apple and Google--which includes their smartphone operating systems, app stores and web browsers--need to obey the Digital Markets, Competition and Consumers Act, the U.K.'s strict new law governing digital competition.
Under the DMCC, U.K. competition authorities can designate companies with so-called strategic market status linked to a specific digital product or service they own, and then impose conduct requirements on them to make it easier for smaller players that rely on their services to reach end users. That could include obliging iOS and Android devices to host app stores that compete with Apple's App Store and Google's Play Store, or requiring them to give users more control over which apps they choose as defaults.
"Our experience from digital regulation in other jurisdictions shows that interventions entail significant trade-offs and can produce adverse effects on third parties," Google said in its own response to the CMA. The company said that some of the conduct requirements U.K. regulators could impose on it "threaten to unpick central pillars of Android's model; in particular, its openness which has been a key differentiator and growth contributor. This could damage Android's benefits for users, developers and manufacturers," it said.
Apple said the CMA's probe "appears to conflate the value propositions of Apple and Google despite the fact that the two companies have very different business models and incentives," adding that there is a risk that users will suffer as a result.
"Apple would suggest that the CMA should seek to avoid overly broad interventions that would not only reduce Apple's incentives to innovate, but may also reduce incentives to innovate for third parties who already benefit significantly from the innovations made available by Apple for their own products," it said.
Their remarks come as the CMA on Friday published feedback it received from a wide range of companies that rely on Apple and Google's ecosystems to make money.
The CMA started investigating Apple and Google's mobile ecosystems under the new law in January, saying that roughly 15,000 businesses in the U.K. are involved in the development of apps used on mobile devices, generating a total revenue of around 28 billion pounds ($34.48 billion).
Other documents published Friday offer insight into how a broad swathe of companies--including app developers, rival tech giants like Meta and e-cigarette manufacturer JUUL--are affected by the rules of play Apple and Google impose on companies that want to use their devices.
The Coalition for App Fairness--a lobby group backed by developers including Spotify and Epic Games--said in its response that its members unanimously supported strong enforcement of the law.
"Far from adding 'red-tape,' this new regime will remove the barriers many of us face daily and unleash the competition required to drive innovation and investment," it said.
Write to Edith Hancock at edith.hancock@wsj.com
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Dj Apple, Alphabet's Google Respond To New Uk Mobile Ecosystems Probe
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Investing.com -- Apple Inc (NASDAQ:AAPL). announced on Friday that enhancements to its voice assistant Siri, driven by artificial intelligence (AI), will be postponed until 2026. The company had previously indicated that these features would be introduced in 2025.
Apple has been developing a more personalized Siri, with an increased understanding of individual user context and the capability to perform tasks within and across various apps. The company stated that the roll-out of these enhancements will take longer than initially anticipated.
The improvements are part of a range of AI-driven features called Apple Intelligence, announced by the company last year. These enhancements include new capabilities such as rewriting emails and summarizing a cluttered inbox. Major improvements were intended to enable Siri to navigate in and out of apps and complete tasks for the user by accessing information stored on Apple devices.
Examples provided by Apple included asking Siri to locate a podcast recommended by a friend or retrieve flight tracking information from a relative, all based on data stored on the device.
Apple did not provide a specific reason for the delay. The company has been constructing a large new cloud computing infrastructure that operates on its own chips. This effort aims to uphold its privacy standards while delivering AI features. According to Apple, Siri processes 1.5 billion user requests per day.
Competitors in the tech industry have also been rapidly incorporating AI features into their voice assistants. Alphabet (NASDAQ:GOOGL)’s Google incorporated its Gemini model into its assistant last year. Amazon (NASDAQ:AMZN), on the other hand, introduced an AI-driven revamp of its Alexa assistant last month, offering the new capabilities for free to its Prime subscribers and at a monthly fee of $19.99 for others.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Apple Says Some Ai Improvements To Siri Delayed To 2026
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Should You Buy, Sell or Hold SentinelOne Stock Before Q4 Earnings?
SentinelOne S is set to report fourth-quarter fiscal 2025 results on March 12.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company expects revenues of $222 million for the fiscal fourth quarter. The Zacks Consensus Estimate for revenues is pegged at $222.03 million, suggesting growth of 27.47% from the year-ago quarter’s reported figure.
The consensus mark for earnings has been unchanged at 1 cent per share over the past 30 days. S reported a loss of 2 cents in the year-ago quarter.
SentinelOne’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average earnings surprise being 62.50%.
SentinelOne, Inc. Price and EPS Surprise
SentinelOne, Inc. price-eps-surprise | SentinelOne, Inc. Quote
Let us see how things have shaped up for S shares prior to this announcement.
Factors to Note Before SentinelOne’s Q4 Earnings
SentinelOne has been suffering from challenging macroeconomic conditions and stiff competition in the cybersecurity space. Despite these headwinds, SentinelOne’s fiscal fourth-quarter performance is likely to have benefited from the strong adoption of the Singularity platform.
The Singularity platform is enhanced by Purple AI, S’s advanced Generative AI (GenAI) security analyst. Purple AI significantly accelerates threat hunting and investigations, reduces Mean Time to Response and provides comprehensive end-to-end enterprise security. Purple AI suite has evolved to be the company’s fastest-growing solution. This is expected to have driven the adoption of SentinelOne’s solutions.
Strong momentum with large enterprise customers is expected to have continued in the fourth quarter of fiscal 2025. Customers with more than $100,000 in ARR grew 24% year over year to 1,310 in the fiscal third quarter. ARR per customer increased year over year in the double-digits, driven by strong platform adoption and success with larger enterprises.
The Zacks Consensus Estimate for fourth-quarter fiscal 2025 ARR is pegged at $921 million, suggesting 27.2% year-over-year growth. The consensus mark for Customers with more than $100,000 in ARR is pegged at 1,370, indicating 21% year-over-year growth.
S Shares Lag Sector in a Year
In the trailing 12 months, SentinelOne shares have declined 27.9%, underperforming the broader Zacks Computer and Technology sector’s return of 11.1% and the Zacks Security industry’s appreciation of 18.7%.
SentinelOne’s One-Year Performance
The S stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
In terms of the forward 12-month price/sales ratio, SentinelOne shares are trading at 6.1X, higher than the sector’s 6.06X.
P/S Ratio (F12M)
Strong Portfolio, Partner Base Aids S’s Prospects
SentinelOne’s long-term growth trajectory remains intact, driven by an innovative portfolio. Its Singularity platform unifies data capabilities and AI-powered security across endpoint cloud identity, as well as third-party integrations, all in one single user interface.
Solutions, including Singularity Endpoint, Singularity Cloud Security, Singularity Data and Purple AI, are helping SentinelOne address a total market worth more than $100 billion. The total Addressable Market for Endpoint Security, Data Analytics, Cloud Security and Generative AI Security is pegged at $17 billion, $31 billion, $12 billion and $3 billion, respectively, which offers significant growth opportunities for SentinelOne.
S’s strong partner base, which includes Alphabet GOOGL, Lenovo, Amazon AMZN and ServiceNow NOW, is helping it win customers.
Singularity Cloud Workload Security for Serverless Containers provides real-time, AI-powered protection for containerized workloads running on Amazon Web Service (“AWS”) Fargate for Amazon ECS and Amazon EKS. The company also deepened its integration with AWS. Purple AI is becoming available through Amazon Bedrock, which expanded SentinelOne's capabilities to assist organizations in securing GenAI applications.
In the third quarter of fiscal 2025, SentinelOne partnered with Lenovo to pre-install the Singularity platform and Purple AI on enterprise PC shipments, drastically increasing its market reach. The SentinelOne App seamlessly syncs threats into ServiceNow Incident Response for security operations and incident response.
SentinelOne Ahead of Q1 Results: Buy or Sell?
SentinelOne’s strong portfolio, which leverages AI and a strong partner base, is a positive.
However, challenging macroeconomic conditions and a stretched valuation make the stock a risky bet. S shares are trading below the 50-day and 200-day moving averages, indicating a bearish trend.
S Shares Trade Below 50-Day & 200-Day SMA
SentinelOne currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a favorable time to start accumulating the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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Buy, Sell, or Hold Adobe Stock? Key Tips Ahead of Q1 Earnings
Adobe ADBE is set to report its first-quarter fiscal 2025 results on March 12.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
For first-quarter fiscal 2025, Adobe projects total revenues between $5.63 billion and $5.68 billion. The company expects non-GAAP earnings between $4.95 per share and $5 per share.
The Zacks Consensus Estimate for revenues is pegged at $5.65 billion, suggesting growth of 9.11% from the year-ago quarter’s reported figure. The consensus mark for earnings has been unchanged at $4.97 per share over the past 30 days, indicating 10.94% growth from the figure reported in the year-ago quarter.
ADBE’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average earnings surprise being 2.59%.
Adobe Inc. Price and EPS Surprise
Adobe Inc. price-eps-surprise | Adobe Inc. Quote
Let us see how things have shaped up for ADBE shares prior to this announcement.
ADBE’s Q1 Segmental View is Encouraging
For the first quarter of fiscal 2025, Adobe expects Digital Media segment revenues between $4.17 billion and $4.2 billion.
The Zacks Consensus Estimate for Digital Media segment revenues is pegged at $4.18 billion, suggesting a 9.6% year-over-year growth. The consensus estimate for Creative Cloud revenues stands at $3.33 billion, indicating 8.5% year-over-year growth. Document Cloud’s consensus estimate for revenues is pegged at $855 million, implying 14% growth from the year-ago quarter’s reported figure.
Digital Experience segment revenues are anticipated to be $1.38-$1.40 billion. Experience Subscription revenues are expected to be $1.27-$1.29 billion.
The consensus mark for Digital Experience revenues is pegged at $1.40 billion, indicating 8.5% year-over-year growth. The Zacks Consensus Estimate for Digital Experience subscription revenues is pegged at $1.29 billion, indicating 10.8% year-over-year growth.
Factors to Note Prior to ADBE’s Q1 Earnings
Adobe’s strong Generative AI (GenAI) portfolio and a rich partner base, which includes the likes of Amazon AMZN, Microsoft MSFT and Alphabet GOOGL, are expected to have driven its top-line growth in the fiscal first quarter.
Adobe expanded its GenAI portfolio with the launch of Firefly Image Model 3, enhancements to vector models, richer design models and the all-new Firefly video model. The deep integration of these models into Adobe’s tools, such as Lightroom, Photoshop, Premiere, InDesign and Express, has improved the experiences for creative professionals globally. Firefly generations now have crossed 16 billion cumulative generations.
Strong Adobe Express adoption by businesses is noteworthy. The increasing number of integrations into leading social, productivity and collaboration apps like ChatGPT, Google, Slack, Wix, Box, Hubspot and Webflow significantly increases Adobe Express’ customer reach.
Adobe’s Document Cloud AI Assistant is now available in Acrobat across desktop, web and mobile, and integrated into Chrome, Microsoft Teams and Edge extensions. Adobe GenStudio, which integrates Express, Firefly, Workfront, Experience Manager, Customer Journey Analytics and Journey Optimizer, is riding on strong adoption in the content supply chain for enterprises.
These factors are expected to have driven first-quarter fiscal 2025 results amid stiff competition and the sluggish monetization rate of Adobe’s GenAI solutions.
ADBE Shares Lag Sector in a Year
In the trailing 12-month period, Adobe shares have declined 20%, underperforming the broader Zacks Computer and Technology sector’s return of 11.1% and the Zacks Computer Software industry’s appreciation of 0.7%.
ADBE Stock’s Performance
The ADBE stock is not so cheap, as the Value Score of D suggests a stretched valuation at this moment.
In terms of the forward 12-month price/sales ratio, Adobe’s shares are trading at 8.16X, higher than the sector’s 6.06X.
P/S Ratio (F12M)
Can Strong Portfolio, Rich Partner Base Drive ADBE?
A solid portfolio and differentiated approach to AI are attracting an expanding universe of customers across Adobe’s segments. The company recently launched a couple of the latest offerings, including Firefly Standard and Firefly Pro, which give customers access to premium Firefly video and audio features. The company released the latest Firefly application, which can be used to generate image vectors and now videos with the Firefly Video Model, in a public beta.
Adobe’s expanded partnership with Amazon makes the Adobe Experience Platform available on Amazon Web Services. Partnerships with Google’s Campaign Manager 360, Meta Platforms, Microsoft Advertising, Snap and TikTok are key catalysts.
The integration of Acrobat PDF technology into Microsoft Edge and Alphabet’s Google Chrome is a major plus. Adobe is experiencing rising free-to-paid conversions on the back of its Acrobat extensions for Microsoft Edge and Google Chrome.
Adobe Ahead of Q1 Results: Buy, Hold or Sell?
Adobe’s prospects benefit from strong demand for its creative products. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products have been driving top-line growth. New AI releases, including Express, Acrobat AI Assistant, Firefly Services, DX premium tiers and GenStudio for Performance Marketing, have expanded the portfolio of products. These are expected to drive Adobe’s market share and monetization in the near future.
However, Adobe is suffering from increasing competition in the GenAI space from the likes of Open AI, as well as a lack of monetization of its AI solutions.
Technically, ADBE shares are trading below the 200-day moving average, indicating a bearish trend.
ADBE Shares Trade Below 200-Day SMA
Adobe currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a favorable time to start accumulating the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
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Broadcom Confirmed Its AI Outlook: Stock to Hit New Highs Soon
Broadcom’s 2025 price correction is over. Driven by an aggressive forecast for custom AI chips and concerns about geopolitical and economic headwinds, the FQ1 2025 earnings results were better than expected, compounded by improved guidance that has the market rebounded strongly. Because the upswing in business is tied to the AI upgrade cycle, which is still in its earliest phases, results will likely remain strong in 2025 and drive this market to a new all-time high.
The analysts’ response to the news is favorable. The first half dozen revisions tracked by MarketBeat include a single price target reduction offset by five increases, and all new price targets equate to a new all-time high. The price target increases put this market in the $260 to $275 range, a 30% to 35% upside from the 150-day EMA in early March. That move could happen quickly.
Broadcom Surges On Beat-and-Raise Report, Confirms Uptrend
Broadcom had a solid quarter in FQ1, with revenue growing nearly 25% to $14.92 billion. The gains were driven by strength in both primary segments and outpaced the consensus estimates by a wide 225 basis point margin. [content-module:MarketRank|NASDAQ:AVGO]
Semiconductor Solutions grew by an NVIDIA-like 77%, driven by demand for AI, while Infrastructure Software increased by 47%. Other good news includes wider margins aided by revenue leverage and efficiency and record-setting top and bottom line figures.
The margin news is good. The company delivered leverage results in all comparisons, with critical data such as adjusted earnings and free cash flow rising by 45% and 28%, respectively. Free cash flow came in at 40% of revenue and is expected to remain robust in F2025.
Guidance is another factor that leads to improved bullish sentiment. The company explicitly stated that AI strength would continue in Q2, driven by hyperscalers like Alphabet , which has committed billions to building advanced data centers to support AI needs.
The guidance for Q2 includes revenue growth near 20%, better-than-expected top-line results, and a high likelihood of being cautious, given the expectation for flat results sequentially.
Broadcom’s Cash Flow, Balance Sheet Improvement, and Capital Return Drive Shareholder Value
Broadcom’s cash flow allowed for significant balance sheet improvement while investing in growth and returning capital to shareholders. Q1 highlights include flat cash and assets despite debt reduction and reduced liability, ample liquidity, and declining leverage. Total leverage is less than 1.4x equity, equity is up 13% for the quarter, and additional gains are expected as the year progresses.
Regarding capital return, the company doesn't repurchase significant amounts of stock but pays a solid and reliable dividend. It is worth about 1.3% with shares near $200, and the distribution is expected to grow annually. The company has increased for 15 consecutive years and paid less than 40% of Q1 earnings to investors.
Broadcom Confirms Trend With Post-Release Surge
Broadcom stock surged as much as 10% in premarket trading following the Q1 release. The move shows strong support at a critical level that aligns with a prior market top and uptrend. Because of the indicators, the market will likely continue higher and may set a new all-time high in this scenario. The MACD indicator, in particular, shows strength and convergence with the latest high, a signal that it will be retested or exceeded.
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