Why Microsoft is Giving Away Patented Software

Microsoft (NASDAQ: MSFT) can easily afford it. On June 30, 2018, Microsoft Corp reported a gross profit of $20.343 billion on 2nd Quarter revenues of $30.085 billion. Therefore, Microsoft can afford to give away patents.

Microsoft could distribute the software through GitHub; which it purchased for $7.5 billion in June. Notably, the OIN announcement came right before the European Commission approved the GitHub deal. To explain, Microsoft needs Commission approval to operate GitHub in the European Union.

GitHub is the perfect place to distribute the OIN patents because it is the world’s largest open-sourced software repository. In detail, GitHub serves 1.8 million organizations and 28 million software developers.

Unfortunately, news articles do not say which software will be released on GitHub.

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Is SolarEdge a Value Investment in Clean Energy?

SolarEdge is potentially a value investment because it makes money and markets products critical for the commercialization of solar electricity and electric vehicles. For example, SolarEdge makes optimizers which solar cells need to operate.

SolarEdge’s inverter technology could be even more valuable than modules. Without inverters, the electricity produced by solar panels is useless.

Therefore, every solar electric system will need an inverter. SolarEdge has developed inverters that could convert up to 100-kilowatt hours of electricity. Critically, SolarEdge’s phase three inverters are small, easy, to carry, and easy to install.

SolarEdge has developed large capacity inverters for use at solar power plants. Moreover, SolarEdge has smaller inverters for homes and businesses.

SolarEdge reported $227.12 million in revenues, a gross profit of $81.95 million, $40.67 million in operating income, and $34.57 million in net income for 2nd Quarter 2018. That sets SolarEdge apart from most clean energy companies, which lose money.

In addition, SolarEdge’s revenues grew at a rate of 66.88% during 2nd Quarter 2018. Interestingly, SolarEdge has some cash flow. It recorded an operating cash flow of $43.89 million and a free cash flow of $33.83 million on 30 June 2018.

SolarEdge even has some money in the bank. It reported $216.59 million in cash and equivalents and $134.82 million in short-term investments on June 30, 2018. Therefore, SolarEdge had $351.41 million in cash.

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Netflix (NFLX) Owns Television does it Make Money?

Netflix (NFLX) apparently believes that unleashing that torrent of programming is the way to maintain its position as the number one streaming service. For example, Variety estimates Netflix is America’s favorite source for video content.

Cowen & Co. calculates that 27.6% of American consumers picked Netflix as their primary source of video content. Therefore, Netflix is more popular than broadcast TV (only 17.5% of Americans admitted to watching it), and basic cable (just 20.2% of Americans listed it as a main video source).

In addition Netflix is more popular than YouTube, Amazon Prime, and Hulu combined. To explain, Cowen & Co. estimates that 11.6% of Americans list YouTube as their primary video source, additionally, 5% use Amazon Prime Video and 5.6% use Hulu.

Moreover, there are 130 million Netflix subscribers in the world and 56.71 million subscribers in the United States, Statista estimates. Therefore, Netflix is the world’s biggest paid digital video platform.

Interestingly, just 4.6% of Americans believe premium cable is their primary video source. Under these circumstances, Netflix is America’s most popular television network and most influential entertainment brand.

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Self-Driving Cars Are Coming To Road Near You, Just Not Your Driveway Yet

As we inch closer to self-driving cars taking over our streets, a few years remain before they take over our garages.

Self-driving cars, however, are not altogether autonomous.

The US has a long established love of the automobile.

Making our choice clear with highways instead of rail lines back in the 1950’s.

Fantasizing about the open road and idolizing fast cars and Route 66.

Romanticizing just as much about our first ride as we do our first love.

In recent years though, this once undying affection has begun to fade.

High gas and insurance costs.

Crumbling infrastructure.

Endless hours of delays and traffic.

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Will Sirius and Pandora Make Money?

Therefore, it is easy to see why Sirius is buying Pandora. A combined Sirius-Pandora could have 109.33 million listeners. On the other hand, Sirius and Pandora’s biggest competitor Spotify has around 58.5 million listeners in 2018.

Moreover, Spotify will not match Pandora’s listener base soon. Statista; for example, calculates that Spotify will have 76.7 million listeners in 2022.

Value investors will be interested in Sirius and Pandora because of the low price and huge audience. Under these circumstances, we have to ask will Sirius and Pandora make money?

In Pandora’s case the answer is no. For instance, Pandora reported a net loss of -$99.45 million and an operating loss of -$94.14 million for 2nd Quarter 2018. Markedly, Pandora generated $384.79 million in revenues and a gross profit of $125.21 million for 2nd Quarter.

In addition, Pandora recorded a negative free cash flow of -$50.94 million, a negative operating cash flow of -$49.36 million, a negative investing cash flow of -$111.34 million, and a negative financing cash flow of -$2.29 million for the same period.

Obviously, Pandora is incapable of making money from its operations. Pandora is losing money because it has to pay for almost all of its content music.

To make matters worse, Pandora gives the music it pays for free away online. By and large, that is a great deal for stars like Beyonce, whom Pandora pays for the privilege of promoting her songs.

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Climate Change Migration will Change America

Speculators could look at Hauer’s Climate Change Migration map; now at the Guardian’s website, to see where to buy. A fascinating strategy will be to short coastal real estate or companies invested in coastal real estate such as Disney.

Stock pickers might buy Walt Disney (NYSE: DIS); which obviously owns a lot of land around Orlando, as a Climate Change Migration hedge. To explain, Orlando is the home of Walt Disney World.

Likewise, speculators could short companies heavily invested in expensive waterfront real estate in Miami or office buildings in Manhattan. A short term strategy could be to buy up properties in Miami after flooding then sell them when the weather gets good.

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First Hyperloop Passenger Pod Planned for Next Year

Uniquely, the Quintero One will be propelled down the tubes by passive Maglev or magnetic levitation. Other features include embedded rechargeable batteries, and a linear induction motor.

Therefore, the Quintero One employs electromagnetic propulsion. As a result it runs on a frictionless magnetic cushion inside a giant tube. If the system works as advertised it will be silent and emission free.

HyperloopTT claims its stations will serve 3,600 passengers an hour. HyperloopTT is planning a system that can move 164,000 passengers a day when it is working at maximum efficiency. Interestingly, the same system will move up to 4,000 cargo shipments a day.

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Massive Tech Disruptions include 5G, Autonomous Vehicles, and Amazon Delivery

Five gigabyte (5G) Wi-Fi will be the next big disruption in tech. For example, up to 1.2 billion people worldwide could have 5G by 2025.

Widespread 5G could make the Internet of Things (IoT), Artificial Intelligence (AI), drone, and autonomous vehicle use widespread, Interesting Engineering theorizes. For instance, they might use 5G to operate autonomous cars and power drone delivery networks.
Significantly, Amazon delivery threatens grocers like Kroger (NYSE: KR) home improvement stores like Lowe’s (NYSE: LOW), GrubHub (NYSE: GRUB), small box discounters like Dollar General (NYSE: DG), and department stores like Macy’s (NYSE: M). To demonstrate, Amazon Flex could deliver laundry detergent, clothing, groceries, takeout meals, and home improvement materials like paint in the same van.

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Is Visa (V) Making Money?

Visa (V) is the world’s largest payment platform. To demonstrate Statista reports there were 755 million Visa cards in circulation worldwide in 1st Quarter 2018. In particular, there were 342 million Visa cards in the United States in 1st Quarter 2018.

In contrast Statista estimates there were 244 million PayPal (NASDAQ: PYPL) accounts worldwide in 2nd Quarter 2018. Correspondingly, Statista estimates there were 127 million Apple Pay users worldwide in 2017. Importantly, many of these Apple Pay users are making payments with Visa through Apple Pay.

Therefore, Visa (V) has a vast advantage over any potential competitor. Its platform is almost six times as large as Apple Pay and over three times as large as PayPal’s.

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Will Climate Change Destroy Insurance as we know it?

Shrewd speculators could look for companies run by Climate Change deniers and sell them short. In other words they will bet on human stupidity which is sometimes a good way to make money.

The moral of the story is that Climate Change is real and wreaking havoc upon the insurance industry. Therefore speculators could, make a lot of money from the damage and misery Climate Change causes.

For this reason, all investors and speculators need to study the news about Climate Change carefully. There are apparently many opportunities to make money from Climate Change’s effect on the insurance industry.

Climate change will kill insurance as we know it and many speculators will make money from that tragedy.

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