Here is what that term means.

IPO: When a company goes public

Going public is shorthand for something called an initial public offering, or IPO. An IPO is the first time a company sells its shares to the public through a stock exchange such as the Nasdaq or the New York Stock Exchange (NYSE).

When a company wants to open new stores, build or acquire a factory, or expand in some other way, it may need additional resources to pay for it. Company executives may use an IPO to raise additional capital to invest in and grow their business.

Often a company does not yet have enough internally generated funds to finance such projects. Going public is one way to raise a relatively large sum of money in a relatively short period of time.

Which companies have gone public?

The short answer: most large companies you’ve heard of, and any companies whose stock you can purchase as an individual investor.  If you’re investing on Stash, you’re investing in companies that have gone public.

How does a company ‘go public?’

To ‘go public,’ companies must hire an investment bank, such as Goldman Sachs, or J.P. Morgan to help conduct the process, also known as underwriting. These banks are responsible for everything from preparing the legal documents to finding investors to buy the initial shares or as so banks refer to IPO shares.

Once all parties involved in the process have coordinated their efforts, they decide on the date the company will have its IPO.

Have you ever seen people clapping and smiling in the news, after ringing the opening bell of the NYSE? Many times, that’s the celebration of an IPO.

That moment is also the first time a company’s stock trades in a major public stock exchange, which is usually a big milestone for the business.

It’s not all balloons and clapping and bells. When a company is publicly traded, there are also significant legal requirements it must follow.

The company must first register with something called the Securities and Exchange Commission (SEC). The SEC is a federal agency that regulates the company and lets them know what rules they must follow in order to get listed on a public stock exchange. One rule is quarterly filings of financial statements, so investors have a current and regularly updated picture of the company’s fiscal health.

Getting listed on an exchange

Stock exchanges such as the NASDAQ publish lists of companies that have recently issued, or soon will issue, shares for sale to the public. This IPO list can be found here.

Fun fact: Ever wonder how companies choose their ticker symbols? For more on how these letters are chosen and regulated, check out: How to Read a Stock Ticker: A Quick, Fun Guide.

The post What’s an IPO? What It Means When a Company Goes Public appeared first on Stash Learn.

It’s the biggest reorganization undertaken by the car giant since its bankruptcy 10 years ago, according to reports.

“We are taking this action now while the company and the economy are strong to keep ahead of changing market conditions,” GM CEO Mary Barra said in a conference call.

GM produces and sells cars under four brand names in the U.S.: Chevrolet, Cadillac, Buick, and GMC.

Here’s what you need to know:

• GM will lay off 15% of its salaried workforce, which includes around 8,000 workers, and possibly 6,000 hourly jobs. In October 2018, the company offered to buy out 18,000 workers. GM has 180,000 workers worldwide.
• At the end of 2019, assembly facilities in Maryland, Michigan, and Ohio will be “unallocated”–meaning that they could reopen in the future, but will most likely be shuttered. GM will also close plants in Canada and South Korea.
• Although GM didn’t specify which models it will discontinue, the list likely includes the Chevy Cruze, Buick LaCrosse, and the Cadillac CT6, which haven’t been selling well.
• Earlier this year, GM’s chief domestic rival, Ford, made a similar decision to stop producing most cars, to focus on SUV and pickup truck production.

What’s behind GM’s decision?

GM is hoping to become leaner and more profitable after restructuring and could save up to $6 billion by 2020, according to a company press release.

The company’s decision to stop production on some sedans is likely to cut costs as it pulls in revenue from SUVs, and pickup trucks, which have seen an increase in sales in recent years. Between January and September 2018, passenger car sales decreased by 13.2%, while truck and SUV sales increased 8.3%.

Other factors–including tariffs on steel and aluminum, which may have cost GM as much as $1 billion thus far–may have also prompted the change.

GM is reportedly looking to shift to electric, self-driving vehicles in the future.

Stay on top of the news by subscribing to the Stash newsletter.

The post Why GM is Laying Off Thousands of Workers appeared first on Stash Learn.

That may sound like something uttered by your buddy at the local watering hole, but these words are actually attributed to the ancient Greek philosopher Plato (whether he actually said them is still up for debate).

Plato, as he was with many other subjects, was onto something: People like beer.

People like beer so much, in fact, that in 2016, we collectively chugged down 186.89 million kiloliters (roughly 49.4 billion gallons), according to analysts. And in the U.S., where we have a wide selection of alcoholic beverages, beer is still the reigning champion. U.S. consumers who drink alcohol regularly favor beer over both wine and liquor by a solid margin.

To satisfy America’s thirst, roughly 60,000 people work in breweries across the country, producing billions of gallons of beer every year.

Source: BLS

Though the industry is being pulled in two different directions–small beer producers (often called “craft” brewers) have exploded in popularity, while the industry overall consolidates into the hands of a few, big corporate players–consumers are reaping the benefits in the form of large, and growing, choices.

And they are even willing to pay more–beer prices climbed more than 50% between 2006 and 2016. The increases are partly due to increased demand for, and subsequent shortages of, hops and barley.

Source: BLS

Tapping the keg: How beer got here

People’s consumption of beer and other alcohol even predated the invention of writing. Archaeologists have found evidence of booze-making in China dating back 9,000 years ago. In parts of Eastern Europe and the Middle East, people began making wine 7,400 years ago.

While the science of fermenting and brewing evolved around the world over thousands of years, commercial brewing reached the U.S. in the 1600s. By the mid-1800s, there were as many as 140 breweries in operation in the U.S., and the industry continued to grow until the Prohibition era.

With the ratification of the Eighteenth Amendment, a constitutional ban on the production and sale of alcohol that lasted from 1920 to 1933, thousands of commercial and independent breweries in operation around the country went underground or shut down completely.

After Congress repealed Prohibition, the industry again kick-started, and brewers were once more able to operate at full-steam. Fast forward to today, and the U.S. is home to roughly 6,400 beer producers making hundreds, if not thousands of different ales, stouts, lagers, and more.

The modern U.S. beer industry

The confounding thing about the modern U.S. beer industry is that it’s simultaneously a vast, competitive space and increasingly monopolistic. In 2000, there were 22 major beer companies in the U.S., but thanks to consolidation, by 2012 there was just a handful.

Here are the biggest U.S. beer producers (by production) as of 2018, according to industry data:

1. Anheuser-Busch InBev (Budweiser, Stella, Michelob)
2. MillerCoors (Miller, Coors, Molson, Blue Moon)
3. Constellation Brands (Corona Extra, Modelo)
4. Heineken (Amstel, Red Stripe, Tecate)
5. Pabst Brewing (PBR, Schlitz, Rainier, Colt 45)

But nipping at the big boys’ heels are a handful of small, but growing craft brewers. They include Boston Beer Company, Chico, California-based Sierra Nevada Brewing Co., Fort Collins, Colorado’s New Belgium Brewing Company, and Deschutes Brewery, based in Bend, Oregon.

Total U.S. beer sales were $111.4 billion in 2017, according to industry data. And while overall beer sales and consumption were down 1.2% year-over-year compared to 2016, smaller producers have gained some momentum. Craft beer sales were up 5% in 2017, and make up around 23% of the overall beer market.

Sobering statistics

While craft brewers appear to be leading something of a renaissance in the U.S. beer market, bigger beer companies have experienced less consumer demand.

In the second quarter of 2018, for example, Anheuser-Busch InBev’s U.S. revenues fell 3.1% as its flagship brands, like Budweiser and Bud Light, struggle. AB InBev’s struggles could be pointing to a bigger change in consumer tastes, however.

Americans are drinking less beer overall than in previous decades and there are a number of reasons why. Younger people, overall, are worried about the health effects that can result from beer consumption. Women are drinking more wine and cocktails, and some minority groups are drinking more liquor than beer, according to reports.  

The defection could be a simple lull in demand, but add in rising prices, which may be exacerbated by tariffs and taxes, and there are a few reasons to feel bearish about the industry’s future, at least in the short-term.

Beer me!

In the long run, however, it may be difficult to bet against beer. Even in the depths of the Great Recession (2009), Americans kept on drinking–and beer was their preferred choice.

And beer can be innovative, too. Some companies, like Constellation Brands and Heineken, are even partnering with cannabis companies to create new THC and marijuana-infused brews. Consumer tastes may be changing, but brewers are evidently reading the tea leaves.

Like certain consumer staples (toilet paper, laundry detergent, etc.), beer is one of those products that many U.S. consumers typically won’t, or can’t, stop buying.

If the thought of investing in the beverage industry whets your appetite, you can get started using Stash.

The post Cheers! All About The Beer Industry appeared first on Stash Learn.

Despite much of it being less than a decade old, social media technology is now deeply embedded in our culture. These days, everyone from celebrities, athletes, and politicians use social media to make announcements to the wider world. President Trump famously uses Twitter to express his views and announce policy changes. Stars such as Kanye West and Kylie Jenner also regularly take to social media to raise awareness of their brands and to sound off on whatever they’re thinking that day.

In August, Tesla CEO Elon Musk caused a brief shutdown in trading of the company’s shares when he announced via Twitter that he was thinking of taking his company private.

It’s not just the rich and powerful, either. Today, thanks to sites like Facebook, Snapchat, Instagram and Twitter it seems like everyone has a bullhorn to express themselves in real time.

Although social media is still in its adolescence, it continues to reshape the world and how we relate to each other as humans.

Here’s a quick guide to help you understand the industry and where it’s going.

What is the social media industry?

Today, 70% of Americans use social media in one form or another, whereas in 2005, only 5% did, according to industry data. Worldwide, there are roughly 3.2 billion social media users–and that number is growing, according to research.

That’s pretty impressive, considering the industry barely existed 20 years ago.

In the early days, during the late 1990s and early 2000s, the industry consisted of companies such as LiveJournal, Friendster, and Myspace.  Those early social pioneers had struck gold when discovering this new market, though they didn’t quite have their mining techniques developed yet. While none of these companies is around today, they were onto something. Namely, people want to connect, share stories, and see their friends online.

LinkedIn launched in 2003 with a career-oriented spin to social networking. Facebook was founded in 2004, and as we all know, went on to conquer and shape the social networking space as it exists today.

While there have been dozens, if not hundreds of social media companies founded over the years, only a handful have survived; And even those have evolved beyond their original intentions.

Facebook, for example, started as little more than an online phone book for Harvard students. Today, it’s the third-biggest social media platform on the internet.

Which companies are dominating the social media industry?

In the last decade, social networks migrated to smartphones–and have gone international.

There are numerous competing social networks, largely unknown in the U.S., that have billions of users in China, Russia, and India. Examples include QQ, Weibo, and WeChat (China), VKontakte (Russia), and Taringa (South and Central America).

Here are the biggest social networking companies in the U.S. by the number of users, and the percentage of adults who use them, according to data from Pew Research Center:

Source: Pew Research Center

Numerous other popular platforms exist today that feature social networking to one degree or another, allowing users to interact broadcast, and develop followings. They run the gamut from Reddit to Quora, and Tumblr to popular kids’ social media video app HouseParty.

Turning “likes” into dollars

The biggest issue early social networking companies faced was how to make money from people’s desire to connect online.

Some companies figured out the magic recipe was largely based on advertising. Facebook has created an enormous digital advertising platform, allowing paid advertisements and sponsored content to pop up into users’ feeds. LinkedIn, on the other hand, earns revenue by offering a variety of paid, premium services to users, and by charging recruiters and HR teams looking for talent.

Advertising, though, is the primary way social media companies generate revenue. These companies have oceans of data about their users, which they can supply to companies looking to advertise. Companies are willing to pay for the data because it targets specific demographics and buying behavior.

How much does this earn a social media company? During the fourth-quarter of 2017, Facebook reportedly made $6.18 per user, mostly through advertising. Snapchat made $1.53 per user during the same time period.

What’s next for the social media industry?

The industry has grown and evolved rapidly, and it’s very likely here to stay. But there are several critical issues the sector grapples with.

First, there’s the specter of increased government regulation. Following the 2016 presidential election, in which social media played a pivotal role through political advertising and messaging, companies including Facebook and Twitter have come under intense scrutiny, as their platforms were used to disseminate often false or misleading misinformation.

Facebook, in particular, has faced investor and regulatory wrath for giving away data of nearly 90 million users to the political consulting firm Cambridge Analytica.

Calls for regulation

The U.S. government has yet to step in and lay down a new legal framework regarding social media and customer privacy, but lawmakers in Congress continue to discuss it. Meanwhile, new privacy legislation has passed swiftly in other countries, like those in the European Union.

Second, social media companies have started to morph into  media companies of their own, with the power to disseminate information and content to billions of people around the globe. Instagram and Snapchat Stories allow users to make mini-movies about their daily lives. In 2018, Facebook launched its own Netflix rival, Facebook Watch.  

And as talk about potential regulation heats up, so to have suggestions that platforms like Twitter or Facebook should follow the same rules as traditional media companies.

That could force them to adhere to regulations of the Federal Communications Commission (FCC),  similar to TV and radio broadcasters, among other things.

Finally, signs have emerged that industry growth may be experiencing a slowdown in demand for the traditional social media offering–networking.

Recent earnings reports by Facebook and Snap, for example revealed that user growth is decreasing after years of gains.

A changing business

In order to keep growing, some social networks have expanded beyond their traditional platforms. In some cases, that means that they’ve acquired rivals. For example, Yahoo bought Tumblr, Google gobbled up YouTube, and Facebook purchased Instagram as well as the multi-platform messaging app  WhatsApp. There have also been rumors about Facebook, Google, or even Amazon–a company that currently has very little presence in social networking–attempting to buy Twitter.

Some companies are growing beyond the social networking industry altogether in an effort to continue developing and engaging audiences. In 2014, Facebook purchased virtual reality company Oculus to expand into VR, for example, and in 2015, LinkedIn bought online learning company Lynda to offer its users online business and marketing classes, and software tutorials.

Twitter, too, branched out by acquiring a social media talent agency that finds and develops personalities that create content specifically tailored to the platform.

But even as the industry matures, it’s expected to continue growing and evolving. As with every industry, though, things can change.

When it comes to social media companies, you can make some acquisitions of your own. Check out social media single stocks and ETFs on Stash–all it takes is $5 to get started.

The post The Stash Guide to Investing in Social Media Stocks appeared first on Stash Learn.

The Dow will replace it with drugstore chain Walgreen Boots Alliance, a company the managers of the Dow index say represents growing aspects of the economy.

GE, founded by Thomas Edison in 1892,  was one of the original members of the Dow.

Why this is a big deal

When the Dow was created in 1896, GE was the most valuable company on the index.

GE’s stock has fallen by more than half since June 2017, according to reports, and its decline over the past decade or so has culminated in the decision by S&P Dow Jones Indices, which manages the index, to give it the boot.

“General Electric was an original member of the DJIA in 1896 and a member continuously since 1907,” David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices said in a press release. “Since then the U.S. economy has changed: consumer, finance, healthcare, and technology companies are more prominent today and…with [Walgreens] addition, the DJIA will be more representative of the consumer and health care sectors of the U.S. economy.”

Read more: Social media company Twitter recently joined the S&P 500, replacing agricultural chemical company Monsanto.

What you need to know:

• Walgreens is replacing GE on the Dow
• GE has been a member of the Dow continuously since 1907.
• Managers of the Dow index chose to eliminate GE’s, whose share price has dropped considerably over the past 18 years–including 55% over the past calendar year.
• GE’s value peaked in 2000 with a market capitalization of almost $594 billion, making it one of the most valuable companies in America at the time.
• The index will add Walgreens as the consumer staples and health care sectors have increased in importance to the economy.

Dinosaurs go extinct

GE has struggled to stay relevant in an evolving economy. For many years, manufacturing (of several types, including electric appliances, airplane engines, and even computers) was GE’s bread and butter. But the industry has been in a tailspin, domestically, since the financial crisis in 2008.

The company’s stock was a staple in many investors’ portfolios over the years, as a blue-chip stock with dependable dividends.

Other companies that have dropped from the Dow

The Dow has evolved over the years, and GE was the last company founded in the 19th-century company listed on the index. But the Dow’s makeup has changed more than 50 times since its inception. Many other famous companies have lost their iconic status on the Dow over the years, and have been removed from the index as their businesses have suffered in one way or another.

These include:

• Sears (removed in 1999)
• Citigroup (removed in 2009)
• General Motors (removed in 2009)
• Bank of America (removed in 2013)
• AT&T (removed in 2015)

Key Terms:

Index: A collection of stocks or bonds that takes the measure of a market.

The post 126 Year-Old General Electric Has Been Kicked Off the Dow appeared first on Stash Learn.

On Thursday the credit reporting agency Equifax said it had been the target of a massive cyber attack from mid-May through July.

What is Equifax?

Equifax is one of three credit reporting agencies, or bureaus. The others are Experian and Transunion. Credit reporting agencies collect data on consumers related to all aspects of their financial lives, including bank and credit card account information, mortgages, and bankruptcies. They file this information in something called a credit report.

Credit reporting agencies also create something called a credit score, ranging from 300 to 850; the latter is considered perfect credit. Credit scores affect the cost of loans, and all consumers who have applied for credit have a credit score.

What happened?

Equifax said cybercriminals gained access to its network by exploiting a website vulnerability, making off with the personal information for 143 million U.S. consumers ( nearly half the country’s population). That information included names, addresses, Social Security numbers, birth dates, and in some cases driver’s license numbers.

Additionally, criminals walked away with credit card details for 209,000 consumers, and personally identifying information related to credit disputes for an additional 182,000 consumers.

This kind of stolen information is bought and sold by criminals on the black market, and via something called the Dark Web.

Numerous other companies in recent years have suffered big hack attacks resulting in the loss of important customer data. Two such attacks include Yahoo, where names and email addresses for 3 billion customers were stolen in two separate attacks starting in 2013, and JPMorgan Chase which lost names and log-ins for about 80 million accounts in 2014. The Equifax hack attack, however, is the most significant such breach in terms of potential damage to consumers, financial experts said.

“On a scale of one to 10, this is a 10 in terms of potential identity theft,” Avivah Litan, a senior security analyst for research firm Gartner told the New York Times on Thursday. “Credit bureaus keep so much data about us that affects almost everything we do.”

The breach is also problematic because credit reporting agencies including Equifax provide services to consumers that monitor credit behavior for risk from fraudsters.

What could this hack mean for me?

• Cybercriminals have stolen up to five vital pieces of information necessary for establishing fraudulent financial accounts. If you’re affected by the break in, hackers could potentially open accounts in your name.
• In addition to credit card accounts, cybercriminals can apply for other loans in your name, including mortgages. Additionally, they can commit medical insurance fraud, or file for tax returns. With your personal information, it’s also possible for cybercriminals to commit non-financial crimes in your name.
• Identity theft resulting in the opening of fraudulent accounts can affect your credit score.

What does this mean for investors?

The breach is bad news for Equifax, a publicly traded company entrusted with some of the most valuable information that consumers have.

As a side note, three top Equifax executives, including the company’s chief financial officer, sold stock worth nearly $2 million immediately following the breach, according to various reports. In response, Equifax said the executives had no knowledge of the break in prior to the sale, the Wall Street Journal reports.

On Friday, Equifax stock fell nearly 15% to $121 in early morning trading .

Note: Global Citizen, an ETF on Stash contains a small amount of stock in Equifax.

Equifax said cybercriminals gained access to its network by exploiting a website vulnerability, making off with the personal information for 143 million U.S. consumers ( nearly half the country’s population).

What can I do about it?

There are things you can do to protect yourself. Before you start panicking, read this:

Credit monitoring. Equifax says it will provide one free year of credit monitoring services, which consumers can sign up for online. It requires entering the last six digits of your social security number and last name. If you sign up, you’re agreeing to arbitration related to the use of Equifax’s credit monitoring service, but not for the hack attack itself, the company says.

Consider freezing your credit. This is a security measure that will make it more difficult for cybercriminals to open a new line of credit in your name. You can find out more about that here.

Change passwords for all online accounts, and regularly update them. This can include email, as well as financial accounts. Use two-factor authentication when possible. Various online services exist to help you secure your accounts. LastPass is one example. There are many others. Just because it is so important, we will say this again:  If any websites you use offer two-factor, turn it on.

Report it. If you become the victim of identity theft, report it to your local police department. Also file a report with the Federal Trade Commission, which can help you create an identity theft recovery plan. You can do that here.

Check your credit report for irregularities. You’re entitled to a free copy every year from each of the three credit reporting agencies.

Contact your local DMV if you believe your driver’s license number was stolen.

Contact the Social Security Administration if you believe someone has obtained, or is fraudulently using your Social Security number. The agency’s website can be found here.

Want to know more about the steps you can take to protect yourself? Click here.

The post The Equifax Hack: What You Need to Know appeared first on Stash Learn.

Banks are where we go to deposit our paychecks, or take out money. We go there to get a credit card or mortgage, or to deal with our accounts. These days, many of us take care of financial matters from our phones, rarely paying a visit to a local bank branch.

Here’s the thing: Banks are critical to the economy. The top ten financial institutions in the U.S. hold assets worth nearly $12 trillion. And just four of those institutions hold the deposits of nearly half the nation’s consumers.

The banking sector is critical to consumers, as well as to businesses that depend on them to make deposits, or for loans and lines of credit. Banks earn money in a variety of ways, including from interest on loans, fees on accounts, and fees for stock and bond trading.

So when financial institutions report their quarterly earnings, which give a snapshot of a company’s financial health, it will provide you with a picture of how one of the economy’s most critical sectors is performing.

Bank of America, JPMorgan Chase, Wells Fargo, and Citibank, just reported their second quarter earnings.

How are banks doing?

The biggest banks in the U.S. had a relatively good second quarter, posting strong profit and revenue growth. Here are highlights for the top four banks:

• JPMorgan Chase, the nation’s biggest bank, reported its quarterly profit increased 13% to $7 billion. Profits however were 16% lower in its consumer and community banking unit, due to higher credit card origination costs.
• Bank of America, the second-biggest bank, also saw its profits increase, by 10% to $5.3 billion compared to the second quarter 2016. The bank’s share price is up more than 40% since November.
• Wells Fargo’s profit rose 4.5% to $5.8 billion in the quarter. The bank’s share price has been dragged down since last year by a $185 million settlement with regulators related to the opening of fictitious and unauthorized bank and credit card accounts, according to the Wall Street Journal.
• Citigroup’s quarterly revenue decreased by 3% to $3.9 billion. The decline in profit was reportedly related to lower trading volume, and higher costs associated with its credit card accounts.

So what’s going on?

After years of difficulties stemming from their involvement with the mortgage crisis, the banking sector appears to be on sound footing, according to financial analysts.

In late June, all of the major U.S. banks passed something called a stress test. This test was put in place at the height of the recession, when numerous banks ran out of money or became insolvent, to make sure that banks have enough cash on hand to weather another financial crisis.

Regulations requiring banks to keep a cash buffer, put in place through something called the Dodd-Frank Wall Street Reform and Consumer Protection Law, may also soon be repealed, which some financial analysts say could increase bank profits. Banks have also benefitted from the steadily improving financial picture of consumers as they’ve gotten on to more sound footing in recent years.

• Top banks reported sound second quarter earnings.
• They’ve generally been benefitting from the improving financial picture of consumers since the recession.
• Banks are also thriving on the expectation that Congress will soon eliminate regulations that require them to hold more cash in reserve.

The post Top Banks Report Earnings: The Money Sector Weighs In appeared first on Stash Learn.

That being said, it’s possible to rank privately held companies by size using metrics such as annual revenue and number of employees. Here’s a list of the 10 largest privately held companies based on annual revenue figures. (Note: Revenue figures are based on recent media reports. In some cases, companies report revenue on a fiscal year basis as opposed to a calendar year basis).

1. Cargill Corporation.

• Headquarters: Wayzata, MN
• 2016 Fiscal Year Revenue: $107.1 billion

This Minneapolis-based multinational agricultural and industrial conglomerate has been in business for over 150 years. With 2016 fiscal year revenues exceeding $107 billion and roughly 153,000 employees, it’s easily the largest privately held company in the U.S..

The Cargill family controls 90% of the company’s stock, and they remain committed to keeping the company private. In fact, in 2011 when the largest shareholder wanted to liquidate his holdings, the company discussed–and quickly nixed–the idea of going public.

2. Koch Industries.

• Headquarters: Wichita, KS
• 2015 Fiscal Year Revenue: $100 billion

Headquartered in Wichita, Kansas, Koch Industries has its fingers in a multitude of industries, including energy, healthcare, technology, agriculture, finance, consumer products, and cattle ranching. Its fiscal year 2015 revenues totaled $100 billion. The company employs nearly 100,000 workers.

Koch Industries remains a family-held business. Charles and David Koch, the two most visible and active of founder Fred Koch’s sons, each own 42% of the company’s stock. The Koch family has an estimated net worth of $84 billion.

3. Albertsons Companies Inc.

• Headquarters: Boise, ID
• 2016 Fiscal Year Revenue: $58.7 billion

This Boise-based grocery store chain is privately held by Cerberus Capital Management, a private equity firm. It reported fiscal year 2016 revenues of $58.7 billion. After acquiring the Safeway supermarket chain in 2015, Cerberus initially planned to take the company public in an IPO. That plan was later postponed indefinitely due to “recent market volatility.” There has been no talk recently of a public offering of Albertsons stock, but market-watchers regularly keep tabs on a potential IPO.

4. Dell

• Headquarters: Round Rock, TX
• 2016 Fiscal Year Revenue: $54.9 billion

With annual revenue in 2016 of nearly $55 billion and more than 100,000 employees, Dell is the largest privately held computer making company in the world. Founder Michael Dell was chief executive officer ofthe company for 25 years when it traded as a public entity, but in 2013, he and Silver Lake Partners successfully executed a buyout and took  the company private. Prior to the buyout, Michael Dell owned about 14% of the company’s stock. After the $24 billion transaction was completed, Dell walked away with an estimated 75% of the company’s stock.  Silver Lake owns the remaining 25% stake.

Not content to rest on his laurels, in 2016, Dell and its Silver Lake backers orchestrated the acquisition data storage and analytics company EMC Corp. for nearly $70 billion. It was reportedly the largest tech acquisition in history. The merged company is also the largest privately held global technology company.

5. Bechtel Group Inc.

• Headquarters: San Francisco, CA
• 2015 Fiscal Year Revenue: $32.3 billion

The Bechtel Group is the largest family-controlled construction business in the world with $32.3 billion in revenue in 2015. Its corporate leadership has remained within the family since 1898, when Warren Bechtel started the company as a railroad-building operation. Bechtel’s great-great-grandson Brendan Bechtel is expected to take over as CEO in 2018.

Bechtel’s projects include iconic projects such as the Hoover Dam, the Bay Area Rapid Transit System and the NASA Space Launch Complex. It also built the Channel Tunnel linking England and France, and the Hamad International Airport in Qatar.

6. Deloitte

• Headquarters: New York, NY
• 2016 Fiscal Year Revenue: $36.8 billion

Deloitte’s revenue of 2016 of $36.8 billion elevated it to the number-one spot in the professional services industry. The company employs over 244,000 people worldwide and provides audit and tax consulting as well as financial advisory services. Until 2010, Deloitte was organized as a Swiss verein, a voluntary business association. However, in 2010, the member firms reorganized under UK laws as a private company with limited guarantee.

7. PricewaterhouseCoopers

• Headquarters: London, UK
• 2016 Fiscal Year Revenue: $35.9 billion

Headquartered in London, PricewaterhouseCoopers, which also does business as PwC, is the second largest professional services in the world. With annual revenue of over $35.9 billion and 208,000 employees, PwC is second only to Deloitte in this space. Its legal structure is similar to other professional services companies, with separate member firms functioning as independent legal entities.

8. Mars, Inc.

• Headquarters: McLean, VA
• 2016 Fiscal Year Revenue: $33 billion

The Mars brand is mostly associated with candies and confections, although its subsidiaries include food products company Uncle Ben’s,and pet food makers Pedigree and Whiskas, among others. the Mars family owns 100% of the  company which generated revenue of $33 billion in 2016. Mars is headquartered in McLean, Virginia, and operates factories in the US, Europe, and Australia. It employs approximately 75,000 people.

9. Publix Supermarkets

• Headquarters: Lakeland, FL
• 2016 Fiscal Year Revenue: $34 billion

Publix was founded in 1930 by George Jenkins, and currently operates over 1,100 stores in the US. It is the largest employee-owned grocery chain in the country.. In 2016, Publix generated revenue of more than $34 billion Excluding superstores such as Walmart, Target, and Costco, Publix is one of the three largest grocery store chains in the U.S.

10. C&S Wholesale Grocers

• Headquarters: Keene, NH
• 2016 Fiscal Year Revenue: $30 billion

C&S dominates the wholesale grocery distribution market in the U.S., with annual revenue of $30 billion in 2016.. Its sole owner, Richard B. Cohen, is the third generation of the Cohen family to oversee the company. Cohen has a reported net worth in excess of $11 billion, making him one of the 100 richest people in the world. C&S has 175,000 employees.

The post Top 10 Largest Private Companies as of 2017 appeared first on Stash Learn.

Robotics and artificial intelligence are exciting new fields that are currently enabling machines to work alongside people in a variety of manufacturing industries including automotive and electronics production.

Robots and artificial intelligence will drive $15.7 trillion of global economic gains by 2030

Pretty soon, robots and other thinking machines will be helping everywhere, assisting in health care, energy production, even farming.  

Robots, robots, everywhere

A new study from consultancy PriceWaterhouseCoopers (PWC) about artificial intelligence predicts the world is on the cusp of enormous change, driven by robots and the next generation of thinking computers. The study forecasts enormous productivity gains for economies across the globe as robots and artificial intelligence enable greater efficiency.

The two countries expected to benefit most from advances in artificial intelligence are the United States and China, also the two largest economies in the world. But emerging markets have an opportunity to ramp up really fast.

Here are some highlights from the report:

Robots and artificial intelligence will drive $15.7 trillion of global economic gains by 2030. Roughly half of these gains will come from increases in productivity. The other half will come from increased consumer demand as products become more specialized and targeted to individual buyers.

While all economies in the world will experience the economic impact from smarter machines, China and the U.S. will experience 70% of the total GDP gains. PWC estimates the U.S. will see economic increases worth $3.7 trillion. China will see nearly twice as much economic gain, valued at $7 trillion.

Emerging market economies, or nations whose economies are still developing, stand to gain the most from robotics and artificial intelligence. Think of it this way: advanced economies like the U.S. already have extremely sophisticated systems in place for manufacturing, production, and delivery of services.

Developing nations have a huge opportunity to become market leaders by adopting artificial intelligence in processes more quickly.

The post Robots and Artificial Intelligence: It’s the Way of the World appeared first on Stash Learn.

That’s because shipping is related to just about every industry you can imagine. (Think about all the packages from Amazon that get shipped and delivered every day.) FedEx, which competes with UPS and is a blue chip stock, is one of the largest shipping and logistics companies in the world.

In fact, transportation-related purchases accounts for 8.4 percent of U.S. GDP, or $1.4 trillion, according to the U.S. Department of Transportation.

And with $60 billion in annual revenue, and nearly half a million employees, it makes sense that FedEx is a bellwether (a fancy word for trend indicator) of how things are looking for the U.S. economy.

FedEx delivers positive forecast

The good news is that Fedex reported stronger than expected earnings for the end of its fiscal year on Tuesday. It also presented a strong forecast for its earnings in the year ahead.

 Breaking things down a bit more:  

• FedEx beat analyst expectations for its fourth quarter 2017, which means it had a better than expected three months.
• For the quarter, revenue increased 7% to $7 billion, and for the full year — FedEx’s fiscal year ends May 31 — it reported revenue, or sales, that increased by 20% to more than $60 billion.
• Its guidance for 2018 is also strong, predicting a profit increase as high as 14% for the coming year, according to reports.
• FedEx said international shipping was particularly strong, driven by an increase in exports from the U.S.

Key takeaways

FedEx has reported positive earnings. For economists that look to FedEx as a measure of how the economy is doing, that’s a good sign.

Recommended Reading: Explore the Investment: Blue Chips 

The post What FedEx’s Strong Earnings Report Says About the Economy appeared first on Stash Learn.

Kalanick’s departure follows revelations that the rapid growth of the company often promoted a culture internally that harassed female employees, or that took short cuts that frequently ran the company up against regulatory issues in the 650 cities worldwide where the company is responsible for 40 million rides each month.

Uber, founded by Kalanick in 2009, now has a valuation approaching $70 billion–twice the market cap of car manufacturing giant General Motors.

Many analysts are hailing the decision, stating that Kalanick’s exit is necessary for the company to continue growing in a responsible fashion. This poses interesting questions for investors in companies–what happens when the founder is asked to leave?

Worries when a founder exits

Often company founders who build the brand are necessary for the company’s success, or they’re synonymous with it. Think of Warren Buffett and Berkshire Hathaway, or Steve Jobs and Apple.

In fact, Apple’s board of directors ejected Jobs in 1985, for being headstrong and impulsive, and soon after the company that created MacIntosh computers was hit with sagging sales.

Jobs’ return in 1997–as a much-chastened executive who focused on leading the company–corresponded to the company’s current heyday as one of the most valuable companies in the world.

More recent examples include Spencer Woodman, the founder of high performance video camera GoPro. In that company’s annual report, it says much of the company’s growth depends on Woodman maintaining his leadership role there.

Start-ups and culture: It matters

In early days, tech startups often succeed because they’re founded by people willing to take risks and push the envelope in a particular sector or industry

A company with a small team may be able to get by with a “whatever it takes” attitude in order get a great product or service out into the world. But this can cause big problems when and if it adds hundreds (or thousands) of employees or goes global — which can lead  to harassment, poor workplace morale and lack of oversight among teams.

“It’s critical for a growing start-up to create a culture of accountability from the very beginning,”  says Stash co-founder and chief executive Brandon Krieg. “What employees want is to do a great job in a great company and feel safe when they come to work.”

Key Takeaways

When it comes to understanding public reaction to Kalanick resigning from Uber, here are some things to keep in mind:

• Uber is still a private company. Unlike Apple or Berkshire Hathaway, you can’t buy or sell its stock in the public markets. Nevertheless private companies can still have private shareholders who own shares of the company.
• All corporations, whether they’re private or not, are required to have a board of directors. The board is responsible for representing the shareholders, overseeing corporate policies including enforcement of regulations forbidding harassment, as well as hiring and firing executives.
• Uber is not the only Silicon Valley tech company that has had difficulties with workplace and regulatory issues in recent  years. Others include the human resources outsourcing firm Zenefits, and consumer products company Quirky, which filed for bankruptcy in 2015.

Keep Reading: Warren Buffett: Hits, Misses and the Future of Berkshire Hathaway 

The post Uber CEO Travis Kalanick Resigns: What Does That Mean For Uber? appeared first on Stash Learn.

The tech giant hosted its annual worldwide developers’ conference (aka WWDC17) in San Jose, California on Monday to showcase new innovations for its key product platforms in the coming year.

The conference is a must for analysts and investors as an indication of how the world’s richest consumer products company plans to innovate in the year to come and beyond.

Developers create the code for apps and software for Apple’s four major platforms which are Apple TV, Mac computers, the iPhone and iPad, and the Apple Watch. By its own estimates, Apple has 16 million developers worldwide, some 3 million of which have been added in the last year alone. 

While the event was a showcase for professional advances, fans of the brand tuned in to see the next generation of eye-popping innovations to favorite products.

Here are highlights for 2017 and beyond:

Highlights from WWDC17

Desktops
Apple will soon debut High Sierra, a new OS for Mac computers. Updates will include a faster browser experience through Safari, and updates to its photo program, including facial recognition. Also expect more memory, storage and faster processing speeds in new computers.

Coming in December: The new iMac Pro, John Ternus, Apple’s vice president for hardware engineering, dubbed it “the most powerful Mac we’ve never made.” The souped up desktop boasts 18 core processors and includes a graphic chipset called Radeon Vega. It’s also priced $2,000 less than desktops with comparable computing power, he says.

Watches
The Apple Watch is getting a Siri update. Siri, whose voice is getting upgraded to sound more natural, will help create a daily feed of activities on the watch face.

The watch will also sync automatically with your music playlists.

iPhones and iPads, and a voice-activated speaker system
The iPhone and iPad operating system is getting an update to iOS11. The popular Apple Pay feature will now let users send cash to each other directly via person-to-person payments, including through the messaging app.

It will also use satellites and the phone’s GPS to track when you’re in the car, so it can put the phone in do-not-disturb mode, allowing you to focus on the road without responding to notifications.

Apple is also releasing a speaker system similar to Alexa/Echo called the HomePod.

The HomePod, Apple’s first new hardware release in three years, lets Siri play music, and perform other Siri-related functions, like checking traffic conditions, messages, and news, as well as potentially control internet-connected devices in your home. It will be available in December.

Virtual and augmented reality
Apple is taking a big bite out of augmented (AR) reality by releasing a toolkit for iOS developers. Alasdair Coull, creative director of WingNut AR—the AR division of Lord of the Rings director Peter Jackson’s film company—wowed the crowd by demonstrating  via iPad how an augmented reality landscape could be projected onto a tabletop.

One more thing: Amazon is coming to Apple TV, bringing with it the online retailer’s large array of Prime streaming video content.

The post Apple Bets on Augmented Reality (And Putting Siri In Your Living Room) appeared first on Stash Learn.

In addition to the American Health Care Act (AHCA) passing the House of Representatives, many of the companies that make medicines, biotech and provide healthcare and insurance reported their quarterly earnings.

Health Care earnings highlights

Bristol Myers Squibb: The big pharma powerhouse reporting positive earnings, touting the continued positive outlook of its cancer drug Opdivo. BMS also makes a popular blood thinner called Eliquis that’s looking to take on industry best-seller Xarelto. This company has many cancer treatment drugs in its development pipeline and the company is hoping they’ll make it phase 3.

Johnson & Johnson: The big news is  quarterly dividends. Shareholders were excited to learn that J&J chose to increase its dividend payout by 5%, or $0.04 per share.

Pfizer reported mixed earnings this quarter.The good news? High hopes for Ibrance, its advanced breast cancer drug. The less than rosy? Dips sales on its other drugs, like its immunosuppresant Enbrel and its pneumonia vaccine Prevnar 13.

Merck: The drug company gave its investors the thumbs up based on performances on its human papillomavirus drug Gardasil and hepatitis C drug Zepatier. The market also has hopes for its cancer drug Keytruda, seen as a rival to BMS’s, Opdivo.

Health Care and the AHCA

Last week, the House of Representatives passed the AHCA. Its aim? To replace the Affordable Care Act (ACA).

The proposed plan will nix certain aspects of the ACA, including the requirement to have health insurance and the tax penalty. In its present state, the AHCA aims to lower premiums by decreasing Medicaid coverage and separating patients into risk pools.

Will it become eventually become law? It still has to go through the Senate—and members on both sides of the aisle have stated that the bill needs to undergo changes for it to pass muster.

What’s next for health care?

If the AHCA passes, there’s speculation that Trump’s upcoming plans for corporate tax cuts and infrastructure spending will likely gain momentum. If the bill is defeated, some say there may be trouble ahead for his other plans around taxes and infrastructure.

So what does that mean for you? Stash firmly believes in taking a long view and adding to your investments on a regular basis with Recurring Transactions. Your investments are meant to last through moments of political turbulence and times of volatility.

Stay strong, dollar cost average and keep diversified. A mix of ETFs to balance out your risk when the market starts to wobble is your best investment ally.

It’s healthy to worry, especially in times like these. Markets go up and down in the short term but you need to take the long term view.

The post Health Care Fever: Quarterly Earnings and the House Passes AHCA appeared first on Stash Learn.

Why should you feel good about investing in Apple?

They’re all about the green

With a high caliber of corporate sustainability, Apple is nearly unbeatable in their dedication and results. 100% of their US data and operations centers run on 100% renewable energy (and a growing 87% of global data centers do as well).

Apple remains the most aggressive among major internet companies in deploying renewable energy.

How? Apple has taken that extra-impressive step and built three separate solar farms and on-site fuel cells in order to secure a trusted renewable electricity supply. As a result, Apple prevented 13.8K metric tons of carbon emissions in 2015 and saved 3.8 B gallons of freshwater since 2013, according to their 2016 Supplier Responsibility Report. Apple remains the most aggressive among major internet companies in deploying renewable energy.

They (really) don’t like to waste

From the office to the product, Apple refuses to waste resources. They recycle used Apple devices that their customers drop off at any Apple store.  But Apple doesn’t just depend on their consumers for reducing waste. They’ve ensured that 99% of the paper in their packaging is recycled or sustainable.

Apple is a technology company, but one with an uncommon commitment to sustainability. The plan for their new data center in Viborg, Denmark includes capturing excess heat from the data center, piping it into the town’s district heating system and heating other buildings in the town.

They’re recognized

Just how impressive is their dedication to sustainability? Apple was named the top manufacturer among all brands by the Institute of Public and Environmental Affairs (IPE) in 2015. Furthermore, Apple is the only company awarded a Clean Energy Index of 100%, according to Greenpeace’s Clicking Green Report.

They have a hand in charity

With all the paper that they do use, Apple wanted to give back. In order to reduce the company’s “virgin paper footprint” (virgin paper = paper that has never been recycled before), Apple purchased two forests, one in North Carolina (3,600 acres) and one in Maine (32,400 acres). With the company’s 100% sustainability goal, the purpose of the forest is to plant half as many trees as it’s cutting down each year.

They help employees have a hand in it, too

Apple doesn’t stop at coloring everything green. They highly encourage charitable giving and volunteering. When an Apple employee donates money to a non-profit 501(c)(3), Apple matches the gift, dollar-for-dollar, up to $10,000 annually. And when an employee volunteers, the company donates $25 per hour to the organization.

They know kids are the future

As part of the company’s own charitable activities, they also bring an innovative approach to education across the country. In joining forces with President Obama in the ConnectED initiative, Apple pledged $100M to improve teaching and learning solutions within underserved schools nationwide. They’ve donated iPads, Macs and Apple TVs to improve both the teaching and learning experience.

The post Is Apple More Responsible Than You? Why You Want to Invest appeared first on Stash Learn.

In simple terms, cloud computing is a way of storing, accessing, and syncing data and software through the internet instead of your local computer hard drive. The ‘cloud’ is actually a global network of servers. To say those servers host massive amounts of data is an understatement.

Through web-based tools and applications, information is accessible anytime from any device with internet access and can be shared with others as you choose. Have a Gmail account? Your web-based email system is in the cloud. Share business documents with colleagues via Dropbox or Google Docs? That’s the cloud.

According to a 2016 study, the big data and business analytics industry is expected to grow 56% and become a $203 billion market by 2020.

Backup your phone’s photos and videos? Stored in the cloud. Netflix? You guessed it – they host their video content on Amazon Web Services, aka the cloud.

The cloud takes shape

The cloud isn’t only about data storage. Cloud-based applications have transformed the way we do business. Remember the days when email chains included twenty different versions of the same document, all at various stages in the editing process? As part of a whole suite of cloud-based applications, Google Docs allows users to collaborate and work simultaneously, showing real-time updates from anywhere in the world.

The cloud isn’t only about data storage. Cloud-based applications have transformed the way we do business.

Businesses that leverage big data use the cloud to capture, organize, and analyze massive data sets, something that was not possible before the cloud. According to a 2016 study, the big data and business analytics industry is expected to grow 56% and become a $203 billion market by 2020. In 2016, the banking industry led the way, investing almost $17 billion in software for risk management and fraud prevention.

Salesforce, Netflix, and Facebook don’t offer cloud services, but they rely on the cloud to provide their service to you

It takes more than just computer software companies to make the cloud possible. Sure, there are the pure play cloud computing companies that offer direct services such as network hardware and software, internet marketing and services, IT support, communications equipment, storage, and peripherals.

But there’s also non-pure players, like Salesforce, Netflix, and Facebook. They don’t offer cloud services, but they rely on the cloud to provide their service to you.

The technology behind cloud computing was first developed in the 1950s, but what we have come to know as ‘the cloud’ didn’t take shape until the turn of the 21st century when Salesforce stopped selling its software on disc and started providing their applications via the web.

If you think the best is yet to come with cloud technology, then consider an investment in an ETF on Stash that’s all about the cloud.

What’s inside On Cloud 9?

This investment (Ticker: SKYY) includes cloud computing companies – both pure play and non-pure play alike. Remember, pure play means the company actively supports and forms the cloud, and non-pure play companies utilize the cloud to provide their service.

• Tech hardware companies like Netapp and Hewlett Packard that create the systems and the equipment
• Software masters like Microsoft, Oracle, and Adobe
• Industry giants like Amazon and Apple that provide cloud storage data centers
• Companies like Google that provide industry-leading cloud-based applications
• And yes, even social media giants like Facebook and providers like Netflix who rely on the cloud to enable your binge-watching marathons.

At the time of this post, On Cloud 9 includes 33 companies. On Cloud 9 is ‘The First Trust ISE Cloud Computing Index Fund’ (SKYY) and has a 0.60% expense ratio.

Is the sky the limit?

What’s next in the world of cloud computing? More mobile capabilities, wearable technology, machine learning and AI (artificial intelligence). The Internet of Things (IoT), where machines connect to other machines and sensors, gathering data and leveraging it thanks to cloud computing, will one day revolutionize everything from smart refrigerators to smart stethoscopes to smart roads, bridges, and cars.

The cloud has the potential to touch almost everything we do – and companies of all sizes, including those that are still only an idea, will use the cloud to grow bigger, faster, and more innovative.

If you think that we’re just getting started, consider an investment in On Cloud 9.

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