Same day delivery coming to Target

Target to buy same-day delivery platform Shipt for $550M in cash 

Same day delivery coming to Target. Stockwinners.com
Same day delivery coming to Target

Target (TGT) announced it has agreed to acquire Shipt, Inc., an online same-day delivery platform, for $550M in cash.

Target will leverage its network of stores and Shipt’s proprietary technology platform and community of shoppers to quickly and efficiently bring same-day delivery to guests across the country.

The acquisition significantly accelerates Target’s digital fulfillment efforts, bringing same-day delivery services to guests at approximately half of Target stores by early 2018.

The service will be offered from the majority of Target stores, and in all major markets, before the 2018 holiday season.

At launch, Target will offer same-day delivery of groceries, essentials, home, electronics and other products, while expanding the products offered over time.

By the end of 2019, same-day delivery will include all major product categories at Target.

The transaction is subject to customary closing conditions and is expected to close prior to the end of calendar year 2017. This all-cash acquisition will be immaterial to Target’s near-term financial results.

It is expected to be modestly accretive to the company’s earnings per share in 2018, while accelerating digital and total sales growth over the medium term.

“We laid out an ambitious strategic agenda in early 2017, which included a focus on giving our guests a number of convenient ways to shop with Target, whether it’s ordering online and picking up in one of our stores, driving up to pick up an order, or taking advantage of services like our new Restock program.

With Shipt’s network of local shoppers and their current market penetration, we will move from days to hours, dramatically accelerating our ability to bring affordable same-day delivery to guests across the country,” said John Mulligan, EVP and COO for Target.

“By the 2018 holiday season, we will be servicing every major market across the country with same-day delivery, and Shipt’s service-oriented approach aligns well with Target’s commitment to delivering an exceptional shopping experience for our guests.”

TGT is up $1.10 to $62.13 on the news.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

T-Mobile to launch TV service

T-Mobile acquires TV tech company Layer3 TV, launch new TV service

T-Mobile to Launch TV Service - Stockwinners
T-Mobile to Launch TV Service
T-Mobile (TMUS) US resident and CEO John Legere unveiled the next phase in the Un-carrier’s mobile video strategy, announcing plans to launch a disruptive new TV service in 2018.

To fuel that, Legere also announced the Un-carrier has signed a definitive agreement to acquire TV technology innovator Layer3 TV, Inc. and will work with Layer3 TV’s leading technology and talent to create T-Mobile’s new TV service.

People love their TV, but they hate their TV providers. And worse, they have no real choice but to simply take it – the crappy customer service, clunky technology and outrageous bills loaded with fees! That’s where we come in. We’re gonna fix the pain points and bring real choice to consumers across the country,” said John Legere, president and CEO of T-Mobile.

“It only makes sense for the Un-carrier to do to TV what we’re doing to wireless: change it for good! Personally, I can’t wait to start fighting for consumers here!”

T-Mobile added: “Currently, Layer3 TV delivers a product that seamlessly integrates the best of television, streaming online video content and social media and is available in five cities across the US. With Layer3 TV’s leading technology and talented team, T-Mobile plans to launch its own disruptive new TV service next year, tapping into the amazing content available from creators today to disrupt legacy cable and satellite TV’s distribution model.

The Un-carrier’s new TV service will take full advantage of T-Mobile’s nationwide retail presence, top-rated brand and award-winning sales and customer care organizations.”

Legere also said that services like Netflix (NFLX) are “absolutely booming.” Says TV service plans part of long-term Un-carrier strategy for video and mobile entertainment. Says legacy TV model “utterly broken,” looks like wireless from a few years ago. Legere expects the Layer3 deal to close in the next few weeks.

TMUS is up 82 cents to $64.30.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.


Apple becomes Finisar’s Santa Clause

Apple awards Finisar $390M from Advanced Manufacturing Fund

Apple awards Finisar $390M from Advanced Manufacturing Fund. Stockwinners.com
Apple awards Finisar $390M from Advanced Manufacturing Fund.

Apple (AAPL) announced that Finisar (FNSR) will receive $390M from its $1B Advanced Manufacturing Fund.

“The award will enable Finisar to exponentially increase its R&D spending and high-volume production of vertical-cavity surface-emitting lasers.

Apple says that Finisar is going to work on both research & development and high-volume production of optical communications components. The most complicated components are the vertical-cavity surface-emitting lasers (VCSELs) used in the iPhone X for Face ID, Animoji, Portrait mode and other face-mapping technologies.

But Finisar also works on proximity sensors including the ones in the AirPods.

And it’s quite easy to understand why Apple is investing in Finisar. There are simply not enough suppliers in this field today. In the fourth quarter of 2017 alone, the company will purchase 10 times more VCSEL wafers than the entire VCSEL production in the world during the fourth quarter of 2016. So Apple needs to foster production.

VCSELs power some of Apple’s most popular new features, including Face ID, Animoji and Portrait mode selfies made possible with the iPhone X TrueDepth camera, as well as the proximity-sensing capabilities of AirPods,” Apple said in a press release.

It added that Finisar will transform a 700,000-square-foot manufacturing plant in Sherman, Texas, into the “high-tech VCSEL capital of the US.”

Apple’s award will create more than 500 high-skill jobs at the Sherman facility.

FNSR closed at $19.30. It last traded at $23.00.


STOCKWINNERS

To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners

This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.