Business
Apple stock nears record high
Apple has discovered its groove once more.
The iPhone maker’s inventory hit $133.82 in early buying and selling Monday, placing Apple lower than $1 away from its intraday buying and selling excessive of $134.54, reached in April 2015. Apple’s inventory ended the day at $133.29, beating its earlier document closing value of $133, set in February 2015.
The inventory surge, pushing Apple (AAPL) to a $700 billion market cap, comes amid renewed optimism for the iPhone.
Goldman Sachs raised its value goal for the inventory on Monday, citing the chance of “main new options” like “3D sensing” being added to the following iPhone mannequin, in response to an investor notice supplied to CNNMoney.
Apple’s earlier excessive was set six months after it launched the redesigned iPhone 6 and 6 Plus, kicking off what CEO Tim Prepare dinner described because the “mom of all upgrades.”
Since then, nonetheless, Apple has bucked its custom of overhauling the iPhone each different yr. The latest fashions available on the market right now look almost an identical to the iPhones obtainable in late 2014.
The lengthy wait, mixed with this yr marking the iPhone’s tenth anniversary, has solely raised expectations that Apple is about to considerably overhaul its smartphone and reignite demand.
Associated: Tim Prepare dinner: ‘Apple wouldn’t exist with out immigration’
Apple’s annual gross sales fell within the 2016 fiscal yr for the primary time since 2001 as iPhone gross sales, nonetheless the vast majority of its enterprise, declined in three consecutive quarters.
Apple even minimize its CEO’s pay by 15% as a result of firm’s failure to fulfill its efficiency objectives for each gross sales and income.
However that shedding streak simply ended.
Apple gross sales began rising once more within the December quarter, pushed by stronger demand for the iPhone — significantly for the bigger and costlier iPhone 7 Plus.
The corporate bought 78.3 million iPhones for the quarter, setting a brand new document. At the very least a few of that could be as a result of Samsung’s smartphone recall woes.
Mark Moskowitz, an analyst with William Blair, wrote in an investor notice this month, “Samsung’s Be aware 7 struggles doubtless helped.”
The iPhone is not the one purpose Wall Road is happy about Apple. There’s additionally President Trump.
Regardless of Trump clashing with Apple throughout the marketing campaign, traders are actually optimistic Apple will profit from a minimum of one Trump proposal: slicing taxes on money that U.S. companies convey again from their abroad accounts.
Apple presently has $230 billion in money held in international accounts. If Trump and Congress make it cheaper for Apple to convey that cash again, it might be used for acquisitions and buybacks.
CNNMoney (New York) First printed February 13, 2017: 12:24 PM ET
Business
Mike Tyson vs. Jake Paul sets U.S. record for biggest gate for bout outside of Las Vegas
The Jake Paul-Mike Tyson bout that brought massive viewership numbers to Netflix last week also resulted in a record-setting gate.
Paul’s unanimous-decision victory over Tyson at AT&T Stadium in Arlington, Texas, on Friday has netted a gate of $18,117,072, a number that Paul’s Most Valuable Promotions says shatters the U.S. record for a boxing or MMA event held outside of Las Vegas.
More than 72,300 fans were in attendance, MVP said, with an average ticket price of $304.
Netflix and MVP reported Tuesday that the fight was the most-streamed sporting event ever, peaking at 65 million concurrent streams with an estimated average minute audience of 108 million live viewers worldwide.
The co-main event, in which Katie Taylor won a unanimous decision over Amanda Serrano to remain the undisputed world junior welterweight women’s champion, averaged 74 million live viewers globally, according to Netflix and MVP.
“From setting the highest gate outside of Las Vegas in U.S. history for a combat sports event to becoming the most streamed sporting event in U.S. history, this event is a testament to the global impact of Jake Paul, Mike Tyson, Katie Taylor, Amanda Serrano, and the incredible athletes on this card,” MVP co-founder Nakisa Bidarian said in a statement. “We’re proud to have partnered with Netflix to deliver an event that brought fans together worldwide and broke many records.”
Overall, the Tyson-Paul gate is the ninth-highest for a U.S. boxing match. The record was set in 2015, when Floyd Mayweather vs. Manny Pacquiao raked in more than $72 million at the MGM Grand in Las Vegas.
The event was Netflix’s first foray into streaming a live sporting event, and many viewers complained on social media about losing the feed and buffering. Netflix is slated to stream two NFL games on Christmas Day — the Kansas City Chiefs at the Pittsburgh Steelers and the Baltimore Ravens at the Houston Texans, with the latter game featuring a live halftime performance by Beyoncé.
“While it wasn’t a perfect experience for all of our members, we are 100% committed to doing even better for our next LIVE events, NFL’s two Christmas Day games,” Netflix chief marketing officer Marian Lee wrote of the Tyson-Paul fight on LinkedIn.
Business
Dishwasher getting old? With Trump vowing tariffs, it might make sense to shop for new appliances now
Dear Liz: President-elect Donald Trump’s proposed tariffs have me wondering if now is the time to purchase new kitchen appliances, something I have long delayed doing. If he follows through on his plans, I don’t know how long it would be before the new tariffs take effect.
Answer: Tariffs of up to 100% on imported products could dramatically increase the cost of many consumer goods, including appliances and cars. But how, when or even whether these tariffs will be imposed is still unclear.
Given the political uncertainties, it probably doesn’t make sense to proactively replace appliances or cars that are still in good working order. If you’re planning to update anyway, however, doing so sooner rather than later may save you some money.
Does this church pastor need to confess to the IRS?
Dear Liz: As a recent member of our church board, I just discovered our church hasn’t been paying Social Security or Medicare taxes for our pastor. I checked with our pastor and he hasn’t been making any payments either. This has been going on for six years. How do we recover?
Answer: Clergy are generally exempt from having Social Security and Medicare taxes withheld from their wages, notes Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting. However, clergy typically must pay self-employment taxes, which include Social Security and Medicare, unless an exemption has been approved by the IRS.
Normally, employers and employees each pay 7.65% of the employee’s wages to cover Social Security and Medicare taxes. Self-employed people typically must pay both the employer and employee shares, or a total of 15.3%.
If your pastor has been filing taxes as a self-employed person, then he probably has been paying the appropriate Social Security and Medicare taxes. If he hasn’t, however, he may owe a substantial tax bill and should consider hiring a tax pro to help him amend his returns.
Which Social Security benefit? It depends
Dear Liz: I am 61 and retired. My husband recently died at age 61 and he was still working at the time of his death. He’s always made more money than I did. I’ve been told that I can start getting Social Security after I turn 62 and when I turn 67 I can apply for survivor benefits. Is this correct?
Answer: You can start survivor benefits as early as age 60 and retirement benefits as early as age 62. Most people should delay their applications for Social Security benefits, because an early start typically means a smaller lifetime payout. You’re one of the exceptions since you’re allowed to switch between survivor benefits and your own.
Because the survivor benefit is much larger than your own, you’ll want to maximize your payout by not taking it early. That means waiting to start until your full retirement age. You can start your own benefit at 62 and switch to survivor benefits at 67.
An early start means being subject to the earnings test until full retirement age. If you’re not working, though, that’s a moot point.
Social Security is complicated and the right claiming strategy depends on the details of an individual’s situation. Consider using one of the paid Social Security claiming strategy sites, such as Maximize My Social Security or Social Security Solutions, to find the best approach.
Inheriting stocks after a parent’s death resets cost basis
Dear Liz: I am a beneficiary of my father’s brokerage account. Upon his death, the brokerage company closed his account and transferred all of the equities to me in a new account. How will I know the cost basis for capital gains purposes when I sell the stocks?
Answer: You will use the value of the stocks on the day of your father’s death as the new tax basis. This is known as a “step up” in basis, since typically the fair market value at death is higher than the original basis, or what your dad paid for the stocks. Any appreciation that occurred during his lifetime won’t be taxed, but you would be subject to capital gains tax on any appreciation that occurs after that date.
Liz Weston, Certified Financial Planner, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon Blvd., No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.
Business
Fresh Brothers pizza chain expanding beyond Southern California after sale to Craveworthy Brands
Fresh Brothers, the Southern California pizza chain, will expand into a national brand after being acquired this week by a Chicago-based company.
Founded in 2008, the popular pizza chain currently has 25 locations from Los Angeles to San Diego including shops in Manhattan Beach, Brentwood and Hollywood. The operation was appealing to Craveworthy Brands, which operates 15 restaurant brands with 225 locations nationally, said Chief Executive Gregg Majewski.
Majewski declined to disclose how much Craveworthy Brands paid to acquire Fresh Brothers. Under Craveworthy’s franchise model, new Fresh Brothers pizza locations will be independently owned, he said.
There are plans to open a Fresh Brothers in the Chicago area and begin franchising in other states by March, Majewski said. And while he eventually hopes to make some inroads in Florida and other states, Majewski said he doesn’t have plans to make an aggressive push into the Northeast.
“We’re going to work our way east from Los Angeles and west from Chicago, and we’ll meet somewhere in the middle when we’re done,” Majewski said.
He also plans to expand the Fresh Brothers footprint in California.
The restaurants’ affordable prices and use of higher-quality ingredients set Fresh Brothers apart in the crowded field of pizza chains, Majewski said.
“That’s a niche we want to be in,” he said. “We think Fresh Brothers is absolutely prime to be a higher level franchise concept in the pizza world.”
The expansion of Fresh Brothers is somewhat of an outlier in the fast-casual dining industry, where many chains have been struggling amid inflation and high labor costs. Average consumers are pulling back on discretionary spending, experts say, and may be frequenting their favorite restaurants less.
Mod Pizza, a fast-casual chain with more than 40 locations in California, was acquired by a Los Angeles-based restaurant group in July after teetering on the edge of bankruptcy. Popular burger joint Shake Shack closed nine locations in September, including five in the Los Angeles area.
But Majewski is optimistic about Fresh Brothers’ future and said the brand is a perfect fit for his restaurant platform.
“Backed by a deep understanding of market dynamics and a commitment to operational excellence, Craveworthy is uniquely positioned to guide Fresh Brothers’ journey from its Southern California foundation to nationwide expansion,” the company said in a statement.
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