Can Nike Recover in the Current Fiscal Year?

Before the highly awaited Olympics 2016, Nike Incorporated forecasted a strong recovery of sales in the second quarter of the year.

The American multinational corporation which is mainly engaged with footwear and apparel expected rebound of sales in North America  after its expansion of the basketball and clearing excess brand.

Brand chief Trevor Edwards admitted that the company faced a supply chain challenges last year, but the full-price channels in North America are now clean. He added that the brand remains incredibly strong in North America and we expect growth will accelerate in this geography over the balance of the fiscal year.

Nike dealt with its weakest performance in the market during the fourth fiscal quarter as the competition against Adidas and Under Armour became tighter. The recorded slump of the company marked the worst ever sales of the company in the last six years.


Meanwhile, as the Olympics approached, Mr. Edwards hoped for a good number of sales. Adding to this, the footwear juggernaut was also looking at a big possibility that sales would go up from the present quarter until May 2017 after the transfer of the excess stock. Currently, the company generates half of its revenue in North America.

In the first half of 2016, the shares of the stock on its footwear segment plummeted around 53.3 percent compared to the 6.3 percent surge of Adidas.

Market research company NPD explained that Nike did not keep their basketball offerings updated enough and at the same time we went through a fashion shift away from basketball as the preferred fashion shoe in the United States, so it was a double whammy.

“My gut is that this is a very temporary soft patch for them. They can reverse that trend pretty quickly” a representative of the research company added.


The sales  of Nike was also sliced by the prominence of Golden State Warriors star player Stephen Curry who carried the brand Under Armour. Other celebrities moved from Nike to Adidas which added to the struggle of the company to maintain the dominance in the footwear sector.

However, Mr. Edwards has remained optimistic on the sponsorship deals of the company. He bragged about the key endorsers of the Nike which includes Lebron James and around 8,000 athletes  around the globe.

Further, Edwards revealed that the company was still planning to develop its influence in the basketball business sector. In addition to, the company prepares for the biggest sponsorship in the National Basketball Association as the company believes that basketball runs deep at Nike.


Recently, the shares of Nike Incorporated remained flat to $57.77 with a market capitalization of $97.36 billion. The Oregon based company has a dividend yield of 1.11 percent and a price earnings ratio of 26.78. It has a 200-day moving average of $60.15 and a 50-day moving average of $55.65.

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Can Spotify Go Public in 2017?

Spotify wanted to go public in the second quarter of 2017 after the company increased its convertible debt from investors who valued the company around $8 billion.

Market experts doubted the plan of Spotify considering its current state and its wide competition against its major competitors. An analyst shared that it is a tough sector and that is skepticism will have to overcome. While an expert on online ad service and database said that record labels can’t really afford to take their music off Spotify.

Spotify Chief Executive Daniel Ek has made several effort to encourage the music aficionados to pay music online. The company gets approximately 30 million active users who pay $10 monthly and the its sales went $2.2 billion in 2015.

However, the music company paid around $1.8 billion for the commissions. Apart from this, record labels and publishers had their respective shares. Mr. Daniel Ek has tried to reduce the payment for the labels, but he failed eventually.


On the other hand, a person familiar with the negotiation revealed that Spotify holds 10 percent of the revenue of the labels and this year the company forecasted a 50 percent increase of its total revenue. The initial public offering of Spotify couldn’t be achieved without a clear path on the pressure caused by its competitor and IPO time pressure as well.

Spotify in Asia

Separately, as Spotify expands its prominence in Asia, the company pays attention on localization and plans to court the Korean pop scene to be part of their plate.

Spotify is currently making its name in Singapore, Malaysia, Hongkong, Taiwan, Indonesia, and the Philippines. The expansion plan of the company includes a various way of payment among its loyal customers in Southeast Asia.

Spotify offers different premiums from these Southeast Asian countries. Singapore gets S$7.30 per month, subscribers in Hong Kong pay $6.20 and the Philippines has it for $2.70. Since many users do not pay using credit cards in  Indonesia and in the Philippines, Spotify let them pay in cash.

Sunita Kaur, managing director of Spotify Asia, said that they want to be everywhere in Asia. Kaur admitted that they don’t have a set road map as yet because they let the licensing lead us, so once the licensing deals for a market is done, then they can get ready to launch.


Spotify Gets More Subscribers

Launched in 2008, Spotify has become one of the leading music, podcast and video streaming service provider. The London based media company is available in Western Europe, Oceania and America and has accumulated around 100 million active users as of June 2016.

Spotify can run on smartphones, tablets PC’s and on any television connected set top boxes which raised the competition with Apple Music. The music provider has more than 30 million tracks being enjoyed by the users and others can have it for free with a few interruptions caused by the advertisements. It also allows subscribers to build a personal collection playlist while artists may post tracks on social networks and share them with fans eventually.

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GM Doubles Discounts on Trucks, Escapes Plaintiff’s Complaints

General Motors increased discounts on large pickups after its prominent units dropped in sales in June. Following the report, the US judge dismissed the  compensation claims of the customers on the safety recalls in 2014.

Last month, the U.S. sales of Silverado and Sierra dropped by 3.7 percent and 7.8 percent respectively as the sales of Ford’s F-Series  moved higher. GM made series of advertisements to to gain the interest of the car buyers and the full-size pickup enthusiast.

Michelle Krebs, a senior analyst with researcher Auto Trader, explained that GM had a big promotion in June and it didn’t really move the needle so they sweetened it. “It appears from the sales numbers in June that the truck-bed ad wars did not resonate with consumers in a way that sent them to Chevy and GMC trucks,” Mr. Krebs added.


The automotive accompany offered 20 percent off sticker prices, which accumulated significant increase of sales of its big pickups in the first two weeks of July.

GM spokesman Jim Cain reported that they had an eight-day sale that absolutely obliterated Ford and their other competition, especially in full-size pickups. Adding to the upbeat report, fully half of the full-size pickups sold to retail customers during the first 10 days of July were a Chevrolet Silverado or a GMC Sierra.

Despite the positive turn of report, GM might announce the same discounts offered by its major competitors before August. Mr. Cain lauded the contribution of the Chevy truck-bed ads in the success of the sales of GM trucks.

Separately, US District Judge Jesse Furman dismissed the compensation claims against GM and the accusation that the sold vehicles were defective.


Judge Furmann wrote in his report that plaintiffs’ pursuit of damages based purely on perceived harm to GM’s brand following more than 70 recalls in 2014 was “unprecedented and unsound.

“The court finds that that novel theory of damages is unsound in light of persuasive precedent interpreting consumer-protection law,” Mr. Furmann added.

One of the complainants accused the car maker of delaying the recall of defective units which triggered the death of 124 individuals. GM has paid $2 billion to address the claims on its defective steering, brakes and air bags.

Steve Berman, the lawyer of the plaintiffs remained firm on his stand in the case. Attorney Berman said that the GM recalls were unprecedented, and the law should be able to react to this. The plaintiffs’s lawyers may appeal to the court to seek the compensation for the damages done by the faulty units of the U.S. auto maker.

recall list

However, after the result was released, Mr. Cain sounded optimistic in the recovery of the company from the issue. “The court made it clear the plaintiffs overreached in many aspects of their complaint and the ruling significantly curtails the scope of their potential recovery,” Mr. Cain said.

Recently, General Motors Company went up 0.03 percent to $30.77 with a price earnings ratio of 4.61 percent. The Michigan based multinational firm had a market capitalization of $47.40 billion and a dividend yield of 4.94 percent.

General Motors is the team behind the Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall brands. It mainly designs, builds and sells cars, trucks, crossovers and automobile parts. Also, it offers cars and trucks to fleet clients and provides daily rental cars.

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Here’s Amazon’s Best Shopping Day

Despite the market criticisms and gloomy expectations before the prime day event, Amazon managed to have the largest sales day, erasing the sales during the Cyber Monday and Black Friday. On Wednesday, the e-commerce juggernaut reported 60 percent climb of orders globally and a remarkable 50 percent rally of orders in the United States alone.

Amazon declined to reveal the exact figures it earned during the event. Prior to the day itself, experts predicted it to be around $1 billion, taking into consideration the previous earnings of the company from its huge sales events and as the participation of the third party sellers was projected to increase. Also, Amazon offered around 100,000 deals and was available for almost ten countries.

The said event was the second attempt of Amazon to accumulate huge profit. Prime Day was exclusively available to Amazon Prime’s members. The rate for the membership starts at $10.99 monthly and goes for $99 annually. Amazon Prime offers two-day free shipping, unlimited deliveries with no minimum order size, from 20 million eligible items. As written on their website, Prime members also get FREE Same-Day Delivery on over a million items when shipping to selected metro areas across the US.

Among the highlight of the second Prime day was the high demand for the Amazon devices. Kindle e-readers, Fire tablets, Fire Tv and the Alexa-enabled devices were considered to be the best sellers. The Global Fire Tv orders soared more than twice compared to the Prime Day in 2015 while the Fire TV Stick turned out to be the best selling device all in all.

Fire Tv Stick offers 4,000 channels, apps, and games including access to over 250,000 TV episodes and movies on Netflix, Amazon Video, HBO NOW, Hulu, and a lot more. Meanwhile, the youth sector purchased Headphones and the iRobot Roomba. Amazon reported 200,000 pairs of headphones and more than 23,000 iRobot Roomba sold together with the 4,000 Lenovo laptops.


Further, Amazon sold around 90,000 TVs, 2 million toys and more than 1 million pairs of shoes. The orders for the global mobile doubled compared with the Prime Day last year. Overall, the prime members saved more than twice in this year’s Prime Day.

Speaking after the Prime Day, Amazon Prime VP Greg Greeley confirmed that they are planning to do it again. Mr. Greeley expressed his gratitude to the tens of millions of members around the world who made the biggest day in the history of the Amazon.

On the other hand, the company received negative feedbacks from Twitter. Shoppers reported the different cases wherein they found it difficult to avail the discounts and some received an “add to cart” fail notifications when they check out.

Recently, the shares of Amazon dropped 0.75 percent to $742.63 with a current market capitalization of $347.80 billion. The stock struggled to remain steady after the success of the prime day. Amazon still plays a tight competition against Walmart, Best Buy, e-bay and other e-commerce service providers. Despite the success of Prime Day, Walmart remained optimistic and reported that millions of customers have been saving all month long on