Month: June 2017

Amazon to purchase Whole Foods for $13.7 Billion

(FoxBusiness): E-commerce giant Amazon (AMZN) announced Friday it will snap up struggling grocery chain Whole Foods Market (WFM) for $42 per share in an all-cash deal valued about $13.7 billion including debt.

"Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue," said Amazon CEO Jeff Bezos in a statement.

Under the deal, Whole Foods will continue to operate stores under its independent brand and the company’s CEO and founder, John Mackey will remain in his position. Mackey said the partnership allows the Austin, Texas-based food retailer to continue efforts to bring high-quality foods and convince to its customers across America.

The deal, subject to approval by regulators and Whole Foods shareholders, is expected to close in the second half of this year.

News of the acquisition sent Amazon shares up nearly 3%, its biggest gain since January as Whole Foods leaped 27% in their biggest rally since 2009 to $42.35.

At the same time, data from Dow Jones showed investors wiped out roughly $55 billion form the market value of other grocery names including Walmart (WMT), Target (TGT), Costco (COST) and Kroger (KR), which cut its full-year earnings guidance on Thursday, extended losses, falling 13% Friday.

Apple Leaves Intel in the Dust

“A key reason why the pace of Mac hardware updates has slowed in recent years can be placed in the hands of Intel. As they fell behind releasing new silicon, Apple was left without the parts they needed to do proper refreshes,” Gene Steinberg writes for The Tech Night Owl. “True, Apple did allow the Mac to languish way beyond the release of new Intel parts.”

“That takes us to this year’s iPad Pro refresh, with Apple’s A10X Fusion chip. It’s an interesting design, with six cores, three of which operate at high power, and three of which operate at low power to improve battery life. The GPU has 12 cores,” Steinberg writes. “But none of that matters, except how it impacts performance. Here, performance for single core tasks is 30% faster than the previous version, according to Apple. For multicore tasks, it’s 82% faster. More to the point, Apple claims that the new iPads are ‘more powerful than most PC laptops.’ Intel take note!”

“If you consider the pace of growth, it won’t be long before Apple’s chips speed way beyond the best Intel has to offer,” Steinberg writes. “Even if the Mac doesn’t make another processor switch, a future iPad or a convergence computer of some sort may do things far quicker than you might expect.”

Read more in the full article here.

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