Is Twitter Finally Getting Something Right? Ford’s Got a Truckin’ Big Problem; Wall Street’s Got Beef with Chipotle’s Labor

I’ll tweet to that…

ID-100264453

Image courtesy of Stuart Miles/ FreeDigitalPhotos.net

Rumor has it that Twitter is finally, actually, seriously going to do something about sexual harassment and other hideous actions and behaviors that take place on the micro-blogging platform. The new policy changes are aimed at bullies and other highly offensive, odious excuses for human beings. But just what kind of consequences can offenders expect and how quickly can they expect them? Glad you asked. Accounts owned by the offenders will get shut down. Immediately. And forever. Posters of non-consensual nudity, including, “upskirt imagery, creep shots and hidden camera content” are out too.  Posters of “hate symbols, violent groups, and tweets that glorifies violence” can also expect some new rules that they will definitely not like.  What’s also new and necessary is that Twitter wants to figure out how bystanders get to report abuses. Just don’t expect these changes to happen overnight. In fact, it could be weeks before those policy changes take effect. Besides, Twitter’s still busy being investigated by Congress and testifying about Russia’s Twitter role in the 2016 presidential election. It seems that the 201 profile names Twitter provided to the Senate last week just weren’t enough to convince Senator Warner that Twitter was being sincere in its efforts to cooperate. But perhaps its karma for the way the micro-blogging site suspended actress Rose McGowan after bravely calling out the nefarious actions of the monster we call Harvey Weinstein.

Have you driven a Ford lately?

ID-100324004

Image courtesy of atibodyphoto/FreeDigitalPhotos.net

There’s nothing like a recall to completely mess with your most profitable line of trucks. Ford Motor Co. is now taking a brutal hit over its very popular, number one selling F Series trucks. In fact, the aforementioned truck is the best-selling vehicle in the U.S. Apparently the doors on some 1.3 million F-150’s and Super-Duty trucks are posing a $267 million problem because if they are not fully latched they may not open or seem closed. To be fair, no accidents or injuries related to this particular issue have been reported. Yet, anyway.  The recall was inconveniently announced just weeks after Ford’s newly installed CEO unveiled a plan to cut $14 billion worth of costs. Ford plans to officially notify its customers next month but has not yet mentioned when the parts necessary to repair the trucks would be available. But Ford presumably anticipated this particular challenge since it already has some unwanted experience in this dreaded arena, with this latest fiasco bringing its recall total to 5 million vehicles.

No perks?

ID-100189555

Image courtesy of KEKO64/FreeDigitalPhotos.net

As the saying goes, “The road to hell is paved with good intentions.” Which brings us to Chipotle, the beleaguered fast-food chain who apparently pays its employees too much – no, that is not a typo – and because of it is suffering Wall Street’s fiscal wrath. Don’t shoot the messenger here. Analysts at Bank of America Merrill Lynch just downgraded the restaurant chain from neutral to underperform because the amount of money spent on labor needs to be cut. Back in 2006, Chipotle’s average weekly hours were 34.6 for part-time and full-time employees. That was its high point. But in 2016 that number dropped significantly to 21.7. The company already did a lot of scaling back and needs to do more. However, according to analysts, there doesn’t seem to be any decent way to achieve this and still come out on top – and in the green. Shares naturally dropped by about 2% today and are down 12% for the year.

 

Advertisements

Amazon Shatters Sales Records. Again.; Apple Plays Nice With China’s New Laws; U.S. Gov’t Says Nyet to Cybersecurity Company

Primed for purchase…

ID-10067045

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

If you haven’t heard by now, yesterday was Prime Day, which is basically Amazon’s answer to Black Friday deals in the middle of summer. Laugh and poke fun all you want. But if you do, the joke’s on you. Because according to preliminary figures from Amazon, not only were sales up 60% over last year’s Prime Day, but “Prime” sales for July 11 even blew past 2016’s Black Friday and Cyber Monday. In fact, Amazon called it it’s “biggest day ever.” To be fair, this year’s Prime Day was 30 hours long, compared with last year’s 24 hours. But it wasn’t just about the deals that has Amazon all giddy today. Prime Day also brought in a significant amount of brand-spanking new Prime members.  Because as everyone on Amazon already knows, if you want those super deals, you need to be a Prime member, and yesterday saw more Prime membership sign-ups than any other time in Amazon’s history. As for the most popular Prime purchase, that would be the Echo Dot for the ultra-bargain price of $34.99, which usually sells for around $50. The most popular non-Amazon item sold in the U.S. on Prime Day was an Instant Pot Pressure Cooker. I could not make that up if I tried.

Apple of China’s eye….

ID-10094418

Image courtesy of ponsuwan/FreeDigitalPhotos.net

Leave it to Apple to not let some vague, burdensome, newly enacted cyber-security legislation get in the way of setting up a data center in China. China’s new cyber-security laws require that any data collected on its citizens needs to be stored on servers in China. If companies want to transfer any of that information, they need to go through regulatory review and approval…in China. For Apple, complying with Chinese law means an opportunity to improve the speed and reliability of the company’s products and offerings. While other foreign firms are still busy complaining about these new regulations, calling them a burden and a threat to proprietary data, Apple gets to become the very first of those foreign companies to make the necessary changes and set up shop. The province of Guizhou will play host to the tech giant, and Apple is making down a $1 billion investment to hunker down in that region of China. However, in order for any company to do legit business in China, it needs to team up with a local entity.  So Apple will be partnering up with the Guizhou-Cloud Big Data Industry firm, where all kinds of personal information, belonging to people who own Apple devices, will be stored.

Nyet so fast…

ID-10095540

Image courtesy of freedooom/FreeDigitalPhotos.net

It seems like just yesterday when you would walk into your local big box electronics retailer and have salespeople urging you to get Kaspersky Labs security for your computer. The company already has some 400 million users worldwide and generated $374 million in sales in 2016 just from the U.S. and Western Europe. But it looks like those days are about to go buh-bye now that the U.S. government is moving to block federal agencies from buying the cyber-security software from the Russian-based company. It seems that Kaspersky may have enjoyed a much much cozier relationship with Russia’s intelligence agencies than it was letting on, and apparently even helped develop security technology for Russia’s spy agency, FSB. However, Kaspersky Labs is calling foul and said it is being unjustly accused. The company also voiced its complaint that there’s an inherent assumption that because it’s a Russian company, that it must be tied to the Russian government. Besides calling the claims “unfounded conspiracy theories” and “total BS,”  CEO Eugene Kaspersky also said “…as a global company, does anyone seriously think we could survive this long if we were a pawn of ANY government?”  But it seems that the U.S. intelligence and law enforcement agent seriously do think that and said as much at an open Senate hearing.

 

Oh Nyet You Didn’t!: Yahoo Cyber Attacks Courtesy of Russia; Homebuilders Are Feeling Fine; The Fed (Finally) Comes Through With Rate Hike

Busted…

id-10095540

Image courtesy of freedooom/FreeDigitalPhotos.net

There is a first time for everything and today marks the first time that Russian officials were officially busted by U.S. federal prosecutors for cyber attacks. These officials, who are actually Russian officers, allegedly paid other hackers to break into Yahoo to steal information from hundreds of millions of users. So clearly, the officials weren’t the talent behind the scheme. Of the six people charged in the attacks, one of them is a hacker named Alexsey Belan, who had the dubious distinction of being ranked the FBI’s numero uno most wanted cyber-criminal for three years.  But don’t expect any swift justice. While one of the alleged perps was picked up in Canada and headed here to await his fate, the Russian intelligence officers are staying put and probably living large seeing as how there is no extradition in place between Russia and the United States. Among the numerous charges outlined are economic espionage and computer hacking, to name just a few. The attacks, which were revealed last September, were the ones that caused the search engine giant to drop its selling price to Verizon by $350 million. According to the indictment, it appears the attacks were state-sponsored, which has me wondering if things will now be awkward between Presidents Trump and Putin.

Exuding confidence…

ID-100426331

Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

The magic number is 71. No really. It is. At least if you’re looking at the National Association of Home Builders/Wells Fargo Housing Market index.  That means that homebuilder confidence is very high. Very. To put this number in perspective, anything above the number 50 is good. In March of 2016, that number was 58. So yeah, confidence abounds this year. Sure, the usual reasons are being given, including the fact that we are entering the season that homebuilders love, low mortgage rates and a solid labor market. But there’s another reason: President Trump. Yep. It appears he has begun rolling back on regulations, some of which are environmental, and that’s got homebuilders kicking up their heels in joy since they attribute 25% of the cost of homes to regulations. The regulation currently being rolled back is the Clean Water Rule, a rule that many builders call “burdensome” and which has nothing to do with putting dirty water into homes, I assure you.  Homebuilders see this rollback as a sign that even further de-regulation is in the wings, which would make home-building easier and quicker. And that is making builders positively giddy. And confident, of course.

Done deal…

id-100377914

Image courtesy of Geerati/FreeDigitalPhotos.net

 

It’s official. The fed raised the benchmark lending rate by a quarter of a point. But that’s not the only big news. We are told to expect two more rate increases this year, which is especially weird since this is just the third rate hike in over a year. You may not feel the interest rate change now. And you may not feel it at all. But if you comb over your paperworks, from mortgages to credit cards to bank statements,  then you’ll notice the difference, albeit a subtle one. For now.  So subtle in fact that rates are still at historic lows. But it wont stay that way forever because by 2019 the rate is expected to hit 3% and stay there for quite awhile.  Hey what do you expect? Inflation is rising to the mark where the Fed wants it to, times are good, economically speaking and, just like with home builder sentiment, the strong labor market is putting a fiscal smile on a lot of faces.

Tesla Deliveries Anything But Electrifying; Sec’y of State Nominee’s Future Looks Green; Trump’s SEC Chairman Pick

Not electrifying…

id-10050694

Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

Tesla’s fourth quarter sales rose 27%, yet deliveries fell short with CEO Elon Musk pointing to production delays. And Tesla didn’t fall short according to Wall Street’s predictions but rather its very own.  It may seem like a convenient excuse, but it’s a valid one that was also used to blame the company’s second quarter shortcomings. The electric car company delivered 22,000 cars in its last quarter, which was over 5,000 more than the same time last year. That might seem awfully impressive except that Tesla wanted that figure to top 25,000 vehicles. So now, that 3,000 car miss becomes an ugly smudge on the company’s fourth quarter earnings report. Tesla’s grand total of car deliveries for the year hit over 76,000. But once again, because Tesla went ahead and predicted that number would hit 80,000, it disappointed only itself.  Setting forecasts he just can’t meet is a nasty habit that Elon Musk can’t seem to break.  Production delays or not, maybe Tesla’s should stop trying to predict the future.  Shares were down 11% for 2016 which marks the first time that Tesla reported an annual decline since its 2010 IPO. But miraculously those shares still rose today because Wall Street clearly has a thing for Elon Musk. Well, his company, anyway.  Wall Street and consumers alike are waiting with bated breath to see if the much anticipated $35,000 Model 3 will actually surface this year. Some experts, however, think the more affordable model will only be making its grand debut in 2018. That still has’t stopped loyal Tesla buyers and enthusiasts from shelling out a total of $350,000 worth of deposits for the car.

Hatched…

id-10022456

Image courtesy of jscreationzs/FreeDigitalPhotos.net

President-elect Donald Trump’s pick for Secretary of State, Rex Tillerson, reached a very lucrative retirement deal with ExxonMobil. If Tillerson does in fact get confirmed – and that’s still kind of iffy – then he’ll walk away from his post with $180 million comfortably nestled in a trust account. And that’s the approximate value of Tillerson’s 2 million deferred shares of the energy giant. Because he would not be allowed to own shares of the company if he took the post, the shares would get cashed out and put into an independently managed trust account. Besides dumping his ExxonMobil shares, Tillerson will not be allowed to work in the oil and gas industries for a period of ten years. Plus, he has to give up a cash bonus and other benefits that are worth another $7 million because he won’t be there in March, when he’ll have reached the company’s official retirement age that affords him the opportunity to collect on that $7 million package. But, that $180 million ought to tide him over. He’ll also need to agree to sever ties in order to avoid any conflicts of interest. Should he decide to return to the industry, then all that money would be given to charities of the main trustee’s choosing. But I did write that his confirmation is”iffy” because there are plenty of Congressional members who aren’t down with Tillerson’s cushy relationship with Russian president Vladimir Putin. That’s going to come up a lot during the confirmation hearings and it’ll probably be ugly, if not wholly entertaining.

And I choose you…

id-100487640

Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

Trump just announced his pick for Securities and Exchange Commission Chairman and it’s one that should surprise…no one. Enter Jay Clayton, a lawyer with the law firm Sullivan and Cromwell, who has plenty of experience with banks. Well, representing them, anyway. Besides banking clients, Clayton also defended a variety of “large financial institutions” against such entities as the Department of Justice, other government agencies and regulators and – get this – even the SEC itself.  Some of his more notable achievements include representing everybody’s favorite Chinese e-commerce giant, Alibaba, when it made its grand IPO debut. He’s also represented Barclays when it unceremoniously scooped up Lehman Brothers, and Bear Stearns when JP Morgan took it on. You didn’t think we’d leave out Goldman Sachs, did you?  Because he repped that one too.  Word on the street is that Carl Icahn interviewed Clayton, along with several other candidates for the post. Presumably the two gentlemen discussed how to best undo obstructive banking regulations, Dodd-Frank and all those other pesky rules that have been casting a major downer on the financial world.

Oil-vey! Trump’s Secretary of State Pick Putin Us On; Trump vs. Silicon Valley; Rate Hike Sends Joy Throughout Wall Street

Energized…

id-100303902

Image courtesy of hywards/FreeDigitalPhotos.net

Trump’s latest pick, this time for Secretary of State, has naturally already ruffled more than a few political feathers. Enter Exxon Mobil Corp. CEO Rex Tillerson, a man who happens to be very very cushy with Russia and its fearless leader, Vladimir Putin. If you recall, Russia is very brazenly messing with Ukraine, to the point where the U.S. felt compelled to impose sanctions. Now, the CIA said the country also launched cyber attacks against the U.S. in an effort to influence the election results. But that very same country awarded Tillerson the Friendship Medal in 2013.  Tillerson, who has never held a public office, has been at Exxon, the world’s largest energy firm, for 40 years and during that time spent many many hours cultivating relationships and establishing major business deals with countless foreign countries and companies. But he’ll still need to be confirmed by the Senate. However, considering that former Secretaries of State Condoleeza Rice and James Baker are big fans, not to mention Defense Secretary Robert Gates, he shouldn’t have too much of an uphill battle. By the way, Condoleeza Rice also happens to be a consultant at Exxon Mobil, and Robert Gates was a consultant at one point too. Rumor has it that they all plan to vouch for the CEO.  Lindsay Graham and John McCain, however, are just not that into him, presumably because of his chummy relationship with Putin, of whom they are not particularly fond. Also not in Tillerson’s favor is the fact that Exxon currently has billions of dollars in deals with Russia, not to mention one valued at $500 billion that involves exploring and pumping for oil in Siberia. Those deals can only go forward if the U.S. decides to lift its sanctions against Russia and, fyi,  Tillerson was never much of a fan of the sanctions. And just so you know, according to a filing from a year ago, Tillerson owns $218 million in Exxon stock along with a $70 million pension plan. Shares of Exxon Mobil went up 2.2% on the news of Tillerson’s nomination.

 

Speaking of Trump…

id-100437524

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Tomorrow is a big day at Trump Towers as some of Silicon Valley’s top execs head over to the President-elect’s digs for a little quality time with Donald Trump. Expected to attend the power meeting are: Apple’s Tim Cook, Facebook’s Sheryl Sandberg, Microsoft’s Satya Nadella, Amazon’s Jeff Bezos, Tesla’s Elon Musk and Google’s Sergey Brin and Eric Schmidt…to name but a few. While the agenda’s not public, there are some predictions about what might be discussed tomorrow. There’s the not-so-minor issue of antitrust enforcement and those pesky government demands for user data. But much higher on that list is Trump’s immigration policies and how they have the potential to put a very major damper on the inner workings at many of these Silicon Valley companies. The fact that these companies bring in a lot of employees on special visas, not to mention that they also send plenty of jobs overseas, doesn’t exactly jibe well with Trump’s vision of “Making America Great Again.”  To be fair, Apple did say it has 80,000 employees in the United States and is also responsible for creating another 2 million jobs from all the business opportunities Apple creates. However, Trump did say, in his very eloquent way, that he wants to “get Apple to build their damn computers and things” right here.  Donald Trump is all for establishing major tax reforms and is acutely aware that all these tech companies have a lot of cash offshore. Major reform will help bring that cash back to the States. So its in everyone’s best interests to work together towards that goal, whether they supported Trump’s presidential aspirations or not. And for the record, they did not.

Stocks, and bonds and hikes…Oh my!

id-100302304

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Stocks all over the world rejoiced today by going up while the Dow Jones Industrial Average came thisclose to hitting the 20,000 mark following its 9% surge since Election Day. Actually, the index came within 50 points of the 20,000 mark which sent Wall Street into fits of fiscal joy. The S&P got in on the action by going up .8% to its very own all-time high. The reason for all this excitement is because the Federal Reserve is expected to officially and finally finally announce a rate hike tomorrow, marking the second time in ten years that we get to witness and take part in that elusive increase. Rate hikes are welcome since they signal that the economy is strong and steady in all the right ways. Low interest rates have this nifty little effect on stocks that makes them cost higher. Problem is low interest rates are just no good  for the savers among us who like high interest rates because of the income they get from bonds and bank accounts.  Even though borrowing costs are about to get that much higher, investors are still positively giddy at the prospect that the President-elect intends to usher in an era of potentially lower corporate tax rates, less regulation and lots more infrastructure spending.

 

Russia Says Nyet to LinkedIn; No Regrets for Macy’s on Ditching President-Elect’s Line; Trump Making Plans

Linked Out…

id-100263432

Image courtesy of iosphere/FreeDigitalPhotos.net

It’s Game on between LinkedIn and Russia as the social network gets banned by the Russian government. Back in 2015 Russia passed a new law requiring foreign websites to store personal data of Russian users on Russian servers. While LinkedIn counts six million registered users in the country, the social media giant said no thank you to the new law and now finds itself listed in a very unflattering registry of websites that are banned in the country. Russia’s leaders would like to put an end to its dependance on foreign tech and is even in the process of developing replacements for such services like WhatsApp. In case it wasn’t obvious, Russia has been stepping up its control over internet usage in the last few years. In the meantime Google, eBay and Uber have been looking for ways to comply with the new law lest their fate ends up similar to that of LinkedIn. However, all eyes are on Facebook to see if and how the social media giant intends to deal with this lofty piece of legislation .

Trump’d Up…

id-10077368

Image courtesy of scottchan/FreeDigitalPhotos.net

Today, Macy’s CEO Terry Lundgren said that he stands by his decision to boot Donald Trump’s clothing line from his stores back in the summer of 2015. Trump had tried to retaliate by getting people to boycott the department store. But after all, Trump did say that many Mexican immigrants were rapists and murderers and well, that’s just not cool. So needless to say, his calls to boycott weren’t all that successful. Well, maybe a little as Macy’s has been struggling to post some solid quarterly gains. In any case, the retailer has been trying to court more Hispanic shoppers and getting rid of a line of clothing from a man who has been nothing short of hostile and racist seems like a prudent move. To be fair, Lundgren says he would have had to get rid of Trump’s clothing line once he entered politics anyway, even if he hadn’t made his odious comments. Macy’s doesn’t do politics and Lundgren added that even if Hillary Clinton had her clothing own line – of pantsuits, presumably – that would have to go as well once she announced her political aspirations. Incidentally, Ivanka’s clothing line at Macy’s is alive and well, which seems only right considering she has yet to offend entire races of people. Also incidentally, Ivanka’s line is manufactured in China and the Donald just hates it when American businesses outsource manufacturing there. In fact, as part of his economic plans, he wants to impose harsh tariffs on imports in an effort to curb, or perhaps even obliterate the practice. Good luck with that one, Ivanka.

More Trump’d Up…

id-100327111

Image courtesy of atibodyphoto/FreeDigitalPhotos.net

In other Trump news, rumor has it that the President-Elect wants to install JP Morgan CEO Jamie Dimon as Treasury Secretary. FYI, Dimon is a life-long Democrat and Obama supporter, although the arrival of the Dodd-Frank laws made him a less enthusiastic one. What’s so very peculiar about Trump’s choice is that he once criticized Dimon for his decision to settle civil suits against the bank. Donald is not one to settle court cases. At least that’s what he said. In the meantime, there’s no word from Jamie Dimon about whether he plans to accept. However, other rumors are swirling that he won’t as he was rooting for Hillary Clinton to win the election. And you know who probably wont be asked to join Trump’s government? Amazon CEO Jeff Bezos. As the owner of the Washington Post, Jeff Bezos didn’t care for Trump’s opinions on the mainstream media bias and said Trump was “eroding our democracy.” Incidentally, Amazon’s stock went down today over 4%. Experts say it’s because all tech stocks, including Apple, Google and Microsoft took a beating today since Trump’s economic plans don’t do much for that sector. But the experts with a better sense of humor – and serious undertones – think the drop is because it’s payback time for Bezos and company, who for the most part don’t care for the President-Elect and were pretty vocal about it during campaign season. The tech sector employs a large population of foreign engineers and, well you know how Trump feels about that. Experts also think that companies like Amazon can expect payback in the form of higher taxes and anti-trust litigation. At least Bezos had the good sense to tweet: “I for one give him my most open mind and wish him great success in his service to the country.” Maybe Bezos will get a pass this time. Wink wink, nod nod.

 

Oil Vey 2: The Wrath of Iran; Virtual Company with Real Billions; Dr. Pepper’s Outlook Fizzing Out

Double double oil and trouble…

ID-100387708

Image courtesy of jk1991/FreeDigitalPhotos.net

Oil surged 6% today. Yay. It finally finally went above $30 a barrel today. Another yay.  But maybe you’re thinking that positively sucks as you notice that you have a quarter of a tank of gas left in your car. However, in the grand scheme of things, a very grand scheme which does not fit in this blog today, a gradual price increase in gas is a healthy economic indicator. Plenty of folks on Wall Street are attributing this healthy surge to some conversations that were held recently between OPEC and non-OPEC members. Namely, Russia and Saudi Arabia. Oh yeah, Qatar and Venzuela were also allowed to participate. The deal is that these oil producers will cap their crude production – just as long as other major producers follow suit. The last time an  OPEC/non-OPEC “deal” was made was 15 years ago. And like the one 15 years ago, this one is not expected to do much, except act as a starting point. How reassuring. Now, guess which country has NO plans to cap, curb or freeze oil production? Iran, of course.  Sure, the totalitarian-run country thinks it’s a bummer that oil prices are so low, but its leaders are so hell-bent on re-grabbing its market share after all those pesky international sanctions it had to endure for the last 30 years, that it has no intention of curbing production. By the way, conspicuously absent from any talks was Canada, a country that just happens to have the third largest oil reserves, and China, the world’s fourth largest oil producer. Hmmm. Wonder what we ought to take away from that?

All in a maze work…

ID-100174162

Image courtesy of Nutdanai Apikhomboonwaroot/FreeDigitalPhotos.net

At least virtual reality doesn’t bite. Swiss-based company MindMaze, a neural virtual reality platform – which is just as cool as it sounds – now has a pretty amazing valuation. After scoring $100 million in its latest round of funding, the company upped its valuation to over $1 billion. The company’s technology uses virtual and augmented reality and sells electronic headsets to hospitals in order to help rehabilitate stroke patients. The company also has plans to use its rehabilitation features for other injuries, and even amputations. Of course, since we are talking virtual reality, or VR as the cool kids call it, other versions will be available for video gaming as well. In an effort to boost profitability, the company is toying with the idea of selling the hardware separate from the software. It is the fifth start-up company of its kind, and joins the ranks of Oculous VR and Magic Leap. Apparently, investors dig the technology too, seeing as how they have dumped around $4 billion into various VR companies since 2010.

I’m not a Pepper…

ID-100168337

Image courtesy of Gualberto107/FreeDigitalPhotos.net

Dr. Pepper Snapple Group posted their fourth quarter earnings and there’s good news…and not so good news. Of course, the good news is the company’s profit. The beverage company, which also makes Canada Dry and A&W Root Beer, among other products, scored a $185 million profit, adding a buck per share and shooting down analyst estimates of 98 cents per share. Last year at this time the company earned $150 million with 77 cents added per share. The Texas-based company also pulled down $1.55 billion in revenue, a nice little boost from 2015’s $1.51 billion. But when we turn to the company’s outlook, we then find the not so good news. Despite people’s thirst, Dr. Pepper’s outlook is weak, expecting just a 1% increase in net sales. Even in 2015, the company took in a 3% increase. The company is figuring it’ll earn somewhere between $4.20 to $4.30 per share for the full year, even though predictions were for $4.34. Dr. Pepper may not be blaming the oil glut on the weak outlook, but there is another culprit – the ever blame-worthy strong dollar, which even managed to sully the beverage industry’s numbers.