Just as the Microsoft Windows/Intel Pentium combo (Wintel) came to rule the PC business, smartphones are starting to standardize around their own Big Two. According to a recent study, that standard is the new Qualcomm chip/ Google Android operating system one-two punch. The cool kids are calling it Quadroid.
CNNMoney’s David Goldman takes us inside the numbers:
But now, for the first time ever in the wireless ecosystem, a standard platform is emerging: At least a dozen handset makers have brought to market more than 90 different smartphones that run Android, and more than three quarters of those handsets have Qualcomm chips embedded in them, according to a new study by consultancy PRTM.
The Qualcomm-Android standard, or "Quadroid" as PRTM calls it, is becoming a parallel to the Windows-Intel, or "Wintel," standard that developed in the 1990s.
Qualcomm held their Analyst Day meeting yesterday and the The Street apparently loved what they heard. Goldman Sachs reiterated their Conviction Buy and raised their target to 58 this morning. Credit Suisse upped their target to 60 and gave it a buy rec as well.
As far as Google, Android is not the engine driving the stock right now but it is obviously of immense importance to the company strategically.
It’s too early to tell if this Qualcomm/Google duopoly is really going to own the space but so far their partnership appears to be the front-runner. If you’re trading technology stocks, wireless plays, chips, operating systems etc, you may want to get up on this story.
In my last technology post, I wrote that we are moving to an Internet-centric world where your computing device or operating system are less important because your data will live and breathe in the Internet cloud. Google, in particular, is preparing for this world because it has a dominant role in the Internet through search. But everyone is moving to an Internet-centric service and content delivery strategy.
The telecom providers understand that their networks make them gatekeepers who can extract rents from content providers. Having paid handsomely to build these networks, they are fighting to not become dumb pipes and resisting net neutrality in order to keep that gatekeeper role. This is one reason Google is trying to build its own network and circumvent the telcos. Eventually, I think the land-based telcos will lose and the battle will move to one between mobile operating systems like Apple’s iOS and Android. Although mobile phone operators may still be able to extract rents for a while longer than the fixed-line telcos.
The PC OS landscape
In the past, the operating system has been important in computing because it allowed the same software to be run on different computing devices, permitting users of those devices to transfer data easily as they were using the same software. But, the OS also benefitted as the more installed users one OS had, the more developers created software for the operating system. These network effects made achieving critical mass a defining factor. Going forward, network effects will also be important in monetizing OS-proprietary e-Commerce platforms like iTunes and Google’s new iTunes competitor.
One reason Apple was near bankruptcy before Steve Jobs re-appeared on the scene is because Apple’s Macintosh’s installed base had shrunk. I used a Macintosh from the mid-1980s but was forced to switch to a PC when I bought a laptop in the mid-1990s that I used both at home and for work. As the PC gained sway, millions of users like me were forced to give up the Mac. And, of course, that meant software developers gravitated to the PC platform and the Mac became a niche product.
The Move to the Internet-centric Model
As Internet bandwidth increased, more and more of what had to be done locally or over a local area network on…
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at firstname.lastname@example.org with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
Once again, stocks have shown some inkling of weakness. But every other time for almost three years running, the bears have failed to pile on and get a real correction in gear. Will this time be different? Bulls are almost daring them to try it, putting forth their best Dirty Harry impression: “Go ahead, make my day.” Despite weak or neutral charts and moderately bullish (at best) sector rankings, the trend is definitely on the side of the bulls, not to mention the bears’ neurotic skittishness about emerging into the sunlight.
In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, incl...
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What makes Janet Yellen and a number of other FOMC members so dovish with respect to monetary policy and in particular the trajectory of rate normalization? A Credit Suisse report sites 3 key factors, which Yellen calls “unusual headwinds":
1. Tighter fiscal policy.
The combination of lower government spending and tax increases has created a drag on economic growth (see chart). This drag is now diminishing, but given the tepid recovery Yellen still views it as a headwind.
Bears made further inroads to the Semiconductor index, and Russell 2000, which delivered knock on results elsewhere. The Semiconductor index had the worst of the action, slicing through its 50-day MA with a near 2% loss. If bulls wanted value a quick return above the 50-day MA would set up a 'bear trap' and may generate enough juice for a challenge of 650.
The Russell 2000 is playing for a swing low retest, although the 200-day MA may provide a long opportunity (stops on loss of 1,131). Technicals with the bears, but not oversold.
Volume in Starbucks options is running approximately three times the average daily level for the stock as of 1:15 p.m. ET ahead of the company’s third-quarter earnings report after the close. Shares in the name are up roughly 1.0% just before midday to stand at $79.95. Traders of SBUX options today are more active in calls than puts, with the call/put ratio hovering near 2.0 as of the time of this writing. Much of the volume is in 25Jul’14 expiry options contracts, most notably in the $80 and $83 strike calls which have traded roughly 3,350 and 2,550 times respectively and in excess of existing open interest levels in both strikes. A portion of the volume in the $80 and $83 calls appears to be part of a spread trade.
We tried holding up stock prices but couldn’t get the job done. Market Shadows’ Virtual Value Portfolio dipped by 2% during the week but still holds on to a market-beating 8.45% gain YTD. There was no escaping the downdraft after a major Portuguese bank failed. Of all the triggers for a large selloff, I’d guess the Portuguese bank failure was pretty far down most people's list of "things to worry about."
All three major indices gave up some ground with the Nasdaq composite taking the hardest hi...
Reminder: Pharmboy is available to chat with Members, comments are found below each post.
Well PSW Subscribers....I am still here, barely. From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.
First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices. Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment. Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer. For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...
I just wanted to be sure you saw this. There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.
If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.
Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.
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