Posts Tagged ‘Big Tech’

IT BEGINS: The White House Just Sided With Google In War Against China

IT BEGINS: The White House Just Sided With Google In War Against China

Barack Obama In China

Courtesy of John Carney at Clusterstock/The Business Insider

The White House has now officially declared that it is backing Google’s war with China.

Earlier this week, Google said it would no longer support the Chinese government’s demands to censor its Google.cn search engine.

Earlier, the White House had said that although it had advanced notice of Google’s new China policy, it had not taken a position in the fight.

White House spokesman Robert Gibbs announced the changed position today.

Don’t Miss:

How Google Ended Up At War With China

By Kamelia Angelova at The Business Insider

Sometimes sacrificing American goodwill, Google has tried to develop a lasting business relationship in China, complying with the stringent censorship demands of the Chinese government.

From buying stakes in Chinese startups to going through the tough Chinese bureaucracy to open local headquarters, the Google journey in the communist country has been marred with roadblocks.

Re-live Google’s troubled decade In China →

 


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Apple Delivers Monster Quarter, Blows Away Whispers

LIVE ANALYSIS: Apple Delivers Monster Quarter, Blows Away Whispers (AAPL)

Courtesy of Henry Blodget at Clusterstock

steve-jobs-clapping.jpg

Press release out…

HUGE quarter.  Revenue of $9.9 billion blows away whisper of $9.4 billion. EPS of $1.82 blows away whispers of $1.65-ish.

iPhone sales of 7.4 million in-line with estimates despite supply constraints.  Mac sales huge.  iPod sales not as bad as many had feared.

Upside appears to have come from Macs and margins.  The Mac resurgence is great news.  This business had stalled, and Apple has a huge opportunity to gain share in the PC market.

December guidance comically conservative, but not alarming. 

Overall: Wow.  Apple is on its way to becoming the defacto platform standard in mobile.  And the crumbling of Microsoft’s Windows monopoly has opened a huge window on the desktop.  The company is galloping after both opportunities.

Conference call will begin at 5PM/2PM.  Here’s the link: www.apple.com/quicktime/qtv/earningsq409/   We’ll be covering it live.

CONFERENCE CALL NOTES:

5:00: Waiting for call to begin…

5:04: Call starts.  Preamble crap.

5:06: "Extremely pleased."  (Understandably.)   Revenue up 25%.  Operating margin highest ever: 22%. Adjusted numbers huge, too.

5:07: Macs.  3.05 million, up 17%  Biggest ever by 440k.  Growing faster than market 19 of last 20 quarters.  Best user experience.  17% growth compares to 2% market growth = huge market share gain.  laptops 74% of mix and all of the growth.  Successful back-to-school.  12% growth to education.  50,000 Macbooks to Maine (lucky bastards).  3-4 weeks inventory at beginning and end of quarter.

5:10: iPods.  10.2 million, down from 11 million.  iPod touch up 100% y/y, driven by back to school and App store.  Share of US market still over 70%.  Top-selling and continued to gain share year over year.  Began and ended with 4-6 weeks of inventory.  iTunes another great quarter.  Largest music retailer, 11 million songs, 7500 movies.

5:11: iPhones.  7.4 million, up 7% (last year had 2mm inventory build).  Sell-through up 38%.  Widened lead in customer satisfaction.  Start selling in China end of this month.  Also expanding carrier relationship in UK and Canada.  App Store: 500 million downloads in quarter.  $2.3 billion in quarter.

5:13: Stores.  $1.87 billion, vs $1.72 billion.  670,000 Macs vs. 576,000. 


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GE Misses Thanks To Ugly Financial Unit (GE)

GE Misses Thanks To Ugly Financial Unit (GE)

Courtesy of Vincent Fernando at Clusterstock

General Electric missed EPS expectations by two cents, reporting $0.22 for the third quarter. Revenue fell 20%, though this was largely caused by a 30% drop in revenue for the company’s Capital Finance segment as the company tries to pare back this troubled business’s operations.

While revenue fell for other segments as well, by a significant 9 – 18% each, margins improved substantially for all of them.

Overal operating profit fell 26% largely due to an 87% drop in profit from the Capital Finance business. Ex-Capital Finance, operating profit actually rose 4% to $4,179 million from $4,017 million.

It’s thus important to strip out the financial unit when judging the current operational situation, especially since it is being purposefully pared back.

Revenue fell by far less on this measure.

GE: Revenues were $37.8 billion, in line with our expectations. Industrial sales were down 13%. Industrial organic sales, which exclude the impact of FX and the 2008 Olympics, were down 8%. GE Capital Services (GECS) revenues declined 31%, driven by Capital Finance ending net investment reduction ahead of plan and the Penske Truck Leasing Co., L.P. deconsolidation.

While the financial arm still unfortunately poses an element of uncertainty for the stock, at least it didn’t post an operating loss.

GE results

 

Ge Webcast Press Release 10162009

 


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Microsoft-Yahoo Deal A Logistical And Regulatory Nightmare

Microsoft-Yahoo Deal A Logistical And Regulatory Nightmare

Courtesy of Henry Blodget at Clusterstock

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The official details of the Microsoft-Yahoo deal aren’t much different than the leaks we reported last night. 

Here’s our take: 

  • The deal is significantly worse than expected for Yahoo, as the company will get no money upfront. 
  • The deal is positive for Microsoft, but largely because Microsoft was nowhere in search without it.  Saving the upfront payment is also a help.
  • Ironically, the deal will likely be positive for Google, which will now likely benefit from months of purgatory as Microsoft and Yahoo work to clear regulatory scrutiny and then go through the massive challenge of trying to integrate their sales forces and technology.   Google itself will also now be able to argue persuasively that there is a big, viable (if discombobulated) competitor in the market.

Conceptually, the idea of Microsoft and Yahoo combining forces is smart.  Neither alone has enough share of the search market to be a "must buy," and search relevance and pricing improves with scale.  Both companies would likely just continue to lose share ad infinitum without a deal, so they have little to lose by working together.  And Yahoo will gain some cost savings, at least for a while.

That said, we think the structure of the deal could end up being a disaster.

The deal calls for Yahoo to handle sales and Microsoft to handle technology.  This separation of responsibilities is likely to create headache upon headache for both sides.  When a Yahoo client is unhappy with the technology execution, will Yahoo salespeople call Microsoft engineers to complain?  When Microsoft is unhappy with the way Yahoo is selling search, will Microsoft’s engineers call Yahoo to complain?  When the combination misses targets, will investors call Microsoft or Yahoo to complain? (Both?) When Microsoft licenses Bing to Ask or AOL, will Yahoo’s salespeople sell premium search for those companies, too?  What if Ask and AOL are unhappy?  Who will they call to complain?

In our opinion, sales and technology are way too tightly linked in this business to split responsibilities between two huge companies that each have other things to worry about.  We think the execution of the deal will be a nightmare.

yahoo and microsoftSee Also:  First Take On


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Google Launching OS

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Eric Schmidt, GoogleGoogle Launching OS, Firing Torpedo Into Microsoft (And Apple) Hold (MSFT, GOOG, AAPL)

Courtesy of Henry Blodget at ClusterStock

Google will launch its own operating system in the second half of next year, finally launching a direct assault on Microsoft’s crown jewel.

(It has been headed here in all but name for the past two years.  But last night it finally declared war.)

The OS will initially be targeted to netbooks, then broadened to all PCs.  It will be a combination of a Google Chrome browser and a Linux kernel.  It will be a different project than Android.  It will be designed to be simple and fast.  It will also, presumably, be free.

Google’s blog post announcing the browser is below.  A few points:

A year of development is a long time, and it shows how complex an undertaking this will be.  Announcing the product a year early is also a major break with Google tradition and shows how much Google needs help from partners in this endeavor to be successful.  (An OS that is distributed only by downloads won’t work.  It needs to come loaded on the machine.  This has been the big problem with Chrome so far, and Google needs to address it.)

Success is far from guaranteed.  Google’s browser initiative, Chrome, has been a fun little science project, but as a product it has been a flop.  The same can be said for almost all of Google’s non-search products.  If Google wants to have a chance at success in this business, it needs to focus on it with the same intensity it once put into search.  This will be challenging for Google, which, for the last several years, has had the luxury of dabbling in whatever it pleases.

Assuming the OS is free to both users and OEM PC makers, Microsoft will need to soup up the free version of its own Windows 7 OS for netbooks (right now, Microsoft’s plan is to ship a crappy free version of 7 and try to get users to upgrade.  Eventually, if Google starts to gain traction, Microsoft may need to panic.)

This is classic disruption.  Disruptive technologies do not immediately replace existing technologies because they are better.  In fact, in the beginning, they are worse.  They’re just…
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Phil's Favorites

Online shopping: why its unstoppable growth may be coming to an end

 

Online shopping: why its unstoppable growth may be coming to an end

What goes up … Bogdan Vija

Courtesy of Ralf Seifert, IMD Business School and Richard Markoff, EPFL- École Polytechnique Fédérale de Lausanne - Swiss Federal Institute of Technology in Lausanne

Many people probably assume that online stores are making a fo...



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Zero Hedge

The Road To Perdition - 10 Cautionary Tenets About US Air Power

Courtesy of ZeroHedge. View original post here.

Authored by William Astore via TomDispatch.com,

The American Cult of Bombing and Endless War

From Syria to Yemen in the Middle East, Libya to Somalia in Africa, Afghanistan to Pakistan in South Asia, an American aerial curtain has descended across a huge swath of the planet.

Its stated purpose: combatting terrorism.

Its primary method: constant surveillance and bombing -- and yet more bombing.

...

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Insider Scoop

5 Stocks Moving In Monday's After-Hours Session

Courtesy of Benzinga.

Gainers
  • PhaseBio Pharmaceuticals Inc (NASDAQ: PHAS) shares are up 18% after reporting preliminary results from a Phase 2a clinical trial of PB2452 for reversal of antiplatelet activity.
  • Lannett Company, Inc. (NYSE: LCI) shares are up 4% after reporting a restructuring plan related to Cody Labs. The company says it sees incurring around $5 million in costs to implement Cody API Restructuring Plan.
  • EQT Corporation (NYSE: EQT) shares spiked up 3% after announcing it sees second-quar...


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Biotech

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

 

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

If you’ve got the raw data, why not mine it for more info? Sergey Nivens/Shutterstock.com

Courtesy of Sarah Catherine Nelson, University of Washington

Back in 2016, Helen (a pseudonym) took three different direct-to-consumer (DTC) genetic tests: AncestryDNA, 23andMe and FamilyTreeDNA. She saw genetic testing as a way...



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Kimble Charting Solutions

Gold Bugs Index Attempting 8-Year Breakout, Says Joe Friday

Courtesy of Chris Kimble.

Are Gold Bugs fans about to receive positive news they haven’t had in years? Possible!

This chart looks at the Gold Bugs Index (HUI) on a weekly basis over a couple of decades. The index has spent the majority of the past 20-year inside of rising channel (1).

The index hit the top of the channel in 2011, where it peaked and started creating a series of lower highs for the past 8-years, which has formed line (2).

The index is now kissing the underside of falling resistance and the underside the 2016/2017 lows at (3).

Joe Friday Just The Fa...



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Chart School

Silver Review

Courtesy of Read the Ticker.

The folks in the federal reserve will debase the US dollar currency to an extreme degree silver will finally lift off the floor.. 

Note: Readers should re watch the silver back screen news video, here.

The following video looks at price action and Wyckoff logic.

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Chart in video

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If gold moves, silver wi...

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Digital Currencies

Cryptos Are Crashing As Asia Opens, Bitcoin Back Below $8k

Courtesy of ZeroHedge. View original post here.

Having survived the day's bloodbath in US tech stocks, cryptos are crashing in the early Asian session, apparently playing catch-down to the day's de-risking.

While no catalyst is immediately evident, there are some reports noting 13 large global banks are preparing to launch digital versions of major global currencies next year, though we suspect this drop was more algorithmic that fundamental-driven.

...



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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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