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

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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

Rogue science strikes again: The case of the first gene-edited babies

 

Rogue science strikes again: The case of the first gene-edited babies

Chinese scientists led by He Jiankui claimed they used CRISPR to modify human embryos that eventually were born as twin girls. AP Photo/Mark Schiefelbein

Courtesy of G. Owen Schaefer, National University of Singapore

The idea of scientists tinkering with the genes of babies was once the provenance of science fiction, but now it’s apparently entered the realm of reality: On Nov. 26, Chinese scientist He Jiankui reported the historic live births of ...



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Zero Hedge

Are Grisly Warning Labels Coming To US Cigarettes?

Courtesy of ZeroHedge View original post here.

Soon US smokers could see the shocking visual warning labels on cigarette packets that Americans have come to identify with Europe. US health officials are making a new push to require graphic images to be placed on every cigarette pack by law across the US to discourage smoking, as the current mere textual warning hasn't changed since 1984. The Associated Press reported this week:

The Food and Drug Administration on Thursday proposed 13 new warnings that would appear on all cigarettes, including images of ...



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The Technical Traders

Negative Yields Tell A Story Of Shifting Economic Leadership

Courtesy of Technical Traders

Negative yields are becoming common for many of the world’s most mature economies.  The process of extending negative yields within these economies suggests that safety is more important than returns and that central banks realize that growth and increases in GDP are more important than positive returns on capital.  In the current economic environment, this suggests that global capital investors are seeking out alternative solutions to adequately develop longer-term opportunities and to develop native growth prospects that don’t currently exist.

Our research team has been researching this phenomenon and how it relates to the continued “capital shift&rdq...



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Insider Scoop

Heavy Volume Drives Low-Float Stock Plus Therapeutics Up 200%

Courtesy of Benzinga

Plus Therapeutics Inc (NASDAQ: PSTV) is the latest and one of the most extreme recent examples of the powerful combination of low float and heavy trading volume.

Plus shares traded higher by more than 215% on Friday. The biotech stock more than tripled after the company reported ...



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Lee's Free Thinking

Long Term Stock Market Chart Perspective

Courtesy of Lee Adler

After a big day like yesterday, I like to get a little long term stock market chart perspective. (Yes, this stilted verbiage is for search engine optimization ).

We do that with a monthly bar chart, which I update when relevant in Lee Adler’s Technical Trader. That’s in addition to the regular daily bar/cycle charts covering the past year, and a weekly cycle chart covering the past 4 years.

I wrote on July 14, in reference to the price and indicator patterns on the weekly chart:

The market has overshot a 3-4 year cycle projection in terms of both price and time. There are no long term projections. A 4 year cycle high is ideally due now. A 4 ye...



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Kimble Charting Solutions

S&P About To Decline 14%, Catching Up With The Crude Oil Declines?

Courtesy of Chris Kimble

This chart looks at the performance of the S&P 500, Crude Oil and the Yield on the 10-Year note over the past 4-months.

Crude Oil has declined around 14% more than the S&P during this time frame. Yields have declined, even more, around 36%. The is a huge spread between these assets over this short of a time period.

A few importa...



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Chart School

Bitcoin 2019 fractal with Gold 2013

Courtesy of Read the Ticker

Funny how price action patterns repeat, double tops, head and shoulders. These are simply market fractals of supply and demand.

More from RTT Tv

Ref: US Crypto Holders Only Have a Few Days to Reply to the IRS 6173 Letter

Today's news from the US IRS has been blamed for the recent price slump, yet the bitcoin fractal like the gold fractal suggest the market players have set bitcoin up for a slump to $9000 USD long before the IRS news hit the wire.

Get the impression some market players missed out on the b...

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Digital Currencies

New Zealand Becomes 1st Country To Legalize Payment Of Salaries In Crypto

Courtesy of ZeroHedge View original post here.

Bitcoin and other cryptocurrencies have been on a persistent upswing this year, but they're still pretty volatile. But during a time when even some of the most developed economies in the word are watching their currencies bounce around like the Argentine peso (just take a look at a six-month chart for GBPUSD), New Zealand has decided to take the plunge and become the first country to legalize payment in bitcoin, the FT reports.

The ruling by New Zealand’s tax authority allows salaries and wages to b...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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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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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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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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