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

Investors Ponder Stimulus Size as Rates Rise

 

Investors Ponder Stimulus Size as Rates Rise

Courtesy of Wade Slome, Investing Caffeine

Stock prices rose again last month in part based on passage optimism of a government stimulus package (...



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ValueWalk

Are S&P 500 and Precious Metals Bears Just Getting Started?

By Monica Kingsley. Originally published at ValueWalk.

Scary selling yesterday? See how little the downswing has achieved technically, check out the other characteristics, and you‘ll probably reach the same conclusion I did. It‘s still about the tech getting its act together while much of the rest of the market is doing quite fine.

Q4 2020 hedge fund letters, conferences and more

Treasuries Are Under Pressure

The credit market confirm, as is obvious from the HYG:SHY ratio chart I‘m showing you. True, long-term Treasuries are under pressure, but I wrote on Monday that ...



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Kimble Charting Solutions

Will Bond Yields Fastest Rise In 50 Years Rattle Markets?

Courtesy of Chris Kimble

The waterfall decline of bond yields (and interest rates) has been met with an equally steep rally.

In fact, the 10-Year US Treasury bond yield is up 131% in 45 weeks, making it the biggest rally in 50 years! See the chart below.

Earlier today we asked if the 40-Year Bond Bull Market Is Over? And we highlighted how bonds and yields are facing an important test right now.

Will the record rise in bond yields continue? And will bond pric...



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Zero Hedge

Thousands Of Quakes Rock Iceland As Volcanic Eruption Could Be Brewing 

Courtesy of ZeroHedge View original post here.

Over the past week, there have been swarms of earthquakes on the Reyjanes Peninsula in Iceland. Most of the quakes are felt around Keilir volcano, just 20 miles south of the capital. Officials are warning similar quake activity has previously preceded volcanic eruptions.

According to the Icelandic Meteorological Office, thousands of quakes have hit the southwestern region of Reykjanes over the past week. The largest earthquake, a magnitude 5.6 on the Richter s...



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Politics

Why repressive Saudi Arabia remains a US ally

 

Why repressive Saudi Arabia remains a US ally

A demonstrator dressed as Saudi Arabian Crown Prince Mohammed bin Salman with blood on his hands protests outside the Saudi Embassy in Washington, D.C., on Oct. 8, 2018. Jim Watson/AFP via Getty Images

Courtesy of Jeffrey Fields, USC Dornsife College of Letters, Arts and Sciences

Saudi Crown Prince Mohammad bin Salman “approved an operation … to capture or kill Saudi journalist Jamal Khashoggi,” according to a...



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Biotech/COVID-19

COVID-19 revealed how sick the US health care delivery system really is

 

COVID-19 revealed how sick the US health care delivery system really is

Many U.S. hospitals and clinics are behind when it comes to sharing information. Teera Konakan/Moment via Getty Images

Courtesy of Elizabeth A. Regan, University of South Carolina

If you got the COVID-19 shot, you likely received a little paper card that shows you’ve been vaccinated. Make sure you keep that card in a safe place. There is no coordinated way to share information about who has been vaccinated and who has not.

...

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Mapping The Market

Which Governments Ordered Johnson & Johnson's Vaccine?

 

Which Governments Ordered Johnson & Johnson's Vaccine?

Courtesy of Niall McCarthy, Statista

On Wednesday, U.S. regulators announced that Johnson & Johnson's Covid-19 vaccine being developed by its subsidiary Janssen Pharmaceuticals in Belgium is effective at preventing moderate to severe cases of the disease. The jab has been deemed safe with 66 percent efficacy and the FDA is likely to approve it for use in the U.S. within days.

The Ad26.COV2.S vaccine can be stored for up to three months in a refrigerator and requires a single shot, ...



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Digital Currencies

Crypto - It Is Different This Time

 

Crypto – It Is Different This Time

Courtesy of Howard Lindzon

?I have been astonished as you know by the growth of crypto.

I remember back in 2017 when I noticed that Stocktwits message volume on Bitcoin ($BTC.X) surpassed that of $SPY. I knew Bitcoin was here to stay and Bitcoin went on to $19,000 before heading into its bear market.

Today Bitcoin is near $50,000.

Back in November of 2020, something new started to happen on Stocktwits with respect to crypto.

After the close on Friday until the open of the futures on Sunday, all Stocktwits trending tickers turned crypto. The weekend messages on Stocktwits have increased 400 percent.

That has continued each weekend...



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Chart School

The Fastest Money

Courtesy of Read the Ticker

The fast money happens near the end of the long trend.

Securities which attract a popular following by both the public and professionals investors tend to repeat the same sentiment over their bull phase. The chart below is the map of said sentiment.
 


 

Video on the subject.


 

Charts in the video



 



 



Changes in the world is the source of all market moves, to ...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Feb. 26, 1pm EST

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Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

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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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