Weekly Tech Business Recap: Angie’s List IPO, Dell Problems, Amazon Costs Revealed
Netflix (NYSE:NFLX) adds a multi-year licensing agreement with Lionsgate U.K. and Ireland in early 2012 to its arsenal of movies. There continues to be a steady stream of deals coming their way.
Ctrip.com (NYSE:CTRP) shares fall premarket after better-than-expected reports of Q3 profits, which is preventing a higher effective tax rate and lower margins. The Chinese travel services provider sees Q4 net revenue growth range that stands below the consensus estimate of analysts.
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Groupon (NYSE:GRPN) fights to stay ahead of rivals LivingSocial, Amazon (NASDAQ:AMZN), and Google (NASDAQ:GOOG). In order to stay in the fight the company is following up with a big holiday sales push. Grouponicus, a holiday sales tool will target 26 additional cities this year, and a premium product called “Epic Deals” is also set to kick off tomorrow.
Dreamworks (NYSE:DWA) CEO Jeffrey Katzenberg says his company and Intel have developed new animation software. It will enable the company to operate 50-70x faster. Katzenberg says the average animator now produces only three seconds of video a week. The new technology will revolutionize the industry producing video at warp speed.
Amazon (NYSE:AMZN) is outperforming the Kindle Fire and Barnes & Noble (NYSE:BKS) which is selling off. Giving bulls some encouragement, could be an in-depth Wired interview with Jeff Bezos, in which he goes over Amazon’s hardware, content, and web services strategies.
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LinkedIn’s (NYSE:LNKD) float will increase by 2-5x after insiders appear set to sell more shares than planned. Evercore’s Ken Sera estimates the release of the lock-up period to increase the number of freely tradeable shares up 14M.
Apple (NYSE:AAPL) suppliers have begun shipping components for either a MacBook Air or a thinner MacBook Pro. The 15-inch ultra-thin notebook model, which DigiTime’s sources says AAPL is shipping components for, would likely become another runaway success like the previous Air which accounted for 28% of notebook shipments in October according to NPD.
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Dell (NYSE:DELL) is expected to report EPS of +4% in Q3. With sales of roughly $15.66B, a large portion of revenue comes from corporate sectors. Dell is expected to be somewhat shielded from a slowdown in consumer PC sales, because of the company’s revenue base, but government cuts and the flood in Thailand pose a risk.
Research in Motion (NYSE:RIMM), maker of the BlackBerry, is set to roll out two new models. The Bold 9790 and the Curve 9380 feature an incremental upgrade and touch screen respectively. Sales of these models could bolster RIM in international markets where consumer share has not yet been hard hit.
Android (NYSE:GOOG) corners the market on global smartphone sales which account for 52.5% of sales in Q3. According to Gartner, that is up al 43.4% in Q2. Apple’s (NYSE:AAPL) iPhone share fell 320 bps, while Research in Motion’s (NYSE:RIMM) share fell 60 bps Q/Q. Total smartphone sales rose 74%.
Amazon’s (NYSE:AMZN) Kindle Fire analysts are making optimistic forecasts about the device’s long-term impact. JPMorgan’s (NYSE:JPM) Doug Anmuth expects 20M Fire shipments in 2012, and has lifted his PT from $230 to$250.
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SAP (NYSE:SAP) opens a $2B spending plan to grow business in China. The company’s goal is to increase revenue to $27B by 2015, thereby making sales of knowledge-based operations an integral part of the target.
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Dell (NYSE:DELL) is down after concerns about weak consumer PC sales, and a mixed FQ3. R&D spending is now approaching a $1B annual rate, and an expected increase in SSD adoption in light of the Thai flooding could be positive for OCZ Technology Group Inc. (NYSE:OCZ) and STEC Inc. (NYSE:STEC).
Texas Instruments (NYSE:TXN): shares are moving upward after a TI processor was found at the core of the new Amazon (NASDAQ:AMZN) Kindle Fire. There may be around $30 of TI components in each device which may result in $150+, or ~4.4% of TI’s Q4 revenue.
General Electric (NYSE:GE) is launching a $1B research center in the San Francisco area to speed up innovation and commercialization of new technologies. An exec says the energy, health care, aviation, and transportation sectors will be serviced with a new generation of intelligent systems. GE will be viewed in the future as a software company.
Nokia (NYSE:NOK) Lumia 800 phones have broken pre-order sales records for Nokia (NYSE:NOK) devices, claims British carrier Orange (NYSE:FTE). In addition, Nokia (NYSE:NOK), which currently has little presence in North America, is said to be in talks with AT&T (NYSE:T) to sell Windows Phones (NYSE:MSFT).
Google’s (NYSE:GOOG) new music service support for independent artists, who can sell music on their own, helps make it a big deal according to Matt Rosoff. However, the fact that Warner, one of the big-4 music labels, isn’t yet supported could prove a major issue, which could be pivotal in having success like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL).
NetApp (NYSE:NTAP) is down. After delivering weak guidance to go with its FQ2 beat, the company noted strong Asia-Pac demand and a rebound in financial sector orders. They also noted the rich feature set of the latest version of its Data ONTAP OS. Concerns were raised however about macro issues and Thai flooding. Oppenheimer (Perform) thinks “increased competition from Dell (NYSE:DELL) and EMC Corporation (NYSE:EMC) ” could also be an issue.
Angie’s List (NASDAQ:ANGI) posts its first post-IPO trades. Shares were jumping as high as $18 from the offering price of $13.
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Intel Corporation (NASDAQ:INTC): Ultrabooks may be the new tablets, but not in a good way since there is the possibility that many will go unsold in 2012, thanks to a combo of soft PC demand, (NASDAQ:MSFT) Windows 8 anticipation, and competition from the MacBook Air. Inventories piled up in 2011 for high-end tablets that failed to compete with the iPad (NASDAQ:AAPL). All this in light of an announcement that January’s CES show will see as many as 50 Intel-based (NASDAQ:INTC) ultrabooks launched. INTC shares recently traded at $24.36, up $0.02, or 0.08%. Its market capitalization is $124.04 billion. They have traded in a 52-week range of $19.16 to $25.50. Volume today was 31,545,353 shares versus a 3-month average volume of 64,221,600 shares. The company’s trailing P/E is 10.55, while trailing earnings are $2.31 per share.
Focus Media Holding Ltd. (NASDAQ:FMCN): Shares of Focus Media were up a 13.8% following an earnings beat. It posted growth in its LCD display, in-store and poster frame segments. The company sees Q4 revenue growing to $212M-$214M with Q/Q growth of 9%. FMCN shares recently traded at $26.00, up $0.72, or 2.85%. Its market capitalization is $3.53 billion. They have traded in a 52-week range of $15.76 to $37.58. Volume today was 10,756,178 shares versus a 3-month average volume of 3,334,640 shares. The company’s trailing P/E is 16.60, while trailing earnings are $1.57 per share.
NVIDIA Corporation (NASDAQ:NVDA): Though Nvidia’s (NASDAQ:NVDA) Tegra processors have been designed into many high-end Android tablets, DigiTimes’ sources claim Taiwanese OEMs are being “conservative” about adopting its “Kal-El” Tegra 3 chip although the OMAP 4 has already found its way into the Kindle Fire and Nook Tablet. They are also closely evaluating Qualcomm’s (NASDAQ:QCOM) Snapdragon S4 and Texas Instruments’ (NYSE:TXN) OMAP 4 chips. NVDA shares recently traded at $13.95, down $0.11, or 0.78%. Its market capitalization is $8.47 billion. They have traded in a 52-week range of $11.47 to $26.17. Volume today was 8,724,546 shares versus a 3-month average volume of 19,970,800 shares. The company’s trailing P/E is 13.52, while trailing earnings are $1.03 per share.
Motorola, Inc. (NYSE:MMI): Motorola Mobility is “fairly likely” to obtain a patent injunction against Apple’s (NASDAQ:AAPL) iCloud service by February, according to patent expert Florian Mueller. MMI shareholders just signed off on the company’s merger with Google (NASDAQ:GOOG). Mueller claims a German court rejected all of Apple’s defenses as they ”experienced a dreadful hearing” today. MMI shares recently traded at $38.74, down $0.2, or 0.51%. Its market capitalization is $11.60 billion. They have traded in a 52-week range of $20.77 to $39.20. Volume today was 8,904,809 shares versus a 3-month average volume of 5,942,700 shares. The company’s trailing earnings are $-0.30 per share.
Pandora Media Inc. (NYSE:P): Pandora aims to cash in on the 2012 election. Delivering geotargeted political ads to candidates by using users’ zip codes and other local information will deliver more bang for the buck. P shares recently traded at $12.57, up $0.31, or 2.53%. Its market capitalization is $2.03 billion. They have traded in a 52-week range of $9.33 to $26.00. Volume today was 324,564 shares versus a 3-month average volume of 769,440 shares. The company’s trailing earnings are $-0.59 per share.