GOOG

Is the New PayPal App a Game-Changer for eBay?

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Thursday afternoon, eBay’s PayPal (click ticker for report: ) released its updated version of its iOS and Android mobile application. This release marks the latest attempt for a digital wallet to usurp the importance of the credit/debit card and “simplify” payments. By no means is this the first attempt for a company to push a digital wallet. Google Wallet (click ticker for report: ) has failed to gain much traction, not because it is exclusive to Android, but mostly because it isn’t a very intuitive program and awareness isn’t high. Apple’s Passbook (click ticker for report: ) has sneaked into the marketplace to become the fourth most popular mobile commerce app. Passbook differs from Google Wallet in the sense that … Read more

Samsung’s Smartwatch Underwhelms

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The day many had been waiting for in tech came Wednesday morning as Samsung unveiled its long-rumored smartwatch, dubbed the “Galaxy Gear,” to the public. The Galaxy Gear acts as a compliment to a smartphone, allowing users to check text messages, phone calls, and e-mails, as well as set alarms, run apps, and check the weather. The smartwatch will supposedly integrate seamlessly with the upcoming Galaxy Note III, and it will retail for $300. The Market Isn’t Big Enough at Launch Our first issue with the Galaxy Gear is the miniscule addressable market at launch. Though the device will eventually be compatible with the Galaxy S IV and other Samsung smartphones, it will only work with the Note III at … Read more

Ballmer’s Last Big Move? Acquire Nokia’s Mobile Phone Unit

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Late Monday night, news broke that Dividend Growth Newsletter portfolio holding Microsoft (click ticker for report: ) will acquire Nokia’s (click ticker for report: ) device and services business for $7.1 billion. Though rumors about a deal have swirled since the two companies partnered for the Lumia, the timing is somewhat shocking, in our view. With CEO Steve Ballmer to depart within the next twelve months, we assumed he wouldn’t make any major splashes. Deal Details On the surface, this deal seems a lot like Google’s (click ticker for report: ) acquisition of Motorola Mobility. However, the details differ materially, particularly since Microsoft didn’t acquire the entire Nokia business. Further, Nokia will retain its patent portfolio and lease its patents … Read more

Are You Ready for Some Football? Google Is.

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Digital news firm AllThingsD broke the story that Best Ideas Newsletter portfolio holding Google (click ticker for report: ) could be in talks with the NFL over exclusive rights for the NFL Sunday Ticket package, which allows consumers to view every NFL game. Another Best Idea portfolio holding, DirecTV (click ticker for report: ), currently holds exclusive rights for Sunday Ticket through the 2014 season, which costs the firm $1 billion annually. Why It Makes Sense for Google On the surface, such an idea seems interesting for Google. With the exclusive Sunday Ticket package, Google could really make a push into the TV business. Google could even pair the package with a purchase of the Google Chromecast, a portable online … Read more

Ballmer to Leave Microsoft; Market Cheers

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Early Friday morning, Dividend Growth Newsletter portfolio holding Microsoft’s (click ticker for report: ) long-time CEO Steve Ballmer announced that he’ll be retiring within the next year. Despite solid revenue and earnings growth throughout his tenure, investors have called for his job for years as rival Apple (click ticker for report: ) stole the spotlight in the tech world. The Bad While the late Steve Jobs will be known for his hits, Ballmer will be best known for his misses. After Apple dropped the iPod, Microsoft came to market with the Zune after the war was long over. Apple then released the iPhone, and Microsoft wasn’t ever able to fund a credible competitor in the United States, but it did … Read more

Icahn Reignites Apple

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Shares of Best Ideas portfolio and Dividend Growth portfolio holding Apple (click ticker for report: ) showed considerable relative strength following solid third quarter results July 24. Pricing momentum was augmented when legendary money manager Carl Icahn (or iCahn) sent out a series of tweets about the tech giant on August 13. iCahn Moves the Market Icahn needs no introduction, as he boasts a rumored net worth in excess of $20 billion, has engaged in numerous high-profile corporate battles (US Steel, Dell, TWA), and without question is considered one of the greatest money managers of his era. When Icahn speaks (or tweets), markets listen. While Icahn’s presence as an Apple shareholder has little, if any, fundamental change on the company, his … Read more

Baidu Might Buy China’s Groupon

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Reports are circulating that Best Ideas Newsletter portfolio holding Baidu (click ticker for report: ) is interested in taking a controlling stake in Renren’s (RENN) daily deal site Nuomi.com, as well as Ding Ding Maps (a map service). Both potential deals could make Baidu look a little more like another Best Ideas portfolio holding, Google (click ticker for report: ). Numoi.com is a daily deals site similar to Groupon (click ticker for report: ) and Amazon’s Living Social (click ticker for report: ), as well as Google’s own Daily Offers. Deals change on geographic location, and the service seems to cover most major cities in China. Without question Baidu could probably start its own daily deals service, but that strategy … Read more

Blackberry: Strategic Alternatives Signal Failure

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After the launch of its new phone and operating system came and went without much fanfare, smartphone maker Blackberry (click ticker for report: ) announced that it is exploring strategic alternatives for the company. Although most tend to associate strategic alternatives with selling the company, Blackberry is also open to partnerships and joint-ventures. Let’s start with the obvious inference out of this news: Blackberry 10 didn’t save the company. If this wasn’t clear enough when Blackberry reported weak results for its fiscal year 2014 first quarter, we think the situation is obvious now. Consumers, particularly of the high-end smartphone variety, simply do not want Blackberry products. The app world is far inferior to competitors Apple (click ticker for report: ) … Read more

Facebook Mobile Advertising Performs Incredibly Well

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Social network site Facebook (click ticker for report: ) reported tremendous second quarter results Wednesday after the market close. Revenue surged 53% year-over-year to $1.8 billion, easily exceeding consensus estimates. Earnings, excluding certain items, jumped 58% year-over-year to $0.58 per share. The firm generated a robust $1.05 billion in free cash flow during the second quarter, equal to 58% of revenue. Image Source: FB 2Q 2013 Earnings Slides The story for Facebook during the second quarter was the explosion in advertising growth, which surged 61% year-over-year to $1.6 billion. As we see from the above image, advertising growth was robust across all geographies, up 51% in the US & Canada, up 96% in Asia, up 53% in the struggling European … Read more

Google’s Cash Pile Grows

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Search superpower Google (click ticker for report: ) reported decent second quarter results Thursday after the closing bell. Revenue increased 19% year-over-year during the quarter to $14.1 billion, falling slightly below consensus expectations. Non-GAAP earnings per share fell 6% year-over-year to $9.56, over $1 per share below consensus estimates. Google’s earnings per share can move around considerably during different quarters, but free cash flow remained robust at $3.1 billion, approximately 22% of revenues. This figure is down slightly from the same period a year ago, but it is still a very healthy number, in our view. Image Source: GOOG Q2 FY2013 Earnings Presentation Advertising remains the core of Google’s business, but key metrics were decidedly mixed during the second quarter. … Read more