Face-Off: Microsoft vs. Google

By Taryn Cooper, at 1:12 pm on March 1st, 2010

In the spirit of yesterday’s closing ceremonies at the Olympics, I would say that — much like Team Canada vs. Team USA — a turf-war has erupted between two American-as-Apple-Pie tech companies.  Perhaps you’ve  heard of them.  We have “Microsoft” on one side, and another named “Google” in the defensive zone.

Microsoft has been incredibly vocal with its accusatory stance against Google, suggesting their business is anti-competitive.  Microsoft is no stranger with being accused of monopolistic practices, back in the late-90s going through that themselves.

The thing that stands out to me is whether Microsoft should care or not.  Let’s be fair, these two companies are like Goliath vs. Goliath.  While there is healthy competition in the technology space, each is successful and has their niche in their own right.   While they have similar products, typically Microsoft and Google target different populations but are potentially each other’s biggest competition.

I can’t say whether Microsoft is simply picking on Google because they can, but it seems interesting to me that several outlets today have picked up the idea that Microsoft is encouraging victims of Google to file complaints with regulators on their anti-competitive practices (an idea, that by the way, Microsoft is denying).

It appears as though Google is getting their licks in the media — you know, the whole saying of building something up just to tear it down, etc etc.   And with it’s trouble in China, along with its Google Books drama in the U.S., Microsoft’s deputy general counsel Dave Heiner also wrote in a blog post today that “Google’s way of working with advertisers and publishers makes it hard for Microsoft’s competing Bing search engine to win search volume.”

I wonder how long it will be before Google starts taking its public licks, much like Microsoft did in the late-1990s, for being the monolith it was but it’s still standing and of course, won’t be going away anytime soon.  The same could be said for Google, as it’s going through it’s growing pains of falling out of favor.  We’ve seen evidence of this recently with public fall-out from it’s Buzz launch, which had many more “ifs” involved in its release than answers.  To me though, I think that Google will walk away from this unscathed, as they have a team of lawyers working for them to ensure that whatever may happen quickly goes away.

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The NEW Tech Boom

By Taryn Cooper, at 5:48 pm on December 21st, 2009

Inevitably with the end of the decade near we’re going to hear about Top Ten lists ranging from television shows to albums and now with technology events, according to this post from Tech Republic.  No doubt, technology drove much of the economy over the past ten years, and it is far from bottoming out at this point.

At the end of the year 2000, we saw the tech bubble about to burst, and it’s almost literally come full-circle in this year.  Possibly the biggest the-more-things-change-the-more-they-stay-the-same story of 2009 was that AOL went public,  spinning-off from Time Warner officially earlier this month.

One of the most intriguing stories in tech-media is the advent of social networking sites.  I would love to see the statistics on it, but I am sure there is a high percentage of folks using MySpace, Facebook and Twitter on a daily basis, showing just  how much technology has evolved in the past 10 years.  In fact, an article came out today on Twitter, and how they are in-the-black since it’s 2006 inaugural year.  Remember how long it took tech-retail stalwart Amazon.com to return a profit in the early part of the decade?

Google has also done its part to change the face of technology as well, after going public in 2004.  They’ve been incredibly acquisitive, buying such “hot” technology properties as YouTube and AdMob.  Except for today, when Google almost announced a deal where they would acquire customer-ratings service Yelp.com, however the deal reportedly fell through at the last minute.

Ten years ago, no one had ever heard of “smart phones,” let alone owned one.  Mostly anyone who uses a cellular phone has some kind of  “smart phone” ability, mostly made by Research in Motion or Apple.  Motorola emerged as the Phoenix out of the ashes with its new Droid product this year, making the smart phone choices numerous.

At the end of 2000, websites were shutting down and the “old economy” was thumbing their collective noses at the idea of the “new economy.”  What we’ve seen however in the last ten years is that it’s not only resistant, it has evolved and looks like it is here to stay.  Most of us should be interested to see what is going to happen in the next ten years.

Big M-and-A Winners: Google Buys AdMob

By Taryn Cooper, at 1:27 pm on November 9th, 2009

Google announced they would purchase mobile display ad technology provider AdMob to the tune of $750 million.

At a glance, this could be pitched as a win-win for both sides.  AdMob gets purchased at a premium and becomes a Google brand three years after being founded by CEO Omar Hamoui.  According to a post on paidContent.org, Google intends to make money via its mobile operating system Android through advertising.  Subsequently we may see some similarly structured companies being snapped up by competitors Yahoo and Microsoft.

Who else are the big winners?  Namely AdMob’s investors Sequoia Capital, Accel Partners, DFJ Growth Fund and Northgate Capital, who have pumped $47 million of capital into the provider.  Can I get a “YOWZA” for that type of return in just three years?

As of now, the bankers who are getting credit on the deal will easily thump their chests at this dynamic and innovative deal that can potentially spawn similarly priced deals and set a precedence for the industry.  However, we have to give credit to the investors who saw potential in a start-up and are getting a “fair” return for their initial investments.

Wall Street Wrap – Google and Gold

By Robert Perrego, at 4:47 pm on October 7th, 2009

Google Inc. (NSDQ: GOOG) got their price target raised to $565 from $490 by Oppenheimer today and the stock gained $18.80 (+3.76%, $517.54) and closed at a new 52 week high. CEO Eric Schmidt stated that the worst of the online advertising recession is over and that Google is seeing signs of recovery in both Europe and the United States.  Oppenheimer had raised their price target before Schmidt met with reporters.

The market pretty much went nowhere today, and could be consolidating the gains from Monday and Tuesday.  The Dow Jones Industrial Average finished down 5.67 points (-0.05%, 9725.58) while the broader S&P 500 gained 2.86 points (+0.27%, 1057.58).  The tech heavy Nasdaq 100 added 5.20 points (+0.30%, 1710.45).

The energy sector was up 0.67% while the finance sector posted a 0.50% gain.  The industrial sector was down 0.24%.

Today after the close, Alcoa Inc. (NYSE: AA) posted earnings and was expected to lose 9 cents a share but came in posting a surprise profit of 4 cents. The top line beat expectations coming in at $4.6 billion vs. $4.5 and this is the first profit posted by the company in a year.  The knock on the markets earnings in 2Q was that analysts numbers were surpassed by firing employees and increasing efficiency, not by increasing sales.  The beat on the top line here for Alcoa bodes well for earnings season, as a company that has missed their estimates three out of the last four quarters now comes in and blows away the earnings number.  A number this good could have been helped by a weak dollar, as Alcoa has substantial international operations.  Aluminum production is energy intensive and the lower prices over the past quarter may have had a sizable effect on the profit posted.  Aluminum is up 20% on the quarter but down 50% on the year.  Aerospace is a major buyer of aluminum, so to an extent Alcoa has their fortunes combined with the likes of Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT).  Alcoa went into the close today up 31 cents and was trading up an additional 85 cents after the close to $15.05 (4:50 p.m.).

Gold traded more all time highs as the momentum of a break out drove the price higher by $1.30 an ounce (4:19 p.m.), while trading as high as $1,045.80, despite the dollar rising.  The PowerShares DB Dollar Bull ETF (NYSE: UUP) was up as much as 8 cents (+0.36%) but closed up only 2 cents (+0.08%, $22.69).  Usually a rise in the dollar means gold gets hit, but this contrarian strength by gold shows the all time high news has traders and investors very interested now.  The iShares Gold ETF (NYSE: GLD) only traded 16.1 million shares today, not even half of yesterdays 33.5 million, but still almost 50% higher than their average daily volume of 11.1 million.  The GLD chart shows a very favorable bottom reversal turn upwards in its stochastic oscillator, indicating a move higher from here.

The rising dollar did have its regular effect on oil.  Nymex light crude dropped $1.31 a barrel (-1.84%, $69.83, 4:34 p.m.)  Since the middle of July, oil has been in a $10 price range from $65 to $75.

Major earnings reports scheduled for tomorrow are;  MAR, 0.13, before market open and PEP, 1.03.

On the economic calendar we have Chain Store Sales and Jobless Claims at 8:30 a.m.

Family Dollar’s looking good; Kindle gets cheaper; Bank of America narrows CEO list even more

By Mark Pason, at 9:08 am on October 7th, 2009

Earnings:

Monsanto (NYSE:MON) reported a $0.43 per share loss vs. a $0.31 per share loss in the same quarter last year.  Monsanto beat the street by $0.01.

Family Dollar (NYSE:FDO) reported better than expected earnings.  Family Dollar’s EPS came in at $0.43 vs. analyst expectations of $0.41 per share.

Costco (NASD:COST) said their net income fell 6% and net sales decreased by 3.3%.  Same-store sales were down 5%.  Costco earned $0.85 per share vs. estimates of $0.77 per share.

News:

Trading in gold futures are expected to be up, according to the Wall Street Journal.  Traders should see gold go through the $1,050.00 per ounce price.

Amazon (NASD:AMZN) released an international version of the Kindle, and the company lowered the Kindle’s price to $259.00, a $40.00 decrease.  Bezos and friends are making a market-share play in the electronic book market.  The Kindle has 45% of the market.

Windows 7 will ship as planned in Europe, as the European Commission and Microsoft (NASD:MSFT)  came to an agreement on software bundling.  Microsoft CEO Steve Ballmer said that he does not see Windows 7 boosting PC sales.  In one survey, over half of companies polled said they will not switch to Windows 7.

And then there were two.  Bank of America (NYSE:BAC) has supposedly narrowed their list of CEO candidates to just two.  The two vying for the position are Gregory Curl, Chief Risk Officer, and Brian Moynihan, the head of consumer and small-business banking.  Surprisingly, no mention of Sallie Krawcheck.

Apparently, the Federal Reserve is finding that U.S. banks are not in a hurry to report commercial real estate losses.  One analyst at the Fed predicts these losses would  reach 45%.

Finally, if you’re on “the Google” today, you will notice the search engine giant is celebrating the invention of the bar code.