goog

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Ann Taylor Stores Corp. (ANN) declining same-store sales offset better-than-expected Q3 earnings.
• Canadian Solar Inc. (CSIQ) reached a new 52-week high after Q3 results handily exceeded expectations.
• Dillard's Inc. (DDS) said that it swung to a Q3 profit due to cost cutting as revenue declined year over year.
• GameStop Corp. (GME) reported uninspiring Q3 numbers that included a slump in same-store sales.
• Home Depot Inc. (HD) lower Q3 earnings and revenue beat analysts' estimates, but shares still declined.

U.S. stock futures declined Thursday morning, pointing to a lower start on Wall Street as investors started weighing the possibility that stocks have run up too far and too fast ahead of the economy -- the economic recovery may not be as robust. The retail sector is in focus with several retailers reporting earnings. The tech sector could also experience pressure.

On Wednesday, stocks ended lower with technology shares leading the decline, and the Nasdaq composite down nearly half a percent. Results from Salesforce.com (CRM) and Autodesk (ADSK) weighed on the sector as Hewlett-Packard (HPQ) and Microsoft (MSFT) were among the leading decliners in the Dow.

In tech circles, you will hear lots about "cloud computing." Essentially, this means that software applications are operated through Internet connections -- and processed in huge data centers. Often, the results include lower costs and easier maintenance.

Of course, the dominant player in cloud computing is Salesforce.com (CRM). And based on its latest quarterly report, the company continues to grow and innovate.

TheStreet.com's Jim Cramer says taking down all of software on the back of this outlook is a mistake.

And on the fifth down day, we decided that SAP's (NYSE: SAP) (Cramer's Take) butt getting kicked means the industry is faltering? This is the thought that went through my head when I saw SAP's disappointing news and its alibi that business is weak. That's why it stumbled. Of course, SAP's comments immediately took all of Europe down. Nobody said, "Hey, maybe it is SAP's fault because Oracle's (NASDAQ: ORCL) (Cramer's Take) kicking their butt." No one said, "Sure it is weak, because in the end Salesforce.com (NYSE: CRM) (Cramer's Take) got a better mousetrap."

There are stock plays, and then there are stock plays. Salesforce.com (NYSE: CRM) was expected to advance when first recommended on June 18, 2009 at a price of $40.16. Instead, CRM raced ahead, surging 47%. Accordingly, I'm Reiterating my Buy rating, but on a pull-back to $55-57.

The larger point concerns the following: is the recent gain in Salesforce.com's shares telegraphing something about the approaching U.S. economic recovery? Perhaps. Put CRM's share gain in this context: if the share gain holds, it's not a bearish sign for the U.S. economy.

"Run properly, as Salesforce.com (NYSE: CRM) does, a cloud computing network also offers greater security, greater reliability, and lower costs (thanks to efficiencies of scale)," explains Timothy Lutts.

In The Cabot Stock of the Month report, he suggests, "Salesforce.com is very well managed, and in our mind its leadership in cloud computing gives it a fundamental advantage that should translate into growing market share gains and steady revenue flows for years to come."

"The company was founded a decade ago by a former Oracle executive, and today it's a leading vendor of Customer Relationship Management (CRM) services.

TheStreet.com's Jim Cramer says the action that is linked to the futures markets, such as oil, is distorting rational analysis.

Maybe one day we can escape the commodity linkage and begin to trade on the fundamentals again, something that seems more distant now than any time I can recall. We are totally marching to gold, to oil, to copper, and not the fundamentals.

Throughout the era in which China has become a superpower and hedge funds have become the super arbiters or what goes up or down, we have been stuck with this fairly bogus linkage that corrupts trading and makes a mockery out of some of the most important financial analysis out there, the actual attempts to discover what's really happening at companies.

TheStreet.com's Jim Cramer says the rally hasn't been a sham, but a bigger pullback would be reasonable.

I love it! Suddenly it's S&P 900 or bust! Nothing underneath us. The rally revealed as a sham. Even better, a rally in a bear market!

Now we are talking.

A 45% rally in a bear market. Maybe China had an 85% rally in a bear market! We may have had a 7,500-point rally in a bear market since I started trading 30 years ago.

I am even thinking that we have never had a bull market!

"The term cloud computing is nothing particularly new or complicated; it simply means that instead of having software on your home, office or notebook computer, you run applications over the Internet," explains Gregg Early.

In Personal Finance says, "It's the way of the future as computing becomes increasingly mobile." Here, he looks at a trio of plays on this trend: Amazon.com (NASDAQ: AMZN), Salesforce.com (NYSE: CRM), and Rackspace Hosting (NYSE: RAX).

"I would point out that I'm writing this article on Google Docs. This document is stored on a Google server farm, not on my office computer.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Aeropostale Inc. (NYSE: ARO) strong Q2 results beat expectations due to rising same-store sales.
• Agilent Technologies Inc. (NYSE: A) Q3 earnings topped low expectations and revenue declined.
• Analog Devices Inc. (NYSE: ADI) posted better-than-expected Q3 results but shares fell on weaker margins.
• Baidu Inc. (NASDAQ: BIDU) CEO said its new advertising efforts will boost sales over the long run.
• Barnes & Noble Inc. (NYSE: BKS) had a better-than-expected Q2 profit but same-store sales fell.
• BJ's Wholesale Club Inc. (NYSE: BJ) reported solid Q2 numbers and raised its full-year guidance.

Today was an options expiration date, and the stocks closed higher. We had strength early on from Europe, but then some very surprisingly good housing data caused added cheer. The data was taken as permanent, but much still points toward the bump up being temporary. Even a negative call for 222 more bank closures by Meredith Whitney failed to jolt the markets.

Here were today's unofficial closing bell levels:

Dow 9,502.33 +152.28 (1.63%)
S&P 500 1,025.68 +18.31 (1.82%)
Nasdaq 2,020.36 +31.14 (1.57%)

Marc Benioff, the founder and CEO of Salesforce.com (NYSE: CRM), has a new book coming out in November: Behind the Cloud: The Untold Story of How Salesforce.com Went from Idea to Billion-Dollar Companyand Revolutionized an Industry.

I actually got an advance copy of it -- and it is awesome. In great detail he provides the strategies for building a game-changing company. And based on Salesforce.com's latest earnings report, the momentum seems unstoppable, despite the recession and tight information technology (IT) budgets.

The recession has not changed the Salesforce.com (NYSE: CRM) shareholder value proposition: namely, that delivery of software on demand requires a lower up-front investment and offers increased vendor accountability, with flexible subscription pricing, among other benefits.

What the recession has changed is the rate of sales growth for CRM, which is expected to slow to the 15-18% range in FY2009. In short, CRM's customers have slowed software implementations, due to the prolonged economic contraction. The First Call FY2009/FY2010 EPS estimates for CRM are 60 cents to 79 cents.

TheStreet.com's Jim Cramer says these stocks have become too expensive without takeovers and a more robust economy.

One after another after another, these software charts are amazing. And, I might add, a bit scary. How did McAfee (NYSE: MFE) (Cramer's Take) make that kind of move just on security software? Didn't Microsoft (NASDAQ: MSFT) (Cramer's Take) just say -- admittedly for the 4 millionth time -- that it was going to give away free anti-virus software? Or Citrix (NASDAQ: CTXS) (Cramer's Take)? What's that all about? How could it return to those levels?

There were rumors of a Cisco (NASDAQ: CSCO) (Cramer's Take) takeover a week or two ago, and, amazingly, when it didn't come true, the stock hung in.

So-called "cloud computing" is the big-thing in Corporate America – that is, offloading information technology (IT) services to the web. It's a cost-saver since there is no need to buy infrastructure.

Some of the hot players in the space include salesforce.com, inc. (NYSE: CRM) and NetSuite Inc. (NYSE: N).

Well,there is another company getting traction: Google, Inc (Nasdaq: GOOG).

And, it should be no surprise. After all, Google has a global web infrastructure that has massive scale. Moreover, it has the technical capability to build mission-critical applications -- and yet they are easy to use.