Although Yahoo has not been able to catch up with the overall online advertising growth, this has not deterred the company from experimenting with growth areas. In the online advertising market, local marketing is one of the upcoming trends and has attracted players like Google, AOL and Facebook in addition to Yahoo. Here we will analyze the growth prospects of this trend and how it could benefit Yahoo in particular. We currently maintain $17.88 price estimate for Yahoo stock, which is about 6% above market price.
Local Marketing: Growth Trend to Watch Out for at Yahoo!
Continue reading Local Marketing: Growth Trend to Watch Out for at Yahoo!
Facebook Value Could Rise on Mobile Usage
Facebook Mobile has been rapidly expanding its reach, growing from 100 million users per month in February 2010 to 250 million users per month in March 2011. Should this type of growth continue, there could be upside to our intrinsic value estimate for Facebook, which we currently peg at $45.1 billion. Facebook competes with Google, Yahoo, Microsoft, AOL in the text and display advertising market as well as the search advertising market.
America Movil to Expand Growth with Pre-Paid Data Plans
Carlos Slim, America Movil's (AMX) largest shareholder, became the world's richest man in part from his investments in wireless phone service. His empire spans 18 countries and has 200 million subscribers.Let's look at America Movil's spectacular growth. The company's markets are primarily in Latin America. American Movil controls 74% of wireless service in Mexico under its Telcel brand, which has 60 million subscribers. Brazil is second with 45 million subscribers. It also is the largest provider in the Caribbean with four million users.
Continue reading America Movil to Expand Growth with Pre-Paid Data Plans
Storage Software Worth 22% of NetApp's Stock Value
Continue reading Storage Software Worth 22% of NetApp's Stock Value
Why Did ServiceSource's IPO Jump 22%?
Do you remember the dot-com IPOs? Just the term dot-com captured the imagination of investors. Prices of some dot-com IPOs doubled in a matter of hours.With the current financial crisis, the market for IPOs has slowed down to a trickle. But we still have investing ideas that capture our imagination. Just mention the word term 'cloud' these days, and you are off and running.
Such is the case with cloud computing ServiceSource (SREV), reported in Investors.com The issue was for 1.9 million shares, to be priced at $10 per share.
Ma Bell Returns: AT&T to Buy T-Mobile for $39 Billion
Telecom giant AT&T (T) is buying T-Mobile USA from Deutche Telekom (DTEGY) for $39 billion, according to the Wall Street Journal. The deal is for $25 billion in cash and the balance in stock. Deutche Telekom will get an 8% stake in AT&T. This is a game changer. Now AT&T will have one-third more customers than Verizon (VZ) and twice as many as Sprint Nextel (S). The new AT&T will have about 130 million subscribers. AT&T will have nearly 80% of its business in wireless.
Continue reading Ma Bell Returns: AT&T to Buy T-Mobile for $39 Billion
Facebook Invades Netflix and RedBox's Turf
The sale of DVDs is going the way of the PC -- both have seen their market share dwindling. In a world of instant information, streaming videos are replacing DVDs. Last year, DVD sales fell by 43% to $7.8 billion from $13.7 billion in 2006, The Wall Street Journal reported.
There is another accompanying trend that reinforces streaming videos. Customers are spending more time online. Add the multiplier of time spent on social networks and it's streaming video hands down.
Google's New Venture to Add Revenue to YouTube
Google (GOOG) is ever searching for new opportunities. This time they want to enhance their YouTube site, which is noted for allowing and promoting home videos.
Google has a successful money stream called its partner program for YouTube. If you become a partner you agree to let Google place ads on your video and to let Google rent your video.
Continue reading Google's New Venture to Add Revenue to YouTube
ARM Holdings Licenses Chip Makers
ARM Holdings (ARMH) is far away from Silicon Valley. Its headquarters are on the campus of Cambridge University in England. ARM holdings has carved out a unique niche in the computer chip market.
It is a different kind of chip maker. Its core business is licensing chip designs to larger companies like Apple (AAPL), Samsung (SSNLF) and Qualcomm (QCOM.), as reported in the New York Times.
Alcatel-Lucent Launches Tiny New Cell Phone Antenna System
This is a technology truism: "New technology breeds more new technology." Let's take the explosion of mobile data. Smartphones and iPhones are creating a huge traffic jam in wireless communication. At present we are using fixed cell towers to transmit data from towers to the Internet. The need to handle the mobile explosion is putting extreme pressure on present tower operators to upgrade their equipment or build new towers. This is a cumbersome, time consuming process.
Continue reading Alcatel-Lucent Launches Tiny New Cell Phone Antenna System
JPMorgan Fund to Buy 10% of Twitter
Goldman Sachs (GS) was among the first banks to show interest in social networks with its effort to buy into Facebook. It seems the idea is catching. Now, JPMorgan Chase (JPM) began its own fund called the Digital Growth fund, according to the Financial Times.
The fund is in talks to buy 10% of Twitter for $450 million, according to the report. That would value Twitter at $4.5 billion.
Outlook for Facebook User Growth
Since 2006, the number of registered users on Facebook has seen near 100% annual growth. We estimate that the number of registered users has increased from around 10.5 million in 2006 to around 595 million in 2010 and has since continued its upward climb. From the time Facebook decided to allow any user above the age of 13 to create an account, the website's number of registered users has seen a meteoric rise.
Will Android Capture First Place?
If we look back to the days of the search engine revolution, Google (GOOG) built not only the most powerful search engine, but a business model based on that search engine that has made the company No. 1 in that category.The company is on the move again -- and Google's Android is leading the way. Google sees the next leg of the Internet revolution in the smart phone, tablet and e-reader market -- and there's already a fierce battle raging. Google's Android is making inroads into the iPhone turf. How deep is the penetration? Singapore research firm Canalys said, "Google shipped twice as many devices as Apple's iPhone. in the fourth quarter," capturing 33% of shipments, up from 8.7% a year ago.
Pandora's New Tune: An IPO
For investors, online music operators have been extremely risky. Of course, the main problem has been the lawsuits over copyright infringement. As a result, there have been no IPOs in the online music sector since 2002. That was when Napster went bust.
But over the past couple of years, the environment has been getting better. Just look at Pandora, which is an Internet-radio company. It has filed for a $100 million IPO.
Qualcomm Joins the Competition for the Tablet Market
The chip competition for the iPhone and iTablet is incredibly fierce. A little company called Nvidia's (NVDA) design won so far with its Tegra 2. Its shares are up almost 50% since December. Texas Instruments (TXN) is also a player in tablet chip market with its OMAP5 processor.Now, Qualcomm QCOM) is joining the fray with its new APQ 8060 dual core Snapdragon processor. It allows for high definition and 3D video. Hewlett Packard is using it in its new "Touch Pad."
Continue reading Qualcomm Joins the Competition for the Tablet Market
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