Apple shares up big!!

Leading blue chip stocks, Apple Inc. released great earnings that have shares soaring $8.29 (2.42%). Tech stocks have led a surge in the market the past two days. After a few disappointing 1st quarter results, technology companies Google, Intel, Apple and others have pushed the Dow near a 3-year high.

Last week results were not as pleasing with Alcoa (AA:NYSE) and Google (GOOG:NYSE). These big companies were disapointing but have benefited from the better week of other companies.

Apple reported $24.57 billion in Q1 revenue. Both revenue and profits grew and have shown that even without Steve Jobs, Apple is still able to innovate its products, cut costs, and increase the bottom line. Comparing this quarter to the same one in 2010, Apple saw a 28% increase in Mac sales, and 113% increase in iPhone sales (thanks in part to the dual network availability).

Choosing a Laptop in a Tablet World

A Thursday morning WSJ article caught my eye titled "Choosing a Laptop in a Tablet World." It goes into the growing popularity of tablet devices but yet there is still a disparity between product capabilities. Laptops probably won't disappear just yet: they have a physical keyboard, lots of ports, plenty of storage and more horsepower than tablets offer. The article goes into look at timing, memory, graphics, processors, hard disks and ports.

Bottom line is, if you are not in pressing need of a laptop then wait because the industry is evolving at incredible speeds. If you can't wait, the author recommends 4 gigabytes of memory, no specific processor any of the newest Intel ones will suffice, anting up for the more expensive graphics is a must, 320 gigabyte hard disk is enough, and HDMI capabilities to plug into the computers ports is great for connecting the laptop to the television.

It's time to see those earnings...

1st quarter earnings are being released this week and into the next. I found an article about the construction of Apple's latest operating system, Lion, that has yet to be released to the public but may be able to protect users privacy. The new browser will feature a "do not track" feature to block websites from following your Internet tendencies to try and sell you things. It has been a topic of how intrusive is some of this stuff and it is becoming very annoying. You cannot go online now and now be bombarded with flashing lights of similar shoes you just bought on the side of the yahoofinance article you are trying to read.

I have Apple's Snow Leapord OS and have been very happy with the system. I am a strong believer in Apple products and expect the Lion to be fast and effective. Apple's Safari browser currently accounts for about 6.6% of Web browser users on the Internet, compared with 55.9% for Microsoft's Internet Explorer and 21.8% for Mozilla's Firefox, according to estimates. Today (Wed. April, 13), Republican Cliff Stearns (R.Fla.) introduced privacy legislation that would encourage companies to offer more information to consumers about how they are being tracked.

India's Internet Age

Apparently, India is an undeveloped Internet economy: The nation has the lowest Internet penetration rate among major emerging markets and very little online commerce. NBC came out with a new show this year called Outsourced, as an American company was believe it or not, outsourcing part of their business in India. They were bringing American capitalism to a country with a country with a huge workforce. They are selling goods found on the Internet so it is a funny show about teaching Indian's the in's and out's of it all.

But back to the article, a laundry list of Indian Internet companies are emerging to offer their take on services that proved successful in the US and elsewhere. There are firms positioned to become India's Amazon.com, Groupon or Orbitz. All these firms have the ambition of capitalizing on India's growing interest in buying things online. There was a dot-com boom in the US in the late 90's, I wondering if history will have a chance to repeat itself or if the world has learned from its mistakes?

The Winklevoss' back in the news

Until the movie The Social Network came out, to most, the Winklevoss twins would not be known. The two out of three college friends that sued Mark Zuckerberg for $65 million for stealing their intellectual property rights, cannot back out of their deal ruled the Judge. The twins claim that the Facebook board overestimated the value of the company to pay them less in settlement stock.

The court has ruled in Facebook's favor, but the Winklevoss' lawyer says they will seek a rehearing with the entire appeals court bench.

Facebook transparency

On Friday, April 8th, a WSJ article was written about Facebook sharing their server design. A lot of companies like Google Inc. and others keep key details about their computing infrastructure private, but Facebook's move is being done in hopes of a better relationship within the industry. They are calling it the "Open Compute Project" and should encourage industry-wide collaboration around best practices for data-center and server technology. "By sharing this, we will make it more efficient for this ecosystem to grow," said Mark Zuckerberg.

By sharing its designs, Facebook said other companies would be able to focus on applications and developing for social websites. It seems that this move has come as tech giants like Google, Apple and Twitter, are scrambling to build vast new data centers so they can provide computing resources, data-storage capacity and software services to companies and consumers over the Internet.

Not another "flash crash" !!!

Eric Hunsader, founder of Nanex, a Winnetka, Ill., data firm, told Barron's that he has reason to believe that a Flash Crash 2 is possible. Suspicion is high due to high volumes of quick trades made in the month of March. His point being that there is a growing trend to let computers automatically adjust to preset levels, to buy or sell, it's quicker than human's. Robotically making trades can make the markets crash. On May 6th of last year, the infamous "flash crash" sent major markets down 9% in just 15 minutes! Temporarily, $1 trillion of the market value disappeared. Automated systems are programmed by mathematicians whose ultra short-term strategies have radically altered markets. And while there have been flash-crash fixes, they haven't stopped the new invaders, which are orders of magnitude faster. Having the fastest, newest technology becomes so important to traders to make adjustments but they will never be faster than automated computers.  

We've read about this before...

LIFT restaurant in Vancouver will test the use of iPads. As of today, printed menus are an option with the launch of iPad menus. LIFT is the first Vancouver restaurant to participate in a four-week trial of the company's LiveMenu application.

"It's incredible what this software can do," states Bob Lindsay, managing partner at LIFT. "Although it's never going to replace the need for knowledgable servers, we feel it's a fun, interactive way to complement the dining experience." From the look of the restaurant in pictures the place looks very trendy and hip. Set right on the end of a peer on Coal Harbour, it will be interesting if more restaurants give the technology a shot. LIFT plans to monitor and evaluate feedback from guests and staff over the course of the trial period.

Tsunami tech affects

Sony Corp. said that its next-generation portable game machine is delayed because of last month's Japanene earthquake and tsunami. This picture is what the new system will look like when it comes on the market. Production problems brought on by the natural disaster have forced the Tokyo-based company to consider rolling it out in only one geographic area, Jack Tretton, president of Sony Computer Entertainment of America, said.

Supposedly, the NGP will deliver the power of the PlayStation 3 game console in a handheld system. It features front and rear-facing cameras and a rear multisensor touchpad.

Sony (NYSE: SNE) fell 42 cents at markets close.

Texas Instrument acquisition leads the news

Texas Instrument Inc. (NYSE: TXN), the second largest U.S. chipmaker, has agreed to buy National Semiconductor Corp. (NYSE: NSM) for about $6.5 billion. This feat will be the company's biggest acquisition, extending its lead in analog semiconductors.

Shares closed at $14.07 but National Semiconductor shareholders will get a nice premium of $25. The boards of directors of both companies have approved the transaction. Each company has unique strengths and will be forming an industry giant of marketshare, products, specs, and excellent customer design tools. This news just came public fifteen minutes ago in market after hours. Like I've made note of in previous blogs a company that is taken over is a valuable stock. NSM shares are up 101.8 points or 72% and TXN is down 2%. Very interesting consuming move by Texas Instrument and big news in the industry.

What is Groupon and are they legitimate?

Groupon is a deal-a-day website that features discounts from various websites at one location: groupon.com. After a few simple steps you can be signed up for the region in which you live. You will receive deals at local restaurants, spas, fitness centers or other shops-- an article on Wall Street Journal today mentioned ten things Groupon wont tell you.

1. 50% off, well not really. They get you on the undisclosed tax and shipping & handling fee (which is higher than ordering most internet products).

2. Good luck cashing in. A lot of deals are often oversold and not able to be redeemed. There have been many cases where people were not able to spend a day at the spa because they waited too long to use their coupon because too many people already did.

3. We're above the law. There may be undisclosed expiration dates sooner than you would think so that is imperative to identify.

4. We'll be out of business by Christmas. Many sites don't survive and these deal-a-day sites are a new craze. The technology behind deal sites makes them easy to start, but sustaining them requires a steady stream of interested business and consumers, says Opus Research's Sterling.

5. You won't use this coupon. The silver lining for consumers" there's a growing secondary market on sites like Lifesta, CoupRecoup and DealsGoRound, where sellers unload their unwanted deals and buyers can grab them, often at a steeper discount than the deal site originally offered.

...more to come on this article

Big deal in Info Tech industry

An interesting deal transpired Monday in the information technology sector: the formation of a monster. AT&T has purchased T-Mobile (Deutsche Telekom) in a $39 billion deal. The markets seem to like the implications of the transaction raising hope that the business environment is improving. This will create the world's largest cell phone provider, but the deal will face antitrust barriers.  The deal sent Deutsche Telekom shares surging, opening 16.3% higher while AT&T shares gained 1.3%. Takeover targets, like T-Mobile, will cause a company's share price to sky rocket. The $39 billion buyout still needs approval by regulators but that liquidity is what sent shares so hire. One company pays the money out, AT&T whom hopes to see a positive reaction (didn't see as much percentage improvement), and one company receives the money, Deutsche Telekom assuming no antitrust barriers will hold it from materializing will have shares soar. 

Big news in the telecom industry. But with the iPhone be available to T-Mobile customers? What are the pros and cons of keeping the two services separate? These are interesting questions to consider.

http://online.wsj.com/article/SB10001424052748703292304576213050651047200.html?mod=WSJ_hp_LEFTTopStories

http://www.bbc.co.uk/news/business-12802111

Now this is something to look at...

Just an update before I comment on the article I read.

Apple: has practically not seen any percentage change for a 7-day span, but is down  2.2% since Friday.

Time Warner: is down 2.9% over the past 7 days. As expected I don't like the move to team up with Facebook.

Google: Down 1.5% over the same 7 days. And even more before I posted the application security breech. According the efficient market hypothesis, the market has reacted before the public sees the news.


Now to get to the article I found about Barnes & Noble releasing a tablet of their own. For a fraction of the cost of the iPad and the Xoom, you can buy a $200 no-nonsense tablet that is great for e-books and reading other forms of media. The author of the article is basically telling us about his experience thus far with it. He said that although not internet accessible at purchase, there is a legal download Google's Android platform. I don't know how Google will respond to this, whether it's charging for the download, removing it completely, or not taking any action at all.

http://online.wsj.com/article/SB10001424052748703662804576188901890884360.html?mod=WSJ_hp_MIDDLETopStories

Facebook to offer movies? Lets get Tech-nical

In a Wall Street Journal article today, Facebook and Time Warner are going to experiment offering movies on the social networking site. I realized earlier this year that the site was beginning to offer services at a charge. Games became available to compete against your friends. Facebook only gave you so many credits to play the games, if you wanted to play more and ultimately beat your friends you had to purchase additional credits. I personally thought it was crazy to put down your credit card to gain more points in Family Feud than your friends, it isn't worth even $5. So I am interested how offering movies for a charge will do.

I get it, hundreds of millions of people go on the social networking site everyday, but I am skeptical. The first movie that will be streaming is "The Dark Knight," which came out two years ago! This is one of my favorite movies, but shouldn't they experiment with a more recently released movie? Netflix stock had fallen on the news of more competition in the digital video market. Something to keep an eye on.

http://online.wsj.com/article/SB10001424052748703386704576186913491751144.html?mod=WSJ_hp_MIDDLETopStories

Google Takes Heat Over App Security

Apparently on Tuesday of the previous week, March 1, there were fifty eight malicious applications that were downloaded off the Android market Google was not aware of. The details were not too informative other than the apps were downloaded onto 260,000 devices until Google terminated its connection. The stock has depreciated over 3.5% since markets opened Tuesday the 1st after Presidents Day.

Apparently, unlike Apple Inc. or Blackberry, Google doesn't have employees designated to monitor the apps submitted to the store. They have a more reactive approach than their competitors proactive stance. Google has reportedly said to be taking action to keep future malicious applications off the Android market, but did not reveal what kind of steps they will be using. The article that I read was on Monday, March 9th, as a finance major I am fascinated by the markets response to news. We are taught that you cannot invest using just public information and if you did you may be too late to capitalize on Google's missteps. Nothing against Google as an organization all together, but it is amazing how efficient the market can and should be!

http://online.wsj.com/article/SB10001424052748703883504576186810666183384.html?mod=WSJ_hp_LEFTWhatsNewsCollection

3D Video Games

Nintendo DS, the handheld video game system, released its newest version in Tokyo on Saturday and saw lines stretching around store corners at 1am. Now with 3D capability without the need to wear glasses, it seems that kids are excited about these hand-held machines. Sunday it became available in the U.S. and 18 video games were already available. It is uncertain how the 3D will fare selling at a premium to the 2D games. I wonder if 3D is the future as it has emerged in movie theaters, television sets and now video games...

http://online.wsj.com/article/SB10001424052748703408604576163850793544480.html?mod=WSJ_Tech_LEFTTopNews

http://blogs.wsj.com/japanrealtime/2011/02/26/nintendo-3ds-debuts-in-japan/

Google will rule the world by 2020

I have the utmost respect for how smart IT creators of programs are. Google has reportedly changed its search algorithm and from briefly going on its site it does look different. Supposedly it will affect 11.8% of its search results and reduce results rankings for low-quality sites. This will make it more competitive among advertisers to keep their ranking up. A local business could get lost in the wide world web of high-quality webpages. Their change in algorithm will impact content farms like Demand Media.

Demand Media, Inc. operates as an online media company in the United States. It identifies, creates, distributes, and monetizes in-demand content. The company's content and media services, include creating media content, primarily consisting of text articles and videos, and delivering together with its social media and monetization tools to the company's owned and operated and network of customer Websites, Google included. Its content and media services are delivered through the company's content and media platform.

After the market closed Friday, shares fell almost 3.5%. It seems Google has declared war on its "content farms." Estimated to be valued at $2 billion, Demand Media will have to make adjustments quick to avoid higher costs and lower revenues. Another two stocks to monitor over the week, GOOG and DMD.

Did the market already anticipate this?

We are taught in business school that the markets are efficient. At the same time we are also taught that from our education we are better than average, so maybe we can find investment loopholes. All information that can be read in the Wall Street Journal or any other public media should already be accounted for in the market. Once it is public, it is probably too late to take advantage of. It is public information that Apple is releasing their second iPad and recently the unveiling was given a date for March 2nd. Apple's stock price is very expensive so it takes large price movements to see large percentage price swings. But over the past week Apples share price has increased 2% and 1.5% on Friday, so it appears that the market has high expectations for the public perception of the new tablet.

Wednesday March 2nd, Apple will unveil their second tablet and it will be interesting to follow trading levels throughout the week.

The iPad's first rival

Yeah that's right, the iPad finally has a competing tablet on its level. For now the only thing the Xoom by Motorola doesn't match up to the iPad is on price. Powered by the new and improved Android system, Honeycomb, allows users to spin the machine and have full touch-screen access as it rotates. Showcasing a larger screen, beefier electronics, and this sleek, new operating system by Google (Honeycomb).



Lets face it, we live in a time of multi-tasking. My generation and those younger need to be doing something at all times. We don't have the greatest attention span, so the Xoom has developed multi-tasking capabilities so while you are waiting for you game to load, you can hop on youtube and search for videos without interrupting the setup of the game. The iPad is still known for having a better resolution screen and more applications. The Xoom is a product to keep an eye on especially with the timing of the new iPad release, which is expected in the coming week. All very interesting news, Apple's share price has fallen over 5.5% the past 5 trading days during as the stock market slides a bit...I will keep an eye on this.

Verizon users, say hello to the iPhone

As of 7am today, Thursday Feb. 10th, the iPhone is available to those with Verizon service. Despite the assumed hype lines were shockingly thin. Analysts believe that both networks will be selling a ton of iPhones this year, and upward estimate of 9-13 million on Verizon's network alone. Day one is off to a slow start.

Well not so fast. Verizon allowed its customers to pre-order the phone where they sold more in the first two hours of availability than the one-day total for any other device's debut in the carrier's history. They declined to reveal the numbers but in this technical day in age it would be misleading to say the move to two networks may be too late. Lets give this time because if the pre-orders are any indication of vindication, both Apple and Verizon will be very pleased with there efforts to team up.

Is Twitter worth more?

Facebook and Google have been rumored to have made a takeover offer. Twitter has been the newest hot sensation of social networking. As an advertised based business, like Facebook, Twitter has to find ways to continue to offer something different. Right now they are. Everything on the site is public and that has a different appeal to advertisers and Twitter users. It seems hard to imagine that upper level management would accept an offer even worth upwards of a couple billion dollars, they believe there is still so much potential. Currently valued anywhere between $8-10 billion, Twitter may seek alternative financing and consider an IPO in the near future.

"The company is having great ad-sales momentum right now, but we still think they need to do something big to increase usage and get more people seeing and interacting with tweets," said Debra Aho Williamson, an eMarketer analyst. "Most of their advertisers are just experimenting at this point; the challenge will be to get those advertisers to come back and buy more," she said. This is what Twitter execs need to figure out whether they have reached their potential as a blog or are there new areas to explore. Is Twitter worth more like $100 billion like people familiar with the company think?

SB Commercials

I have to say I am disappointed with the commercials another year. Not enough funny ones and too little creativity. The car heavy, long drawn out commercials this year where unfortunately expected. Sure there are a few that made us laugh, but in this day in age the approval process on marketing teams is selective. They are careful to not offend someone and receive a law suit the day after the most expensive day ads run. No tech companies ran commercials this year, not sure if that's normal for the industry. It's usually a beer, soft drink, car dominated time slot. So maybe the tech industry as a whole doesn't see enough value running commercials showing off their tablets, knocking on competitors Apple, Samsung, Sony etc.

Apple loyal

I am a little behind in the technology as it seems everyone has a smart phone and/or some other gadget. In fact I didn't even have a cell phone till my senior year in high school. I'm fascinated by the ingenuity engineers at Apple, Samsung, Google etc. have been able to apply to making smaller and smarter technologies. I have a MacBook, bought it four years ago and to date haven't had any issues with it like I did with all the PCs I had before. I am thoroughly impressed and hooked to Apple products. If I could I would upgrade my phone to the iPhone and get the latest MacBook.

Steve Jobs and the Apple team (well I guess we'll find out how smart Apple is without Jobs) have created a stigma or sexiness about their products. I know they have had their issues with the first release of a lot of products, but I am a loyal Apple customer and believe being the first mover in the tablet market the iPad is poised to continue to hold the market. That's my opinion as a biased Apple user.