Posts by Aaron Pressman

  • Cisco appoints lifelong sales guy to replace Chambers as CEO

    Aaron Pressman at Yahoo Finance 1 day ago

    What was it Steve Jobs used to say about why tech companies decline? That’s right, it’s when the sales guys start running the company. That may explain why investors are showing so little enthusiasm over Chuck Robbins, named the new CEO of Cisco Systems (CSCO) today replacing John Chambers starting in late July. The shares are up less than 0.5% at midday. By contrast, Microsoft (MSFT) shares jumped 7% on Aug. 23, 2013, after Steve Ballmer said he would retire. While Robbins isn’t quite Steve Ballmer, the target of Jobs’ digs back in that 2011 "60 Minutes" interview, he is the enthusiastic senior vice president in charge of Cisco’s field operations, which covers the internal sales teams as well as relations with the company’s vast network of third-party sellers. The 49-year-old has spent almost two decades rising through the ranks of Cisco’s sales side without garnering much attention. After starting his career as an applications developer at a big bank in North Carolina that eventually morphed into Bank of America, it’s been sales all the way for Robbins, who joined Cisco at the end of 1997. Robbins may be most known for his all-out efforts to beat Hewlett-Packard (HPQ) at the network equipment game. “Refuse to lose” was reportedly his mantra with Cisco’s third-party resellers at a conference in 2009.  "I am your personal deals desk," he told the group. That kind of all-out effort works wonders when a company has a product line-up that beats the competition. Cisco’s current challenges may be more on the innovation and development side, however, as upstarts try to woo away its customers with cheaper solutions based on open-source software.

  • The department store app that outpaced Uber, Tinder and Nike

    Aaron Pressman at Yahoo Finance 4 days ago

    The list of the fastest-growing mobile apps includes many familiar and unsurprising names, such as Uber, Tinder and Nike (NKE). But topping the hipster favorites? Kohl's (KSS), the discount department store chain based in Menomonee Falls, Wis., which increased its user base by almost 800% after overhauling its mobile offering last fall. Only ride-sharing service Lyft, with an 835% increase, grew faster last year among apps with at least 1 million monthly users, according to data collected by Comscore. While many in the technology industry sneer at old-school retailers and their sprawling brick-and-mortar store chains, the success of apps from Kohl's and others such as Walmart (WMT) and Target (TGT) proves that they can be formidable competitors. Unlike mobile payment apps from the likes of Apple (AAPL) and Google (GOOGL), the retailers' apps provide more tangible benefits to shoppers through integrated customer loyalty and rewards programs. "They gave people a simple value proposition and -- boom -- all of a sudden people are downloading these apps," says Andrew Lipsman, vice president of marketing and insights at Comscore. Kohl's success comes as many traditional retailers are increasing their digital efforts to capture the attention of smartphone-carrying shoppers. While physical stores were once seen as expensive and outmoded, retailers now view their outposts as valuable spaces to connect with customers, complement online commerce and speed up shipping times. For years, the Kohl's app was a mess, peppered with 1-star ratings and generally ignored by most shoppers. But last year, Krista Berry, the company's chief digital officer, decided the time was right for an overhaul. Kohl's had plowed $1 billion into a digital effort revamping its web platform, the systems that collected customer data and its back-end order fulfillment network. Those upgrades potentially could power an app to deliver a lot more value to customers and, in turn, increase their allegiance to Kohl's. Focus on phones

  • LinkedIn plunges 25% on disappointing guidance

    Aaron Pressman at Yahoo Finance 5 days ago

    LinkedIn (LNKD) shares collapsed by 25% on Thursday after the company revealed a disappointing outlook. The leading online professional network said it expects adjusted per-share earning of 28 cents on sales of $670 million to $675 million for the current quarter, which ends June 30. Meanwhile, Wall Street analysts were looking for earnings of 74 cents a share, on revenues of $719 million. Shares of the company, which has more than 350 million members, plummeted in extended trading, in contrast to gains of close to 65% over the past 12 months. The first quarter has been a tough one for formerly hot online companies like LinkedIn. Shares of Yelp (YELP) plunged to a near-two-year low on Thursday after it posted disappointing results and Twitter (TWTR) shares have lost 25% since its weak report on Tuesday.

  • Microsoft embraces Android, iPhone apps in Nadella's riskiest move yet

    Aaron Pressman at Yahoo Finance 6 days ago

    Microsoft (MSFT) CEO Satya Nadella on Wednesday unveiled some of his riskiest moves yet as he tries to win back software developers to write more apps for the Windows operating system. In a development that might have seemed impossible only a few years ago, Microsoft announced new tools to help developers easily transfer apps to run on Windows Phones that were originally written for Google (GOOGL) Android phones or Apple (AAPL) iPhones. And it created software for writing apps using its cloud service, Azure, and Windows for developers who work on computers running Apple or Linux operating systems.

    The process for Android and iPhone developers to bring their programs to Windows will be slightly different, because of differences in those software platforms. For Android apps, Microsoft will include a feature in Windows to allow Android apps to function without much additional effort. For iPhone apps, however, Microsoft wrote a translation program developers will have to use to convert apps to a version that will run on the iPhone.

  • Why Amazon's stock is really flying. (Hint: It's not the cloud.)

    Aaron Pressman at Yahoo Finance 11 days ago

    Amazon's (AMZN) stock price is shooting up on Friday to an all-time high, gaining 15% and adding over $25 billion to the company's market cap. While most of the headlines about Amazon's first-quarter earnings focused on the company's first revelations of revenue at its cloud unit, known as Amazon Web Services, the real reason for the stock's surge has much more to do with another, unrelated factor. The real shocker in Thursday night's Amazon earnings report was the company's guidance about its second quarter profitability. Last year, Amazon reported a $15 million loss in operating income for the second quarter and analysts expected about the same for this year -- and at a time that's typically weak for retailers. But on Thursday, Amazon said it would report operating income of $100 million to $650 million excluding stock compensation for this year's second quarter, much more than analysts anticipated. Canaccord Genuity analyst Michael Graham called it "the most optimistic margin guidance in recent memory." And that gets investors excited because every few years, Amazon eases up a bit on its invest-everything-for-growth strategy and demonstrates just how profitable it can be. After the new second-quarter forecast, investors seem to believe 2015 will be a "show me the money" kind of year.

  • Google gets defensive over cost-per-click declines

    Aaron Pressman at Yahoo Finance 12 days ago

    Google (GOOGL) executives must be pretty tired of hearing analysts and reporters fret over the search giant's mobile advertising strategy. For a total change of pace on Thursday, they actually shed some light on the dynamics underlying the company's advertising business at a level of detail usually kept secret. For quarter after quarter, the amount of money Google reports receiving for each click on one of its ads, so-called cost-per-click, has been falling. In the first quarter, cost-per-click, or CPC dropped 7% overall, including a 13% decline on Google-owned websites. The overall CPC had declined 3% the prior quarter, and as much as 11% in one quarter since the beginning of 2013. Google's revenue has continued to grow only because the number of clicks has grown fast enough to outpace the decline in dollars brought in per click.

    Ruth Porat, former CFO of Morgan Stanley (MS), will take over the job and represent Google on next quarter's conference call.

  • Amazon stuns Wall Street with cloud business profits

    Aaron Pressman at Yahoo Finance 12 days ago

    Jeff Bezos decided after nine years it was finally time to disclose the financial results of his pioneering cloud business, Amazon Web Services.

    And so, along with its first quarter results, Amazon (AMZN) disclosed that the AWS unit had revenue of $1.6 billion, up 50% from last year, and operating income of $265 million, up a more modest 8% amid growing competition from Microsoft (MSFT), Google (GOOGL) and others. “Amazon Web Services is a $5 billion business and still growing fast — in fact it’s accelerating,” Bezos crowed, referring to the unit's annualized run rate, in a statement accompanying the release. Amazon shares jumped as much as 7% in volatile trading after the results came out on Thursday afternoon. That comes on top of gains of 26% so far this year, as investors are again excited about growth opportunities for the e-commerce giant.

  • Smartphone tracking crackdown leaves consumers in the dark

    Aaron Pressman at Yahoo Finance 12 days ago

    Federal regulators cracked down on secret smartphone tracking of shoppers on Thursday, but the end result is that covert tracking can continue and customers may never know it. The Federal Trade Commission said it settled charges of deceiving consumers with Nomi Technologies, a New York-based company which supplies stores, malls and stadiums with equipment to secretly track shoppers using smartphone Wi-fi signals. The system does not identify individual shoppers but does maintain a database of visits by every phone. In 2012 and 2013, Nomi's privacy policy promised that stores using its service would disclose the practice  and allow customers to opt out. But stores using Nomi's service made no such disclosures and consumers could only opt out of tracking on Nomi's web site -- meaning the privacy policy contained "false or misleading" representations, the FTC said on Thursday. “It’s vital that companies keep their privacy promises to consumers when working with emerging technologies, just as it is in any other context,” Jessica Rich, director of the FTC’s Bureau of Consumer Protection, said in a statement. As a result of the FTC settlement, however, retailers using Nomi's system won't have to disclose that they're secretly tracking customers. Nomi has simply eliminated the promise that they would. And the company doesn't reveal the identity of the retailers who use its services. Now the only way consumers can avoid being tracked is by going to Nomi's web site and adding the MAC address of their phone, a serial-number-like unique 12-digit identifying code, to the company's opt-out listing. But there's still no way for consumers to know where Nomi, or one of many competing services, is tracking them in the first place. Surreptitious tracking of shoppers' smartphones has raised the ire of privacy and consumer advocacy groups for years. And when the practice is divulged, for example by Nordstrom's in 2013, the outrage is swift and widespread.

  • AT&T wireless store revamp to emphasize smartwatches, home security and more

    Aaron Pressman at Yahoo Finance 13 days ago

    As growth in the wireless phone business slows, AT&T (T) is rebooting its vast chain of retail stores to put more emphasis on other offerings, from wearables and tablets to video, connected car and home security services. The second-largest U.S. wireless company plans to open a series of larger flagship stores with dedicated areas for each segment along with a modernizing revamp of many of its current 2,000 outlets, Yahoo Finance has learned. “When you've got 120 million wireless customers, and they do like coming to see us, we want to show them all the things they can do to enhance their lives and enhance their service with us,” Glenn Lurie, AT&T’s chief executive of its mobility business, said in an interview at one of the first new flagships, which opened in Boston this month. “We want to be one of the best retailers in the world, period, not one of the best retailers in the wireless space,” Lurie says. “We want to be one of the best retailers anywhere.” In some ways, it’s an odd moment for AT&T to be doubling down on bricks-and-mortar retailing. After all, the changes to shopping behavior brought on by the smartphones AT&T sells have buried tech-oriented retail chains from Circuit City to RadioShack. Nationwide, retailers announced almost 5,500 store closures last year, up from fewer than 2,600 in 2013, according to a report last month from the Fung Business Intelligence Center. But AT&T and its wireless peers aren’t just selling low-margin tech gadgets. They’re also selling the much more profitable services needed to make those gadgets indispensible to consumers. “AT&T is very different than RadioShack,” says long-time retailing consultant Howard Davidowitz. “They’re selling you a contract, they’re selling you services. The store is the only chance they have to get the customer alone.” A new model store The new 9,000-square-foot, two-level store in Boston’s Back Bay neighborhood, only the second AT&T flagship opened so far, is a model for where the company plans to go. Sunlight streams in through two-story windows over large wooden display tables. Some are laden with the latest smartphones from Apple (AAPL) and Samsung, while others showcase smartwatches,  fitness bands, tablets and music accessories. At a table topped by a red, white and gold electric guitar are a dozen different wireless speakers, ranging from a $49 Ion Party model to a $500 Harmon Kardon Onyx. Most of the gadgets are live and working, so customers can play with a device and get a feel for it before buying. Toward the back, amid comfy black and orange couches, is an area dedicated to showcasing AT&T’s "Digital Life" service, a home security and automation program. Customers can experience how they could unlock a front door or control lighting from an AT&T smartphone app. On the second floor, up a wooden staircase, are more private seating areas for wooing business customers.

  • Google unveils wireless service, but prices don't impress

    Aaron Pressman at Yahoo Finance 13 days ago

    Google (GOOGL) finally unveiledits much-anticipated wireless phone service, dubbed Fi, but pricing wasn't as low as some consumers might have hoped.

    The service will cost $20 per month for unlimited talk and texting plus $10 per gigabyte of data used. That's slightly less than the standard monthly pricing at T-Mobile (TMUS) or Sprint (S), but in line with discount plans offered by Walmart (WMT) and others. And the carriers offer cheaper plans for big data hogs than Fi does.

    For instance, T-Mobile charges $70 for 5 GB of data, which would be the same as Fi, but $80 for a truly unlimited plan. So if you use 7 GB or more regularly, T-Mobile is cheaper.

    The Fi service will also work over Wi-Fi links if cellular coverage isn't available.


    Related Video: