Posts by Aaron Pressman
- Aaron Pressman at Yahoo Finance1 day ago
Can micro-blogging site Twitter (TWTR) get back in investors’ good graces? It’s no easy task for a money-losing company already valued at $22 billion, but there are a few statistical measures that could help investors reassess their negative views.
Shares of Twitter, at $37.93, trade at half the stock’s all-time high from December and below the $44.90 first-day close of its IPO last year. Investors appear to have lost faith in the company’s growth story, fretting that the service won’t become the next Facebook (FB) or grow much beyond its current base of 255 million users who are active at least once a month. It probably doesn’t help that the company had once hoped to hit 400 million monthly active users by the end of 2013!
- Aaron Pressman at Yahoo Finance2 days ago
Samsung Electronics stumbled again this week, announcing it had indefinitely postponed the roll out of phones running its home-grown Tizen operating system in Russsia.
Tizen, which replaces the Google Android system that powers most Samsung smartphones, was supposed to help make the South Korean company’s phones more appealing, or perhaps even cheaper. Samsung has already introduced smart watches and a camera running Tizen.
But few customers want a smartphone that can’t run popular apps and Tizen doesn’t offer many. In a brief statement explaining the delay, Samsung cited problems with the “Tizen ecosystem.”
The latest problem follows a slew of knocks and shortfalls for Samsung, which shot to the top of the smartphone charts a few years ago as the top alternative to Apple’s iPhone.
But phone and tablet sales have slumped and Samsung reported its lowest profit in two years in the second quarter. Operating income dropped 24% from a year earlier to 7.2 trillion won, or $7.1 billion, for the three months ended June 30.
- Aaron Pressman at Yahoo Finance5 days ago
It was a busy week for tech company earnings and there was one clear winner: Facebook (FB) founder and CEO Mark Zuckerberg.
The biggest question in the air after Facebook reported earnings on Wednesday was when would Zuck become the richest person in the world (turns out, not for a long time – Facebook shares would have to almost triple for him to overtake Bill Gates).
Facebook shares jumped 5% after the top social networking site reported its second-quarter revenue jumped 60% to $2.9 billion and adjusted earnings per share more than doubled to 42 cents.
Gates is currently worth an estimated $85 billion and Zuckerberg, after the recent stock jump, only $33 billion, according to Bloomberg’s billionaires ranking. Facebook stock, which is currently trading around $75, would have to hit $200 for Zuck to catch up, according to Bloomberg wealth reporter David de Jong.
- Aaron Pressman at Yahoo Finance6 days ago
Thor, the hammer-wielding Marvel Comics superhero, is getting a major makeover, with a female in the lead role for the first time – at least for a new series starting in October. And DC Comic’s Batgirl is losing her tight-fitting spandex.
Big changes even may be coming to characters and storylines in World of Warcraft, the Activision Blizzard (ATVI) online game widely criticized for its sexist portrayals.
As leaders of both industries gathered in San Diego this week for the annual Comic-Con show, the moves reflect a growing realization among these pop culture leaders that the old sexist, exploitative images of yore were pushing away millions of potential customers.
Comics have been leading the way, offering an increasingly diverse array of new heroes over the past few years. Marvel, owned by Walt Disney (DIS), had success with revamped leads for its Black Widow, She-Hulk and Ms. Marvel comics. Introduced in January, the new Ms. Marvel featuring a Pakistani-American, Muslim teenager, sold over 50,000 copies in its first month.
- Aaron Pressman at Yahoo Finance7 days ago
Apple (AAPL) shareholders should be very grateful this morning that Tim Cook and his team worked so hard to strike a deal with China Mobile, the world’s biggest cellular carrier, back in January.
If not for booming iPhone sales in China, investors would probably be facing a massive Apple selloff today. Apple was able to report results close enough to Wall Street’s desires that the stock was almost unchanged, up 0.7% to $95.38, in early trading on Wednesday.
For the three months ended June 30, iPhone sales jumped 48% in China from a year ago, twice the growth rate of the overall market there, Cook said on a call with analysts last night. Apple’s total revenue in China rose 28%.
Apple’s sales to the entire rest of the world rose less than 3%, giving the company an overall revenue growth rate of 6%. At $37.4 billion, sales were just a smidge below analysts’ expectations of $38 billion, according to FactSet. Earnings per share of $1.28 beat Wall Street’s $1.23 forecast, helped in part by all those extra iPhones sold in China.
- Aaron Pressman at Yahoo Finance8 days ago
Netflix (NFLX), the world’s biggest Internet video service, on Monday posted better-than-expected second quarter results, as it passed 50 million subscribers. So why is the stock down almost 6% in Tuesday afternoon trading?
Amid all the hoopla and growth, Netflix CEO Reed Hastings slipped in a significant caveat. The company is expanding aggressively into France, Germany and a few smaller European countries starting in September, sooner than expected, and the move is going to cost big bucks, he warned.
Shares of Netflix were trading at $426.54 Tuesday; they've gained almost 16% so far this year.
“Our broad success from Argentina to Finland has convinced us to further invest aggressively in global expansion,” Hastings wrote in his quarterly shareholder letter. “Our European expansion this quarter will add new expenses to the segment, so we expect a consolidated contribution loss of ($42) million for the international segment in Q3.”
"The great unknown"
- Aaron Pressman at Yahoo Finance9 days ago
Expectations are rising for Apple (AAPL), as the company’s share price rapidly approaches its all-time high.
The shares closed at $93.94 on Monday, just 7% below the all-time, split-adjusted high of $100.72 from September 2012.
Related: 3 sectors to buy as stocks sell off
CEO Tim Cook and his team report results for the company’s fiscal third quarter – what the rest of us call the second quarter – after the market close on Tuesday. Wall Street expects revenue of $37.8 billion and earnings per share of $1.23 (equal to $8.61 if you haven’t quite wrapped your head around the 7-for-1 stock split that took place last month).
- Aaron Pressman at Yahoo Finance9 days ago
Netflix (NFLX) is expected to report today that it more than doubled second quarter profits from a year ago, but the company’s shares have risen almost as fast.
That leaves the debate raging over the almost $27 billion market value of the world’s leading online video service. Supporters point to rapid growth in revenue and subscribers while skeptics note the sky-high P/E ratio, currently hovering around 170.
Analysts expect Netflix will report earnings per share of $1.14, slightly more than the company’s $1.12 forecast and more than double the 49 cents from last year’s second quarter. Revenue is projected to increase 25% to more than $1.3 billion, according to FactSet.
- Aaron Pressman at Yahoo Finance14 days ago
Seven years after Steve Jobs unveiled the first Apple (AAPL) iPhone, top tech leaders are willing to discuss openly just how gravely they misjudged the device that ignited the mobile computing era.
Back in January 2007, when Jobs first showed the new device, he pitched it as a combination phone, music player and Internet communicator. But competitors including Microsoft's (MSFT) then-CEO Steve Ballmer and Motorola's former CEO Ed Zander could barely contain their disdain. " There's no chance that the iPhone is going to get any significant market share," Ballmer said of the lineup that has since sold more than 500 million devices.
- Aaron Pressman at Yahoo Finance14 days ago
Investors have been salivating at the prospect of investing in Spotify, one of the world’s top streaming music services. But founder and CEO Daniel Ek says it’s going to be a long wait.
Shooting down rumors from earlier this year that Spotify was aiming to go public soon, Ek said, “It’s not really a focus for us,” while speaking at Fortune Magazine’s Brainstorm tech conference in Aspen, Colorado. “The primary thing for us is just growing the business.”
Spotify has been growing rapidly, offering a free version of its vast music library as well as a $10-per-month service that lets users pick their own songs. In May the company disclosed it had hit 10 million paying subscribers out of 40 million users worldwide.
Ek says going public would create undue pressure on Spotify to report stellar results every three months. “I personally don’t understand the quarterly capitalism of Wall Street,” he said. “I don’t think it’s good."
A private life