Cisco’s attendance at fat camp pays off 16 Aug 2012 CEO John Chambers was forced to admit last year that the network giant’s quest for growth did little more than squander capital and leave it a bloated mess. Cisco has since shed excess weight and has just hiked its dividend. Now it needs to get fighting fit.
Groupon’s best days lie behind it 14 Aug 2012 The internet coupon company led by Andrew Mason lured investors into a $13 bln IPO by promising hyperbolic growth in daily deals. Less than a year later, its core business is in decline. The $4 bln company is now profitable. But there’s little assurance it will remain so.
Google searches for local edge with guidebook deal 13 Aug 2012 Frommer’s may be better known among frugal travelers with comfortable shoes than digital kids. Yet Google’s purchase of the publisher looks like a smart way to further its push into the booming local online ad market, building on last year’s purchase of Zagat.
Yahoo investors counting on Mayer burning cash 10 Aug 2012 The internet group led by Marissa Mayer says it may use much of the bounty from selling its Asian bits for acquisitions, rather than returning it to shareholders. That’s crummy, but already baked into Yahoo’s value. Investors seem resigned to Yahoo wasting a chunk of its cash.
Priceline books industry ticket back to reality 8 Aug 2012 The travel site’s strong growth and lock on small European hotels convinced investors it was worth as much as $38 bln. But disappointing second-quarter results from it and rival Orbitz have burst the bubble. And Priceline faces the added problem of growing competition.
Merger boost looks short-lived for China’s Youku 7 Aug 2012 Revenues at the leader in the Chinese internet video market almost doubled in the last quarter, but losses widened even more. The planned merger with smaller rival Tudou should help lower costs, but deep-pocketed diversified players are catching up. The pair looks vulnerable.
Facebook’s market meltdown is far from over 6 Aug 2012 All the red flags apparent at the IPO - overpriced stock, shoddy governance, huge challenges to the business and a damaged brand - still fly today. The most shocking thing about the social network’s $50 bln conflagration of shareholder wealth is that anyone might be surprised.
Amazon and Facebook divide is a matter of faith 27 Jul 2012 Both companies’ quarterly reports showed strong sales growth, feeble earnings and heavy investment. Yet the online retailer’s stock rose and the social network’s plunged. Investors believe Amazon will stick around to reap the benefits. They may have more doubts about Facebook.
Facebook loses more friends with fizzle 26 Jul 2012 The social network’s revenue grew 32 pct in its initial quarterly report. That’s not bad. But profit and margins took a hit, even when stock compensation is ignored. Facebook is investing heavily, but investors counted on having cake and eating it. Instead, they’re going hungry.
Zynga disaster casts cloud over Facebook 26 Jul 2012 The Bubble Safari creator’s Q2 results were a mess. Most popular games lost users, its recent purchase of the maker of Draw Something looks a bust and Zynga pointed the finger at Facebook for some of its woes. Their symbiotic relationship will hurt as much as it has helped.
Anticipation makes Apple miss 24 Jul 2012 An unexpectedly sub-stellar quarter knocked nearly $30 bln off the company’s market value. Apple’s success has become a kind of burden. With most fresh products a hit - the next a new iPhone - it’s ever harder to get customers to buy current devices as launches approach.
Do-it-yourself law firm IPO looks a bit too feisty 24 Jul 2012 Bankers are valuing LegalZoom at a whopping 40 times last year’s earnings. That’s justifiable if the U.S. online legal site can turn impressive revenue growth into consistent earnings. But rising competition and potential lawsuits are just two of the company’s biggest risks.
Baidu suggests China’s SMEs surprisingly resilient 24 Jul 2012 Small companies were the main reason the search engine’s earnings jumped 70 percent in the second quarter. New manufacturing data too suggests SMEs aren’t so distressed. Easier credit might have played a role, but fear over the plight of Chinese small businesses seems overdone.
Yahoo pays up for dream of CEO stardust 20 Jul 2012 The fading search firm hopes Marissa Mayer is the ticket to a turnaround. After churning through several CEOs, it’s easy to see why the Google hotshot snagged a $70 mln pay deal. But as J.C. Penney with its ex-Apple boss shows, there are no magic fixes for deep problems.
Google bogged down by shift to mobile hardware 19 Jul 2012 The search giant is pressing hard in computing on the go. Q2 results show strong growth in Android handsets and mobile search. Google’s numbers also now include Motorola Mobility. But the upfront costs of owning the handset maker mean progress isn’t yet translating into profit.
Yahoo tackles existential problem with engineering 17 Jul 2012 Google’s Marissa Mayer is one of the few accomplished females to rise to the top echelon of Silicon Valley’s geek hierarchy. She’s certainly qualified, and probably eager, to become CEO of something. But Yahoo’s problems won’t be so easily solved by rewriting code.
Mobile sticks to sidelines in browser wars 11 Jul 2012 Google and Microsoft have fought furiously to control how desktop users access the Internet. Google’s new Chrome browser for the iPhone and iPad probably won’t set off a similar battle in mobile. That’s why operators are encouraging Mozilla’s open source operating system instead.
Will Microsoft learn through self-flagellation? 3 Jul 2012 The software giant squandered shareholder treasure for years to break into internet services, gaming and consumer electronics. Writing down the $6 bln it blew on aQuantive should mark a turning point where Microsoft at long last returns to its knitting and focuses on enterprise.
Sandberg does neither herself nor women any favors 26 Jun 2012 Becoming the first female director at a prominent company like Facebook should be good for all. But joining a rubber-stamp board the CEO treats haughtily won’t help Sheryl Sandberg’s sterling reputation. Women should fight for representation where they can make a real difference.
Review: Groupon’s baby CEO grows up – to a point 15 Jun 2012 The daily deals website was the fastest company to achieve $1 bln in sales. Frank Sennett’s new book, “Groupon’s Biggest Deal Ever,” gives a blow-by-blow account of the startup’s rapid ascent. But investors looking for clues to Groupon’s sustainability may be disappointed.