by Jason Wilk on February 5, 2009
- In an effort to thwart off time-theft and loiterers, Apple has decided to add Facebook to the list of banned websites at retail locations nationwide. When I asked some of the genius’ today whether or not anyone noticed the change, they all said that Facebook stopped working sometime in the past week. One of the genius’ said “Apple Stores have become a regular Internet Cafe, so placing the most popular time-killer [Facebook] of them all on the banned-list will certainly help everyone get a chance to test out the computers”.
- As you may have heard, MySpace was banned in May of 2007 from all Apple Stores. When asked why, Apple said “Nearly 2 million people visit Apple Stores every week. We want to provide everyone a chance to test-drive a Mac, so we are no longer offering access to MySpace in our stores.” Apple Stores, which now total 251 worldwide, see an average of 15,744 visitors weekly per store (Q4, 2008). So, currently about 16 million people per month are now denied the right to jump on for a minute (or an hour) to update their status or do their daily stalking. It will be interesting if Facebook will see a slight dip in traffic this month due to the change.
Trying to stay up on Apple? Check out these recent articles:
Is Apple Secretly Working With Axiotron?
Video Conferencing Plans For The iPhone
Flash Coming To The iPhone: Says Adobe
iPhone 2 Rumors Get Some Hard Evidence
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by Jason Wilk on January 29, 2009
- Amazon.com is scheduled to release fourth-quarter 2008 earnings results today in a conference call at 5:00 PM ET. You can catch the live webcast here.
- Amazon supposedly had the best holiday season ever, beating out many of the major retailers. They were selling 72.9 items per second during the holiday shopping season. Thomson Reuters expect Amazon to report a profit of $0.39 per share, compared to $0.48 per share in the same period of the previous year. Although the holiday sales season was a monster hit for Amazon, revenue for the quarter is expected to total $6.4 billion, down 13.5% from a year ago.
- As BloggingStocks points out, Amazon is notorious for blowing earnings reports out of the water, beating some quarterly reports by as much as 43%. As I have said before, Amazon is fine in the down economy. It comes down to a simple equation to define their success: There is a much greater increase in online shopping adoption compared to the decrease in consumer spending this year. Some investors realize this. The share price has risen more than 30% from its 52-week low back in November. It is still down 33% from a year ago, but expect things to continue trending upward for the online retail giant. Keep in mind, the Kindle 2 hasn’t even come out yet.
Earnings Are Out:
Highlights:
- Operating cash flow was $1.70 billion in 2008, compared with $1.41 billion in 2007.
- Free cash flow increased 16% to $1.36 billion in 2008, compared with $1.18 billion in 2007.
- Common shares outstanding plus shares underlying stock-based awards outstanding totaled 446 million on December 31, 2008, compared with 435 million a year ago.
- Net sales increased 18% to $6.70 billion in the fourth quarter, compared with $5.67 billion in fourth quarter 2007.
- Operating income was $272 million in the fourth quarter, compared with $271 million in fourth quarter 2007.
- Net income increased 9% to $225 million in the fourth quarter, or $0.52 per diluted share, compared with net income of $207 million, or $0.48 per diluted share, in fourth quarter 2007.
by Jason Wilk on January 26, 2009
- eBay CEO John Donahue is rumored to be selling Skype. In a recent interview with Wall St. analysts, he described the world’s most popular VoIP service as a“great stand-alone business”. When asked about how eBay contributes value to Skype, he said “the synergies between Skype and the other parts of our portfolio are minimal. We’re going to continue to run and operate the business. It’s not a distraction currently. And at such time when we have further announcements on that, we’ll let you know.”
- eBay revenue was down 30% this past quarter, despite being the most high-trafficked shopping destination on the internet this holiday seasons. Meanwhile, Skype revenues continued to rise by 26% and membership continues to grow with it. Latest figures showing that Skype has 405 million user accounts worldwide, adding 30 million subscribers every quarter.
- It’s tough to say whether or not eBay will actually unload Skype. As loyal auctioneers become continually frustrated with the company’s client service, fees and scams, eBay will continue to lose market share to niche destinations or Amazon. This means they want to surround themselves with as many rising opportunities in close proximity that they can. Donahue said that Skype is a great standalone business, then again so is StubHub, Kijiji and Craigslist which survive entirely on their own and are all strong eBay investments. Skype just happened to be an investment that eBay saw bright hopes for in the midst of their default operation and it flopped. They imagined everyone from major retailers down to Joe Plumber to have a shop set up on eBay, waiting for customers to enter their store and talk via Skype for customer service. Kind of like a weird reinvention of the 1950’s without brick & mortar. Nonetheless, it didn’t happen, but they are hit a home run anyways by turning Skype profitable. Skype is still groundbreaking, recession-happy and if I had to make my pick, I’d say it will not be sold until eBay is desperate.
by Jason Wilk on January 19, 2009
- Google earnings expected to be grim when they are released Thursday. According to the WSJ, U.S. search advertising spend fell 8% in the fourth quarter of 2008 from the same period in 2007, according to a new study from search advertising firm Efficient Frontier, whose search industry spending index was flat for most of 2008. The study — which covers an undisclosed portion of the $750 million in annual spending the company manages globally — marks the first quarter of negative annual growth for its index in the several years Efficient Frontier has been gathering such data, says James Beriker, president and CEO of the firm”.
- Sampling a search advertising firm may not predict the whole industry pie that includes Google, Yahoo and MSN, but if search marketers are seeing revenues drop, it should be a good sample of what is to come.
- Here are a few things that might throw off the numbers for Google.
- First, if market share had anything to do with it, Google’s has actually grown to 72% over last year’s 65%. That a direct result of more online search adoption, and could help to offset falling revenues. I said the same thing with Amazon, where the reason why they had such a big holiday season was a simple math problem.
- Second, Google has been pulling out all the stops this quarter to find new avenues to drive revenue. In September, Google began allowing beer and wine companies to advertise, and as of recently hard alcohol companies. In addition, they have begun monetizing Google Maps, casual games, mobile search, and more for the first time ever.
- Third, Google has always said that in a bad economy, many retailers and other advertisers flock to Google because it’s one of the few places to keep a close eye on your pennies. Between Google Analytics and conversion tracking, it’s unlike any other form of advertising. Holiday advertising spend showed this.
- Fourth, Android, Google’s mobile operating system is expected to pick up quickly this year and is expected to out sell the iPhone’s OS by 2010.
- To me, it’s not this 4th quarter that is worrisome. Between Google adding new ways to monetize different products, adding significant market share and branding themselves as ‘the place to go to advertise in a bad economy’, they will be fine. However, I think Q1 will see tougher times for the search giant. Q1 will see a Google that has squeezed out revenue from any potential products, no holiday season and a slowly growing online search adoption through the first 2 quarters. Here are a few more stats from the study:
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- “Advertisers who spend less than $50,000 on search ads cut their spending by 23% year-over-year, while advertisers that spend more than $200,000 on search per month cut spending by 9% during that time. Purchases by advertisers who spend between $50,000 and $200,000 were relatively flat.”
- “Finance and automotive advertising continued to deteriorate. Search-ad spending among financial advertisers fell 20% compared to the fourth quarter of 2007. Search spending from automotive advertisers declined 15% during that period.”
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Letter From Carol Bartz To Yahoo Employees
by Jason Wilk on January 25, 2009
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