Internet

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.

U.S. judge deflates smartphone lawsuit bubble

13 Jun 2012

Apple, Motorola and Samsung have been waging a global war over technology that powers touch-screen gizmos. But a legal ruling has exposed the extravagant claims as mere ploys to gain competitive advantage. Rather than abuse the courts, companies should duke it out in the market.

Apple and Facebook become frenemies versus Google

12 Jun 2012

The iPhone maker hasn’t figured out social networks. Remember Ping? Facebook fears losing control to makers of operating systems of mobile gadgets. Making Facebook work smoothly on Apple devices can boost revenue for both - and allow them to thwart their mutual enemy Google.

Groupon now needs to dig more than build

11 Jun 2012

The online coupon service has expanded rapidly and snapped up rivals. Founder Andrew Mason’s focus on moving first and fast has brought dominant market share. The next trick is to protect his business. That’s arguably tougher, and means being more like OpenTable - or buying it.

Google’s antitrust problem is all about privacy

7 Jun 2012

They seem like separate issues, but the internet search giant’s market power is largely fueled by its access to personal data. Limiting that could give competition a useful jolt. U.S. and European regulators need to keep that in mind as they move closer to legal action.

Facebook’s short-term greed carries long-term harm

5 Jun 2012

Going public is more than just a one-time money-raising event. Facebook is a case in point. Debuting at a lofty valuation helped insiders. But the 30 pct stock plunge has hurt the social network’s reputation, a new Reuters poll shows. That’s bad for a consumer brand.

Salesforce.com enlists Buddy to help defy gravity

4 Jun 2012

One after another, über-trendy stocks have fallen to earth - think Netflix or Green Mountain. The $18 bln Salesforce.com has held up better than some. To help it stay aloft, it is spending $689 mln on Buddy Media. Social media is still a sweet spot, but it’s an expensive gambit.