Internet

Internet value pops can’t be extrapolated for ever

4 Mar 2011

Facebook and Twitter's implied valuations are tripling annually. The former's worth has run up from $50 bln to $65 bln in two months. This explains the lack of hurry to sell out to the public. But the trends get silly quickly, and social network owners shouldn't get too greedy.

Chinese Twitter looks cheap versus real thing

2 Mar 2011

Weibo's owner, Sina, spooked investors saying it will take longer than expected for the microblog to make money. Yet the potential remains large. Weibo has half the users of Twitter, for a quarter the implied valuation. Even political unrest might create an unexpected boost.

Mystery helps Apple’s sales but not its governance

25 Feb 2011

It took more than a day to reveal that, with Steve Jobs sick, 30 pct of shareholders wanted to see a succession plan. Given the company's success, the low profile of the pension fund proposing the measure and the board's recommendation against, that should send a message.

Business world takes uncommon interest in Oscars

24 Feb 2011

Capitalism walks the red carpet this year. Films linking the financial crisis to Wall Street's fondness for hookers, attacking the shale gas boom and portraying the questionable ethics of Facebook's founder are up for big awards. Wins could turn more cameras on corporate America.

Silicon Valley creatures feeding on themselves

14 Feb 2011

Techland loves its ecosystems. When users, software and peripheral firms gel, they make standards like the iPhone valuable. The latest one is growing out of social media. JPMorgan's tech fund, Zynga's valuation and Pandora's IPO show how the bubbles can replicate and expand.

Cisco’s growth quest may be giving it sclerosis

10 Feb 2011

In its last quarter, the networking group had to extend favorable terms to customers just to get a 6 pct sales lift half its longterm target and hammering margins. It's setting up a working group to study what happened. It's not too hard to diagnose: Cisco needs a diet.

Old U.S. media firms storming back with new life

7 Feb 2011

Amid the hoopla surrounding Rupert Murdoch's launch of a nextgeneration iPadbased publication last week, oldfashioned television and magazines put up some impressive numbers. The Daily may represent the future of media, but financially speaking that day looks some ways off.

AOL takes alternative-Yahoo approach to M&A

7 Feb 2011

Reversing fading Internet brands is difficult especially if it isn't clear what a company stands for. Take AOL's $315 mln Huffington Post purchase. With this, AOL still looks like a patchwork of unrelated sites versus Yahoo's centralized approach. Yet both may not succeed.

Techies need plan to deal with despots

2 Feb 2011

Vodafone suspended its Egyptian service after demands from the authorities. Google, on the other hand, chose to pull back in China. There are no easy answers on how to deal with autocratic regimes. But being transparent about the reasons for complying or exiting helps everybody.

Ocado’s rich share price leaves no room for error

1 Feb 2011

The online grocer's equity has risen 30 pct since IPO last July, buoyed by good results, improbable bid talk and a tech sector rally. With new investors showing interest, betting on price falls is rash. To grow into its rich valuation, however, Ocado still has a lot to deliver.

LinkedIn rides in on Facebook’s hype

28 Jan 2011

With Web 2.0 shares in hot demand, the professional networking site with 90 mln users is trying to capitalize with an IPO. It's profitable, for now, and growing quickly. But LinkedIn's model looks a bit more Monster.com than Facebook. Hungry investors may overlook the difference.

Netflix makes it hard to run full speed with bulls

27 Jan 2011

The Internet video company keeps defying media honchos questioning its business model and short sellers piling into the shares. Now with 20 mln subscribers and growth still surging, Netflix looks solid. But less disclosure and the CEO's rant against doubters are worrying signs.

Demand Media kicks off Web bubble 2.0

26 Jan 2011

Investors can't get enough of the cheap Internet content factory. The company upsized its offering, raised the sale price and the shares still popped 38 pct in early trading. Yet Demand is littered with red flags. Just imagine how higher quality Web firms will be received.

Google’s $100 mln babysitter may be worth it

24 Jan 2011

After handing him millions of shares over a decade as CEO, Google is paying Eric Schmidt handsomely over four years to stick around as chairman. It's no fortune compared with his nearly $6 billion of stock. But he's needed to balance cofounder Larry Page, the new CEO.

Google sets surprising example for CEO succession

20 Jan 2011

Usually it's the founders that step aside for professional managers. But Google's young cofounders did that a decade ago. Eric Schmidt's adult supervision is no longer needed and Larry Page is ready to run things again. This adds a fresh blueprint for a new crop of geniuses.

M.Stanley falls victim to China’s web freedom

19 Jan 2011

Dangdang's founder launched an online tirade against the Wall Street bank for undervaluing the Internet retailer's IPO. The episode is evidence of the challenges facing foreign firms trying to win deals in China. It's also a reminder of the limits of Chinese Internet censorship.

Cheap start-up costs leave VCs with poor choices

19 Jan 2011

Cheezburger Network, the publisher of a site that posts absurd pictures of cats and bad English signage, just raised $30 mln. That venture capitalists are skirmishing to fund oddball businesses that don t really need cash helps to explain the venture capital industry s problems.

Goldman perceptions shape Facebook reality

18 Jan 2011

U.S. investors can no longer buy into the social network after media scrutiny made a private placement seem too public. Inevitable interest in Facebook was amplified by the glare on Goldman. For all its focus on clients, the firm still has a blind spot about its own public image.

Apple needs more formal delegation of Jobs’ power

17 Jan 2011

Steve Jobs is handing daytoday control of Apple to chief operating officer Tim Cook due to health issues. Yet he retains the CEO title. It's the third such move, and this time it is indefinite. However painful, a more formal transfer to an acting CEO would have been better.

Wikipedia’s non-profit status is two-edged sword

14 Jan 2011

The Web encyclopedia has grown huge, and increasingly useful, thanks to many thousands of volunteer contributors. The ultimate online collaboration is now the fifth most visited website anywhere. Yet a reluctance to take advertising could hamper its plans to reach 1 bln users.