Internet

Apple again turns iPhone buzz into gold

11 Jan 2011

Despite all the talk of possible bells and whistles, Verizon looks to be offering the iconic smartphone on roughly the same terms as AT&T. So rather than giving one of the U.S. carriers an obvious edge, the only clear winners will be Apple's masters of hype.

Facebook might just pay off for Goldman’s clients

7 Jan 2011

The bank and its clients are paying an astronomical 25 times the social network s 2010 sales. How can they ever hope to make a profit? Well, Facebook s margins are astonishingly vigorous, and should strengthen as it grows. Consider the bull case for Mark Zuckerberg s baby.

Goldman Facebook coup embarrasses rest of Wall St

6 Jan 2011

Though small beans financially, it s a big win in franchise terms. After the lumps Goldman took last year, its investment deal with Facebook shows the firm can still wrap its tentacles around a key client for mutual benefit. Goldman s rivals should be kicking themselves.

Goldman’s old-school Facebook deal sets new tests

3 Jan 2011

The bank is raising $1.5 bln from clients to invest in the social network while putting in $450 mln itself. Like Morgan Stanley s reported Groupon deal, it looks like classic merchant banking. But with hot firms in the driver s seat, banks could wind up in sticky situations.

Apple still looks a bargain after $100 bln run

30 Dec 2010

Large companies rarely grow quickly. Nonetheless, Apple increased sales by more than 50 percent in 2010. That sent the company's value up by an astonishing $100 billion. Yet the stock's valuation still looks oddly subdued once adjusted for the company's cash pile.

Will 2011 be the year Facebook’s value gets real?

28 Dec 2010

Though the social network doesn't need money to grow, an IPO should come next year. Trouble is, trading in unlisted shares suggests it's already worth some $40 bln. To justify that number requires some astonishing, if just about possible, growth assumptions.

Net neutrality compromise won’t calm new Congress

21 Dec 2010

The FCC's ruling will give telecom operators a reason to keep investing in their networks, while also protecting consumers. But that balance won't please purists who either deny government's regulatory role or want to make the Internet a utility. So expect a political pushback.

Privacy is the Person of Last Year

15 Dec 2010

Mark Zuckerberg has been crowned Person of the Year by Time. Julian Assange topped a reader poll. A certain arrogance and superior coding abilities aren't the only parallels between the Facebook and WikiLeaks bosses. Both are also leading the technological assault on privacy.

What’s the true measure of China’s growth?

9 Dec 2010

China's likely next premier believes electricity consumption is a better guide to economic activity than GDP. As China reduces dependence on energy, such data may be less effective in measuring growth. Still, it's good that leaders acknowledge the flaws in official GDP numbers.

Wikileaks exposes corporate cowardice

9 Dec 2010

Financial companies are cutting services to the website, saying it behaves illegally. But they won't sever lucrative ties with media publishing the controversial cables. Hacker attacks are the price they pay for what looks like a disturbing eagerness to pander to Washington.

Investors may find Xmas TV shopping bargains

7 Dec 2010

HSN and QVC built their success in the preInternet days by enabling consumers to buy costume jewelry and kitchenware any time, any day with a TV and a telephone. An increasing amount of their revenue now comes from the Web. But the valuations don't necessarily reflect that.

IAC pays high price for Diller’s Malone divorce

2 Dec 2010

Getting rid of a controlling shareholder in the shape of John Malone should benefit shareholders of the Internet grabbag over time. But there's a high immediate financial cost to the deal and Diller increasing control in the near term just replaces one mogul with another.

Google’s innovation engine sputtering big time

1 Dec 2010

The search giant's willingness to spend $6 bln on a startup in a business with almost no barriers to entry is the most damning evidence yet. In the past, Google would've tried to create a Groupon of its own. But these initiatives rarely panned out. It now has to buy innovation.

EU antitrust pile-on overshadows Google’s Groupon

30 Nov 2010

The European Commission is examining whether Google is using its dominance in search to unfairly extend its reach into related areas the way Microsoft once did. The probe is auspiciously timed: Google is contemplating a near$6 bln bid to enter the ecoupon business.

Global risk of U.S. impotence at heart of Wikileak

29 Nov 2010

The site's classified document dump gives the impression the cozy 1990s world of American hegemony and peaceful globalization is irrevocably ending. The risk is that without U.S. leadership, regional rivalries turn nasty, trade barriers rise and fiscal policies destroy wealth.

i-banking expansion makes sense for StanChart

29 Nov 2010

While many rivals are reducing their exposure to volatile ibanking, StanChart plans to boost the division with 1,800 hires. Its earlier push into high finance is already bearing fruit. With emerging market trading and dealmaking volumes growing quickly, the plan looks sound.

Mary Meeker well suited to the VC life

29 Nov 2010

The queen of the net courted controversy as Morgan Stanley's web guru and backed her share of doozies. But she also has a sterling track record for spotting new trends and huge successes like eBay, Amazon and Google. That makes her a good fit for new employer Kleiner Perkins.

Kayak floats, or sinks, behind U.S. antitrust boat

18 Nov 2010

The $50 mln IPO of the fastgrowing travel website looks promising. There s one big hitch Google s purchase of ITA Software means the giant wants to dominate online travel search. A bet on Kayak is a wager that Uncle Sam will halt Google s acquisition which isn t far fetched.

EMI will long for yesterday on iTunes

16 Nov 2010

Nearly 40 years after The Beatles broke up and seven years since Apple launched its digital music shop, the band s songs will finally be sold online. The trademark litigation that held up the move won t suppress the hype. But the Fab Four's label left money on the table.

Print is dead – long live old media

12 Nov 2010

The business model of print magazines and newspapers is no longer enviable. But old media s outsized impact and credibility still carry huge value. The Daily BeastNewsweek merger highlights the point. It s not just a case of old fogeys nostalgic for newsprint.