Internet

MySpace follows AOL into obscurity

11 Feb 2010

Rupert Murdoch's social networking site has already been eclipsed by Facebook. Once the coveted users of such sites decamp for rivals, it's tough to reverse the slide. The departure of MySpace's CEO after less than a year underscores just how intractable these problems can be.

Google spreads itself, but not too thinly

10 Feb 2010

It's tempting to see the search giant's announcementaday behavior (building a broadband network, creating Buzz, Super Bowl ad) as a sign of Microsoftlike mission creep. But Google's initiatives are more focused than the software group's sad path to obese mediocrity.

Amazon’s cash flow flood could dry up

29 Jan 2010

The Internet retailer generated a stunning $2.6 billion in cash from operations in the fourth quarter, and it is plowing $2 billion into a stock buyback. But much of this bounty comes from delaying payment to suppliers that may not be sustainable.

Apple’s iPad beauty spells trouble for operators

27 Jan 2010

Unsurprisingly, the tech supremo's new tablet is a gorgeous device that does everything but make your breakfast. Over time, more apps will be added and its price will drop, making it even more desirable. And that's a problem for already strained carriers like AT&T.

Apple turns in sparkling results as warm-up act

25 Jan 2010

The U.S. tech group has shown an impressive ability to generate profit from designing iconic devices. This quarter was no different. Free cash flow rose nearly 50 pct. Now for the next difficult trick: unveiling a tablet in two days that meets the hopes of users and investors.

Cash, not China, is Google’s biggest conundrum

21 Jan 2010

More precisely, where should the search giant point its green gusher? The online ad recovery and increasing efficiency pushed Q4 free cash flow up 44 pct to $2.5 bln. Adding to its $24 bln hoard doesn t make sense. Giving it to shareholders does.

Google cyber-complaint is tip of iceberg

13 Jan 2010

Coordinated attacks on IT systems are common, yet companies and governments have kept largely silent. The growth of cloud computing means the stakes are growing higher. That may explain why Google spoke up and why the U.S. State Department has also publicly taken China to task.

Yahoo CEO report card – promising, but incomplete

8 Jan 2010

Carol Bartz shows promise. In her first year, she worked well with difficult classmates (despite occasional outbursts of profanity). Her Bminus selfassessment illustrates her discipline and work ethic. Carol s creative efforts, however, need improvement.

Google dips hands into messy local search

18 Dec 2009

The search giant may splash out a halfbillion on Yelp, a review site of local business. Google's mobile search ambitions makes this a natural pairing. Yet Yelp s untidy human element may fit awkwardly with Google s clean algorithmic bent.

AOL’s got independence – and issues

10 Dec 2009

The AOLTime Warner merger was the crowning deal of the new millennium. Its spinoff today is an appropriate bookend to a lost decade in the stock market. There may be value left in the company, but it won't be easy for CEO Tim Armstrong to deliver.

News Corp launches search-revenue trial balloon

23 Nov 2009

Rupert Murdoch wants search engines to pay for News Corp content. Microsoft's Bing, which recently also agreed to pay Twitter, might oblige. But Murdoch needs other publishers on board. With Google's traffic still alluring, that won't be easy.

Electronic Arts faces another bleak Christmas

11 Nov 2009

The US video game giant s lack of hits has led to a string of disappointing seasons. Worse, technological shift could cannibalise revenues. There's always next year for new games, but figuring out distribution may take longer.

Ancestry.com could have trouble reaching posterity

23 Oct 2009

The genealogy website wants to raise $100m in an IPO valuing its current subscribers at about $555 a head and its shares well above recent internal estimates. While retiring baby boomers searching for their ancestors may flock to the site, the valuation seems too high.

Amazon stock knock becomes badge of honour

23 Oct 2009

The internet retailer reported sparkling earnings. Sceptics always derided Amazon as a retailer in fancy tech clothing. With its stock now trading at an alltime high, and former tech darlings at fractions of theirs, the critique looks like a compliment.

Google should think twice about investment binge

15 Oct 2009

The search giant thinks the recession bottomed in the third quarter. So it s now ready to invest heavily . Google s economic forecast is optimistic and its tryanything investment style is even more so. Investors should hold the company to its more recent discipline.

UK rightly takes on Ticketmaster/Live Nation deal

8 Oct 2009

The Competition Commission has provisionally ruled combining the dominant ticket agent with one of the largest concert promoters could hurt consumers. This should encourage US regulators which were already sceptical to gut the deal.

Twitter’s $1bn valuation is for twits

24 Sep 2009

The revenuefree microblogging site is said to have raised $100m at an implied $1bn price tag. There have been many opportunistic capital markets issues recently. But Twitter's valuation at twice Facebook's per user could be the best example of market exuberance.

Facebook digs infrastructure moat deeper

16 Sep 2009

The firm said in the past its operations throw off more cash than they consume. So the news that operating profits cover capital expenditures may not surprise until you realise it added 50m users over 3 months. This selffinanced infrastructure buildout is significant.

Ebay’s Skype sale eliminates vexing distraction

1 Sep 2009

Its purchase of the internet telecom firm was a strategic mistake from the start. Selling 65% of it at a betterthanexpected $2.75bn valuation frees the online auction company to focus on more important matters such as what to do with Paypal and its cashrich balance sheet.

Silly season dash for stock trash turns absurd

26 Aug 2009

The biggest winners in the recent US stock rally have been shares of shaky companies. The rationale is that firms like Fannie Mae and Citi offer geared bets on economic recovery. This dubious idea has now become farce.