Verizon’s earnings declined by 12% quarter-over-quarter in 3Q14. Wall Street analysts expect this trend to continue in the last quarter of 2014.
In the first three quarters of 2014, Verizon’s Global Enterprise revenues declined by ~4.2%. They’re expected to decline by ~4% year-over-year in 2014.
Mass Market’s growth picked up after 1Q14, mainly because of FiOS subscribers. Verizon’s Wireline segment is expected to grow to more than 4% in 2014.
Verizon competes on its network performance, which is the best among the national carriers. Verizon’s network efficiency is even higher than AT&T’s.
According to Verizon, Sprint and T-Mobile may not be able to pursue price competition over an extended period in this capital-intensive telecom industry.
The last quarter of 2014 witnessed intense competition among telecoms. AT&T and Verizon had to offer low-cost promotions to acquire and retain customers.
At the UBS Conference, Verizon’s management mentioned that postpaid upgrades increased in 4Q14 and are expected to cross the 9.5% mark.
According to Verizon, its Edge penetration rate increased significantly during 4Q14. Higher Edge penetration should positively impact its 4Q14 earnings.
Verizon’s churn rate was higher than average in the last quarter, but the company retained high-quality customers through loyalty offers in 4Q14.
Based on consensus estimates of Wall Street analysts, Verizon’s 4Q14 revenues should grow by ~3% quarter-over-quarter.
On December 15, 2014, Yahoo completed the acquisition of BrightRoll for ~$640 million in cash. It’s the industry’s leading programmatic video advertising platform.
Yahoo (YHOO) acquired Flurry in July 2014. Flurry is a market leader in mobile analytics. Flurry optimizes the mobile experience for developers, marketers, and consumers.
On November 19, 2014, Mozilla entered into a five-year strategic partnership with Yahoo (YHOO). It made Yahoo the default search engine for Firefox users in the US.
Yahoo’s other strategic acquisitions were Tumblr and Flurry. Yahoo’s Flurry is similar to Facebook’s (FB) Audience Network and Google’s AdMob.
User engagement is an important parameter for Internet companies. It helps drive ad pricing. Tumblr is helping Yahoo increase its user engagement.
Yahoo’s mobile search business continues to increase at a fast rate. It shows that the company’s investments in mobile are finally paying dividends.
In May 2013, Yahoo announced that it planned to acquire Tumblr, a blogging site, for $1.1 billion. Tumblr is one of the fastest-growing media networks in the world.
During the conference call to announce its 3Q14 earnings, management mentioned that Yahoo’s products are doing well. They have new and improved features.
Yahoo (YHOO) had a 23% stake in Alibaba before the IPO. After the IPO, Yahoo retained 383 million Alibaba shares—a 15% stake in the company.
Gemini is a platform that combines mobile search and native advertising. It helps advertisers manage and optimize their ads.