More From Puneet Sikka
Why Verizon Needed to Diversify Its Wireless Business
Verizon’s wireless business accounts for more than 70% of its revenues. However, the business has recently seen falling revenue growth.
How Microsoft 365 Quickly Became a Multibillion-Dollar Business
Microsoft launched Microsoft 365 about a year ago, and the company claims that it’s already a multibillion-dollar business.
What’s Amazon’s Gobal AWS Strategy Now?
Amazon’s AWS is a fast-growing business for the company that saw its revenues rise by 55% YoY (year-over-year) to over $3.2 billion in 3Q16.
Amazon’s International Segment Saw Improvement in 2Q15
The year-over-year revenue growth trend for Amazon’s International segment was falling until last quarter.
Why the new SQL release could help Microsoft’s database presence
During the conference call to announce Microsoft’s (MSFT) fiscal Q3 2014 earnings, Microsoft mentioned that it recently launched a new version of SQL database
Can Cisco Beat Its Own Revenue Forecast in Fiscal 3Q15?
Cisco is expected to announce its fiscal 3Q15 earnings on May 13. Cisco expects its year-over-year revenue growth to be 3%–5% in the quarter.
Netflix’s Competition Could Increase in the Future
Netflix (NFLX) leads the share of Internet traffic on computers and networks in North America. However, the competition is increasing against it.
Why new messaging rules in China could affect Tencent
Last month, for the first time, China applied restrictions on instant messaging services for national security purposes.
Must-know: Why Microsoft isn’t launching a Surface Mini
A few weeks back, Bloomberg had reported that Microsoft (MSFT) was planning to launch a smaller version of its Surface tablet, popularly known as the “Surface Mini.”
Why losing search market share could weigh on Yahoo’s Q2 earnings
The 1Q14 earnings for Yahoo were slightly better than analysts’ expectations.
Must-know: Why eBay’s operating margins continue to decline
eBay’s management noted that eBay Enterprise margins fell by 3.9% during the last quarter compared to a year ago. The increased cost to prepare for the holiday season was blamed for the decline.
If BlackBerry Adopts Android, Its Security Standards Could Suffer
A comparative lack of security for Android shows that BlackBerry could do more harm than good to its image as a secure player by adopting Android as its operating system.
Music-Label Deals Could Also Help Facebook’s Video Ambitions
Facebook has been concentrating its efforts on video for a long time now. It has ambitions of becoming the number one player in the video ad market.
Must-read: Why Sprint’s operating margin is improving
Sprint cited a number of reasons why its margins have been improving. One of the major reasons was obviously the lower subsidy cost, which declined from $1.48 billion in 2Q13 to $1.05 billion in 2Q14.
Facebook’s WhatsApp Making Progress with India’s Payments Market
Facebook (FB) has been trying to come up with a mobile payment service for WhatsApp in India (EPI) for quite some time.
Apple investor takeaways: Why loyalty will decide Apple’s future
According to the latest report from Kantar Worldpanel ComTech, Apple’s (AAPL) iPhone 5S and iPhone 5C continued to lead the British smartphone market in May.
Apple and IBM Introduce 3 New Apps for Apple Watch
Apple believes its partnership with IBM will help it penetrate the enterprise market. Building enterprise apps—and using IBM’s big data and analytics capabilities—is one way to provide better service to enterprises.
What Are the Catalysts for Amazon’s Stock in 2016?
AWS and the continued success of the Prime membership program were the main drivers for Amazon in 2015. This will likely continue in 2016 as well.
Amazon Offers Package Delivery Service to the Trunk of Your Car
In the past, Amazon has faced criticism over late delivery that relied on package delivery companies such as United Parcel Service (UPS) and FedEx (FDX).
Can New BlackBerry Smartphone Offerings Increase Unit Sales?
BlackBerry now plans to launch its next version of the Passport smartphone, Passport Oslo, by the end of this year. The smartphone will have high-end specifications.
Why Samsung’s marketing expenses continue to rise in Q2 2014
Part of the reason Samsung forecast a decline in earnings for Q2 was an increase in operating expenses. Samsung had to incur higher operating expenses.
Why an attractive smartphone lineup is important for Verizon
The quality and variety of the smartphone lineup is an important parameter for any telecom company. For Verizon, it’s even more important, as it’s trying to increase the popularity of its Edge program by attracting customers to upgrade their devices faster.
Will Facebook monetize its non-core businesses anytime soon?
Facebook’s (FB) advertising revenues increased by a healthy 67%. But its other business, the payments and other fees business, grew from $214 million to $234 million at a growth rate of 9%.
Why Yahoo’s revenue continues to decline
The mobile advertising market is expected to grow at a faster rate than the overall digital advertising market.
Why Qualcomm benefits from China’s LTE adoption progress
Qualcomm earns about half of its revenues from China, making it an important market for the company. It depends heavily on the faster adoption of high-speed LTE technology in emerging markets such as China.
Microsoft increases its presence in the sub-$200 smartphone space
During the recent installment of Asia’s largest computing show, Computex, Microsoft (MSFT) announced that it will start selling smartphones and tablets running its software at below $200.
Users consume more data on Verizon and Sprint networks
People consume more data via Wi-Fi because it’s much cheaper than cellular data plans—6.8 GB using Android phones and 8.9 GB using Apple iPhones.
Must-know: Why Google acquired the music streaming service Songza
According to a report from Statista and the previous chart, Pandora leads the Internet Radio market with a share of 31%.
Why Facebook’s 3Q14 earnings could positively surprise you
Facebook (FB) has become one of the most important players in the Internet industry. Its revenue growth remains strong.
YouTube’s Live Video Streaming Service Takes on Amazon in May
Amazon’s Twitch drives the highest US live video streaming volume with about 44% share. With live video streaming service at 60fps, YouTube aims to give competition to Twitch.
SAP becomes one of the most successful enterprise cloud companies
In its press release to announce the Q1 2014 earnings, SAP mentioned that its annual cloud revenue run rate is now approaching $1.5 billion, which is a growth rate of 38% over the same quarter last year.
The PC refresh cycle helped Intel beat Q2 earnings expectations
Intel (INTC) announced its Q2 2014 earnings recently. Its revenue of $13.83 billion and earnings per share of 55 cents beat analysts’ estimates.
Why Retailers Are Increasing Their Ad Spending on YouTube
Walmart, Target, Amazon, and Lowe’s were the four retailers in the United States that spent the most on YouTube video ads last year.
Will Amazon benefit from the decline in oil prices?
Reducing oil prices are good news for e-commerce players. Oil prices have declined by about 60% over the past six months.
Cisco and Ericsson Join Hands to Take on Huawei
On November 9, Cisco and Ericsson announced a major partnership where both companies would develop new products. Both face competition from nokia and Huawei.
What Will Become the Biggest Growth Drivers for Apple?
Apple Watch, Apple Pay, Apple TV, and iPad Pro are niche businesses for Apple (AAPL). But these still have the potential to become big in the future.
How Are Google’s Local Inventory Ads Helping Retailers?
Seeing the success of local inventory ads, Google has expanded them to all major economies outside the United States, including the United Kingdom (EWU), France, Germany, Japan, and Australia.
Why Twitter’s unique visitor count is increasing so rapidly
Twitter’s monthly active users or MAUs increased from 255 million in Q2 2013 to 271 million in Q2 2014. These are the users who log in to Twitter through its website either from desktop or mobile devices.
Analyzing Google’s progress in the devices market
Google, Inc. has taken clear forward strides in the mobile devices market. Android should gain up to a 52% share by 2015.
Why Apple Could Provide a Robust Outlook for the Holiday Quarter
From this earning announcement, investors will also keenly watch for the outlook that Apple provides for fiscal 1Q16, the holiday quarter this year.
Apple Improves iPad Multitasking Feature with iOS 9 Release
Apple announced the release of iOS 9, upgrading its operating system for the iPhone and iPad. iOS 9 allows improved multitasking functionality for the iPad.
Why Facebook expects revenue growth to slow in 4Q14
The technology sector in general is facing headwinds because the U.S. dollar is strengthening. Facebook earned about 54% of its revenues from international markets in the last quarter. As a result, a strengthening U.S. dollar impacts its revenues and margins.
How Google’s Customer Match Product Benefits Advertisers
Late in 2015, Google launched its Customer Match product, which allows advertisers to provide Google with a list of customer email addresses. Google matches these customers with signed-in customers on Google Search, YouTube, or Gmail.
Why low-cost smartphone players should find success in India
Recently, Intex announced the introduction of its first smartphone in India, named Cloud FX. This smartphone will be based on the Mozilla Firefox operating system and will be priced pretty low, at $33.
Amazon grew its business in 3Q14 through several initiatives
During the third quarter, Amazon made a major acquisition of Twitch for $970 million. Twitch is a popular website for video game enthusiasts who want to broadcast their video games to other people or watch other people play video games in real time.
Apple could report robust earnings in fiscal 1Q15
Apple (AAPL) is expected to announce its fiscal 1Q15 earnings on January 27. We believe Apple will once again beat analysts’ consensus estimates.
Must-know: What to expect from Qualcomm this fiscal year
Qualcomm’s improved EPS guidance is mainly because of the continued adoption of LTE technology by Chinese telecommunication providers such as China Mobile (CHL), China Telecom (CHA), and China Unicom (CHU).
Why BlackBerry’s Smartphone Business Could Decline Even More
Although the 60-day exclusivity period with AT&T (T) for selling the PRIV has already ended, BlackBerry hasn’t yet started selling the PRIV on the T-Mobile (TMUS) and Verizon (VZ) networks.
Must-know: Sprint is resorting to price cuts
Sprint’s price cuts are clearly aimed at gaining net subscribers at the expense of its competitors. Sprint is the only major US telecom company that kept losing subscribers.
Facebook’s Audience Network helps expand its mobile reach
Audience Network benefits not just Facebook, but developers too. By helping developers manage ad inventories, apps can be more readily monetized.
How Symantec’s Cloud Security Product Became the Best
On December 20, Symantec announced that its Cloud Workload Protection (or CWP) product won the “product of the year” award in the cloud security category.
Telcos lure customers with attractive family plans
Other telecom companies have also started luring customers with attractive family plans—AT&T, Sprint, and T-Mobile among them.
Apple Should Pose the Biggest Threat to Fitbit
The Apple Watch is the biggest threat to Fitbit despite its being released only recently. In April, Apple released the Watch in nine countries.
How Many Watches Should You Expect Apple to Sell?
Apple (AAPL) is all set to release its Watch on April 24. The product will launch in nine countries, which include the United States and the United Kingdom.
Verizon Plus AOL Equals Competition for Facebook and Google
Facebook and Google have moved far ahead of AOL in the display ad market. After acquiring AOL, Verizon could possibly strengthen its position in this market.
Why international markets are a big opportunity for Netflix
Netflix expects 2.15 million net subscriber additions in the fourth quarter. This growth is faster than what Netflix experienced in the U.S.
Yahoo Announces Management Changes for Its Tumblr Business
Yahoo acquired Tumblr for $1.1 billion in 2013. David Karp founded Tumblr. He had been leading the business at Yahoo as well. Now, he will report to Simon Khalaf.
Amazon Enters the Online Travel Market with Amazon Destinations
The online travel market is consolidating. Expedia’s market share will rise to 75% with its acquisitions of Orbitz and Travelocity.
AT&T will sell a customized BlackBerry Passport smartphone
AT&T will sell the Passport exclusively for $200 with a two-year contract. The device otherwise sells for $650 without a contract.
Verizon’s Speed Match could compete with cable
In July 2014, Verizon introduced an innovative service called Speed Match, which allows customers to receive upload speeds that match their download speeds.
Must-know: Why AT&T’s churn rate is the best in the industry
Lower churn rates help companies save cost that they would otherwise incur acquiring new customers. So it’s an important parameter in the telecom industry.
Google Wants to Counter the Threat from Mobile Apps
Google will need to continue to innovate in the mobile advertising market so it can compete with mobile apps. The mobile ad market has huge growth potential.
Why Did eBay’s PayPal Acquire Money Transfer Company Xoom?
eBay’s PayPal will acquire online money transfer company Xoom for $890 million. PayPal will pay Xoom $25 per share.
Apple’s Comments on Apple Watch and App Store Businesses
App Store revenues were up 29% in fiscal 2Q15 from 2Q14. In Europe, the App Store’s success helped generate $7.5 billion for European developers since 2008.
Why we’re seeing a telecom shift from subsidy to installment plans
Compared to the traditional subsidy model, the Next program provides more flexibility to customers who like to frequently upgrade their devices.
Apple iPad sales could see first year-over-year decline
Apple iPad sales have been declining for the last few quarters now. And unless Apple does something revolutionary, it’s unlikely to revive them.
Microsoft Will Have to Make Sales Force Changes to Sell Search Ads
Microsoft will need to beef up its sales force to sell its search ads. Microsoft’s Bing is ranked third in the global search ad market.
VZ is waiting for compatible devices to implement LTE multicast
Management mentioned that the network for LTE multicast has been ready since August. VZ expects the complete ramp up of compatible devices to be in the market by next year.
Why Did Amazon Shut Down Its Online Travel Business?
In April, Amazon had launched its new travel and hotel service, called Amazon Destinations.
Morgan Stanley bullish about Apple Watch prospects
Morgan Stanley rationalizes that if only 10% of the 300 million people who carry iPhones buy an Apple Watch, 30 million units could be sold this year.
eBay Posts Better-Than-Expected 1Q15 Earnings
eBay (EBAY) announced better-than-expected 1Q15 earnings last week. The company’s overall revenues increased by 4% to $4.45 billion year-over-year.
Google’s DoubleClick: Huge growth potential
Google’s DoubleClick is the go-to tool for marketers and agencies. And the number of ads impressions from DoubleClick has doubled year-over-year.
Why price is important for every smartphone player except Apple
Apple is no longer the top-selling smartphone player with the Verizon (VZ) and Sprint (S) networks, where Samsung (SSNLF) has held on to its top position.
LinkedIn Acquires Lynda.com to Increase User Engagement
Last week, LinkedIn announced that it agreed to acquire lynda.com—a leading training video site—for $1.5 billion. LinkedIn needs more user engagement.
Apple May Report Subdued Apple Watch Sales in 3Q15
Apple has tried its best to popularize the Apple Watch. A couple of months ago, Apple and IBM (IBM) added three new apps for Apple Watch.
Delhivery Raises $85 Million: Signifies India’s E-Commerce Growth
According to a May 6 report from TechCrunch, Indian e-commerce logistics startup Delhivery raised $85 million in funding a few months after it raised $35 million.
How Google’s YouTube Plans to Take Away Ad Dollars from TV
According to Google, more users aged 18–49 access YouTube on their mobile devices than they access any cable network in the United States.
Why Facebook will benefit from Instagram’s popularity among teens
We discussed how Facebook (FB) and Google (GOOG)(GOOGL) are the most preferred social networks for the purpose of social login. But Instagram has emerged as the most popular social network among teens in the U.S.
Why Cowen Says Amazon Is the Best Investment for 2019
Amazon (AMZN) stock has been one of the best performers in 2018.
A must-read overview of Twitter’s third quarter 2014 earnings
Twitter (TWTR) continues to produce robust revenue growth. Twitter even raised its guidance for 4Q14 revenue as well as its adjusted EBITDA.
UCS Drove Cisco’s Data Center Business Growth in Fiscal 3Q15
Cisco’s Data Center business continues to have strong growth. Its Data Center business had a YoY revenue growth rate of 21%—the highest among its other segments.
What’s driving Verizon’s increase in average revenue per account?
Average revenue per account (or ARPA) is an important metric for Verizon. It gives an idea of how well it’s able to monetize its users’ accounts. Verizon increases ARPA consistently.
Spotify’s Valuation Increases Despite a Threat from Apple
Spotify earns the bulk of its revenues from subscriptions and only a small amount from advertising. Investors prefer the subscription model.
Amazon Is Increasing the Product Selection for Its Prime Program
Amazon credits the Prime program’s popularity for the growth in its operating profits in 1Q15—Amazon’s best results in the US for the last few quarters.
Why Chinese carriers cutting smartphone subsidies affects Apple
China’s telecom providers, China Mobile (CHL), China Unicom (CHU), and China Telecom (CHA), had started to sell the iPhone 5S at a subsidized price. However, it seems the Chinese government wants to nip this trend in the bud itself.
Netflix Stock Rises 3.7% in June on News of Possible Stock Split
Netflix (NFLX) stock rose 3.7% on June 10 on news that the company is pursuing a stock split. It would increase the number of shares 30 times, from 170 million to 5 billion.
Amazon looks to broaden Twitch’s scope through music streaming
Amazon (AMZN) acquired Twitch a few months back for a valuation of around $1 billion. Twitch is a popular website for video game enthusiasts.
Apple’s Music Streaming Service Has Ample Growth Potential
In spite of the competition, Apple will have ample opportunities to grow its music streaming service. It will quickly expand its service to countries where competition is less.
Why are we seeing more adoption of larger mobile data plans?
Although the Mobile Share accounts for AT&T have tripled from 4.8 million in 2Q13 to 14.6 million in 2Q14, 10 GB or larger data plans have increased by more than five times, from 1.4 million to 7.2 million, during the same period.
A must-know look at Facebook’s 3-year strategy
This is a tool to connect people with important public moments and personalities on Facebook. This is an attempt by Facebook to draw on features of Twitter Inc (TWTR)—where people are comfortable sharing their views with everyone.
BlackBerry Owes Its Software Revenue Growth to BES12 and QNX
BlackBerry’s software and technology licensing revenues grew 18% year-over-year, mainly due to the company’s BES12 solution.
Facebook Messenger’s Video Calling Feature Will Attract More Users
On April 27, Facebook added the video calling feature to Messenger, according to Facebook’s press release. This feature makes Messenger an attractive app.
Can AT&T’s GigaPower service drive the company’s U-Verse business?
Recently, AT&T announced that its GigaPower service has exceeded expectations in Austin and will soon start deploying in Dallas and North Carolina.
FiOS Quantum service: A positive for Verizon’s wireline business
FiOS Quantum provides high Internet speeds ranging from 50 to 500 Mbps. To date, 57% of FiOS customers have adopted the Quantum
Samsung could see a tough 2014 as Galaxy S5 sales start off slow
Although Samsung managed to increase its share in the worldwide smartphone market in 2013, it could face a tough 2014.
Record iPhone 6 pre-orders: Best-ever quarter for Apple mobile?
On September 9, Apple launched the iPhone 6, measuring 4.7 inches, and the iPhone 6 Plus, measuring 5.5 inches. On the same day, Apple also released its smartwatch called the Apple Watch.
Are Investors Overvaluing Spotify?
A recent report from the Wall Street Journal suggests that investors might be overvaluing Spotify. The company could now be a risky investment.
Everything you need to know about AT&T’s wireline business
U-Verse and strategic business services have been the main growth areas for AT&T’s wireline business, offset by the declines in legacy voice and data products. AT&T’s U-Verse broadband and TV business both are showing strong growth.
Why bundled offers are helping AT&T gain U-Verse TV subscribers
AT&T has also been able to grow its U-Verse TV subscriber base. AT&T’s subscriber base has increased from 5.0 million in 2Q13 to 5.9 million in 2Q14.
A Look at Apple’s Evolution in the Payment-Processing Market
Apple could disrupt the business of established players PayPal and Square in the person-to-person payment-processing market.