Why Decline in LinkedIn Stock Made It a Potential Target
LinkedIn’s stock, which traded at $269 in February 2015, fell to one of its lows of $101.11 in February 2016.
Why Salesforce Acquired Twin Prime
Salesforce continued its spree in December 2016 with its acquisition of Twin Prime, a startup focused on machine learning.
Why Oracle’s Marketing Cloud is integral to its growth
Oracle’s Marketing Cloud allows customers to run marketing campaigns and manage data related to those campaigns on web, social, mobile, and email.
Most Analysts View LinkedIn as a ‘Buy’
Out of 43 analysts covering LinkedIn’s stock, 37 have issued “buy” recommendations, and six have issued “hold” recommendations.
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.
Why did Twitter revise its 2014 guidance upward for the year?
Twitter revised its guidance upwards, partly on better-than-expected 1Q14 performance and partly due to better expectations for its advertising business and inclusion of Gnip.
Why Is Salesforce Stock a ‘Buy’ for UBS?
On the insistence of its shareholders, Salesforce has backed away from its prior decision to buy Twitter (TWTR).
Blue Ridge Capital increases holding in SiriusXM
The third quarter of 2014 was by far the best for SiriusXM in terms of market penetration as well as increasing revenues.
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.
JAT Capital’s Position in Twitter Unchanged in 1Q15
There were about 25 hedge funds with Twitter in their top ten holdings in the first quarter. A total of 177 hedge funds also added to their positions in TWTR.
Twitter’s Project Lightning Could Be Called ‘Moments’
Twitter’s Project Lightning will let users view a collection of tweets with images and videos of a specific event without following individual accounts that have tweeted on the event.
Facebook’s Q4 2014 earnings: Expect revenue growth and more
Facebook (FB) is expected to announce its Q4 2014 earnings on January 28, 2015. In this series, we’ll analyze how the last quarter of 2014 could turn out.
How Does Oracle Plan to Benefit in the Current IT Space?
Oracle Cloud at Customer is Oracle’s focus on providing companies’ CIOs with enterprise software deployment choices.
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.
Behind Salesforce’s Exit from the Twitter Buyout
Salesforce’s interest in Twitter was driven by interest in the social media space. But opposition from shareholders led Salesforce to back away.
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.
What Are Analysts Expecting from Microsoft’s Fiscal 4Q16 Results?
Microsoft (MSFT) is scheduled to release its fiscal 4Q16 and 2016 earnings after the Market closes on July 19, 2016. For fiscal 4Q16, Estimize expects Microsoft to report revenue of $22.1 billion.
Is Microsoft Trying to Compete with Google in the AI Space?
Since 2011, nearly 140 private companies related to AI technologies have been acquired with more than 40 acquisitions taking place in 2016 alone.
Why Was Salesforce Destined to Lose to Microsoft in the SaaS Space?
Eweek.com stated that Microsoft held 15% share of global enterprise SaaS revenues, while Salesforce held 14% in 2Q16.
Facebook Has Proven to be a Game-Changer for the NASDAQ
Facebook has proven to be a game-changer by introducing the world to the concept of social networking, something quite unheard of in the Y2K era.
Will IBM Watson’s Foray into Financial Services Succeed in 2017?
IBM’s acquisitions to boost Watson Since its inception, IBM (IBM) has been betting heavily on Watson, its cognitive computing platform, to steer the company toward much-needed growth. As expected, Watson was IBM’s highlight in 2016 and is expected to be in 2017 as well. Considering IBM’s acquisitions to equip Watson in the healthcare space, namely […]
Why Adobe’s Stock Has Been on the Rise
Adobe’s (ADBE) successful switch to a web-based subscription model from traditional licensed software has benefitted its share price.
Did Microsoft’s Strong Revenue Growth Results Improve Its Margins?
In fiscal 1Q17, Microsoft’s gross margin stood at ~61.7%, as compared to ~64.7% in fiscal 1Q16. Intelligent Cloud contributed ~34% to total revenues.
Why Is IBM’s Partnership with Cisco So Important?
IBM announced its partnership with Cisco in late June 2016. It will enable both companies to develop a suite of cloud-based workplace tools and apps.
Facebook plans to monetize WhatsApp’s large user base
Facebook’s Mark Zuckerberg is often questioned about Facebook’s high-priced acquisition of WhatsApp, which generated revenue of only $20 million in 2013.
How the MSFT-LNKD Deal Could Affect Salesforce in the AI Space
Another factor in Salesforce’s opposition to the Microsoft-LinkedIn deal is data. LinkedIn’s acquisition would provide Microsoft with access to large data sets,
Facebook Recorded an 8.8% Return on Equity in 3Q15
In 3Q15, Facebook’s (FB) return on equity or ROE was 8.8%, compared to 16.2% in the same period last year and 13.3% in 3Q13.
Salesforce: Undisputed Customer Relationship Management Leader
According to Gartner’s recent research report the CRM space, Salesforce continues to lead with a 19.7% market share.
Behind the Drop in LinkedIn’s and Jabil Circuit’s Shares
Morgan Stanly downgraded LinkedIn from “overweight” to “equal-weight” on March 16, and on March 17, its stock fell by 4.6% for the trailing-five-day period.
Can Oracle’s Fiscal 1Q17 Results Beat Analysts’ Expectations?
Oracle is scheduled to report its fiscal 1Q17 results on September 16. Analysts expect revenues and non-GAAP EPS to be $8.7 billion and $0.58, respectively.
Why 2016 Hasn’t Been Great for Salesforce
In 2016, Salesforce stock has shed close to 30% of its value. According to S&P Global Market Intelligence data, Salesforce stock fell by ~13% in January 2016.
Battle for the Home Automation Market
Alphabet’s (GOOGL) Google and Amazon (AMZN) are going for each other’s jugular in the home automation systems market.
Yahoo Is Looking to Increase User Engagement on Yahoo Mail
In addition to its partnership with Paperless Post, Yahoo (YHOO) also launched contact cards in Yahoo Mail to increase user engagement.
PE Firms and the Current Acquisition Spree
The Apollo Global-Rackspace (RAX) deal is the latest deal indicating the growing interest of PE firms in the technology space.
Why Is Oracle on a Cloud Acquisition Spree?
So far in 2016, we’ve seen several acquisitions in the cloud space, and these deals indicate growing competition and consolidation.
Must-know: Is Facebook performing strongly versus its comps?
Social media stocks performed well last year, with the Global X Social Media Index ETF (SOCL) up 65% from January 2013.
The BeyondCore Buyout: Increased Competition for Microsoft?
By adding BeyondCore to its portfolio, Salesforce aims to strengthen its CRM offerings with predictive data analytics and AI capabilities.
Can Microsoft’s Stock Continue to Rise after Fiscal 4Q16 Results?
In the last year, Microsoft’s stock has risen by ~17%. However, since early 2016, it has exhibited volatility.
How Salesforce’s Claim Could Impact the Microsoft-LinkedIn Deal
In response to the antitrust issues raised by Salesforce, the European Union’s competiton chief stated that she would “keep a close eye on how companies use that data.”
Facebook acquires virtual reality company Oculus VR for $2 billion
Facebook (FB) recently announced that it’s acquiring Oculus VR, the maker of a virtual reality headset, for a valuation of $2 billion.
What Is Facebook Getting in This Startup Buyout?
As Facebook (FB) has avoided selling ads on WhatsApp, it could use facial recognition technology from FacioMetrics to make the app more attractive for paid business-to-customer communication.
Could Slack Lead to Another Microsoft-Salesforce Bidding War?
Slack is an enterprise workforce collaboration application and could be the next acquisition target for Microsoft.
LinkedIn Expects Slower Growth in Talent Solutions for 2016
LinkedIn expects its Talent Solutions segment to grow by 25%–26% YoY (year-over-year) in 2016 compared to growth of 30% YoY in 2015.
Facebook’s Earnings in 4Q15: Facebook Shares Rose by 12%
Facebook beat analyst estimates for both revenues and EPS. The company reported revenues of $5.8 billion, compared to estimates of nearly $5.4 billion.
Mergers, Acquisitions Trend Likely to Continue for Oracle
Looking at Oracle’s recent bond deal and its cash reserves, it won’t come as a surprise if Oracle announces more acquisitions after NetSuite.
What Are Analysts’ Recommendations for Twitter?
As of March 21, 2016, Twitter (TWTR) has generated returns of -67.1% for the trailing 12 months and -7.8% in the trailing-one-month period.
Salesforce Beats Estimates: Can Its Good Run Continue?
Salesforce.com (CRM) posted its fiscal 1Q18 numbers on May 18. It announced revenue of $2.39 billion—higher than analysts’ estimate of $2.35 billion.
Why Facebook Remains a Heavyweight in the Social Media Space
Mark Zuckerberg, Facebook’s CEO, announced that he’ll consider monetizing the service when the number of users crosses the 1 billion mark.
Is It a Good Time to Buy Valeant Pharmaceuticals (VRX)?
According to Rodman & Renshaw’s Raghuram Selvaraju, Valeant’s underlying assets are not fairly valued by the market and the company is capable of making a turnaround.
Why did tech stocks like Twitter sell off on July 8, 2014?
Although the Dow Jones Index fell 0.7%, the tech-heavy NASDAQ (IXIC) index fell 1.4%. This was the second big tech stock sell-off in 2014.
Why the World Cup drove Twitter’s Q2 international growth
Here, we’ll talk about international markets for Twitter. These markets take on increasing significance with every quarter.
Why Uber’s history and financing mean a big, big valuation
Uber was founded in 2009 by Travis Kalanick and Garrett Camp. Since its inception, the company has gone through multiple rounds of funding.
Why is cloud computing such a fast-growing business?
With cloud computing, instead of keeping an organization’s data on its own server or updating applications, you use a service over the Internet from a remote location to store your information and use applications.
Why do Twitter and its social media peers attract investors?
People have been asking me over the past few weeks what my views are on the Twitter IPO (TWTR) as well as my view on Twitter as a general business.
Why Did Microsoft’s Stock Fall after LinkedIn Offer?
After Microsoft’s announcement, LinkedIn’s stock rose 47% to $192.21 while Microsoft’s stock fell 2.6% to $50.14 on June 13, 2016.
What’s at Stake as Microsoft and Adobe Team Up?
Microsoft (MSFT) and Adobe (ADBE) have teamed up to strengthen their marketing software businesses.
How Salesforce Gained Its Moat
Salesforce.com is a leader in the customer relationship management industry. The company has built its moat on the back of its network effect and strong brand.
Will Salesforce Continue Its Buying Spree in 2017?
Salesforce’s acquisition spree Earlier in this series, we discussed Salesforce’s (CRM) recent acquisition of Sequence. We also looked at why companies such as Salesforce and IBM (IBM) are increasingly drawn towards the digital agency space. Of late, Salesforce has been on an acquisition spree. Since 2006, Salesforce has made 44 acquisitions, according to Crunchbase. In the past […]
Will AppDynamics Acquisition Help Cisco’s Position in SaaS Space?
AppDynamics has managed to grow 50% on an annual basis. Moreover, 75% of AppDynamics customers make purchases based on a subscription-based model.
Why Microsoft Is Likely to Continue Its Acquisition Spree in 2017
With its huge cash reserves, Microsoft (MSFT) would be one of the top beneficiaries of President Trump’s proposed tax reductions.
How Microsoft Could Benefit from Simplygon Acquisition
Last week, Microsoft announced the acquisition of Simplygon in the AR (augmented reality) space.
Why Salesforce Has to Be Ambitious in Revenue Growth
Salesforce pioneered SaaS, and since its launch, Salesforce has developed an impressive mix of cloud-based offerings.
Will Oracle’s Acquisition Spree Continue in 2017?
Calendar 2016 marks the second year on record in which tech deals accounted for the majority of M&As. Prior to 2016, 2000 saw the highest number of deals.
Can Salesforce Sustain Its Growth?
Salesforce (CRM) reported fiscal 3Q17 adjusted earnings per share of $0.24, ahead of the consensus of $0.21.
This Company and This Sector Has Hurt the Harbor Capital Appreciation Fund in 2016
The Harbor Capital Appreciation Fund Investor Class (HCAIX) has had a terrible 2016. It’s the second-worst performer YTD among the 12 funds in this review.
Why Does Microsoft Have Higher Growth Chances in the Consumer SaaS Space?
The expected growth in SaaS explains the rising competition and the rise in acquisitions by leading players in the space.
How Does Twitter Compare with Its Peers?
Twitter trades at lower multiples than its peers Earlier in this series, we discussed rumors of Twitter’s (TWTR) possible acquisition and how Salesforce (CRM), Google (GOOG), and The Walt Disney Company (DIS) could be contenders. In this part, we’ll compare Twitter’s value proposition with that of other companies in the social media space. As of […]
Why Salesforce Has Concerns about the Microsoft-LinkedIn Deal
On September 30, 2016, Salesforce again made the news when it raised objections about the deal between Microsoft (MSFT) and LinkedIn (LNKD).
Could Twitter Be LinkedIn Alternative for Salesforce?
Twitter could be a viable alternative Earlier in this series, we discussed ongoing rumors of Twitter (TWTR) becoming a part of Salesforce (CRM). In 2012, Salesforce entered into a partnership with Twitter, under which the latter was feeding data related to social media into Salesforce’s analytics systems. Twitter is not the first social media company […]
Why Is Twitter Keen on Its Buyout?
Twitter’s ad revenue growth is slowing down Earlier in this series, we discussed Salesforce’s (CRM), Google’s (GOOG), and The Walt Disney Company’s (DIS) interest in Twitter (TWTR). We also learned that it is the movement of advertising dollars towards the social media space that has put Twitter in the limelight. Twitter’s primary source of revenue […]
Why T. Rowe Price Sees the NetSuite Deal as Undervalued
Earlier in the series, we discussed the concerns T. Rowe Price has raised in regards to Oracle’s (ORCL) buyout of NetSuite.
Why Are Investors So Skeptical about Oracle’s Cloud Growth?
Oracle’s SaaS (software-as-a-service) and PaaS (platform) revenues grew 48% to ~$2.8 billion in fiscal 2016, as compared to ~$1.9 billion in fiscal 2015.
Which Social Media Platform Receives the Most Social Ad Spend?
Much like Google (GOOG), Facebook has remained successful in capitalizing on the user shift to mobile.
Microsoft Sells MSN China Web Portal to Focus on This
In May, Microsoft announced that it would be closing its MSN Chinese web portal in June to focus on providing software and services for Windows 10 devices.
Could BeyondCore Heat up the Competition between CRM and MSFT?
The BeyondCore acquisition is likely to fuel the competition between Salesforce and Microsoft.
Microsoft Issued the Most High-Grade Bonds Last Week
Microsoft (MSFT) issued Aaa/AAA rated high-grade bonds worth $19.8 billion through seven parts on August 1, 2016.
How Salesforce’s Quip Buyout Is Fueling Competition in Cloud Space
Salesforce’s Quip acquisition is symbiotic to both the companies.
How Mobile Drives Facebook’s Ad Revenues
Facebook’s (FB) mobile ad revenues are primarily driven by increased number of users and brand marketers on its platform.
Which Investments Have Hurt the Harbor Capital Appreciation Fund the Most in 2016?
The Harbor Capital Appreciation Fund Investor Class has tanked by 3.5% YTD in 2016, making it the second-worst performer YTD among our 12 funds.
Facebook’s Growth: Why Mobile Users Are the Key
Facebook’s (FB) mobile monthly active users (or MAUs) constitute about 91.5% of its total MAUs, which stood at 1.65 billion in 1Q16.
Oracle Makes News with Its Biggest Bond Sale Ever
On June 29, 2016, Oracle (ORCL) announced a bond sale of $14 billion. The company’s investment-grade bond sale is split among five tranches.
Why Microsoft Could Be the Most Affected by Brexit
Microsoft holds $108.3 billion worth of earnings overseas, which accounts for 4.7% of the total overseas cash held by S&P 500 companies.
Will Microsoft Deal Boost LinkedIn’s Prospects?
LinkedIn’s major business division, Talent Solutions, faces macro headwinds in the EMEA and APAC regions.
Cisco’s Acquisitions Drive Its Collaboration Revenues
Earlier in 2016, Cisco completed the acquisition of European video conferencing startup Acano for $700 million in cash.
Why LinkedIn’s Ad Revenues Could Slow Down
LinkedIn has been focusing on sponsored content and shifting away from display ads to sponsored updates.
LinkedIn’s Key Revenue Segment Was Showing Signs of Slowdown
LinkedIn generates a major portion of its revenue from the Talent Solutions segment, which accounted for 65% of the total revenue in 1Q16.
How Did LinkedIn’s Growth and Earnings Quality Look before Deal?
Microsoft (MSFT) announced the acquisition of LinkedIn (LNKD) for $26.2 billion in cash on June 13, 2016.
Why Is Twitter’s Stock Price Declining?
Social media platform Twitter (TWTR) is going through its toughest phase since its launch in July 2006. Twitter’s issues include a volatile stock price, stagnating user growth, the departure of key executives, and core product issues.
Why MSFT-LNKD Deal Could Signal More Tech Space Deals
Microsoft’s offer follows the current trend of massive acquisitions in the software space.
Wand Labs, Microsoft’s Latest Acquisition: What Will It Offer?
On June 16, 2016, Microsoft announced that it acquired Wand Labs, a messaging app developer.
Did Microsoft Make the LinkedIn Offer to Thwart Salesforce’s Bid?
Before Microsoft made an offer of $26.2 billion for LinkedIn, Salesforce had submitted a bid for the company.
Why Microsoft’s AAA Rating Might Be Downgraded
Microsoft plans to fund the $26.2 billion LinkedIn acquisition with debt. This naturally raises a question about a change in rating for Microsoft.
How LinkedIn Will Benefit Microsoft in Social Network Space
With LinkedIn under its umbrella, Microsoft will get immediate social graph access without going through the pain of designing and developing it.
Will Arbs Assemble the Microsoft-LinkedIn Arbitrage Spread?
The chance of regulators blocking the transaction is pretty low given that LinkedIn (LNKD) and Microsoft (MSFT) don’t compete directly.
How Microsoft Office 365 Will Benefit from LinkedIn Acquisition
Microsoft primarily generates its cloud revenues from Office 365, Dynamics CRM, and Azure, its cloud-computing platform.
Microsoft Announced Its Largest Acquisition to Date
On June 13, 2016, Microsoft (MSFT) announced its plans to acquire LinkedIn (LNKD) for $26.2 billion in cash, its largest acquisition to date.
Could There Be a Competing Buyer for LinkedIn?
Microsoft paid a 50% premium to LinkedIn’s June 10 closing price. At 7.5x revenues and 75x EBITDA, Microsoft is paying a lot. LinkedIn is a unique property.
Can the Microsoft-LinkedIn Transaction Get Regulatory Approval?
For LinkedIn (LNKD) and Microsoft (MSFT), the gating item should be the SEC’s approval of the proxy statement. Regulators might take a closer look.
Analyzing the Basics of the Microsoft-LinkedIn Transaction
Microsoft (MSFT) is buying LinkedIn (LNKD) for $196 per share in cash. The companies are guiding for an end of 2016 close.
What’s the Rationale for the Microsoft-LinkedIn Merger?
LinkedIn will be a standalone entity within Microsoft. This transaction is part of Microsoft’s plan to focus on cloud-based offerings. It wants to rely less on PCs.