Changing the world, one word at a time…

The Effect of Slowing PC Sales

Nvidia (NASDAQ: NVDA) recently reported that its second quarter profit fell 21% as the chip maker logged higher operating costs, masking revenue growth.  The company actually reported revenue at the top end of its guidance for the quarter and earnings beat analysts’ expectations.  For the current quarter, the company expects revenue of $1.15 to $1.25 billion, topping average analyst estimates that predicted $1.09 billion.
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Electronics Adapt

Nam Tai Electronics (NYSE: NTE) recently happily announced its second quarter results for 2012.  Net sales increased 62.8% year over year to $205.2 million.  Net income increased 213% year over year to $9.4 million.  These good results are attributed to a few main factors.  The company’s profits improved likely due to a discontinuation of certain production orders that have had low sales and poor performance for the past few years.
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China Online

Youku (NYSE: YOKU), a popular Chinese online television company, has been working to clean up its reputation and offer licensed content in an attempt to draw advertising dollars from foreign and domestic companies.  The company has faced struggles with piracy lawsuits, government censorship, and the state-owned media’s web expansion.  In the most recent quarter Youku posted a significant loss due to an increase in operating expenses, but the extra costs incurred to clean up their reputation might have been worth it.  Revenue increased 96%, which was in line with the company’s growth estimate of 90% to 100%.  For the third quarter, Youku is predicting revenue growth of 70% to 80%.  In an effort to continue that growth, Youku agreed to acquire competitor Tudou Holdings (NASDAQ: TUDO) to create the largest Chinese online-video company by advertising revenue.
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VMware Purchases Nicira

Recently VMware (NYSE: VMW) agreed to purchase Nicira for $1.26 billion in cash and equity.  Nicira is considered the pioneer in software-defined networking and will be adding to VMware’s lineup of server virtualization software.  Similar to the way VMware’s virtualization partitions operating systems to perform the tasks of multiple computers, Nicira subdivides a network to operate like a dozen networks.  VMware expects Nicira’s software will help it improve the efficiency of computers in a data center.
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Micron Makes Acquisitions

Micron Technology (NASDAQ: MU) has agreed to buy troubled Japanese rival Elpida Memory Inc. through an agreement that will see the chipmaker spend about $2.5 billion to buy the company’s equity and pay some of its creditors.  Micron became Elpida’s financial sponsor in May after the company filed for bankruptcy protection.  Micron will acquire the company’s equity for $750 million and pay a total of $1.75 billion in future annual installment payments.  All pre-petition debt obligations of Elpida will be discharged under the corporate reorganization proceedings.  The agreement also calls for Micron to provide certain financing support for Elpida capital spending and to maintain the company’s operations and employees.  Micron Technology has also agreed to acquire Taiwan-based Powerchip Technology Corporation’s 24% interest of Rexchip Electronics Corporation for around $334 million, meaning that Micron will now control approximately 89% of Rexchip’s outstanding shares.
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Chinese Ads Shift from TV to Internet

JP Morgan recently started coverage on Chinese internet television company Youku (NYSE: YOKU). The firm currently views Youku as overweight and set a price target at $30. Morgan is bullish on a general shift in Chinese ad spending from TV to online video. Upcoming ad rate hikes, inventory expansions, a favorable content amortization schedule, and the achieving of quarterly profitability in 2013 are all viewed as positive catalysts.
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Dell Enters IT Game

Dell (NASDAQ: DELL) is widely known for its PCs. However, Dell provides a diverse range of products and services for its customers. Dell provides computing hardware and software for consumers, small and large businesses, and the government. Dell prides itself on the built-to-order facet of its computers. However, the manufacturer has had a hard time competing with brands such as Hewlett-Packard (NYSE: HPQ). In addition to personal computers and accessories, HP is also very well known for its enterprise solutions. HP operates in over 170 countries around the world and is the world’s largest IT company.
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OpenTable Integrates

It was recently announced that OpenTable (NASDAQ: OPEN) would by integrated with Siri in Apple’s iOS 6.  This integration has the potential to be a strong catalyst for the company. The integration of the two should drive downloads of OpenTable’s mobile application; combined with recent Google+ integration, this could potentially create high competitive barriers for its peers, despite innovative functionality and more aggressive price points from smaller competitors.
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Motley Fool Blog Network "Sony is Losing the Game"

Can Sony’s (NYSE: SNE) Playstation3 keep up with Microsoft’s (NASDAQ: MSFT) XBox or Nintendo’s (NASDAQOTH: NTDOY.PKWii?  Sony’s share price has recently hit record lows in Japan and is faring no better in U.S. Trading with its price bringing down the 52-week low.  Sony has posted four consecutive annual losses.  Investors are more than concerned about their weak earnings.  One of the major places that they are losing out on profits is with their video game console.
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Motley Fool Blog Network "The Intangibles"

Facebook's (NASDAQ: FB) IPO has not quite been the success story its loyal followers must have imagined.  This social media empire has fallen nearly 10% since its inception, remaining below its initial IPO price.  This was a much anticipated IPO, and it has fizzled out before it even gained any traction.  Demand was so weak, in fact, that the IPO's underwriters had to step in and support the shares.  More than 35 million shares of this global network have been traded.
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Motley Fool Blog Network "Have We Forgotten How To Yahoo?"

Yahoo! (NASDAQ: YHOO) used to do so well with advertising.  Their television commercials and billboards were just about shoved down our throats, reminding us that this search engine exists.  Recently, however, they seem to have been lost in the shuffle.  Their commercials are not so prevalent (not that anyone really watches commercials anyway, thanks to DVRs and TiVO).  Their billboards are very scarce as well.  One of the most successful forms of advertising that currently exists is product placement.  In that arena, Google (NASDAQ: GOOG) seems to prevail.
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Motley Fool Blog Network "Siemens Is Going For The Green"

Siemens (NYSE: SI) just got in its first wind-turbine order from Chile.  The order encompasses delivery, installation, and commissioning of 50 wind turbines.  Each turbine will have a capacity of 2.3 megawatts, giving the order a total capacity of 115 megawatts.  The order includes a five-year service and maintenance contract.  The order is for the El-Aryan wind project, which is slated to become the largest wind farm in Chile and will provide power for up to 200,000 households.
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Motley Fool Blog Network "The Trending Clouds"

Cloud computing has become a revolution, or revelation to some, in the way we think about purchasing technology.  No longer do you need the larger hard drives.  What is smaller than a flash drive?  Air.  Flash drives are truly going the way of the floppy disk. 
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