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Jennifer Lynn
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Jennifer Lynn is a proficient investor, executive and manager working with analytics data to drive smart business decisions. Technology, eCommerce, Management, Healthcare, Consulting, Strategy. Passionate for Finance, IT & Emerging Markets. Email: consultbydigital @ gmail.com
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  • Blackberry's Investor Strategy

    Research In Motion Limited (RIMM) How is Blackberry surviving so far in the volatile stock market? Investors are not certain that it will come out short. The high risk strategy follows after its redesigned smartphone, the BlackBerry Z10 came out earlier this year. Investors are also questioning the future which looks to be uncertain. BlackBerry 10 line of smartphones has been performing well, meeting Research In Motion's expectations after being launched earlier this year. The company is capitalizing on the rise of smartphones. RIM's share price fell to $14.45 this week. Technology stocks fell last Wednesday, with shares down more than 4%.

    According to Reuters, Shares of BlackBerry, which reports fiscal first-quarter results on June 28, fell 3.6 percent to $14.31 in morning Nasdaq trading. The stock dropped as low as $6.22 last September, but has more than doubled in value since then. RBC Capital Markets raised first-quarter sales estimate to 3.5 million BlackBerry 10 units from 2.75 million with expected shipments of 4 million BB10-enabled devices in the current quarter, up from a prior outlook of 3 million.

    Smartphone Global Mobile Growth

    The mobile device market is the fastest growing market sector today being let by smartphone users worldwide. Wireless Intelligence had stated in its report "1.5 billion subscribers will be added to 3G networks in the next two years." The smartphone market is expected to grow to 18.3% compounded annually through 2016. It is estimated that 1 in 7 of the world's population owned a smartphone in the third quarter of 2012. Global growth has yet to penetrate in the market. It is forecasted the next billion growth of smartphones to be achieved in less than three years, by 2015.

    " Worldwide smartphone sales rose 43% last year, down from 58% in 2011 and 72% in 2010, the year that they really took off, following increases of just 24% in 2009 and 14% in 2008 " via Gartner.

    Consumer Demand

    With over 100 million smartphone owners, these mobile consumers want simplicity and speed. By 2014, worldwide mobile commerce will reach $352.7 billion. Consumer growth expectations are demanding. The mobile market is evolving at a rapid pace. Mobile market growth is being driven by demand developing world, led by rapid mobile adoption in China and India. Subscribers are expected to reach 6.9 billion by the end of 2013 and 8 billion by the end of 2016.

    RIM's devices are aimed at developing markets. McKinsey research indicates that the industry's globalization remains in its infancy. China, India, and Russia are likely to emerge as significant players over the next two decades, a development that will give Western companies major short-term cost-reduction opportunities that they must capture. The cost of labor, which on average is three to five times lower in these countries than it is in the developed world, also makes emerging markets attractive for labor.

    Investors are bullish towards the stock despite its volatile outlook. Blackberry's newest devices by RIM have been steady in growth and positive from consumers. The stock has ranged in price between $14.53-$15.27 after having opened the day at $14.70 as compared to the previous trading day's close of $14.62. Research in Motion has a market cap of $6.8 billion and is part of the technology sector. Shares are up 9.4% year to date.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jun 21 12:09 PM | Link | Comment!
  • Big Data Drives Baidu

    Baidu, Inc. (BIDU China is highly driven by its high tech real time and urban economic standards. Big data has become a serious strategic initiatives for leading internet firms such as Baidu. "2013 through 2020, these technologies will drive around 90% of all the growth in the IT market," said Frank Gens, senior vice president and chief analyst at IDC. "Companies that are not putting 80% or more of competitive energy into this new market will be trapped in the legacy portion of the market, growing even slower than global GDP." The chinese search engine Baidu presently has a market value of $300 million.

    Baidu spent at least $22.5 million on acquisitions last year, compared with $356 million in 2011, according to data compiled by Bloomberg. Baidu's 2011 deals included the $306 million purchase of a controlling stake in travel site Qunar.com, the company's largest deal on record.

    Earlier this year, Baidu acquired PPS Net TV, the streaming video service for $370 million. The largest search engine presently competes with company Youku Tudou Inc. (NYSE:YOKU). Baidu's plans are to merge PPS Net TV with it other company iQiyi.com which will become China's largest internet platform.

    Last week according to Bloomberg, " Chinese equities slumped for a third day in New York, driving their valuations to the lowest level in five weeks, as property and Internet companies sank. The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. fell 0.9 percent to 87.32 as of 12:01 p.m., set for the lowest close in almost two months. "

    Data gathering of big data sets are constantly generated by Baidu of its consumers, merchants, and online transactions. Data mining is used by the company to enable more business intelligence to its consumers. Baidu has strategic growth promise by its ability to transform to higher value The company is poised to compete with integrating disruptive trends in mobile, offering new services through big data, hybrid models and developing new monetization models.

    Monitoring, tracking behaviour patterns will be challenges for any big data company in the future. The "big data" problems will force organizations such as Baidu to adapt. Whether of still having lack of new technologies, outdated systems, management of big data. Data management and efficiency is crucial.

    Innovation of data is competitive leverage. Investing in such innovations, applying the right strategies will poise leading organizations to successful growth. We clearly see today how data fuels all economic channels.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: BIDU
    Jun 21 10:11 AM | Link | Comment!
  • The Demand For Smartwatch

    Apple (NASDAQ:AAPL) has been one of the top leaders in the smartwatch revolution. Investors are optimistic for the smartwatch market to go mainstream. Questions linger if Apple is still set to release a new smartwatch. Apple being at the forefront, has remained innovative within the sector yet also remains a traditional hardware technology company. The global watch industry estimates to be valued at $60 billion in sales in 2013. Shares rose today up 0.54% to $419.09. Apple Inc was up closing at $432 on Monday.

    Consumer demand is still high. Apple's new iCloud software technology integrates smartwatch devices to other technologies such as the iPad and other media devices. According to eMarketer, " 30.5% of the UK population owned a smart phone and it has forecast that this will rise to 65.1%, or 41.9 million people, by 2016. " Flexibility with smartwatches is also in demand.

    Smartwatch revenue growth has been at an all time high. About 1.2 million digital watches will be sold this year, generating $370 million in sales, states ABI Research. It is forecasted that sales may jump more than 20-fold by 2015.

    Investors should understand the importance of sophisticated technologies required to innovate to devices such as smartwatches. According to Bloomberg, " Apple revenues can be up to $3.6 billion with smartwatch." Apple had reached its lowest level due to growth worries earlier this year since late 2011. Apple still was resilient as it is the world's largest company by market capitalisation. Companies like Apple are poised to compete in inventing new products and even more importantly instill leading standards of these devices.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: AAPL
    Jun 21 7:56 AM | Link | Comment!
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