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  • New LTE Deals Could Bolster Nokia's Declining Networks Sales
    Mon, Jun. 2 NOK 16 Comments

    Summary

    • Nokia's first quarter results were mixed, even as margins improved on a higher mix of software sales and strong cost controls.
    • Although Europe remained challenging during a seasonally weak first quarter, the company has built a strong pipeline of orders on a number of recent contract wins, which could bolster sales going forward.
    • Our $7.30 price estimate for Nokia is about 10% below the current market price.
  • SanDisk And Toshiba To Produce 3-D Chips
    Mon, Jun. 2 SNDK, TOSYY 1 Comment

    Summary

    • Every year, the advancement of technology has led chip makers to accommodate more data on chips while simultaneously shrinking their physical size.
    • 3-D technology stacks the chips vertically in an array, unlike planar NAND technology where the chips are arranged like a grid.
    • The SanDisk-Toshiba chips will hit the market significantly later than competitors Samsung, Hynix and Micron because of the company's continued focus on small size chips and 2-D technology.
  • AOL Eyes TV Video Ad Dollars With The Acquisition Of Precision Demand For Adapt.tv
    Mon, Jun. 2 AOL 1 Comment

    Summary

    • The company has intensified its efforts to capture a bigger chunk of the programmatic ads industry.
    • Adapt.tv is one of the biggest platforms for buying inventory on digital video.
    • Digital video ad spend is increasing at a faster pace and much of this growth is coming from mobile devices.
  • Baidu Plans IPO For Its Video Business
    Mon, Jun. 2 BIDU Comment!

    Summary

    • Baidu's iQiyi unit, a provider of online video steaming services in China, has plans to raise funds via an initial public offering in the next three years.
    • The company is aiming for the largest market share and revenue share in China by the time of the IPO, per a Bloomberg report.
    • An iQiyi IPO is a good diversification strategy for Baidu, whose business has been heavily dependent on search offerings to generate revenues.
  • International Expansion, Mobile Potential Make eBay A $60 Stock
    Fri, May. 30 EBAY 8 Comments

    Summary

    • We expect eBay to grow its revenues from roughly $16 billion in 2013 to $36.5 billion by 2020.
    • PayPal has been going strong over the last few years, with the number of active registered accounts rising from 57 million in 2007 to 143 million in 2013.
    • According to eMarketer’s forecast, global business-to-consumer e-commerce sales are expected to jump by roughly 20% in 2014, amounting to $1.5 trillion.
  • What Merck, Bristol-Myers Squibb And Roche Are Doing To Win The Immuno-Oncology Drugs Market
    Fri, May. 30 MRK, BMY, RHHBY Comment!

    Summary

    • The race for immuno-oncology drugs is on. According to some estimates, the market could be as big as $35 billion.
    • Given their focus on biologics and relatively strong immuno-oncology pipelines, Merck, Britol-Myers Squibb and Roche Diagnostics stand to gain from the potential.
    • We expect a strong focus from each of these companies on both in-house research and development, as well as co-development partnerships.
  • Netflix: A Look At The Company's Potential In New European Markets
    Fri, May. 30 NFLX 6 Comments

    Summary

    • The company's latest expansion includes Germany, France, Austria, Belgium, Switzerland and Luxembourg.
    • Netflix currently has more than 13.6 million international subscribers in Europe, Canada and Latin America.
    • The expansion planned for the second half of 2014 could push quarterly net additions to as high as 2 million.
  • TripAdvisor Enters Online Restaurant Reservation Space With Acquisition Of LaFourchette
    Thu, May. 29 TRIP Comment!

    Summary

    • TripAdvisor is the world’s largest travel review website and averages more than 250 million unique visitors in a month.
    • In a move to attract more users and better monetize its restaurant traffic it acquired LaFourchette this month for $140 million in an all cash deal.
    • TripAdvisor has a history of acquiring startups, such as SeatGuru, Jetsetter and Niumba, and integrating their services with its own.
  • A Review Of Twitter's Business As Market Converges With Our Valuation
    Thu, May. 29 TWTR 5 Comments

    Summary

    • We believe that the current market valuation closely reflects Twitter's fundamentals.
    • Twitter's revenue growth is being fueled by the growing online advertising market, users shifting to mobile, attractive ROI (return on investment) for investors and high engagement levels due to real-time conversations.
    • Much of Twitter's ad revenue growth is being driven by the increasing number of ad impressions.
  • IBM To Discontinue Selling NetApp Storage Products
    Thu, May. 29 NTAP 2 Comments

    Summary

    • Earlier this week, IBM announced its decision to stop sourcing and reselling NetApp's N series products from May 27 onwards.
    • A continued slump in its hardware sales coupled with a declining market share in the storage hardware market led IBM management to make this decision.
    • Still, NetApp is likely to continue to witness growth from its non-product based revenue streams such as software entitlements and maintenance and hardware maintenance contracts.
  • Factors That Can Lower Our Valuation For Cree By 30%
    Thu, May. 29 CREE 13 Comments

    Summary

    • Cree's stock price has declined by more than 20% year-to-date.
    • The rising proportion of lighting sales puts pressure on Cree's overall gross margin as lighting products offer lower profit margins compared to LED devices.
    • However, with $1.1 billion in cash and no debt, the company has a strong balance sheet, which gives it the ability to invest in growing its business.
  • Microsoft Strengthens Its Hardware Vertical With Surface 3 Launch
    Wed, May. 28 MSFT 22 Comments
  • New Products To Expand TI's Presence In The Growing Embedded Market
    Wed, May. 28 TXN Comment!

    Summary

    • TI has been focusing on transitioning its operations to become a pure analog and embedded processing company.
    • The company is one of the leading player in the analog semiconductor market and derives over 60% of its revenue from this division.
    • TI plans to reduce investment in certain embedded processing product lines that either have matured or do not offer the return opportunities it is looking for.
  • EMC Acquires Chip-Maker DSSD To Boost Flash Portfolio
    Wed, May. 28 EMC Comment!

    Summary

    • The acquisition should help the company improve its flash portfolio by providing new technology for pooling server-based flash which will be used to access Big Data.
    • Sustained growth in emerging storage products could help the company meet its top line guidance.
    • EMC has had success with acquisitions in the past, including VMware. The company's acquisitions are currently fast-growing and profit-generating businesses.
  • Will Amazon Have A Tough Time In India?
    Wed, May. 28 AMZN 3 Comments

    Summary

    • While India presents a growth opportunity for Amazon, lack of foreign direct investment in retail and local consolidation could prove challenging.
    • Still, Amazon has the financial muscle and expertise to create a formidable presence in the region.
    • The retail market in India stands at over $350 billion and is growing at a healthy compounded annual growth rate of 15-20%.
  • Intuitive Surgical: New Products Offer Little Help As Future Uncertainties Remain
    Tue, May. 27 ISRG 12 Comments

    Summary

    • Intuitive Surgical has faced significant headwinds in the past year owing to several factors.
    • Considering concerns surrounding its da Vinci system, Intuitive Surgical lowered its guidance for growth in the number of procedures from 9-12% to 2-8% for 2014.
    • Although market concerns are likely to continue to weigh on its performance in the near term, we expect the company to gradually benefit from sales of its new products.
  • Is Spotify A Threat To Pandora?
    Tue, May. 27 P 13 Comments

    Summary

    • Spotify reported that it has crossed the milestone of 10 million paid subscribers.
    • In the U.S., the company is estimated to have around 3 million paying subscribers, which is slightly below that for Pandora.
    • Still, Pandora's brand catalog of user-created stations and device reach have found a strong reception among customers.
  • Increasing Investment In China Can Help Expand Intel's Mobile Presence
    Tue, May. 27 INTC 8 Comments
  • NetApp Earnings: Storage Slump Continues, Services Drive Growth
    Fri, May. 23 NTAP Comment!

    Summary

    • The company reported an 8% year-over-year decline in its storage product revenues to just over $1 billion.
    • However, revenues generated by NetApp's services division grew by almost 8% over the year ago period to $378 million.
    • We expect NetApp to gradually gain market share in the storage hardware market.
  • Trina Solar Has A Solid Q1 On Better Costs And Pricing
    Fri, May. 23 TSL 1 Comment

    Summary

    • The strong results were primarily driven by improved sales into high priced markets such as Japan and the United States, as well as better cost management.
    • That had a positive impact on the company's average selling prices and revenues, since prices in Japan and the United States are comparably higher than in China.
    • For the second quarter, the company expects to ship 950 MW to 1,010 MW of modules.
  • HP Earnings: Cost Restructuring Takes Center Stage As Revenues Remain Tepid
    Fri, May. 23 HPQ 5 Comments

    Summary

    • HP's revenues declined by 1% year-over-year to $27.3 billion, albeit at a slower pace.
    • As part of its cost restructuring, HP said a reduction in workforce will reach 41,000 employees by the end of 2014 and will likely total 45,000 to 50,000 by 2015.
    • The company expected this to create additional run-rate savings in fiscal 2016 of approximately $1 billion per year.
  • Medtronic Reports Modest Revenue Growth But Litigation Hurts Profits
    Thu, May. 22 MDT 2 Comments

    Summary

    • Medtronic's recently reported fourth-quarter fiscal 2014 results reflected operational revenue growth of 3.3% year-over-year to about $4.57 billion.
    • Medtronic also announced it had negotiated a settlement with Edwards Lifesciences over their patent infringement legal dispute concerning its CoreValve device.
    • As part of that litigation, Medtronic incurred a one-time charge of $589 million in the fourth quarter, increasing its total expenses over 23% y-o-y to about $4.1 billion.
  • Why Micron's Stock Price Doubled In The Last Year
    Thu, May. 22 MU 29 Comments
  • Perfect World Posts Strong Growth Despite Lowered Promotional Activity
    Thu, May. 22 PWRD 1 Comment

    Summary

    • The company generated $143 million in revenue from online games in Q1 2014.
    • Although revenues were down by about 2.5% sequentially, we believe the performance was still impressive given that annual growth was 44%.
    • The company generated $7.3 million in licensing revenues in Q1, nearly even with the prior quarter.
    • Licensing revenues will remain close to this level in coming quarters, as the company expands into international markets, which will cannibalize licensing activity.
  • AT&T-DirecTV Deal Could Provide Financial, Strategic Benefits If Approved
    Wed, May. 21 T, DTV 2 Comments

    Summary

    • The deal will provide AT&T an opportunity to rapidly expand TV services along with its wireless and broadband services.
    • In addition to the strategic benefits, AT&T was likely drawn to DirecTV's significant cash flows.
    • The deal also is expected to help AT&T enter into lucrative markets in Latin America, where DirecTV is the leading pay-TV provider with over 18 million subscribers.
  • Salesforce.com Earnings: Revenue Growth Strategy Continues To Trim Margins
    Wed, May. 21 CRM 3 Comments

    Summary

    • Quarterly revenues reached approximately $1.28 billion for the company, with $1.15 billion recognized from its subscription and support business.
    • The subscription and support business is Salesforce's largest division, and the company has been reinvesting aggressively to accelerate its revenue growth rate.
    • Revenues from its professional services business, which include various consulting and other training services to its customers, expanded 58% on a year-on-year basis.
  • Focus On China To Expand Broadcom's Wireless Business
    Wed, May. 21 BRCM Comment!

    Summary

    • China accounts for more than 90% of Broadcom's exports.
    • The issuance of 4G licenses, promotion of the Broadband China project and popularization of HD videos provide significant growth opportunities in the region.
    • Broadcom has been focusing on building relationships with low-cost smartphone makers in China.
  • NetApp Earnings Preview: Slowdown In Storage Hardware Sales Could Weigh On Results
    Tue, May. 20 NTAP Comment!

    Summary

    • Storage hardware product sales declined by 3% across the industry in 2013.
    • EMC reported a decline in its storage products revenues - a trend which is likely to be seen in NetApp's earnings as well.
    • On the other hand, NetApp's maintenance revenues (both software and hardware) could continue to grow on the back of a solid customer base.
  • Demand For Higher-Generation Glass Substrates Will Drive Corning's Display Volumes
    Tue, May. 20 GLW 1 Comment

    Summary

    • Since 2011, declining LCD prices for Corning have taken a toll on the segment's revenues, which dropped to $2.54 billion in 2013.
    • In coming years, Corning will benefit from the growing demand for higher-Generation (larger-sized) glass substrates from device manufacturers.
    • Additionally, demand for LCD TVs, PC monitors, mobiles and tablets, especially with larger screen sizes, will continue to drive display volumes at Corning.
  • Best Buy Earnings Preview: Key Initiatives That Will Drive Growth
    Tue, May. 20 BBY 3 Comments

    Summary

    • After witnessing a significant decline in its top line in fiscal 2013, the company saw its growth re-accelerate in fiscal 2014 as it benefited from its restructuring initiative.
    • Accelerating growth in its online segment remains one of the main focuses for the company.
    • The company also is emphasizing dedicated selling space For Microsoft, Apple and Samsung products.
  • Xiaomi Launches World's First Tablet Based On Nvidia's Tegra K1
    Tue, May. 20 NVDA Comment!

    Summary

    • Nvidia believes that Tegra K1 will help the company set new mobile standards by supporting the latest PC-class gaming technologies on the mobile platform.
    • The Xiaomi MiPad will be available in China starting in June as an open beta.
    • Nvidia will benefit from Xiaomi's dominance in the Chinese smartphone market as well as its potential growth in the tablet market.
  • Lexmark Set To Acquire Swedish Company ReadSoft
    Mon, May. 19 LXK Comment!

    Summary

    • ReadSoft will be integrated with Perceptive Software, and this will give Lexmark a foothold in the fast growing content and business process management market in Europe.
    • The Perceptive Software division is the company's second biggest business unit and makes up over 10% of Lexmark's estimated value.
    • Perceptive experienced annual growth of 53% in 2013 and reported $239 million in revenues for FY13.