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Google's Hiring Spree Weighs on Earnings; Shares Slide

GoogleGoogle's first-quarter earnings came in below analyst projections as the Internet search leader sped up hiring, driving up its costs.

The results released Thursday may heighten investor fears that Google's earnings might suffer because of the company's commitment to hire at least 6,200 workers this year. That would be the most in Google's 13-year history.

The company earned $2.3 billion, or $7.04 per share, in the period ending in March. That was an 18 percent increase from nearly $2 billion, or $6.06 per share, last year.

If not for expenses covering employee stock compensation, Google said it would have earned $8.08 per share. That was below the average estimate of $8.11 per share among analysts surveyed by FactSet.

Revenue was nearly $8.6 billion, a 27 percent increase from last year.

Comfort Zone Investing: If I Could Start All Over Again ...

Most investors would like a "do over."

They look back on certain investments and wish they'd never heard of, much less put money in them. Sure things like your good friend's invention that would make beer in one day from water and weeds. Or your brother's idea of selling real estate on Saturn. Everyone has their own stories. Mine are usually related to private investments in the medical device field or biotech, though I did have one out of Florida that made a "pig" that ran through oil pipelines to check on their safety. After meeting the founder who looked more like a used car salesman that caught a great sale on polyester suits, I should have known better right then. But I didn't.

Continue reading Comfort Zone Investing: If I Could Start All Over Again ...

Kansas City Wins Google Over

Kansas City Google 1Gbps BroadbandThere are a lot of upset people today following Google's announcement that Kansas City was the company's choice for its blistering fast 1 Gbps broadband Internet.

When Google (GOOG) announced its desire to find a place to test the development of a 1 gigabit fiber to the home network last February, cities and towns all across the nation started working on their presentations to get Google to come to their area. Google received 1,100 applications, but in the end, it is Kansas City that got the nod.

Continue reading Kansas City Wins Google Over

App Stores: A New Business Model

iPhone appsA new business model is springing up right under our noses. The big players like Apple (AAPL), Amazon.com (AMZN) and Google (GOOG) have put together a one-stop shop in their app stores.

First off, an app store is just that, a place where you can pick and choose the apps you want to download. The app store is also a place where entrepreneurs can develop an app and with permission place it on the iPhone, iPad or Android device.

Continue reading App Stores: A New Business Model

Would You Buy RIM on the Dip?

Research In Motion (RIMM) logoThe fast moving world of investing can turn on a dime, especially if you own technology stocks. Research In Motion (RIMM) was a smartphone darling. But then came the iPhone and now the iPad. Then we have Google's (GOOG) Android following on Apple's (AAPL) heels.

RIM suddenly woke up a found that it had fallen off its perch. Now the company is scrambling to do catch up. BlackBerry is losing North American market share and the company expects to ship only 13.5 to 14.5 million Blackberry's this quarter, down from 14.9 million last quarter, according to Reuters.

Continue reading Would You Buy RIM on the Dip?

Barnes & Noble Struggles to Find a Buyer

barnes and noble searches for buyerBookseller Barnes & Noble, Inc. (BKS) has been hoping to find a potential buyer, but it appears as though its search will end with no buyer.

The book seller has been searching for months for a potential buyer, and the search will likely continue for a couple more weeks, but people close to the bidding process have stated that it looks unlikely that the company will be able to find a buyer.

Continue reading Barnes & Noble Struggles to Find a Buyer

Stock Futures Higher on AT&T-T Mobile Deal

U.S. stock futures are higher this morning, after AT&T (T) announced its plans to buy T-Mobile USA for around $39 billion.

Futures for the Dow Jones Industrial Average surged 105 points to 11,904.00, while those for the S&P 500 stock index climbed 13.60 points to 1,287.80. Futures for the Nasdaq 100 index surged 24.25 points to 2,245.75.

Continue reading Stock Futures Higher on AT&T-T Mobile Deal

Google: Mobile Payment Service

Pay-by-phone technology may be making big moves with Google Inc. (GOOG).

According to rumors, Google plans to begin testing its new mobile phone-based payment service in New York and San Francisco in the next four months. The system, developed by VeriFone Systems (PAY), will allow mobile phones equipped with near-field-communication (NFC) technology to simply tap the phone against the register to complete the transaction.

Continue reading Google: Mobile Payment Service

Google's AdSense Gains from Groupon and Social Deals Bonanza

Groupon logoGoogle (GOOG), which is primarily known for its search advertising business, is also trying to grow its display advertising business. Google has hundreds of partnerships with other websites, and its partner advertising product is known as AdSense. AdSense is an agreement involving Google providing advertising services to its partners and then sharing revenues with them. Google competes with Yahoo! (YHOO), Microsoft (MSFT), Aol (AOL) and Facebook in the search advertising as well as the display advertising market.

One catalyst to the display ad business is the social buying phenomenon with companies like Groupon, which buys ads through AdSense. We estimate that AdSense accounts for around 5% of our $603 price estimate for Google stock. Our price is close to the market price.

Continue reading Google's AdSense Gains from Groupon and Social Deals Bonanza

Bing Travel's New Features Step on Google and Expedia's Toes

Microsoft's (MSFT) Bing has recently added a new feature called Price Predictors to its travel searches, which automatically suggest flights based on the best air fares -- and even recommends if you should buy now or hold off for a better price based on how fares are trending. For flexible travelers, suggestions are offered as one types in the search bar. We believe this will have an impact on companies like Expedia (EXPE), the largest U.S. online travel agency by booking volumes, and challenge Google's (GOOG) move into the travel search.

Continue reading Bing Travel's New Features Step on Google and Expedia's Toes

Google, Salesforce.com Bet Big on Small Business

HubSpotThe past few years have been brutal for small businesses but it looks like things are starting to improve. A report from the National Federation of Independent Business shows that confidence is at a three-year high. There are even more plans to hire employees.

Well, top companies and investors are seeing opportunity. For example, Google (GOOG) Ventures, Salesforce.com (CRM) and Sequoia Capital have announced a $32 million round for HubSpot.

Continue reading Google, Salesforce.com Bet Big on Small Business

PlayBook Compatibility with Android Apps Could Be Win-Win for RIM and Google

Research In Motion (RIMM) logoResearch In Motion (RIMM), which designs and develops the BlackBerry line of smartphones, is also expected to launch its PlayBook tablet in the first quarter of 2011. RIM, which competes with Apple (AAPL), Motorola Mobility (MMI) and Nokia (NOK) in the mobile phone market, is expected to face stiff competition from Apple's iPad and Google's (GOOG) Android-based tablets.

RIM lacks the apps ecosystem strength enjoyed by Apple and Google, one reason why RIM has been slowly losing its share in the smartphone market. Without a conscious effort to improve its app platform, RIM's PlayBook may not gain much traction in the tablet market.

See our full analysis and $74.28 price estimate for RIM.

Continue reading PlayBook Compatibility with Android Apps Could Be Win-Win for RIM and Google

Google's New Venture to Add Revenue to YouTube

YouTube logoGoogle (GOOG) is ever searching for new opportunities. This time they want to enhance their YouTube site, which is noted for allowing and promoting home videos.

Google has a successful money stream called its partner program for YouTube. If you become a partner you agree to let Google place ads on your video and to let Google rent your video.

Continue reading Google's New Venture to Add Revenue to YouTube

Android Becomes the King of Mobile

Android logoGoogle's (GOOG) mobile operating system, Android, is an example of how acquisitions have made a big difference. This technology came from a deal struck in 2005. Then, after lots of internal development, Google launched Android in 2007. Since then, the growth has been sizzling.

In fact, according to the most recent report from comScore, Android's market share hit 31.2%. Yes, it is now the number one mobile operating system.

Continue reading Android Becomes the King of Mobile

Apple Still Fortune's Most Respected Company

Apple (AAPL)Fortune has released its list of the world's 50 most respected companies and once again Apple Inc. (AAPL) tops the list.

This is the fourth year in a row that the Cupertino based company has grabbed the top slot. Apple's respect comes mainly due to the company's ability to release new products at an amazingly quick pace, often updating its main product lines at least once a year.

Continue reading Apple Still Fortune's Most Respected Company

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DJIA+79.4015,466.98
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Last updated: May 22, 2013: 12:57 PM

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