Technology

Adobe Rallies on Q2 Earnings

twocents@thestreet.com (David Webster) — Tue, 18 Jun 2013 21:09 GMT

NEW YORK (TheStreet) -- Adobe shares ROSE 4.36% TO $45.25 after the California-based software company reported strong earnings for its second quarter.

Adobe earned 36 cents per share on a non-GAAP basis on $1.01 billion in sales. Analysts were expecting the company to earn 33 cents per share on $1.01 billion in revenue.

The company reported that Creative Cloud subscriptions hit 700,000, while Adobe Marketing Cloud bookings grew over 25% ...

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Icahn Turns to Roots in $14 a Share Dell Tender

twocents@thestreet.com (Antoine Gara) — Tue, 18 Jun 2013 21:01 GMT

NEW YORK (TheStreet) - Carl Icahn is turning to his roots in a new $14 a share tender offer for Dell , as the activist tries to improve upon a $13.65 a share takeover offered by Silver Lake Partners and founder Michael Dell that now has full support from the struggling PC-maker.

Instead of a complicated $12 a share special dividend and a publicly traded stub of Dell shares, Icahn is simply proposing the company's current shareholders hand over their stock to him for 35 cents more than Silver Lake and Michael Dell's takeover offer.

Icahn is offering to buy up to $16 billion in Dell shares at $14 a share, or roughly 72% of the company's total shares. ...

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Tesla Pops on GM Rumor (Update 1)

twocents@thestreet.com (Chris Ciaccia) — Tue, 18 Jun 2013 20:08 GMT

Updated to include second Musk tweet about battery swapping.

NEW YORK (TheStreet) -- Tesla Motors shares rose 1.44% to $103.68 after market rumors suggested that General Motors would start to license some of Tesla's technology for its vehicles.

The unsubstantiated rumors did not mention what technology GM would license in the deal. It is worth noting that Tesla has deals with both Daimler and Toyota Motors to build power trains for both companies. ...

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Advanced Mirco Devices Jumps on New Server Chips

twocents@thestreet.com (Gary Krakow) — Tue, 18 Jun 2013 19:13 GMT

NEW YORK (TheStreet) - Chip maker Advanced Micro Devices was gaining in New York after the semiconductor maker said its next generation of server processors will run on ARM-based Cortex technologies rather than Intel's x86 format.

Advanced Micro Devices was gaining 1.2% to $410 in afternoon trading. Shares have surged 70% in 2013 compared to a 16% advance for the S&P 500.

ARM-based chips can be found in smartphones and tablets which run Google's Android, Apple's iOS and some Microsoft Windows 8 devices. ...

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'Man of Steel' Drives Time Warner Toward 12-Month High

twocents@thestreet.com (Leon Lazaroff) — Tue, 18 Jun 2013 18:50 GMT

NEW YORK (TheStreet) - Time Warner was gaining for the third day in four fueled by ticket sales from "Man of Steel," the media conglomerate's revival of the Superman series that brought $113.1 million over the weekend.

Shares of New York-based Time Warner were rising 1.7% to $58.95, moving nearer to the stock's 12-month high of $61.52 reached on May 7.

Time Warner, which has gained 23% this year, is rated a buy by 23 out of 33 analysts, according to data compiled by Bloomberg. The shares trade at 16.8 times estimated earnings, even with the S&P 500 Media Index of the largest U.S. stocks in the sector, which trades at 16.9 times forward earnings. ...

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Sony Jumps as Loeb Lifts Stake

twocents@thestreet.com (David Webster) — Tue, 18 Jun 2013 18:11 GMT

NEW YORK (TheStreet) -- Sony shares gained 3.52% to $21.45 in Japanese trading after Third Point, a New York-based hedge fund, raised it's stake in the electronics giant.

Third Point's stake in the Tokyo-based company is now 70 million shares, beefed up from 64 million, and is valued at $1.4 billion. This makes Third Point one of Sony's largest shareholders.

Daniel Loeb, portfolio manager of the $13 billion fund, proposed in a letter obtained by TheStreet, that the company spin off its entertainment sector. Loeb suggests that by spinning off 15% to 20% of the entertainment division in an initial public offering, Sony will see an increase in capital and a successful revitalization. He offered to up his existing share in Sony to 6.9%, giving the company a $1.5-$2 billion backing if the move was completed. ...

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Why Apple Sucks as an Investment, but Amazon Doesn't

twocents@thestreet.com (Rocco Pendola) — Tue, 18 Jun 2013 17:21 GMT

NEW YORK (TheStreet) -- Yes. That's a provocative headline. Designed to make you click. Pretty amazing, isn't it, that we do that in this business. We actually want to catch your attention at the front door, so you'll walk in, spend some time, use the back door and do it all over again sometime soon.

Sort of like the television or radio programs that "tease" really interesting things right before a commercial break. Or the music act that saves their best songs for the encore.

Truth be told, most people who complain about outrageous headlines don't actually have a problem with the outrageous headline. They just use the spectacle of the headline to project annoyance with an argument their psychological filters keep them from considering. So, ironically, they are are much more nefarious and suspect in their use of the headline than we are. ...

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Oracle's Earnings: What Wall Street's Expecting

twocents@thestreet.com (Chris Ciaccia) — Tue, 18 Jun 2013 16:02 GMT

NEW YORK (TheStreet) -- Oracle is set to report earnings after the close of trading Thursday, and all eyes will be on whether the tough IT environment is continuing for the software giant.

Oracle, led by CEO Larry Ellison, is expected to earn 87 cents per share on $11.12 billion in revenue for its fiscal fourth quarter, according to analysts surveyed by Thomson Reuters.

Shares of Oracle were higher in Tuesday trading, up 0.8% to $34.54. Oppenheimer analyst Brian Schwartz, who rates shares "overweight", with a $40 price target, says the softer trends for Oracle are likely to continue, and could actually wind up weighing on Oracle's guidance, as it moves into fiscal 2014. "Recent feedback from our larger system integrator contacts was mixed as the pace of new strategic, enterprise-wide business initiatives experienced softer trends within their pipelines," Schwartz wrote in his note. This suggests that a tough IT selling environment for infrastructure software remains, consistent with our prior view, and could restrain Oracle's outlook." ...

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Apple, Microsoft: Tech Stocks For The Rest of 2013

twocents@thestreet.com (Andrea Tse) — Tue, 18 Jun 2013 15:15 GMT

NEW YORK (TheStreet) -- Many of the more conservative members of the investment community have the impression that technology stocks are a risky, cyclical, high beta sector. Bank of America Merrill Lynch's head of U.S. equity and quantitative strategy, Savita Subramanian, sees it differently, with Apple and Microsoft being two of the top picks for the rest of 2013.

Subramanian said this is the sector that has become exactly where some of the most risk-averse retail investors should be exploring for good deals.

Technology as a whole is one of the only two sectors, the other being healthcare, that actually grew earnings over the last recession in 2009. What's more, a closer look at tech shows "pristine," cash-loaded balance sheets of many large-cap companies across the tech industries following the last decade's waves of consolidations, Subramanian noted after a recent Bank of America mid-year conference in New York. ...

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Quick Take: Betting on Tech

twocents@thestreet.com (Bret Kenwell) — Tue, 18 Jun 2013 15:01 GMT

NEW YORK (TheStreet) -- TheStreet's Stephanie Link tells Lindsey Bell why Action Alerts PLUS is making a bet on improved information technology spending in the second half of 2013. Cisco made new 52-week highs Monday on signs that the service-provider market is starting to improve, and Link said shares of the tech giant could go even higher. Link also said that Cisco was focusing more on software and security, rather than routers, which are more of a commoditized business. Changing directions a bit, she told Bell that she and Cramer had trimmed their position in Oracle ahead of earnings this week. Although they do expect an in-line result, the bounce from the low-$30 range has proved rewarding. "If the stock were to pull back, then we would buy back what we just sold," she added. When Bell asked what stocks she is watching, Link said Accenture and IBM are at the top of the list due to their stability and bellwether stature. Facebook is another name they continue to like over the long term, even though many investors appear to have given up on the name. "We see the substantial growth drivers in that position," she concluded.

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This Article Doesn't Paraphrase a Netflix Press Release

twocents@thestreet.com (Rocco Pendola) — Tue, 18 Jun 2013 14:30 GMT

NEW YORK (TheStreet) -- Monday morning went off like so many Monday mornings of the past.

Netflix put out a press release. The media regurgitated its contents, reporting with little more than line-by-line paraphrasing. And, of course, NFLX stock soared. Up more than 7% intraday and at the close.

Few people ask questions. We just take it at face value. Netflix signs a deal with Dreamworks Animation for "exclusive" access to original programming so it must be good. ...

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Do Artists Really Hate Pandora?

twocents@thestreet.com (Rocco Pendola) — Tue, 18 Jun 2013 14:00 GMT

NOTE to readers, indie artists, music types: I'm putting my Twitter contact up top because this article is, in part, a request for engagement. So hit me up on Twitter: @rocco_thestreet.

NEW YORK (TheStreet) -- Check out this sampling of comments from an article, published by The Hill, that details the music industrial complex's outrage over Pandora's decision to purchase an FM radio station.

They sort of fly in the face of the message the music industry attempts to craft. One that effectively claims Pandora hates musicians and wants to pay them as little as possible. As I have illustrated, repeatedly, it's a shallow talking point of an argument lacking context and nuance. But, if the commenters to The Hill's piece are at all representative of the general public, not everybody blindly falls for the music industry's propaganda. But only a tiny percentage of artists have ever profited from radio royalty payments... Ever. if pandora is paying a higher rate per song than clear channel, then individual payments to artists can only be lower because it is playing a wider selection of music... because it's a music discovery service. exposing listeners to new music should drive sales of albums, tracks and concert tickets through other channels... they are following the law... to bad if greedy musicians and songwriters don't like it. the laws say if you own a terrestrial station you pay so much...they have conformed to the law... Pandora has a link to bookmark and purchase a song I like. I'm buying more music than ever before ... The dinosaurs just can't see a new opportunity and position themselves for it... ...

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HP Reshuffles Printing Leadership

twocents@thestreet.com (James Rogers) — Tue, 18 Jun 2013 13:46 GMT

NEW YORK (TheStreet) -- HP shuffled the leadership of its key Printing and Personal Systems group (PPS), the No. 1 PC maker announced on Tuesday.

Todd Bradley will step out of his role as executive vice president, PPS, and become executive vice president of Strategic Growth Initiatives, a newly created position. Bradley will work directly with CEO Meg Whitman on enhancing HP's Chinese business, and extending its channel partnerships around the world, according to a company statement.

Dion Weisler, who is currently senior vice president for HP's PPS business in Asia-Pacific and Japan, will assume Bradley's former role. Weisler will report directly to Whitman and join the firm's executive council. ...

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3D Printing: Metals The Next Frontier

twocents@thestreet.com (Chris Ciaccia) — Tue, 18 Jun 2013 12:43 GMT

NEW YORK (TheStreet) -- 3D Systems shares were rising in early trading, up 0.56% to $48.48 after one research firm raised its price target, citing a move into the next frontier: the metal space.

Canaccord Genuity analyst Bobby Burleson raised his price target to $55 from $50, keeping his "buy" rating, following the company's recent analyst day. Burleson noted 3D Systems' move into the metal space as the primary reason for the price hike because of its higher growth rates and higher average selling prices (ASPs). "We note that, at the analyst day, DDD discussed plans to move Phenix machines toward integrated materials, improving long-term profitability on metal-based machines," Burleson wrote in the note.

Burleson is also positive on 3D Systems' distribution deal with Synnex, noting that it's helping drive incremental demand for 3D printing. The deal could help drive 2013 revenue toward the high end of guidance ($460 million to $510 million in sales). ...

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The Digital Skeptic: World's Web Won't Like Our Detroit Gas-Guzzler Data Use

twocents@thestreet.com (Jonathan Blum) — Tue, 18 Jun 2013 12:00 GMT

NEW YORK (TheStreet) -- Sergio Tagliapietra figured out the dirty little secret of global, Web-based, software-as-a-service companies.

And he did it while shopping for an Italian cellphone for his American wife.

"When we travel together to Italy, I have to get her an in-country SIM so we do not spend a fortune on the cellphone bill," this trim 30ish Italian told me at a damp Venetian bar last month. "This year I am getting amazing prices. But she still can't go nuts on the Internet usage. It still easily runs out." ...

Clouds of Doubt Reign Over Red Hat

twocents@thestreet.com (Richard Saintvilus) — Tue, 18 Jun 2013 10:00 GMT

NEW YORK (TheStreet) -- Investors who once cast their lots on stocks having anything to do with the cloud and virtualization are adjusting their expectations. I don't blame them. Doubt now reigns over an industry once perceived as infallible Now the entire virtualization/cloud industry appears to be in transition. The culprit -- weak spending in enterprise IT.

These concerns have placed more attention on companies like Red Hat , whose stock is down 13% this year. Investors fear that despite its strong Linux business, Red Hat lacks differentiation in areas such as middleware, the software that lies between an operating system and specific software applications. That will weaken Red Hat's leverage against two of the market leaders, Oracle and IBM .

Meanwhile, in its core open-source Linux business, Red Hat has to fight off rivals including VMware and Citrix . These companies are building up their capabilities with partnerships and entering related areas like mobile data traffic. Red Hat is being attacked from all angles. With its fiscal first-quarter earnings report due out Wednesday, management must provide answers and affirm that this company's still a good long-term bet. ...

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Netflix Nails DreamWorks Deal: Tech Winners

twocents@thestreet.com (David Webster) — Mon, 17 Jun 2013 20:12 GMT

NEW YORK(TheStreet) Netflix shot up 7.12% to $229.23 after the company signed its biggest original content deal ever.

The video streaming company is teaming up with the powerhouse of kid's content, Dreamworks Animation. Previously, Netflix had a deal for children's content with Viacom, but the contract ended. The deal with DreamWorks, however, will cut out the middle man, and the company will get exclusive access to over 300 hours of original content.

Netflix has started to build a foundation of its own content, after releasing the political drama House of Cards, and adopting a bonus season of the cult-followed television series, Arrested Development. ...

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Betting on Tech

twocents@thestreet.com (Lindsey Bell and Stephanie Link) — Mon, 17 Jun 2013 19:42 GMT

The trough in IT spending is here and Action Alerts Plus Co-Portfolio Manager, Stephanie Link, is moving the portfolio to overweight tech.

Investors on Fed Watch

twocents@thestreet.com (TheStreet Staff) — Mon, 17 Jun 2013 16:23 GMT

Netflix, Dreamworks higher on deal. Dow spikes triple digits on higher housing data.

Facebook Announcement: Video Instagram? (Update 1)

twocents@thestreet.com (Chris Ciaccia) — Mon, 17 Jun 2013 15:59 GMT

Updated from 9:49 a.m. EST to provide Facebook response and updated stock price.

NEW YORK (TheStreet) -- Facebook is gathering up the press for a major product announcement on Thursday, asking attendees to "join us for coffee and learn about a new product." But those attendees may not be attending a Facebook event, after all.

TechCrunch reported that the Facebook announcement would be nothing to do with an RSS reader, as many have suggested, but in fact related to Instagram, the popular photo-sharing social network Facebook purchased last year. ...

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Netflix Strengthens Hand in DreamWorks Partnership

twocents@thestreet.com (Antoine Gara) — Mon, 17 Jun 2013 15:32 GMT

Updated from 8:29 a.m. ET to reflect additional analyst comments and opening share prices.

NEW YORK (TheStreet) -- Netflix is teaming up with DreamWorks Animation to bring TV series and movies to the streaming video service, in a deal that strengthens the company's hand in winning original content and new subscribers.

DreamWorks Animation will create at least 300 hours of original Web-only movie and TV content, in a partnership that further underscores attempts by Netflix and its CEO Reed Hastings to take on the cable TV industry. Partnering with DreamWorks indicates Netflix will be taking a multi-faceted approach to its content library, as the company picks over Hollywood for the right formula to grow its subscriber base of nearly 30 million. ...

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Zillow Boosts National Exposure With New TV Ad

twocents@thestreet.com (Chris Ciaccia) — Mon, 17 Jun 2013 15:15 GMT

NEW YORK (TheStreet) -- Zillow , in an effort to boost its national exposure, is continuing its first-ever national advertising campaign, debuting its second commercial.

The Seattle-based online real estate company will have two versions of its "Long Distance" ad, a 30-second and 60-second version, dubbed "Find Your Way Home." The ads will air on several networks, including HGTV, CNN, USA, A&E and Lifetime. It's the second television commercial for Zillow under its ad campaign that began earlier this year.

"The process of shopping for a home today is emotional, absorbing, collaborative, and driven by technology and online information," said Amy Bohutinsky, Zillow chief marketing officer, in a press release. "Our 'Find Your Way Home' campaign chronicles modern families in ways that most home shoppers can relate -- as they search for not just a home, but a place for their life to happen." ...

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BREAKING: Indie Artist Wants Pandora to Act Like a Charity

twocents@thestreet.com (Rocco Pendola) — Mon, 17 Jun 2013 15:00 GMT

NEW YORK (TheStreet) -- I have tried to engage indie artist Blake Morgan. Pandora's co-founder and Chief Strategy Officer Tim Westergren has done the same. I can only assume others have as well.

In my case -- and, from what I understand, in Westergren's case -- these overtures receive no response from Morgan. That's not much of a surprise. Morgan must know deep down that he floats a flawed argument. However, he was at it again over the weekend on NPR's "Weekend Edition."

Morgan discusses the royalty situation minus any necessary context and nuance, which strikes me kinda funny. He's a singer/songwriter; the really good ones tend to look past talking points, war cries and window dressing. ...

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Can Adobe Maintain its Momentum?

twocents@thestreet.com (Richard Saintvilus) — Mon, 17 Jun 2013 14:42 GMT

NEW YORK (TheStreet) -- There's nothing that Wall Street hates more than uncertainty, and investors may be wondering about Adobe as it makes a major transition in its business model.

Adobe -- still the dominant leader in the multimedia software market -- has been working to transform its business from the traditional "software sold in a box" to an online/cloud subscription-based model. So far the transition has gone well.

On Tuesday, the company will report results for its second quarter, and investors will be watching closely to see if the company can continue its momentum after a strong start to the year. The stock, trading at around $43, is up 25% so far this year. ...

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Pandora Absolutely Must Do Better Now

twocents@thestreet.com (Rocco Pendola) — Mon, 17 Jun 2013 14:30 GMT

NEW YORK (TheStreet) -- While I generally believe Pandora receives a raw deal in the media, from the music industrial complex and, to a lesser extent, the court of public opinion, areas exist where the company not only can, but absolutely must do better.

Believe it or not, I have been a frequent critic of Pandora.

Late last year, I came out against co-founder Tim Westergren's blog post that detailed how much the company pays individual artists in royalties. I tend to agree with the sentiment Westergren expressed, however he picked the wrong time and approach to make his case. For better or worse, it's difficult to overcome the music industrial complex's talking point that Pandora wants artists to take a pay cut. As such, we need more action, fewer words from Pandora. ...

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5 Best Real Estate Apps

twocents@thestreet.com (Katie Roof) — Mon, 17 Jun 2013 14:20 GMT

NEW YORK TheStreet-- When looking for a home, it turns out a real find is subject to interpretation. Fortunately, with all the real estate photos available online these days, it's pretty easy to rule out homes before you visit. Some realtors are even using drones to give you a better glimpse of that beachfront home. That isn't creepy at all.

With mobile real estate apps, you can look for a home while you're filling your gas tank or waiting in line at the mall. (The way gas prices are looking, you better save money on housing). Whether you're looking to rent or buy, the Apple App Store has a lot of to choose from.

If you're planning out your search, these apps will help you narrow choices down. If you're already on the hunt, using these apps can help you find what openings are nearby. Once you've found the perfect place, use the apps to calculate whether or not you can afford it. Sorry, the numbers don't lie. ...

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Lowe's Offers to Buy Orchard Supply: Ahead of the Ticker

twocents@thestreet.com (Brittany Umar) — Mon, 17 Jun 2013 14:06 GMT

NEW YORK (TheStreet) -- Home-improvement retailer Lowe's offered to buy Orchard Supply Hardware Stores for about $205 million in cash.

The offer comes after Orchard Supply filed a voluntary Chapter 11 bankruptcy petition on Monday. Lowe's bid sets the stage for an auction of Orchard's assets.

Lowe's said it would acquire at least 60 of Orchard's 91 stores, most of which are located in California, giving Lowe's an enhanced presence in the state. Lowe's also said it would assume payments owed to Orchard's suppliers. ...

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Intel's Next Trick May Be Octa-Core Processors

twocents@thestreet.com (Gary Krakow) — Mon, 17 Jun 2013 13:56 GMT

NEW YORK (TheStreet) - As the first computers to take advantage of Intel's latest and arguably greatest processors are reaching the market, speculation is rife about what might come next.

According to VR-Zone the next generation of Intel Haswell chips will have eight cores of processing power.

The new "Haswell-E" chips will up the ante from the current line Ivy Bridge-E, quad-core processors. The new line will give manufacturers and end users the choice of either 6 or 8-core desktop CPUs with as much as 20 MB of L3 cache. Current Haswell chip are used in computers which run Microsoft Windows and Apple OS X operating systems. ...

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Jay Z, Apple TV: Tim Cook Needs to Get His Head Out of His ...

twocents@thestreet.com (Rocco Pendola) — Mon, 17 Jun 2013 13:30 GMT

NEW YORK (TheStreet) -- In last week's Will Apple Ever Release a New Product I buried the lead.

The question -- What the hell happened to Apple TV? -- must come to the forefront. It's shocking that few people press Cook on the issue. Steve Jobs had things figured out, yet the living room remains an area of interest, according to Cook.

Innovation at Apple these days equals the SVP of Worldwide Marketing cursing in a room of Kool-Aid drinkers about a product that hasn't even been released yet and, relatively speaking, nobody will buy. ...

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Apple Responds to Privacy Concerns

twocents@thestreet.com (Chris Ciaccia) — Mon, 17 Jun 2013 12:18 GMT

NEW YORK (TheStreet) -- In a rare move, Apple has put out a statement on consumer privacy, noting it received between 4,000 and 5,000 requests from the federal government for consumer data since December of 2012.

Here's the statement in its entirety:

Two weeks ago, when technology companies were accused of indiscriminately sharing customer data with government agencies, Apple issued a clear response: We first heard of the government's "Prism" program when news organizations asked us about it on June 6. We do not provide any government agency with direct access to our servers, and any government agency requesting customer content must get a court order. ...

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