Tech Business Recap: Amazon’s Blockbuster Promo, Zynga in the Spotlight
It was like selling dollars at half price, but Amazon (NASDAQ:AMZN) sold a million of its gift cards in 17 hours, and AmazonLocal added the million customers. Each $10 gift card went for $5, but the company will benefit in new customers as it continues towards its goal of equaling rivals Groupon (NASDAQ:GRPN), LivingSocial, and Travelzoo (NASDAQ:TZOO) in the daily deals space.
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Canadian smartphone maker Research In Motion (NASDAQ:RIMM) is beat by Apple (NASDAQ:AAPL) in shipments of Blackberrys out of the country. Once the top producer in Canada, RIMM was bested by it rival by 770,000 units in 2011, according to compilations by IDC and Bloomberg.
A good Street reception was enjoyed by Zynga (NASDAQ:ZNGA) following its purchase of Draw Something, a popular mobile game. Calling OMGPOP a ‘late bloomer’ after introducing earlier games, Baird says that “OMGPOP will add an attractive user to Zynga and… leverage Zynga’s zCloud platform to improve monetization.” Further, Draw Something has exceeded Words with Friends in downloads recently, according to Sterne Agee.
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A good bounce back for GameStop (NYSE:GME), as it more than makes up for its miss on revenue and its weak guidance. The company is making a go on its shift to a new revenue model, thinks Frank Voisin, as digital sales are up 57% year-to-year. He also points out that GameStop is now debt-free. Joe Kunkle remarks “When you trade at 4.8 times free cash flow and 40.9 percent of the float is short, the bar is low”.
The U.S. government says that AT&T (NYSE:T) billed the FCC unjustly for reimbursement, and files a suit to that effect. Shares fall on the news.
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Looking for a buyer, Monster Worldwide (NYSE:MWW) has experienced “considerable interest” from suitors, notes CEO Sal Iannuzzi, but so far nothing so promising as formal talks. Financial advisers have been retained for strategic assessment of the situation.
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