Tech Business Roundup: Amazon and Apple Play Chess, Research In Motion Slammed
Target (NYSE:TGT) says (in an internal memo) that a “conflict of interest” is causing it to cease sales of Amazon’s (NASDAQ:AMZN) Kindle line as of May 13. However, the actual reason for the action, opines The Verge, is a recent arrangement in which Target will allow Apple (NASDAQ:AAPL) to locate its mini-stores within its premises. Other basically non-book retailers have also halted relations with Amazon this year.
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Shares of Web.com (NASDAQ:WWWW) pop following its impressive first quarter results, on the heels of strong performances from both its traditional web hosting operations, and its recently-purchased Network Solutions domain registration unit. Average revenue per user increased by 2 percent quarter-to-quarter to $13.15, and turnover was constant at 1 percent. In response, Craig-Hallum upgrades shares to Buy.
Nokia (NYSE:NOK) begins maketing its Pure View phone in May, with 41 megapixels on the camera that provide it with a 3X “lossless” zoom. Some analysts predict, however, that selling the new device might be difficult since it operates on Symbian and not Windows. Nontheless, Nokia, has extended its exclusive arrangement with Carl Zeiss.
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Research In Motion’s (NASDAQ:RIMM) BlackBerry World conference’s second day brings the company no solace from the opening day’s woes: Wedge Partners says that RIM’s BlackBerry 10 comes ‘three years too late to matter’, and Jefferies predicts a “collapse” in BlackBerry 7 sales prior to 10’s intro. However, RIM is grabbing what good news it can, by proclaiming the BlackBerry’s strength in emerging markets such as Nigeria and Indonesia.
Ubiquiti Networks (NASDAQ:UBNT), shares are plummeting Wednesday, after closing on Tuesday near a 52-week high. Likely at fault are its unimpressive first quarter results, and second quarter revenue guidance of between $93 million and $95 million, and earnings per share of 28 to 29 cents, against a consensus of $93.9 million and 28 cents. Perhaps more to the point (!) was a report on Wednesday that the company’s CEO Robert Pera is employing local mafia links to put down its rivals. In response, the shares are downgraded by both Wunderlich and Raymond James.
Wall Street may have yawned at the announcement by Hewlett-Packard (NYSE:HPQ) of a major shakeup, but a month later HP’s newly-formed Enterprise Group is consolidating its regional sales teams. The move complements CEO Meg Whitman’s attempts to streamline the company’s operations amidst increasing market share losses, says Arik Hesseldahl.
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