Tech Biz Roundup: Facebook Shares CRASH, Google Overtakes Microsoft
The current weakness in consumer spending in China causes Samsung to speculate that tech spending is also being impacted. The firm forecasts that the tech goods market in that country might grow at a rate of only 7 percent in 2012, compared to 10 percent in 2011.
The day after its disappointing IPO, shares of Facebook (NASDAQ:FB) are down more than 10 percent, even though they are almost 23 times sales, and 75 times trailing earnings per share. BTIG began coverage with Neutral, which was in-line with its worries concerning FB’s valuation, slowing growth, and problems with advertising monetization. Berkeley/Stanford prof. Steve Blank goes one further, saying that Friday’s IPO ‘marks the end of Silicon Valley’s golden age’, as he concludes that Facebook and other social media/mobile players focus upon delivering huge returns in the short term, so that now venture capitalists do not like to fund companies doing major work in science and technology challenges, that promise only long term paybacks. Blank opines that only Google (NASDAQ:GOOG) and Tesla’s (NASDAQ:TSLA) Elon Musk might be still capable of that effort. On the other hand, Bill Gurley defends Facebook’s performance on Monday, as he cites the fact that Amazon (NASDAQ:AMZN) shares also fell below its May 1997 IPO afterwards, and didn’t regain the losses until July.
Internet Explorer (NASDAQ:MSFT) has lost its premier position as the world’s most popular borwser, to Google Chrome, according to StatCounter‘s most recent data. For the week of May 14 to 20, Chrome’s share was 32.76 percent, compared to 31.94 percent for IE, 25.47 percent for Firefox. Chrome’s share was only 19.37 percent a year ago this time, which representsa rise of almost 70 percent. However, NetMarketShare‘s figures contradict those of StatCounter, and imply that IE still has a ‘major lead’. At the same time, Google’s YouTube users are currently 72 hours of video every minute, according to the site, which is way up from the 48 hours claimed a year ago, and 24 hours in March 2010. The increases are credited to its efforts to promote channel subscriptions and professional content.
Facebook’s blue Monday is Apple’s (NASDAQ:AAPL) boom day. Shares of the latter take off as investors view them as values compared to those of the former. Morgan Stanley’s Adam Parker noted that Apple could soon have the S&P highest market weight since 1986, as it currently comprises 9 percent of the exchange’s trading volume, and more than 1 percent of the portfolios of 26 percent of large hedge funds, with more than 10 percent of the portfolios of 4 percent of hedge funds.
Shares of Splunk (SPLK) move up subsequent to Barclays analyst Raimo Lenschow, who contends that the market potential for the firm’s software, which is used to analyze machine data, is actually larger than is currently thought, as its solutions for analyzing petabytes (thousands of terabytes) of data daily, are “creating a whole new market”. At any rate, who could not like a name like ‘Splunk’?
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