Weekly Tech Business Recap: Stocks Rocket Higher on Facebook IPO

Monday

SAP (NYSE:SAP) is open to licensing its HANA analytics software to arch-rival Oracle (NASDAQ:ORCL). Co-CEO Bill McDermott says, “The question is whether Oracle can imagine it.” McDermott notes that the likes of Cisco Systems, Inc. (NASDAQ:CSCO), Dell, Inc. (NASDAQ:DELL), Fujitsu and Hewlett-Packard Company (NYSE:HPQ) already work with HANA.

Zynga (NASDAQ:ZNGA) is accused again for the second time in two weeks of copying a smaller rival’s game. Six days after startup NimbleBit made note of the resemblance between its Tiny Tower iPhone game and Zynga’s Dream Heights. Buffalo Studios is doing the same over the similarities between its Bingo Blitz Facebook game and Zynga’s just-announced Bingo game.

Microsoft (NASDAQ:MSFT) rolls out a “technical preview” for the next-generation version of Office. The new version is codenamed Office 15. Microsoft says its release will coincide with updates for many other enterprise products, including Exchange, Lync, and SharePoint. However, Matt Rosoff thinks the late timing of the preview suggests Office 15 won’t be ready in time for Windows 8’s fall arrival.

Apple’s (NASDAQ:AAPL) iPhone has huge subsidies it requires which makes it terrible for carriers, laments Nomura. Verizon’s (NYSE:VZ) (NASDAQ:VOD) incremental service margin easily outpaced AT&T’s (NYSE:T) until it began selling the iPhone. AT&T’s incremental service margin actually turned negative in fourth quarter, and Sprint’s (NYSE:S) upcoming fourth quarter report is expected to show “over 800 basis points of margin contraction.”

Don’t Miss: Competing Search Engines Post Threat to Google.

Tuesday

Tellabs (NASDAQ:TLAB) fourth quarter shares are down after the firm posts its fifth straight quarterly loss and estimates it will take a pretax charge of $107 million in the first quarter as it makes more cuts. Tellabs will fire another 530 workers, bringing the total to 860 workers after a cut of 330 was announced in July. It is also closing operations in California, Vancouver, Bangalore and Karachi.

Intel (NASDAQ:INTC) Xeon CPUs are what SeaMicro servers rely on, rather than the Atom CPUs that were used in prior models. SeaMicro is a maker of low-power servers, and Intel’s ability to develop Xeon chips (typically used in more power-hungry servers) that are capable of meeting SeaMicro’s needs could bode well for its ability to deal with pending competition from ARM Holdings Plc. (NASDAQ:ARMH) based server CPUs.

Apple’s (NASDAQ:AAPL) hiring of Dixons CEO John Browett to run its retail operations seems a tad strange, as Dixon’s stores are known to be anything but elegant; a key attribute of Apple stores. Moreover, while Apple touts Browett’s commitment to customer service, a 2009 survey gave Dixons’ PC World chain very low marks.

Hewlett-Packard Company (NYSE:HPQ) said goodbye to Palm CEO Jon Rubenstein who left its web operating system unit a week ago. Next on the list? Chief architect Brian Hernacki stepped down as well. After deciding to hold onto webOS following the unwillingness of would-be buyers to accept a $1.2 billion price tag, H-P’s options for saving face appear few and far between.

Wednesday

AOL’s (NYSE:AOL) fourth quarter global revenue is up 10% year-over-year to $363.8 million, which was led by a growth of 20% in third party network sales. Subscription revenue went down 18% year-over-year to $194.6 million. The fourth quarter of 2011 saw cash from continuing operations of $97.9 million, while free cash flow was $72.6 million. Unique visitors were down 4% year-over-year to 107 million as well.

Don’t Miss: Google+ Exceeds 100 Million Users.

Barnes & Noble (NYSE:BKS) will no longer sell books published by Amazon (NASDAQ:AMZN), saying the company had “undermined the industry” by trying to sign exclusive agreements with publishers, agents and authors. Amazon’s efforts to sign authors, might be hurt, as those authors expect their books to be sold in BKS’s 700-plus stores in the United States.

Seagate (NASDAQ:STX) rises to levels higher than those seen in 2007 after beating the second fiscal quarter estimates and guiding for strong 2012 growth. Stifel upgraded to a Buy, which helps and asserts Seagate is benefiting from “positive structural changes” in the hard drive industry. Consolidation and slowing density growth are some of those positive changes Seagate is benefitting from those positive changes rather than just its relative immunity due to Thailand’s floods. Western Digital Corp. (NYSE:WDC) shares actually rose in response.

Samsung (SSNLF.PK) finally wins a patent battle against Apple (NASDAQ:AAPL). A Munich court rejects Apple’s bid to win a preliminary ban on sales of Samsung’s Galaxy Tab 10.1N and Galaxy Nexus mobile phone. Reportedly, the court was impressed with the change Samsung made to Galaxy Tab to make it look different from an iPad. Samsung wrapped a metal bezel around the tablet.

Don’t Miss: Apple’s iPad Catching On in American Enterprise.

Thursday

Amazon (NASDAQ:AMZN): Consumers may not cozying up to the Kindle Fire. A survey from ChangeWave says buying interest for the device is down from 17 percent to 12 percent. Over half of the Survey participants, 54 percent, said they are “very satisfied” with the Kindle Fire. A notable difference from Apple (NASDAQ:AAPL) iPad owners at 74 percent. While owners liked some features, easy use, display and cost, they felt the device needed a camera and volume buttons.

Don’t Miss: Record Number of Free iPhone Apps Downloaded.

Dell (NASDAQ:DELL) hires John Swainson former chief executive officer of Computer Associates Inc. Swainson was named to head the company’s new software group. Dell wants to be more competitive with its end-to-end solution for customers. J.P. Morgan raised shares to Overweight.

Sony (NYSE:SNE): Suffering big losses in the third fiscal quarter, Sony may not be out the woods yet. After announcing plans to hire a new chief executive officer, Kazuo Hirai said, “I have a very strong sense of crisis about the environment surrounding us.” One Asian analyst thinks the company has problems that “will take years to fix…” citing a lack of innovation, “in almost every major area.”

Investing Insights: Sony Reports Staggering Loss.

Zynga (NASDAQ:ZNGA) generated 12 percent of Facebook’s revenue in 2011. The company’s stock spiked 16.5%. Other companies riding Facebook’s initial public offering include Renren Inc (NYSE:RENN), Groupon Inc (NASDAQ:GRPN), Linkedin Corporation (NYSE:LNKD),  Youku Inc (NYSE:YOKU), Jiayuan.com International Ltd (NASDAQ:DATE), and  SINA Corporation (NASDAQ:SINA).

Friday

Google (NASDAQ:GOOG): The U.S. government has decided to modify smartphones running Google’s Android operating system, in order to enable them to handle classified government documents over cellular networks, according to CNN, which cited unnamed sources The devices will first be given to U.S. soldiers, and then to federal workers, the news outlet said.

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To contact the reporter on this story: Tanya Harding at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com