Wall St. Brief: Apple is BLEEDING Money, Cisco and EMC Are Falling APART
Apple (NASDAQ:AAPL) is paying large amounts for prosecuting against its Android rivals, such as its Motorola ITC dispute which has cost $32 million in legal fees while other large patent cases have hit $25 million. Apple’s South Korean global IP conflict with Samsung (SSNLF.PK) has ended with the ruling that Apple violated two patents and Samsung one; small damages had been awarded to each.
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Twitter is “reevaluating the timing” of its IPO after the Facebook (NASDAQ:FB) collapse, reported Fox. CEO Dick Costolo has suggested Twitter is in not in a hurry to go public. Meanwhile, Facebook’s efforts to increase institutional support may be failing: Eyebrows have been raised after COO Sheryl Sandberg reportedly told an investor that Facebook’s $38 IPO price came from an effort to discourage short-term traders.
Salesforce (NYSE:CRM) shares have dropped 4.61 percent in premarket trading after announcing its fiscal quarter three earnings per share guidance was lower than consensus thanks to foreign exchange fluctuations and slowing European technology spending. Its investment in growth and price war with competitors may also affect margins. On a positive note, Saleforce’s fiscal second quarter earnings exceeded expectations with its widening $9.9 million losses, up from $4.3 million. Earnings per share was $0.42 with revenue increasing 34 percent to $731.6 million.
Cisco (NASDAQ:CSCO) and EMC (NYSE:EMC) keep saying the right thing but their relationship is unraveling, reported Reuters. Their VCE joint venture hasn’t shown a profit and they are mulling whether to either buy or partner with rivals. This can be seen in Cisco’s $750 million deal to purchase Nicira while EMC’s VMware (NYSE:VMW) had outbid them.
General Growth Properties’ (NYSE:GGP) biggest shareholder, Brookfield Asset Management (NYSE:BAM) has said its neither interested in selling its 40 percent share in the company nor attempting to buy it. These comments came after Bill Ackman’s Pershing, which owns 10 percent of Brookfield, had said it had tried to purchase General Growth, and subsequently asked the firm to put up a for sale sign.
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