Menu Close

Tag: Amzn

Apple iWatch, Google Glass First Shots in New Clash of Tech Giants – Money Morning

Coming less than a year after Google unveiled its Google Glass Web-connected eyeglasses, reports that an Apple “iWatch” is in the works emphatically confirm that the battle is now joined for dominance over the next wave of tech – wearable computing.

According to the reports, Apple Inc. (Nasdaq: AAPL) has 100 people working on an iWatch users would wear on their wrists, but that would have many of the same capabilities as an iPhone.

But wearable computers could enable new uses, particularly in the area of healthcare, while perhaps providing the spark to encourage some promising technologies that have yet to catch on, like contactless payments.

Four of the biggest names in tech – Apple, Google Inc. (Nasdaq: GOOG), Sony Corp. (NYSE ADR: SNE) and Microsoft Corp. (Nasdaq: MSFT) – either are selling, have announced, or are known to be working on wearable computing ideas.

And two other big names, Amazon.com (Nasdaq: AMZN) and Facebook Inc. (Nasdaq: FB), are watching for opportunities to benefit from yet another major shift in how people interact with technology.

To continue reading, please click here…

Why Apple Inc. (Nasdaq: AAPL) is Too Rich For the Dow Jones

Assuming the Dow Jones Industrial Average represents the biggest, most influential companies in America, Apple Inc. (Nasdaq: AAPL) easily qualifies.

With its massive market cap, trend-setting products, and global brand recognition, it is easy to argue Apple belongs as much or more than any of the current tech companies in the index.

In fact, Apple has superseded all of them, particularly Hewlett-Packard Co. (NYSE: HPQ) and Microsoft Corp. (Nasdaq: MSFT).

Yet the Dow Jones has ignored Apple while letting far weaker companies like, Bank of America Corp. (NYSE: BAC)and Alcoa Inc. (NYSE: AA) remain.

So what gives?…

In a nutshell, Apple stock is too rich for the Dow Jones Industrial Average.

Because the Dow Jones is price-weighted, Apple’s current $565 share price would simply overwhelm the index.

If included, Apple stock would account for about 25% of the Dow Jones. That’s more than double the 11.5% of current leader International Business Machines Corp. (NYSE: IBM).

“It wouldn’t be the Dow Jones Industrial Average,” Nicholas Colas, chief market strategist at ConvergEx Group told the Associated Press. “It would be the Apple Plus Some Other Stuff Index.”

In this case, a price move of just 5% in Apple stock could push the DJIA up – or down – about 200 points.

Looking at it another way, had Apple been added to the Dow Jones in 2009 instead of Cisco Systems Inc. (Nasdaq: CSCO), the Dow would now be over 15,000.

That’s well above the Oct. 2007 record of 14,164 and 2,500 points higher than where it stands today.

With that kind of heft, it’s no wonder the Dow has shunned Apple.

How the Dow Jones Industrial Average Works

But it’s not just Apple. Other Dow candidates trade high in the triple digits as well.

To continue reading, please click here…

If I Owned Yahoo (Nasdaq: YHOO) Stock, I’d Be Pissed

It’s no wonder Yahoo! Inc. (Nasdaq: YHOO) investors are pissed. I would be too if I owned Yahoo – but I don’t.

Why not?

Maybe it’s the four CEOs in five years, the botched sale to Microsoft in 2008, or a Chief Executive Officer who can’t be bothered to verify his own credentials in SEC filings.

Or maybe it’s the dysfunctional board of directors and the erosion of massive amounts of shareholder value over the years.

Add it all up and you have an unmitigated disaster on your hands.

Activist shareholder Daniel Loeb, who owns 5.8% of the company through his hedge fund, Third Point, LLC, has every right to be angry and vocal about it.

The way I see things, Yahoo is following what I call the Christopher Columbus School of Management: it has no idea where it’s going, has no idea where it’s been and has no idea what to do when it arrives.

The Search for an Identity at Yahoo (Nasdaq:YHOO)

Yahoo was ostensibly a search engine in the beginning. The latest outgoing CEO, Scott Thompson, had been trying to rebuild the beleaguered Silicon Valley company into one more reflection of his own strengths in data personalization as opposed to the bloated advertising-driven business it has become.

Whether or not Thompson would have succeeded is now a moot point. Incoming interim CEO Ross Levinsohn has an advertising background. Talk about a conundrum.

Here’s the thing…

To continue reading, please click here…