Today (Monday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co.," where he lent expert insight on the latest move by digital media giant Yahoo! Inc. (Nasdaq: YHOO).
On Friday, Yahoo acquired Evntlive, a concert-streaming startup that was co-founded by former Cisco Systems Inc. (Nasdaq: CSCO) Chief Technology Officer Judy Estrin.To continue reading click here...
Earnings Today: Citigroup (NYSE: C), Coca Cola (NYSE: KO), and Johnson & Johnson (NYSE: JNJ)
Third-quarter earnings season has picked up, with a number of companies posting earnings today before the opening bell and two tech giants set to report after the close.
When Q3 earnings kicked off a week ago, analysts estimated third-quarter earnings would come in 6.5% higher than the same quarter a year ago.To continue reading, please click here...
Best Stocks to Buy: A Roundup from the Money Morning Investment Team
Last week's best stocks to buy list at Money Morning stemmed from key events from the U.S. Federal Reserve - if you missed it, here's what you need to know...
The first Fed-related headlines came Monday morning when markets reacted to Fed chief frontrunner Larry Summers stepping out of the running to fill Ben Bernanke's shoes.
Focus then shifted to the central bank's two-day policy meeting that ended with the surprise announcement the Fed will continue its market-friendly $85 billion a month bond-buying program.To continue reading, please click here...
Facebook (Nasdaq: FB) Earnings: It's All About Mobile
One of the most closely watched earnings reports comes after the close Wednesday when Facebook Inc. (Nasdaq: FB) earnings for the second quarter are released.
Yahoo-Tumblr Deal a Hail Mary Pass That May Never Pay Off
The Yahoo-Tumblr deal is a $1.1 billion gamble aimed at rejuvenating a stagnating business, but is more likely to end up a costly mistake.
The deal, announced today (Monday), is by far Yahoo CEO Marissa Mayer's biggest - and riskiest - acquisition yet.
Yahoo! Inc. (Nasdaq: YHOO) wanted access to Tumblr's 117 million users, most of them teens and young adults, to give it a beachhead into the ever-more important world of social media.
Tumblr has grown rapidly by making it easy not only to create blogs, but for Tumblr users to follow and share one another's posts.
But Tumblr, like so many other social media companies, is not exactly a money machine. Analysts estimate the company's 2012 revenue was just $13 million, making it a pricey acquisition indeed.
Don't Bet on a RIM Stock Rally (Nasdaq: RIMM)
Research in Motion Ltd. (Nasdaq: RIMM), maker of the BlackBerry phone, traded sharply higher yesterday (Thursday) after Goldman Sachs analyst Simona Jankowski upgraded RIMM to a "Buy" with a price target of $16. RIM gained 4% Thursday to close at $11.54.
Although there are a growing number of bulls among analysts on the Street, there is still a large and vocal group of bears who think that RIM is done for.
Research in Motion is planning to launch its BlackBerry 10 smartphone on Jan. 30, 2013. The company is pinning its hopes of survival on the BlackBerry 10 taking a small piece of the smartphone market away from giants Apple Inc. (Nasdaq: AAPL) and Google Inc. (Nasdaq: GOOG), which split the smartphone market between their iOS and Android operating systems, respectively.
Goldman Sachs' Jankowski says that the BlackBerry 10 (BB10 in the terse to the point of being unintelligible analyst-speak) doesn't even have to be a success for RIMM shares to perform well.
"We now assess a 30 percent chance of success for BB10 given positive early reviews, broad-based carrier support, attractive features, and interest by carriers and consumers in broadening the field beyond Android/iOS," Jankowski wrote.
Other analysts are even more bullish.
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Stock Market Today: These Earnings Expose a Huge Concern for 2013
The stock market today opened lower as yet another American corporation, Caterpillar Inc. (NYSE: CAT), disappointed investors with its earnings call.
Here's the market roundup, along with one stock that is soaring today because analysts say there is a "50% chance" it could be acquired.
- Caterpillar lowers earnings outlook for second time this year- The world's largest construction maker reported third-quarter earnings that beat expectations but cut its 2012 sales and earnings forecasts. CAT joins a growing list of American firms including McDonald's Corp. (NYSE: MCD), Google Inc. (Nasdaq: GOOG), and General Electric Co. (NYSE: GE) that have either missed expectations or lowered their outlook this earnings season. Caterpillar reported third-quarter net income of $1.7 billion, or $2.54 per share, compared with $1.14 billion, or $1.71 per share a year ago. Adjusting for one-time items CAT earned a profit of $2.26 per share, ahead of analysts' estimate of $2.22. The troubling facts for CAT include its order backlog fell 18% from the second quarter of this year and the Peoria, IL-based company now expects to generate much lower sales for the remainder of this year and 2013.
While earnings have taken their toll on corporate giants, this stock is up almost 30% today on hopes of a buyout:
Yahoo (Nasdaq: YHOO) Stock Hopes Ditching Assets Will Spark Turnaround
Finally, after all the negotiations and failed attempts at making a deal, Yahoo! Inc. (Nasdaq: YHOO) has agreed to let China's e-commerce company Alibaba repurchase its shares.
In just over a week since Yahoo ousted CEO Scott Thompson for padding his resume, the search engine giant announced that it would sell half of its 40% stake in Alibaba Group Holding Ltd. with the possibility of selling the rest at some point.
Yahoo will receive at least $6.3 billion in cash and as much as $800 million in newly issued Alibaba preferred stock, the companies said in a statement yesterday (Monday). At the time of an IPO, Alibaba will be required to either buy back a quarter of Yahoo's current stake or let Yahoo sell the shares.
In the announcement, Yahoo also said it would use all of the sale's after-tax proceeds to repurchase its own shares, with the Yahoo board already having approved a $5 billion increase to the firm's current buyback program.
The sale, strongly encouraged by analysts and investors, frees up some cash for Yahoo. Many have been waiting for this deal to come through as talks repeatedly failed over the past year between Yahoo's ex-CEO Carol Bartz and Alibaba.
Some calculations suggest Yahoo may have let go of Alibaba at a steep discount. But a person familiar with the deal said there were provisions which would allow Yahoo to benefit if Alibaba is valued at more than $35 billion when it sets the pricing for its IPO.
Furthermore, the move had to be made, and was one of five things that Money Morning's Keith Fitz-Gerald said he would do if he ran Yahoo.
Yahoo (Nasdaq: YHOO) Needs More Than Just a New CEO
The black cloud following Yahoo! Inc. (Nasdaq: YHOO) seems bigger than ever.
Just one day after he was forced to leave the forlorn Internet company for padding his resume, reports surfaced that ex-Yahoo CEO Scott Thompson revealed he has cancer.
According to a report in The Wall Street Journal, citing unnamed sources, Thompson told Yahoo's board and several colleagues of his thyroid cancer before resigning Sunday.
A source told The Journal that Thompson's decision to leave his position at Yahoo was in part influenced by his cancer diagnosis.
News broke last week that Thompson embellished his resume with a degree in computer science, when he actually earned a degree in accounting from a small Massachusetts college.
Thompson was hired in January to replace Carol Bartz, who was fired by phone last September.
In the revolving position at Yahoo, former head of global media Ross Levinsohn has been named interim CEO.
New CEO Boosts YHOOLevinsohn had a triumphant stretch running Internet services within Rupert Murdoch's media empire at News Corp. before Bartz lured him to Yahoo in 2010. Levinsohn previously ran ad sales for Yahoo's Americas unit.
Yahoo investors applauded the media veteran's appointment. Yahoo shares tacked on 2.2% in premarket trading Monday ahead of a nasty open for U.S. markets.
Levinsohn has significant credentials as a negotiator. Before coming aboard at Yahoo, he had a history of recognizing and acquiring an assortment of digital media companies around the globe. That is a striking comparison to Yahoo's last two CEOs, who had stronger backgrounds in technology than media.
"We view Mr. Levinsohn as well-equipped to lead the organization and to build off the company's core strengths - advertising products and digital media," said Spencer Wang, an analyst with Credit Suisse.
But Yahoo still faces a rocky road ahead.
Is Google (Nasdaq: GOOG) Plotting a Yahoo (Nasdaq: YHOO) Takeover?
Yahoo! Inc.'s (Nasdaq: YHOO) never-ending troubles may renew Google Inc.'s (Nasdaq: GOOG) appetite for the once-mighty Internet giant.
After all, it wouldn't be the first time Google considered the deal.
In October, Google talked to at least two private-equity firms about helping them finance a deal to buy Yahoo Inc.'s core business, a person familiar with the matter told The Wall Street Journal.
But the latest bout of attrition at the senior management level and a flurry of strategic blunders may rekindle Google's desire to acquirethe struggling firm.
Why Buy Yahoo?Even so, many investors are questioning why anyone would want to buy Yahoo.
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