Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Davos 2012
Technology
Media
Small Business
Legal
Deals
Earnings
Summits
Business Video
The Freeland File
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Election 2012
Issues 2012
Candidates 2012
Tales from the Trail
Political Punchlines
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Bernd Debusmann
Nader Mousavizadeh
Lucy P. Marcus
David Cay Johnston
Bethany McLean
Edward Hadas
Hugo Dixon
Ian Bremmer
Mohamed El-Erian
Lawrence Summers
Susan Glasser
The Great Debate
Steven Brill
Geraldine Fabrikant
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Life & Culture
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (0)
Editor's Choice
U.S. online piracy bill headed for major makeover
Little change in U.S. obesity rates in recent years
24 million customer accounts hacked at Zappos
Aerosol particle increase linked to more rainfall
Berlin zoo to immortalize Knut in bronze
Wikipedia to shut for a day to stop anti-piracy act
Smaller servings mean more balanced meals
Mail.ru launches Russia's answer to Twitter
Rhino romance may be last hope for species
Video: Scientists map enzyme to vanquish viruses
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Insight: Recovery at risk as Americans raid savings
8:50am EST
Italian coastguard heard pleading with liner captain
|
3:42pm EST
Romney unscathed from debate attacks
9:10am EST
UPDATE 4-Coastguard raged at liner captain, tape shows
1:34pm EST
U.S. online piracy bill headed for major makeover
16 Jan 2012
Discussed
139
Buffett to GOP: You pay and so will I
123
Romney opens 21-point lead in South Carolina: Reuters/Ipsos poll
78
Ohio woman loses appeal on ”White Only” pool sign
Watched
Amateur video shows cruise ship evacuation
Mon, Jan 16 2012
Korean couple found alive in capsized ship
Sun, Jan 15 2012
Rescuers blow hole in cruise liner
8:00am EST
Google's mobility plans cloud strong Q4
Tweet
Share this
Email
Print
Related News
RIM shares jump on report of sale efforts
2:48pm EST
Samsung Group plans record $41 billion investment in 2012
12:57pm EST
Rupert Murdoch turns to Twitter to attack Obama
Sun, Jan 15 2012
Anti-virus maker AVG files for $125 million IPO
Fri, Jan 13 2012
Day in the life of a fund manager in Las Vegas
Thu, Jan 12 2012
Analysis & Opinion
Tech wrap: Apple reveals child labor at some suppliers
Google mandamus on Lindholm email: key test of client privilege
Related Topics
Tech »
Media »
iPad »
Google Inc's logo is seen at an office in Seoul in this May 3, 2011 file photograph.
Credit: Reuters/Truth Leem/Files
By Alexei Oreskovic
SAN FRANCISCO |
Tue Jan 17, 2012 3:45pm EST
SAN FRANCISCO (Reuters) - Google Inc's strong holiday-quarter results may take a backseat to growing concerns about long-term margins after it dives into a fiercely competitive smartphone market through its $12.5 billion acquisition of Motorola Mobility Holdings.
Shares in the Internet search and advertising leader, which reports fourth-quarter results on Thursday, scaled a four-year high of $670.25 this month on expectations it benefited from strong online holiday shopping.
But that enthusiasm cooled after Motorola -- the cellphone pioneer that has been lapped by the likes of Apple Inc -- warned it will miss Wall Street's sales expectations in the pivotal holiday quarter. That would mark the second straight quarter that revenue falls short of target.
Investors have been uneasy about Google's plans to buy Motorola, a deal the companies expect to close early this year. CEO Larry Page has never fully detailed his long-term strategy for the asset other than saying it will be run as a separate company. Analysts say the company fears alienating Samsung and other Motorola rivals that helped its Android platform become the world's foremost mobile-software system.
"You've got this big millstone that's about to be draped around Google's neck," said BGC Partners analyst Colin Gillis.
"Motorola is a low to no-margin business mixing with a higher margin business," Gillis said.
In the short run, Google remains one of the largest beneficiaries of a rapid migration of shoppers and viewers to the Internet from traditional media.
Online spending in the United States reached a record $35.27 billion from November 1 through December 26, up 15 percent versus the corresponding period last year, research house comScore reported.
Analysts believe Google's U.S. search advertising business performed strongly in the last three months of the year, as online retailers and other companies spent heavily to advertise on Google, where two out of every three Internet searches take place.
EUROPE -- SWING FACTOR
Google, which has beaten Wall Street's financial targets for five of the last seven quarters, saw its shares jump 6 percent in October after the company's third-quarter profit and revenue came in well above expectations.
The company's fourth-quarter net revenue, which excludes fees shared with partner websites, is expected to jump 32 percent to $8.4 billion, according to Thomson Reuters I/B/E/S. Analysts expect Google to report adjusted earnings per share of $10.49, compared with $8.75 in the year-ago period.
A big wildcard is Europe, which analysts estimate accounts for roughly 40 percent of Google's revenue. With the region grappling with a sovereign debt crisis and the resultant economic uncertainty, many analysts have stuck with conservative fourth-quarter estimates.
"Our checks were suggesting maybe a modest slowdown in growth versus Q3's growth rate" in Europe, said Aaron Kessler, an analyst at Raymond James. "There's some room for upside for Google if Europe comes in better than expected."
Apart from its mobile strategy, Wall Street will be keen to hear co-founder Page address a number of key longer-term questions on Thursday.
The company's spending growth rate is likely to come under scrutiny. Page, who took the reins as chief executive in April, has aggressively weeded the company of dozens of projects and products, including efforts in renewable energy and healthcare.
By eliminating non-essential projects, Page has sought to "put more wood" behind the key arrows in Google's quiver. The company has embarked on an acquisition and hiring spree to position itself to take advantage of key trends such as mobile computing and social networking.
Its recently-launched social network, Google+, counts more than 40 million users, representing a promising start as Google tries to catch up with Facebook's more than 800 million users.
But recent efforts to promote Google+, such as prominently featuring people's profiles within search results, have triggered criticism that it is unfairly favoring its own services over those of rivals, such as Twitter. A Federal Trade Commission investigation into Google's business practices was recently expanded to include Google+, a source familiar with the matter told Reuters last week.
WHAT'S MOBILE END GAME?
Even Android, Google's free and dominant smartphone operating software, may be the subject of debate. Apple may be catching up, thanks to a new iPhone model released in October. According to a report by industry research firm NPD Group, smartphones running Apple's iOS accounted for 43 percent of U.S. retail smartphone sales in the months of October and November, versus 26 percent during the third quarter.
Android, by contrast, saw its market share slip from 60 percent to 47 percent during the period, according to NPD, though it still remains the No.1 player.
Google may be counting on Motorola to help the company develop its own line of Android phones and tablet computers, to better compete with Apple's iPhone and iPad. But that might also anger HTC and other Android users.
"Once this deal closes, there remains a lot of questions," said Susquehanna Financial Group analyst Herman Leung. "The key question is do you keep the hardware business, and if you do, how does that impact the ecosystem of Android."
Many analysts believe, however, that Google's primary motive for acquiring Motorola was to secure its treasure trove of patents: a key asset it can use to defend itself in the increasingly litigious mobile arena.
Still, it's unclear if Google believes it will have sufficiently built up its patent arsenal with Motorola, or if it will keep shopping for more.
"How much more patent buying (does Google) gear themselves up for?" wondered Leung. "How many more linebackers do you need for Android's defense?"
(Editing by Edwin Chan, Phil Berlowitz)
Tech
Media
iPad
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Advertise With Us
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.