Former Google, Inc. (Nasdaq: GOOG) engineers recently launched a new-fangled search engine, called Cuil. The goal was pretty ambitious; that is, to be the next Google.
Well, the debut was shaky, as the online reviews were mostly negative. Basically, the quality of the search results were lackluster -- and the overall performance was erratic.
No doubt, in the social media world, things can get brutal. Yet, it's something that many businesses need to think about.
10 Tech Giants to Buy Now Shares of companies such as IBM, Nokia and Microsoft have taken a hit along with the rest of the market, but they don't deserve to be this cheap. Other tech stocks to consider include Apple, Cisco, Google, HP, Intel, Oracle and Qualcomm. Ten Tech Giants to Buy Now - Kiplinger.com
New Life for Grocery Store Standbys Innovation is Pinnacle's lifeblood. The N.J.-based company -- which so far owns or licenses more than a dozen food brands -- specializes in acquiring venerable, but stagnant, brand names in need of TLC. It then works to breathe new life into them with updated formulations, new products, improved packaging, added convenience and smart marketing. Among the brands in Pinnacle's cub bard are Duncan Hines, Lender's Bagels, Log Cabin, Hungry Man, Mrs. Butterworth, Aunt Jemima, Swanson and more. Pinnacle gives new life to old standbys - USATODAY.com
Founded in 2002 – during the dark times of the Internet – Friendster became one of the pioneers of the social networking space. The company quickly got traction and even attracted the interest of Google (NASDAQ: GOOG). But, of course, MySpace and Facebook had ultimately beat out Friendster.
Yet, the plucky website hasn't given up. In fact, the company has announced a $20 million round of venture capital. The investors include heavyweights like IDG Ventures, Kleiner Perkins Caufield & Byers, Benchmark Capital, DAG Ventures and Founders Fund. In all, Friendster has raised $50 million.
Actually, Friendster is ranked as the 9th most trafficked site in the world, with a heavy penetration in Asia where it is the #1 social networking platform. There are about 75 million registered users.
Interestingly enough, Friendster has a broad portfolio of patents, which perhaps can be used as leverage when combating its rivals. What's more, the company has done quite well in terms of adding features and providing a good user experience.
To help keep things on the right track, Friendster has hired Richard Kimber as its CEO. He was formerly a regional managing director of South Asia for Google. Apparently, he'll be spending much of his time in Asia, trying to put together partnerships.
While social networking seems to be maturing in the U.S., there still are great opportunities in foreign markets. Furthermore, with $20 million more in the bank, Friendster can broaden its footprint and perhaps be a hot property for an acquisition.
Exxon Mobil Corp. (NYSE: XOM)'s record-setting quarterly profits last week prompted renewed calls for a windfall profits tax against the oil industry. The problem I have with these theory is that people usually do not explain what they mean by a "windfall."
"How does it differ from your everyday, run of the mill profit?" The Wall Street Journal noted in an editorial today. "Is it some absolute number, a matter of return on equity or sales -- or does it merely depend on who earns it?"
Also, is the government going to figure out how much Exxon deserved to earn and what gives the government the right to single out the oil companies for such treatment. Why not subject Google Inc. (NASDAQ: GOOG) or Warren Buffett's Berskshire Hathawy Inc. (NYSE: BRK.A) to a windfall profits tax too? They make lots of money, right?
Well, the reason why we don't penalize companies just because they make a lot of money is because that would be insane. As the Journal notes, it's hard to make the case that Exxon's profitability is excessive. In 2007, its profit margins were 10%, in-line with the industry average. The oil company's margins were worse than firms in the chemicals industry, pharmaceuticals, beverages and tobacco, the paper said.
Exxon Mobil is a pretty easy company to dislike. Its politics are reactionary, particularly on global warming. Its attitude toward alternative energy is skeptical. Wall Street already gave a thumbs down to its latest earnings report which is a far more effective punishment than a windfall profits tax.
Putting the squeeze on the oil industry may feel good, but it won't bring back $2 gas prices. Those days are gone forever.
Back in the day when internet companies ruled the rolls of the Nasdaq, a number of online and tech companies had venture capital arms. Intel (NASDAQ: INTC) has kept its to this day. The tech collapse of 2000 and 2001 eliminated most of those funds.
Now Google (NASDAQ: GOOG) has decided to revive the tradition of big tech companies spreading money around. According toThe Wall Street Journal, "The group will be lead by David Drummond, Google's senior vice president of corporate development and chief legal officer."
The move is a bad idea because it could alienate current and future Google partners. There is still an abundance of venture capital, so it is not as if the search company is filling a hole in the market.
The trouble is that Google could put money into a wireless broadband company only to find down the road it wants to form a partnership with one of that company's competitors. Should a firm risk doing business with Google when the giant internet company owns a piece of its nemesis?
Google may like the idea of supporting startups that are aligned with its goals. But it is cutting off the option of doing business with companies that don't have Google backing but do have services Google wants.
U.S. stock futures were mixed Thursday morning ahead of the government preliminary report of U.S. second-quarter gross domestic product to be released at 8:30 a.m. EDT. Compare to the first quarter, where GDP grew at an annual rate of 1%, analysts are expecting an annual growth rate in the second quarter of 2.3% according to Briefing.com. Another wave of earnings will also wash Wall Street over this morning, while it's still digesting Wednesday's ones. The market will likely take a clearer direction once GDP is out.
[Update: GDP grew at a 1.9% pace in the second quarter came in well short of the 2.3% forecast. Futures are declining on economy and the XOM miss. Wall Street will likely open significantly lower.]
Reporting/reported this morning:
Exxon Mobil (NYSE: XOM) is expected to report second-quarter earnings before the open. If ConocoPhillips (NYSE: COP) and BP (NYSE: BP) results are any indication, XOM will likely post massive profits thanks to oil's skyrocketing prices and even break the record it has set for largest profit by a U.S. company. Analyst on average expect Exxon Mobil to earn $2.52 a share on revenue of $144 billion, according to a survey by Thomson Financial.
MasterCard Inc. (NYSE: MA) is expected to report earnings of $2.02 per share.
Kellog (NYSE: K) is expected to post earnings of 81 cents per shares.
The Oracle of Omaha is shining a light on the presidential campaign of Barack Obama.
According to media reports, Warren Buffett is participating with Obama in a meeting about the economy along with Google Inc. (NASDAQ: GOOG) Chairman Eric Schmidt, former Treasury Secretaries Robert Rubin and Larry Summers and former Labor Secretary Bob Reich, according to CNBC. New Jersey Gov. Jon Corzine, a former Goldman Sachs Group Inc. (NYSE: GS) co-chairman, and former Federal Reserve Chairman Paul Volcker also will be at the meeting of the wisemen tomorrow. Buffett will be participating via telephone hook-up.
There is plenty to talk about given the current state of the economy and the housing market which the International Monetary Fund says shows no signs of recovery. Obama, the junior senator from Illinois, is clearly signaling not to expect much from the meeting.
``I expect some further fine-tuning of short-term policies based on what's happened over the last several months,'' Obama said in an interview with Bloomberg News.
What that means is not clear. It should surprise no one that Buffett is backing Obama. The investor has been critical of President Bush's economic policies including the repeal of the estate tax which he said would be a "terrible mistake." But that doesn't mean he agrees with all of Obama's policies either.
As CNBC notes, Buffett supported Hillary Clinton while she was running for president and disagrees with Obama's call to tax the windfall profits of oil companies and his decision to forgo public financing of his campaign. I guess the Omaha investor considers Obama to be a significant improvement over Republican John McCain.
Interesting how the greatest investor in history who Republicans tout as a champion of capitalism is as big of a Democrat as Barbra Streisand.
5 Solar Stocks That Can Triple The growth in the solar sector is still in the early innings of what should be a very long game. Investors who find the gems in this sector have the potential to be awarded with large gains. James Altucher spotlights five he likes. they include Hoku Scientific, LDK Solar, GT Soar, Daystar and Green Solar. 5 Solar Stocks That Can Triple - TheStreet.com What Does the Housing Bill Mean for You? The soon-to-be law offers relief to homeowners and new buyers. Naturally, there are strings attached. The new bill is full of goodies and not-so-goodies for homeowners and those who aspire to be homeowners. Here are some highlights. What the housing bill means for you - Bankrate.com
U.S. stock futures were lower early Monday as investors concerns over the banking sector grew. Federal regulator seized two more banks, 1st National Bank of Nevada and First Heritage Bank, which were scheduled to reopen on Monday as Mutual of Omaha Bank branches. The Senate also passed a major housing bill over the weekend, and this could actually give a boost to mortgage lenders like Fannie (NYSE: FNM). Meanwhile, oil prices rebounded as European markets declined. As of 8:00 a.m., it seems Wall Street would start weak.
Reporting earnings today are Kraft Foods (NYSE: KFT) - Kraft reported 58 cents earnings per share excluding items, beating estimates of 50 cents; Verizon Communications (NYSE: VZ) - Verizon reported earnings of 67 cents per share, excluding items, beating estimates by 2 cents; and after the close of trading, Amgen (NASDAQ: AMGN).
Amgen (NASDAQ: AMGN) stock is jumping over 17% in premarket trading after announcing late Friday its experimental osteoporosis drug, denosumab, significantly reduced the risk of bone fracture in post-menopausal women in a large trial. Rodman & Renshaw and Jefferies & Co both upgraded Amgen to Market Outperform and to Buy respectively.
Unilever NV (NYSE: UL) will sell its North American laundry detergents business to private equity investor Vestar Capital Partners for $1.45 billion (euro924 million). Unilever said the sale consistent with its strategy of divesting non-core businesses and concentrating on a few core ones.
Going into the search business and targeting Google (NASDAQ: GOOG) must carry odds of success which are at least a million to one. But, the market is rich. Google has a market cap of over $150 billion. Even a little piece of that could make a start-up some money. That is if anyone wants another search option beyond Google, Yahoo! (NASDAQ: YHOO), and a number of other services with tiny customers bases.
Some former Google engineers believe they can master their former master. According toThe Wall Street Journal, "A startup founded by engineers from Google,Inc. and other tech giants is launching a search engine that claims to cover three times as many Web pages as Google."
The new service is called Cuil. Wish them luck.
Cuil's problem is deeper than is evidenced at first blush. Google not only controls over 60% of the US search market. It also probably indexes as much of the web as almost any user would need. Tripling the number of possible search results is not useful to the huge majority of search engine users.
Search usefulness is driven by the relevance of the results. Cuil has not demonstrated that it can out-Google Google on that front. If it cannot deliver that higher level of relevance, and deliver it by an order of magnitude much greater than the largest incumbent, it will not go anywhere.
In search, quality trumps quantity.
Douglas A. McIntyre is an editor at 247wallst.com.
If you were looking for another hard day of profit taking on a summer Friday, the markets escaped the hangman. A barely positive durable goods of big ticket items was enough to send the pessimists to the showers and gave the bulls a little more ammo. Throw in an oil ticker showing a drop of more than $2.00 to almost $123.00 per barrel and that's all that was needed. Look at bond yields and you'll see we gave back almost all of yesterday's move.
Arch Coal (NYSE: ACI) tripled earnings posted EPS of $0.78 vs. $0.64 estimates. The stock was up more than 3% in pre-open but was up almost 9% at $55.45 in the final minutes of the day.
Crocs Inc. (NASDAQ: CROX) led the garbage stocks after a very ugly earnings warning last night. It now sees sales for all of 2008 modestly lower than 2007 and is now only targeting a break-even result for 2008. Retailers were noted as keeping inventory re-orders at low levels, which is hard to blame them considering the ugly shoe fad has already started its workdown. Shares were down 44% at $4.99 after shares had already sold of more than 80% from 52-week highs.
U.S. stock futures were lower Friday morning, a day after a selloff triggered by housing data. Today investors are bracing for more housing data at 10:00 a.m. EDT after already hearing that foreclosures soared 121% during the second quarter. Other point of interest will be durable goods data reported an hour before the opening bell. Meanwhile, oil continued the steady climb that started Thursday as the dollar weakens, trading above $126 a barrel. It's Friday, and no many earnings reports are due.
While there aren't many earnings reports today, there are a few including Fortune Brands (NYSE: FO), Netflix (NASDAQ: NFLX) and Black & Decker (NYSE: BDK) among others.
Crocs (NASDAQ: CROX) shares are tanking over 44% to $5 after after it cut its earnings outlook significantly on softer demand for its plastic shoes. With all those knockoffs around, is it any wonder? Robert W. Baird downgraded Crocs from Outperform to Neutral, slashing the target price from $21 to $5.
Meanwhile, Juniper Networks (NASDAQ: JNPR) surged 12% in premarket trading after the company not only beat estimates when reporting quarterly results Thursday, but also increased its sales forecast for the third-quarter much higher than analyst estimates. Friedman Billings and Citigroup both upgraded Juniper to Outperform and Buy respectively.
In deal news, Clear Channel Communications (NYSE: CCU) shareholders on Thursday approved a $17.9 billion takeover by private equity funds Thomas H. Lee Partners and Bain Capital. This ends the 20-month long effort.
Yesterday on the tech news site TechCrunch, it was reported that Google, Inc. (NASDAQ: GOOG) may be buying social news website Digg.com for up to $200 million. Now, Digg.com has come under acquisition rumors so far, but this is the most serious one. Google stands to keep its iron fist over the controlled flow of information with the purchase if, in fact, it is officially announced.
Digg.com, which has propelled itself into the limelight by having its members and readers publish links to news stories from around the globe and vote on them to let its customers choose "headlines," is no small potato.
Although Google was rumored to have been in the chase for the company back in March, it should go ahead and just make the announcement official. Integration of Digg.com into Google News (which is already an excellent product) would take Google's news aggregation product to the next level and would assist it solidifying its daily news position against the likes of Microsoft Corp. (NASDAQ: MSFT) and Yahoo, Inc. (NASDAQ: YHOO).
Digg.com would not be a good fit for Microsoft, however. While Microsoft continues to roll out web-based properties and products, many of its actions seem to be compelled by a "me too" attitude more than a corporate strategy, regardless of what the company says. Google, right now, has the cachet and the product breadth to continue steamrolling much of the competition -- and a Digg.com purchase would just make it stronger.
Stock futures were higher this morning, indicating stocks could have a positive start to the session as oil prices continued to decline, sinking below $127 a barrel. Weekly inventories numbers reported later today could have an impact on oil prices. Then there is continued optimism in the financial sector, which caused the rally Tuesday. Also, a bill aimed at helping the housing market will reach the House floor. But once again earnings will likely have investors' attention with Costco already giving a profit warning. Costco Wholesale Corp. (NASDAQ: COST) shares are plunging over 8% in premarket trading after the wholesale retailer warned its August-ending quarter's profit would miss analyst estimates. This is most surprising as Costco had been one of the retailer that seemed to have benefited from consumers trying to save and buy lower-cost items. But Costco blamed the lower profit on rising energy costs, saying it will earn less than $1 per share.
Washington Mutual Inc. (NYSE: WM) late Tuesday reported second-quarter results, posting a loss of $3.3 billion, was worse than analysts had anticipated. Excluding one-time items, WaMu lost $3.34 per share, much wider than the expected loss of $1.05 per share. Piper Jaffray downgraded WM shares from Neutral to Sell and Friedman Billings halved its target price on the shares from $8 to $4. Shares are off nearly 3% in premarket trading.
Yahoo Inc. (NASDAQ: YHOO) also reported profits and sales that came up short of estimates. Second-quarter profit fell 18% to $131 million, or 9 cents per share. Analysts had projected earnings of 11 cents per share in the most recent quarter, according to Thomson Financial. Revenue grew 6% to $1.8 billion, or $1.35 billion after subtracting commissions, also below estimates. Yahoo! shares, however, are up about 3% in premarket trading since investors were relieved the performance wasn't as bad as many had feared after Google (NASDAQ: GOOG) reported last week and disappointed investors. Also, Yahoo didn't dramatically lower its revenue outlook for the remainder of the year.
Apple, Inc. (NASDAQ: AAPL) reported stellar, above-expectations quarterly results yesterday after market close. One would have thought that this company, in the midst of U.S. economic uncertainty, would have reported a mediocre quarter at best, but that wasn't the case. Apple outpaced expectations by $0.11 per share, shipped more Mac computers than during any quarter in its history, and saw a 38% revenue jump from the year-ago quarter.
As a nice reward for such a stellar quarter, the market took Apple out behind the woodshed and gave it a sound whipping. The reason? Apple's murky guidance for the fourth quarter. This from a company that almost always shoots low with guidance only to blow the numbers away. Add that to ongoing concern over the health of CEO Steve Jobs and you have a 10% drop in AAPL shares before the market opened this morning.
Is Apple the victim of outsized expectations? You bet. Just like Google, Inc. (NASDAQ: GOOG) the other day -- which also reported a fantastic quarter but saw its shares pummeled right after results were announced -- Apple may be losing the ability to impress. In reality, both companies are doing excellent business in the face of gas and energy price spikes in addition to a six-month string of job losses in the U.S. Yet, the market slapped huge losses on both stocks based on what could be considered shaky speculation for future growth prospects.
Former Google, Inc. (Nasdaq: GOOG) engineers recently launched a new-fangled search engine, called Cuil. The goal was pretty ambitious; that is, to be the next Google.
Founded in 2002 – during the dark times of the Internet – 
and 
. He also operates 
U.S. stock futures were mixed Thursday morning ahead of the government preliminary report of U.S. second-quarter gross domestic product to be released at 8:30 a.m. EDT. Compare to the first quarter, where GDP grew at an annual rate of 1%, analysts are expecting an annual growth rate in the second quarter of 2.3% according to Briefing.com. Another wave of earnings will also wash Wall Street over this morning, while it's still digesting Wednesday's ones. The market will likely take a clearer direction once GDP is out.
The Oracle of Omaha is shining a light on the presidential campaign of Barack Obama.
If you were looking for another hard day of profit taking on a summer Friday, the markets escaped the hangman. A barely positive durable goods of big ticket items was enough to send the pessimists to the showers and gave the bulls a little more ammo. Throw in an oil ticker showing a drop of more than $2.00 to almost $123.00 per barrel and that's all that was needed. Look at bond yields and you'll see we gave back almost all of yesterday's move. 
Yesterday on the 
Stock futures were higher this morning, indicating stocks could have a positive start to the session as oil prices continued to decline, sinking below $127 a barrel. Weekly inventories numbers reported later today could have an impact on oil prices. Then there is continued optimism in the financial sector, which caused the rally Tuesday. Also, a bill aimed at helping the housing market will reach the House floor. But once again earnings will likely have investors' attention with Costco already giving a profit warning.
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