by Tiernan Ray, Blogger, Tech Trader Daily, Barron's
Target’s decision today to build out its e-commerce infrastructure won’t likely hurt Amazon.com, writes J.P. Morgan analyst Imran Khan in a note to clients. In fact, it could help.
Target announced today it would construct its own order-fulfillment services for its online sales, which totaled $1.8 billion last year, according to Khan’s estimate, signalling the end of its use of Amazon’s back-office fulfillment services, for which Amazon receives a fee.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
For many quarters now, telco giants Verizon and AT&T have suffered sharp declines in the residential wireline business, but have been bailed out by the rapid growth of their wireless businesses.
by Tiernan Ray, Blogger, Barron's, Tech Trader Daily
Seems the more the Street thinks about Cisco Systems’s announcement Monday that it will sell servers, the less the Street is inclined to be enthusiastic. As I noted Monday, Cisco is expected to lose current revenue from partners Hewlett-Packard and IBM as it comes into deep competition with both. And the effort Cisco will need to make to actually be successful in selling a server against both vendors seems somewhat formidable–however enthusiastic Cisco is about its “Universal Computing System.”
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Carl Johnson, an underappreciated observer of the tech investing world and a longtime analyst on the semiconductor equipment business, who can be found online at Infrastructure Wednesday afternoon, sent along an annotated version of a list of the Top 10 Tech Investing Rules, as set down in Institutional Investor magazine by J.P. Morgan chip analyst Christopher Danely.
by Eric Savitz, Blogger and Columnist, Barron's Tech Trader Daily
J.P. Morgan analyst Mark Moskowitz has a grim outlook for 2009 PC sales: He expects world-wide shipments to drop 13.5 percent this year, down from his previous forecast for a decline of 3.7 percent. Accordingly, this morning he cut his rating on Dell to Underweight from Neutral, chopping his price target to $8.50 from $12.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
J.P. Morgan’s Imran Khan theorized in a research note this afternoon that Amazon.com could eventually be a beneficiary of the demise of Circuit City, which earlier today said it would close all of its remaining stores and liquidate. Khan thinks Amazon could inherit as much as half of Circuit City’s online business.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
China-based Baidu’s earnings estimates have dropped sharply following the recent controversy involving the company’s connection to some unlicensed medical firms via search-related advertising. One Hong Kong analyst dropped his earnings forecast by five percent for this year and 19 percent for 2009.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Clearwire shares are down sharply this morning after negative comments from analysts at J.P. Morgan and Stanford Group. Though its stock saw a lift yesterday following the completion of its deal to acquire Sprint’s Xohm wireless broadband business, the concern is that the company needs substantially more capital and that the intensely competitive landscape will overshadow its technological advantages.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Time to draw a line in the sand?
J.P. Morgan software analyst John DiFucci this morning did what every good software analyst has been doing in the last few days, and chopped his estimates for most of the companies in his coverage universe. The reductions reflect both the impact of the rising dollar, which tends to hurt results for the companies in the sector, and the softening macro backdrop.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Here’s a cheery item on the chip sector that I missed while I was off at this morning’s Apple (AAPL)-sponsored Jack Johnson concert in San Francisco. Christopher Danely, semiconductor analyst at J.P. Morgan, asserted in a research note this morning that “deteriorating demand will bring about a correction in semiconductor estimates and stocks over the next four to six weeks.”
Microchip (MCHP) shares are headed lower in early trading after J.P. Morgan semiconductor analyst Christopher Danely cut his rating on the stock to Neutral from Overweight.
In a research note, Danely says that the move reflects “a slowdown in the Chinese consumer end market and the stock’s high valuation.”
While not strictly a technology story, JP Morgan’s buyout of Bear Stearns on Sunday is worth looking at in the larger context of the tech industry. As you hopefully know by now, JP Morgan picked up Bear Stearns for $2 a share, a total of $236 million, which is (quite literally) pennies on the dollar for a firm that not so long ago was valued at $170 a share and on Friday alone had tumbled from about $55 a share to $30 a share.
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