Why does Amazon please Wall Street so much? The company treats shareholders with a disregard that borders on contempt. (CEO Jeff Bezos is "willing to be misunderstood" which means he really doesn't care if investors understand the business, as we'll see.) Yet when it announced that profits last quarter fell 45% year-over-year, the stock price saw a healthy bump. Meanwhile, many tech companies, like Apple, which had a high-profit, high-margin quarter, found their stocks punished. Perhaps this is a sign that Wall Street is finally embracing the idea that, for tech companies, growth comes first, even at the expense of profit.
As Facebook continues its search for a bottom after only eight trading days as a public company, there’s a much bigger problem than the $40 billion in market cap it has lost. The people behind Facebook’s dubious $100 billion-plus self-valuation were apparently as doubtful as the rest of us. At stake is the fate of Wall Street’s soul. To paraphrase Sir Thomas More’s line in A Man For All Seasons: “It profits a man nothing to give his soul for the whole world…” – but for Facebook?
With a disputed election in Iran and a coup in Honduras, Jon Stewart wants to know: Where is the CIA?******He finds his answer in a Reuters Video segment by Fred Katayama, who reported earlier this month that the spy agency is recruiting Wall Street’s finest. ************You can view our original segment here:******
This is turning out to be an earnings season when all bets are off on how technology giants will perform. With tech earnings taking the market on a roller-coaster ride, it wouldn’t be surprising if investors are a little sick in the stomach already.
Hours after it issued its second warning in three weeks, forecast shrinking cell phone sales for 2009 and promised to reduce expenses, Nokia held an investor meeting in Brooklyn, New York. Most analyst meetings take place in Manhattan, and Chief Financial Officer Rick Simonson told the audience on Thursday that he’d been asked why the company chose the Marriott at the Brooklyn Bridge. Brooklynites are very accommodating, Simonson said — adding that Nokia saved money by moving the meeting from the heaving center that never sleeps. Simonson didn’t give a figure, but JPMorgan said in a note that Nokia saved as much as $500,000 by simply making Wall Streeters cross to the other side of the Brooklyn Bridge. It’s hardly enough to counter a 5 percent cut in cell phone sales volume next year and probably not even a fraction of the cost of putting Nokia’s latest multi-media phone, the N-97 on the market, but it is a good start. Maybe other conference organizations will take its cue, and this reporter will have a shorter commute more often.