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Nokia grows profits and smartphone share in Q4
Pretty good news for Nokia today as it announces its Q4 results. Net income jumped 65% to €948 million (on €12 billion in sales) or 26 eurocents per share, from €576 million euros, or 15 eurocents a share, earned in Q4 2008. That handily beat the consensus forecast of 19 eurocents per share. Importantly, Nokia grew its smartphone (or "converged devices" in Nokia parlance) marketshare to a healthy 40%, up from 35% just last quarter. Looking forward, Nokia cautioned that it expects its adjusted operating margin in Devices & Services in Q1 2010 will be at the low end of its 12% to 14% target. At the time of this posting, Nokia stock has jumped about 9% in recognition of these good times.
AAPL goes on a roller-coaster ride
The above image from SingularityDsgn graphically shows the wild roller-coaster ride that Apple's stock has been on today. It traded at roughly 1.5% below Tuesday's closing price heading into today's iPad announcement, but started climbing during the iBooks announcement. AAPL's stock took a major leap when pricing information was released, and is currently trading around 209.69, up about 1.75% (please note that these numbers fluctuate frequently). Lots of jumping is about right for any Apple event, though the big jump when price was announced is somewhat surprising. AAPL actually tends to drop after an event, as there are so many rumors flying around ahead of time that investors are easily underwhelmed. But it looks like especially the pricing news won their approval today. As always, this is not official stock information, and you shouldn't make any buy or sell decisions based on what you read here.
GameStop reveals 2010 capital allocation program
We know, we know -- you've been sitting around all day worried sick about GameStop. Ever since the recent announcement of a cut profit forecast and the resultant drop in share prices, we've been in exactly the same boat. Good thing then that the company has announced plans to repurchase $300 million in stock from investors as part of its 2010 "Capital Allocation Strategy," with intentions to increase earnings per share by 10 percent. Wedbush Morgan analyst Michael Pachter sees the announcement as "positive," echoing the company's statement of continued financial growth in 2010. "We believe that industry sales will rebound in 2010 and that GameStop is well-positioned to gain share the first half of the year. The company has high exposure to the hardcore software releases, which we expect to drive market growth in 2010, and comparatively low exposure to hardware, which we expect to decline," he says. It certainly doesn't hurt that GameStop plans to open 400 new stores over the course of the year -- the financials even leave $100 million on the side, reserved for "acquisition activity." It would appear that, at least for now, we can all can stop worrying. Finally.
GameStop shares drop 15% following holiday sales info release
Following yesterday's lowered profit forecast announcement from GameStop, the company's stock took a 15 percent dive as of last night. According to GamesInudstry.biz, stocks opened yesterday "sharply down" due to the release of lowered profit expectations, but rose again before ending the day at $20.46. We might not know what the future holds for GameStop, but Wedbush Morgan analyst Michael Pachter returned from the future for just long enough to say he believes "industry sales will rebound in 2010 and that GameStop is well-positioned to gain share [over] the first half of the year." It certainly doesn't hurt the retailer that 2010 is chock full of delayed 2009 releases, we imagine.
Ex-AMD CEO Hector Ruiz steps down as Globalfoundries chairman amid insider trading scandal
We won't dive back into all the backstory that led to former AMD CEO Hector Ruiz's current troubles as the chairman of AMD spin-off Globalfoundries, but let's just say that when your name is in the same sentence as "insider trading scandal" and "hedge fund probe," you're probably in a pretty bad way. While this story is obviously still far from over, it looks like Ruiz has at least realized the gravity of his predicament, and announced today that he's taking a "voluntary leave of absence" before formally resigning from the company on January 4th, 2010. He'll be replaced immediately by former Broadcom CEO Alan "Lanny" Ross, who will serve as interim chairman until the company's board appoints a permanent chairman.
Ex-AMD chief Hector Ruiz caught up in insider-trading scandal
Hector Ruiz certainly led a checkered career as CEO of AMD, earning the highest CEO salary in the semiconductor industry as his company's stock dropped, its products dragged, and its fortunes sank, but the man didn't stop there -- it looks like he may also have been involved in a little illegal insider trading on the side. According to the Wall Street Journal, Ruiz is the heretofore unnamed AMD executive who illegally tipped off a hedge fund investor about the company's big spinoff of Globalfoundries, ultimately leading to criminal and civil charges against Galleon and six of its employees. Ol' Hec's currently in the clear, as he hasn't been charged with anything, but considering he's now the chairman of Globalfoundries, well, let's say things are about to get a little sticky. We'll let you know -- we've got a feeling Gizmondo's Stefan Eriksson is going to look like small potatoes when this is all over.
AAPL hits all-time high
Steve Jobs' Disney stocks aren't the only thing making him rich -- AAPL has hit an all time high, according to MacRumors, thanks to the big announcements earlier this week, both on the online store and during the conference call. Before opening this morning, it was at 204.72, but the high yesterday was a whopping 208.71, the best the company's ever seen, beating the previous high of 199.83, set in December of 2007. And it's been a heck of a year: the stock was trading in the mid 80s this past January, though that may have been more of a sign of the economy at large than Apple's fortunes specifically. Boy, it would have been nice to buy back then, wouldn't it have? $5,000 of Apple's shares in January would be worth $13,000 yesterday. Just goes to show you can't keep a good fruit down. You can track all the AAPL financial news on our sister sites Blogging Stocks and Daily Finance.
Analyst: GameStop sales safe from digital delivery until 2017
Even though GameStop seems to be accepting the inevitable digital future, one analyst says the major gaming retailer won't feel the pinch from online game delivery services until 2017. According to Broadpoint AmTech analyst Ben Schachter, limited storage capacity and bandwidth limitations mean it is "unlikely" that digital services will have a "meaningful impact" on GameStop's sales within this console cycle. Schachter doesn't anticipate the next console cycle to kick off until some time in 2014 and, even if future formats are completely digital, believes it will still take a number of years for market penetration to reach a threatening level to the retail business. For an example of "proof" to his claims, Schachter points to the "very disappointing sales" of the digital download exclusive, Grand Theft Auto IV: The Lost & Damned. Confusing, considering all previous accounts have pointed to the downloadable expansion as seeing strong sales since release. "The bottom line is that retail still matters," Schachter told IndustryGamers. While some analysts are keen on throwing the brick-and-motar chain under the bus during the increasing digital age, Schachter claims Gamestop "continues to defy the naysayers." He went on to ask if we wanted to pre-order any future games industry analysis. [Image]
EA stock dropped slightly following earnings report, back up
EA's stock took a near seven percent dive yesterday, following the publishing giant's latest earnings report on Tuesday, GI.biz reports. As of writing this post, the stock stands at $20.55, jumping up a little over one percent since trading began today. We're no stock analysis site, but we're fairly certain that should The Sims 3 and EA Sports Active keep kicking butt at retail – and with EA's yearly fundraiser, Madden 10, on the horizon – EA stockholders will be A-OK.
Take-Two stock takes punch after BioShock 2 delay
Shares of Take-Two Interactive took a hit overnight after the company announced BioShock 2's delay to the first half of 2010. After-hours trading saw the stock drop 13 percent. Today, during regular trading hours, the stock has hovered around a 10-percent loss.It's unlikely that a delay of Max Payne 3 or Mafia II would have caused investors to notice. GTA IV's DLC, The Ballad of Gay Tony, would have most certainly given the market agita if it had been delayed, but it still appears ready to come out all fabulous this fall.
Buying Activision Blizzard stock may be too extreme for you
Where does USA Today analyst Matt Krantz turn when he needs to hear blood rushing past his ears at 1,000 heartbeats per minute as he takes life to the edge? Why, investing in video games, naturally. "Just as Activision's games are for thrill seekers, the stock is, too," he wrote in a recent analysis of the company. "Investing in Activision shares will be filled with excitement, fear and suspense." Slow down, Matt, our adrenal glands just melted!If you're up to it, you can read Krantz's full analysis of the stock right here. Or you can really push the thrill envelope and guzzle that cup of Starbucks that was super hot when you purchased it 30 minutes ago without sipping to see if it cooled. WOOOAAHHHH![Image credit: Tyla'75]
ATVI is a "conviction buy"
Well, The9 is going down in flames, but if you're looking to make some money in the stock market lately, you could do like BRK and buy some stock in Activision-Blizzard. Goldman Sachs has upgraded ATVI to "buy," and even marked them out as a "conviction buy" -- while the stock price is almost $11 right now (it jumped up about .75 on this news this morning), GS says it's headed to $14 eventually. "Conviction buy" just means that the wily traders at Goldman Sachs expect the stock to outperform in the future -- Activision is already saying it will do well, but GS thinks it'll do even better.Medievaldragon over at WorldofWar.net points out that there may still be trouble ahead: while Blizzard has gone with Netease for their service in China, they still have to make it past the Chinese government's approval process, and there may actually be service outages if things aren't approved quickly. But that won't affect Activision's business very much, and given that the company still has a bright future (even in a harsh economy), picking up a few shares is probably a relatively good investment.Please note: I am not a financial expert, and none of this should be taken as serious financial advice. You invest in the stock market and any other financial institution at your own risk. If you're getting stock tips from WoW Insider, it's probably better to keep your money in your pocket. AH tips, on the other hand...
Apple market share drops slightly in the past year
Don't look now, but Apple's slow market share incline may have just turned into a slow decline. Not only does a new report by research and advisory company Gartner, Inc say that Apple's market share in the US slipped just a little bit over the past year (from 7.5% to 7.4%), but that as you can see above, there's a steep little decline from the 8% it was in the last quarter of 2008. The PC market overall is down as well, a 6.5% decline since the beginning of last year.Does that mean it's time to sell the AAPL stock? Probably not -- as you can see from the graph, there's still been a nice steady growth in market share since 2006, and the current economy has all ships falling a little bit with the tide as it goes out. But it does mean that Apple might be having more trouble than they want breaking out into more of the market. If that is their goal anyway -- Gartner's report also notes that Apple's relatively higher ASP (Average Selling Price) "created challenges for it in the tough economy," but when have we ever known them to go cheap?So Apple's not up in the short term, but who is? Well maybe Goldman Sachs is. But we don't entirely trust those guys. And in case you're wondering: none of this is actual financial advice, and none of it should be used to make any decisions that might lose you money. You've been warned.[via TechMeme]
Take-Two stock jumps up 10% following earnings report
Take-Two recently dished out deets concerning how much of the coveted moneyz the company made and how much of that was attributed to car theft. Following that, the company's stock started to get a spring in its step, rising 10% yesterday. With the company reporting a $50 million loss, seeing such a sharp climb is surprising, to say the least. Take-Two's next game, GTA: Chinatown Wars, is due for release on March 17.
Bond trader accidentally places $31bln Capcom order
A UBS trader's infatuation with the zero key almost led to a $31 billion order -- allegedly the largest in Tokyo Stock Exchange history -- for convertible bonds in Capcom. Reuters reports that, thankfully, the error was caught before any real financial harm occurred. The trader only meant to place an order for $306k.The incident did raise some concerns about Japan's "lax approach to systems and compliance," especially since UBS was recently involved in two of the country's most famous trading blunders. Come on, regulatory guys. We're sure the trader could've just loaded a previous save file if things actually went bad. That's the way things work, no? [Via Capcom Unity] [Image]
Jobs to miss Apple shareholder meeting this week
Bloomberg is reporting that Steve Jobs will not attend this week's Apple shareholder meeting. That's not a big surprise -- Jobs' health has kept him from attending recent usual events, including Macworld earlier this year. But it is the first time in the over 10 years since he rejoined the company that he won't be appearing at the annual meeting.Additionally, at this week's meeting, as usual, shareholders will vote on whether or not to re-elect Apple's directors to their one-year terms, including Jobs, though nothing is expected to change -- the company has remained strongly in support of Jobs as leader, even if they haven't talked about his health as much as some investors may have liked. COO Tim Cook will likely run most of the planned activities during the meeting.We'll keep an eye on any news that comes out of the closed meeting (streams and transcripts won't be available, but there will be reporters in attendance), and let you know what we hear. As always, we wish Jobs and his company and family the best of health, and hope he is able to feel better soon.[via CNET]
Square Enix stock drops to a five-year low
It's enough to enlimpen even the most over-moussed hair spikes, and rustify the most well-polished gun-that's-a-sword-that's-also-a-magic-wand: Square Enix's stock has fallen to a five-year low according to Bloomberg. As of this morning, the stock had dropped 11% to ¥1,936 on the Tokyo Stock Exchange.In other news that doesn't bode well for the company, Square has moved the date for reporting its earnings from today to February 13. We've been told we can expect president Yoichi Wada to take the stage, announce "Not a lot!" with a cute little half-shrug and give himself a high-five. In other news: OhGodtheworldeconomyiscollapsing! Buyallthepreciousmetalsyoucanfind![Via GI.biz]
Apple releases 2009 proxy statement
Yesterday, Apple released a proxy statement detailing the financial compensation that executives enjoy as part of their participation on the board of directors. Steve Jobs retained his $1 salary for 2008, but has over 5.5 million shares of Apple stock, which is worth over $500 million on paper. Jobs is worth about $5.7 billion, thanks largely to the fact that he's Disney's largest individual shareholder. Fidelity Investments continues to be Apple's largest investor with over 46 million shares of stock. There are five shareholder proposals up for voting this time around: Proposal 1 asks to re-elect the board of directors, consisting of Steve Jobs, William Campbell, Millard Drexler, Al Gore, Andrea Jung, Arthur Levinson, Eric Schmidt, and Jerry York. Proposal 2 asks for more transparency surrounding Apple's political contributions. Proposal 3 asks the company to adopt a statement supporting universal health care for everyone, and not just employees. Proposal 4 asks the company to release a report on corporate strategies surrounding climate change and greenhouse gas emissions before July. Proposal 5 asks to adopt a policy that gives shareholders more input on executive compensation. (Thanks, Scott!) The board of directors, perhaps not surprisingly, recommends approving the first proposal, and rejecting the other four. The proxy statement is available from Apple's Investor Relations website, and will not be mailed to shareholders unless requested. [Via MacDailyNews.]
Activision-Blizzard stock falls
What's going on at Activision-Blizzard? Yesterday, their stock fell back down to the lowest its been since November of 2006. Even coming off of huge sales last year (they run the Guitar Hero, Call of Duty, and obviously Blizzard's World of Warcraft franchises, all of which had banner years in 2008), the stock price fell 6.5% yesterday, compared to a high in the last year of $19.28.It's not Wrath -- the game's been selling like gold encrusted hotcakes since launch. There could be an upcoming shakeup in Activision's leadership (is Bobby K on his way out?), or it could just be that as well as Activision did this past year, the rough economy is hitting them hard, too.At any rate, this will likely be just a bump in the road -- Activision is poised to become (if they haven't already) the biggest publisher in the game, and as you can see from this graph on their website, the stock is already back up above $9. We don't know what the reason is for this quick drop, but everything else we've seen points to a bright future for Activision-Blizzard.
Ten Apple products Jobs had nothing to do with
This is very interesting -- while investors and consumers alike are panicking every time someone says "Jobs" and "sick" in the same sentence, MacLife has decided to take a more optimistic view of the prospect of His Steveness leaving the company, by compiling a nice list of ten Apple products they say Jobs had nothing at all to do with. As you probably already know, Steve left the company once before, from 1985 to 1996, and during that time, while Steve was working on NeXTstep (which would eventually become OS X), Apple didn't exactly sit on its laurels.The Newton is first and foremost, and while some may laugh at the handwriting recognition, let's not forget that it can still do things the iPhone can't. And while many of Apple's products were finalized under Jobs' watch, their beginnings come from before his return: the Powerbook, Macintosh TV (which could definitely be seen as a precursor for the AppleTV), and the Power Macintosh were all released without Jobs. Even among the most faithful Apple fans, you have to agree that Apple is willing to get wacky without Jobs to squelch some really crazy ideas: the Twentieth Anniversary Mac, the eMate, and the adjustable keyboard are all examples of that.Of course, you could definitely argue that Apple's most popular products (iPods, the iPhone, the MacBook lines) wouldn't have happened without Jobs. But there's something to be said for Apple sans Jobs, too. "The Power to Be Your Best" might not be quite as memorable as "Think Different," but it's got its own charm.
