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Netflix have had a very bad time lately, with them admitting on Monday that they lost more customers than expected in the third quarter, which stems from an issue to divorce rentals of DVDs from streaming video services, and they've also predicted that subscriptions for DVD delivery will sharply decline in the current period.
Netflix have also projected that they'll begin to lose money for a few quarters starting in the next period, because of costs associated with their expansions in both the UK and Ireland, also announced on Monday. Investors... not so happy. It was a near-instant reaction with share prices dropping once again. They had already fallen 61-percent from their all-time high in mid-July, falling 26-percent more in after-hours trading Monday, following the quarterly report.
Netflix's market value was $16 billion and has now plummeted to just $4.6 billion, all in the space of three months. Netflix have also stated they've lost roughly 800,000 subscribers in the third quarter, which ended with 23.8 million U.S. customers, this is after years of a steadily increasing subscriber base.
Microsoft's YouTube channel was hacked over the weekend, the results of which, all of their videos were removed. The unknown attacker changed the background on the channel to one that included the titles "Predator Cinema" and also a message saying "I DID NOTHING WRONG I SIMPLY SIGNED INTO MY ACCOUNT THAT I MADE IN 2006 :/".
The entire archive of videos on Microsoft's YouTube channel were replaced by short clips titled "We are sponsoring!" and "Make us a background to get a Subbox!!!". There was another video that also showed a scene from the video game LA Noire, with one character shooting another in the head.
Microsoft of course confirmed the attack yesterday afternoon saying:
We have regained control of the Microsoft channel on YouTube, and we are working to restore all of the original content. We will continue to work with YouTube to ensure safeguards are in place for the future.
A growing list of mobile device manufacturers are now handing Microsoft sweet, sweet cash every time they sell a smartphone or tablet running Google's Android or Chrome operating systems. Compal is the latest in a long list to pay Microsoft royalties, the Taiwanese-based company signed a patent licensing agreement with Microsoft that will see them paying an undisclosed amount of money to Microsoft to avoid being sued for allegedly infringing on its patents.
This is the 10th Android-related licensing agreement Microsoft has signed in the past 18 months. It has now evolved into its own beast and is becoming a serious revenue stream for the company. According to some estimates, Microsoft will collect roughly $444 million in fiscal 2012 from Android device makers compensating it for use of its patent portfolio.
Microsoft stated today that it now has patent license agreements with companies accounting for more than half of all Android devices.
Wow. Well, at least they're not just suing other companies because they're strong competition, huh?
WikiLeaks is pretty close to a cliff right now, unless they can overcome blockades put in place by US financial institutions. Founder of WikiLeaks, Julian Assange, said on Monday at a news conference in London that WikiLeaks needs $3.5 million over the next year just to continue normal operations.
WikiLeaks is powered solely on supporter donations and if those backers are unable to throw enough money at the organization, Assange says "we will simply not be able to continue by the turn of the year." With both MasterCard and Visa halting donations to WikiLeaks in December 2010, it did not help the situation one bit. Several others have followed suite, including Bank of America, eBay, PayPal and Western Union, which when put together, represented 95-percent of WikiLeaks' revenue.
Google has reportedly just thrown $100 million on a Mountain View office complex, continuing its real estate expansion. Google paid $100 million for a 240,000-square-foot office near its HQ. A Google spokesperson confirmed that they purchased the space, known as The Landmark at Shoreline. But, declined to disclose the purchase price.
David Radcliffe, Google's vice president of real estate and workplace services, said in a statement:
As we continue to hire it's important to find space for our new employees. The Landmark is strategically situated adjacent to our offices and we look forward to incorporating it into our campus.
The new Mountain View complex still adheres to zoning rules, which allows Google to employ 960 workers at its new office. The Google spokesperson declined to say just how many employees would eventually work there. So far, Google have spent roughly US$225 million for fifteen other properties, all existing buildings, creating a unique campus outlay.
Microsoft have had a very first... er.. first quarter ending Sept. 30, 2011. Microsoft posted a quarter revenue of $17.37 billion, a 7-percent increase over the same period of last year and a tad higher than the expected $17.26 billion.
Office was the standout, though; Office accounted for $5.62 of that income, with Windows staying flat and actually falling below expectations. Microsoft's net income of $5.74 billion was a decent jump of 6-percent over the same time last year.
eBay have met expectations of analysts in Q3 with revenues increasing 32-percent to $3 billion compared to the same period last year. eBay's net income sat at $490.5 million, or 37 cents per share. Non-GAAP revenues, which eliminates the impact of several recent multi-million dollar acquisitions, totaled $682.2 million, or 48 cents per share, meeting analyst expectations perfectly.
Revenues estimates were high, with them ranging from $2.25 billion to $2.9 billion which is according to a poll of analysts by Thomson Reuters. Just before the earnings were released, eBay's stock was down 80 cents, or 2.4-percent to close at $33.07, and in after hours, the stock continued the downward motion dropping another 4.3-percent. Reasoning behind this isn't 100-percent, but it could be its revenue outlook for Q4, which should be its busiest because of the holidays.
Dropbox back in 2009, reportedly turned down a nine-digit, rumored to be $250 million, from Steve Jobs and Apple. Back in 2009, Dropbox was only two years old, but Steve Jobs could see the use in Dropbox before there was iCloud. Steve Jobs led the first and only meeting with the Dropbox founders, Arash Ferdowsi and Drew Houston, telling them they should sell to Apple because Apple would crush their company with a competing product.
That recently product is the recently launched iCloud service... the following quote is from the Forbes article (and cover story) written by Victoria Barrett:
In December 2009 Jobs beckoned Houston (pronounced like the New York City street, not the Texas city) and his partner, Arash Ferdowsi, for a meeting at his Cupertino office. "I mean, Steve friggin' Jobs," remembers Houston, now 28. "How do you even prepare for that?" When Houston whipped out his laptop for a demo, Jobs, in his signature jeans and black turtleneck, coolly waved him away: "I know what you do."
AMD's shares bulldozed by over 5-percent in the past week, over 50-percent in 6 months, thanks, Bulldozer?
Well, AMD's Bulldozer launched last week to much of the publics dismay. It did not really cause the ruckus that AMD probably expected, unable to trip up the current CPU champion, Intel's Core i7. AMD's shares have since seen quite the dip, with Friday, October 14 seeing their share price hovering at $4.90 per share, and now they've experienced a sharp decline of 5-percent down to the $4.70 or so per share mark.
Thought that was bad? Well, I clicked on the 12-month period for AMD's shares and on Feb 25th, 2011 they peaked (for the 12-month period) at $9.29 per share... quite the slump they've seen. The point of this complete decline in shares saw it starting on Sep 16th, 2011 where it was sitting at $7.20, and has declined virtually everyday until Bulldozer's lacklustre launch. Did the industry know what was going to happen?
"We had a great quarter" says Larry Page, CEO of Google. Google has made $9.72 billion in revenue, an increase of 33-percent from Q3 2010. GAAP net income is $2.73 billion versus $2.17 during the same period last year. Google also reported $9.02 billion in revenue last quarter, with $2.51 billion in net income. Not bad, Google.
Analysts were expecting Google to earn $8.74 per share this quarter on a revenue of $7.21 billion, representing a more than 30-percent growth from last year. With these estimates, Google have blown away those expectations on both revenue and EPS, as non-GAAP EPS this quarter weer $9.72. Google has had a very active quarter, the acquisition of Motorola, and the public launch of Google's social networking site, Google+.
Google presently employs 31,353 full-time employees and has $42.6 billion in cash. Google's sales and marketing costs doubled from $661 million in Q3 2010 to $1.2 billion this quarter. Research and development costs went from $994 million to $1.4 billion. One of the more interesting items on the ledger... a $500 million charge from the Justice Department regarding pharmaceutical ads. Wow, spare change considering they have $42.6 billion in cash - hey Google, can I have a loan?