Google top executives believe the online advertising market will grow to $100 billion in the near future. This is a significant increase in the online display advertising market, which is currently estimated as a $20 billion industry. Google believes its YouTube site will contribute greatly to this growth. YouTube is currently monetizing two billion views per week. Advertisers and marketing departments have grown fond of Google’s “cost per view”, which appears to be an economically efficient way of reaching consumers.
What does this mean for Google shares? Google (GOOG) stock has been hovering in the $600-$625 dollar range for the past couple months. I believe the estimated growth in the online advertising market will significantly increase earnings for Google. Google’s price earnings ratio of 23.31 is rather low compared to the rest of the industry. Chinese counterpart Baidu has a price earnings ratio of 78.88. Due to the low price earnings ratio Google possesses, in addition to the anticipated growth in online advertising, I believe Google stock has a promising future.
Sources: Morrison, Scott. “The Wall Street Journal Online”. 1 March 2011 http://online.wsj.com/article/SB10001424052748704615504576172570604131668.html?mod=WSJ_Tech_LEFTTopNews
Monday, February 28, 2011
Wednesday, February 23, 2011
Apple, Without Steve Jobs
A proposal that would require Apple Inc. to disclose a succession plan for their CEO Steve Jobs has been voted down by shareholders. The main reason the proposal was voted down related to competitors gaining an unnecessary advantage. Steve Jobs has been on medical leave for undisclosed reasons.
How important is Steve Jobs to Apple? Is it fair to say that Steve Jobs is essential to Apple’s success? After a month without Steve Jobs, Apple is doing well. They plan to introduce the second version of the iPad in early March. One month without their coveted CEO at the helm is not long enough to determine how important Jobs is to Apple. Only the future will provide the answer to these questions. In my opinion, Apple is a corporation filled with talented individuals who are experts at marketing new products in a changing external environment. The innovative culture at Apple will remain long after Jobs has left the company. As a result, I think Apple will perform well without Steve Jobs.
Sources: Kane, Yukari & Sheer, Ian. “The Wall Street Journal Online.” 24 February 2011. http://online.wsj.com/article/SB10001424052748703775704576162351568946690.html?mod=WSJ_Tech_LEFTTopNews
How important is Steve Jobs to Apple? Is it fair to say that Steve Jobs is essential to Apple’s success? After a month without Steve Jobs, Apple is doing well. They plan to introduce the second version of the iPad in early March. One month without their coveted CEO at the helm is not long enough to determine how important Jobs is to Apple. Only the future will provide the answer to these questions. In my opinion, Apple is a corporation filled with talented individuals who are experts at marketing new products in a changing external environment. The innovative culture at Apple will remain long after Jobs has left the company. As a result, I think Apple will perform well without Steve Jobs.
Sources: Kane, Yukari & Sheer, Ian. “The Wall Street Journal Online.” 24 February 2011. http://online.wsj.com/article/SB10001424052748703775704576162351568946690.html?mod=WSJ_Tech_LEFTTopNews
Monday, February 21, 2011
Technology Gadgets to Increase Exponentially in Future
Barcelona recently hosted the Mobile World Congress where major technology companies displayed eye-catching devices. Many representatives mentioned the growth present in the technology industry. The most promising areas are predicted to be consumer devices, such as tablets and GPS navigators; wireless health care; in-vehicle features; and smart grids for utilities.
“According to research firm Gartner, mobile-services revenue world-wide is expected to grow steadily over the next few years, to around $1.11 trillion in 2014 from $903 billion last year.” Other estimates were more optimistic. Tom Brand from GMSA thinks by 2020 there will be an estimated 15 billion devices with so-called embedded mobile functionality. This means mobile functionality will be included in a wide range of products, such as Internet tablets, refrigerators and cars. Ericsson estimates up to 50 billion devices by 2020. Larger corporations like AT&T are showing an innovative presence in the healthcare industry with their idea of a wireless drug dispenser that alerts the user if medication is missed.
This extreme amount of growth in the technology industry may lead to opportunity for the average investor. Certain technology companies may become the next Google or Apple. The challenge is seeking out the right company who has a promising future. Of course, these small technology companies bring much risk as far as investing is concerned, but the upside is unlimited.
Sources: Sandstrom, Gustav. "The Wall Street Journal Online." http://online.wsj.com/article/SB10001424052748704900004576152092023439476.html#ixzz1EcfWmVUS
“According to research firm Gartner, mobile-services revenue world-wide is expected to grow steadily over the next few years, to around $1.11 trillion in 2014 from $903 billion last year.” Other estimates were more optimistic. Tom Brand from GMSA thinks by 2020 there will be an estimated 15 billion devices with so-called embedded mobile functionality. This means mobile functionality will be included in a wide range of products, such as Internet tablets, refrigerators and cars. Ericsson estimates up to 50 billion devices by 2020. Larger corporations like AT&T are showing an innovative presence in the healthcare industry with their idea of a wireless drug dispenser that alerts the user if medication is missed.
This extreme amount of growth in the technology industry may lead to opportunity for the average investor. Certain technology companies may become the next Google or Apple. The challenge is seeking out the right company who has a promising future. Of course, these small technology companies bring much risk as far as investing is concerned, but the upside is unlimited.
Sources: Sandstrom, Gustav. "The Wall Street Journal Online." http://online.wsj.com/article/SB10001424052748704900004576152092023439476.html#ixzz1EcfWmVUS
Wednesday, February 16, 2011
Borders Chapter 11 Bankruptcy: What role did technology play?
On Wednesday February 16, 2011, Borders Group Inc. (Borders the bookstore) filed for Chapter 11 protection. In the next few weeks, the company says it plans on closing 30% of its stores nationwide. The filing will allow Borders to reorganize and access new capital, which the company desperately needs.
Borders has been having a difficult time competing with online book sellers, notably Amazon.com. The company has launched loyalty programs and introduced a digital bookstore, yet the company has many liquidity problems and more liabilities than assets.
Technology has greatly affected the traditional brick and mortar book store. Consumers are purchasing books online or through their tablet devices. In order for Borders to be competitive in the future, they will need to become more creative and find a way to gain back their lost sales to online retailers.
Sources: Checkler, Joseph et al. “The Wall Street Journal Online” February 16, 2011.
http://online.wsj.com/article/SB10001424052748703373404576147922340434998.html?mod=WSJ_hp_LEFTWhatsNewsCollection
Borders has been having a difficult time competing with online book sellers, notably Amazon.com. The company has launched loyalty programs and introduced a digital bookstore, yet the company has many liquidity problems and more liabilities than assets.
Technology has greatly affected the traditional brick and mortar book store. Consumers are purchasing books online or through their tablet devices. In order for Borders to be competitive in the future, they will need to become more creative and find a way to gain back their lost sales to online retailers.
Sources: Checkler, Joseph et al. “The Wall Street Journal Online” February 16, 2011.
http://online.wsj.com/article/SB10001424052748703373404576147922340434998.html?mod=WSJ_hp_LEFTWhatsNewsCollection
Tuesday, February 15, 2011
The Effects of Apple’s New Subscription Service Launch
If you have not heard, Apple has just recently launched a new subscription service for its App Store. This will allow for media subscriptions on popular devices like the iPad and iPhone. However, there is a “twist” that is making publishers and other suppliers of content very uneasy. The controversy centers around Apple’s demand to receive 30% of any subscription sale through an Apple App. Traditionally, customers who purchased subscriptions through an App would link out of the App, open a new browser window over the internet, and be billed by the publishing company. However, Apple is no longer allowing this and making sure that all purchases are billed through the App. Apple’s cut is 30% of the sale price.
There are some other complex issues in this system. It is my understanding that publishers are required to offer the same price through the App as they would in an “outside App” purchase. Publishers argue that most consumers will opt to purchase their services in the App due to ease of use.
Why does this matter? If publishers are going to be losing 30% of sales revenue there is little profit left for them. Therefore, one would assume publishers who are on board with Apple’s new service to increase prices on the App to help cover costs and make up for lost revenue. Yet, if publishers are also required to have the same price outside of an App, the regular cost of a subscription will also be inflated. These new costs are all passed onto the consumer thanks to Apple. In my opinion, these added costs bring less value. Consumers are paying a higher price just so Apple can add to its bottom line. The power Apple has to disrupt a market is truly amazing. There still remains a lot to be told about this story and I am anxious to see what will unfold in the future.
To read the Wall Street Journal Article visit: http://online.wsj.com/article/SB10001424052748704409004576146062283349464.html?mod=WSJ_Tech_LEADTop#articleTabs%3Darticle
Video Link:
http://online.wsj.com/article/SB10001424052748704409004576146062283349464.html?mod=WSJ_Tech_LEADTop#articleTabs%3Dvideo
Sources: Adams, Russel & Worden, Nat. “The Wall Street Journal Online”. http://online.wsj.com/article/SB10001424052748704409004576146062283349464.html?mod=WSJ_Tech_LEADTop#articleTabs%3Darticle
There are some other complex issues in this system. It is my understanding that publishers are required to offer the same price through the App as they would in an “outside App” purchase. Publishers argue that most consumers will opt to purchase their services in the App due to ease of use.
Why does this matter? If publishers are going to be losing 30% of sales revenue there is little profit left for them. Therefore, one would assume publishers who are on board with Apple’s new service to increase prices on the App to help cover costs and make up for lost revenue. Yet, if publishers are also required to have the same price outside of an App, the regular cost of a subscription will also be inflated. These new costs are all passed onto the consumer thanks to Apple. In my opinion, these added costs bring less value. Consumers are paying a higher price just so Apple can add to its bottom line. The power Apple has to disrupt a market is truly amazing. There still remains a lot to be told about this story and I am anxious to see what will unfold in the future.
To read the Wall Street Journal Article visit: http://online.wsj.com/article/SB10001424052748704409004576146062283349464.html?mod=WSJ_Tech_LEADTop#articleTabs%3Darticle
Video Link:
http://online.wsj.com/article/SB10001424052748704409004576146062283349464.html?mod=WSJ_Tech_LEADTop#articleTabs%3Dvideo
Sources: Adams, Russel & Worden, Nat. “The Wall Street Journal Online”. http://online.wsj.com/article/SB10001424052748704409004576146062283349464.html?mod=WSJ_Tech_LEADTop#articleTabs%3Darticle
Thursday, February 10, 2011
Finance Tech: The Role of the Traditional Stock Broker
I would like to take a moment to recognize the importance of technology, especially in the financial services industry. It is apparent that online trading sites like TD Ameritrade and Scottrade have become the stock brokers of the 21st century. Individuals are now using the resources of these online sites to make informed financial decisions. The days of going to a broker for financial services seem to be in the past. These websites offer the most current data available, including but not limited to stock prices, option prices, technical charts, bonds and even savings deposits.
It is fair to say that online trading has taken the financial sector by storm, as people now trade stocks with the “do it yourself” mentality. My reason for writing this article is not to disapprove of the stock broker profession, but to contemplate ways stock brokers can use the online arena to their advantage. Why aren’t brokers more involved online? By involvement I mean putting traditional stock broker services on the internet. I believe there would be a market for client/broker webcam chats to advise people on what stock picks to make. Maybe this is a crazy idea, but I would like to see some attempt on behalf of traditional brokers to grow their businesses in the new age of online trading instead of simply fading away.
It is fair to say that online trading has taken the financial sector by storm, as people now trade stocks with the “do it yourself” mentality. My reason for writing this article is not to disapprove of the stock broker profession, but to contemplate ways stock brokers can use the online arena to their advantage. Why aren’t brokers more involved online? By involvement I mean putting traditional stock broker services on the internet. I believe there would be a market for client/broker webcam chats to advise people on what stock picks to make. Maybe this is a crazy idea, but I would like to see some attempt on behalf of traditional brokers to grow their businesses in the new age of online trading instead of simply fading away.
Wednesday, February 2, 2011
The Downside to RFID
RFID technology has many clear advantages. It is a technology that is becoming more apparent in everyday life due to its ability to rapidly transmit information. Whether you are driving down the interstate with your EZ Pass, shopping at a clothing store or starting your vehicle with push button start, RFID technology is most likely playing a role. However, RFID does have some flaws.
One drawback of RFID is the cooperation needed by members of a supply chain. To optimize the benefits of RFID, all members in the supply chain would have to adopt the technology. However, this is not always feasible. A second downside results from ambient electromagnetic waves that can negatively influence tags and scanners. RFID is susceptible to radio frequency overlaps that can cause duplicate scanning results. Another common problem arises when a large number of products with RFID tags are stored in the same scanning field. A reader can energize multiple tags at once and create an information overload, disrupting a supply chain.
There are definitely shortcomings to RFID technology. However, these problems can be solved in the future. In my opinion, the benefits of RFID technology far outweigh the negative aspects of the technology. Hopefully, RFID will become more widely adopted and by doing so become more refined in the process.
References: Exforsys Inc. http://www.exforsys.com/tutorials/supply-chain/can-rfid-help-your-supply-chain/1.html
One drawback of RFID is the cooperation needed by members of a supply chain. To optimize the benefits of RFID, all members in the supply chain would have to adopt the technology. However, this is not always feasible. A second downside results from ambient electromagnetic waves that can negatively influence tags and scanners. RFID is susceptible to radio frequency overlaps that can cause duplicate scanning results. Another common problem arises when a large number of products with RFID tags are stored in the same scanning field. A reader can energize multiple tags at once and create an information overload, disrupting a supply chain.
There are definitely shortcomings to RFID technology. However, these problems can be solved in the future. In my opinion, the benefits of RFID technology far outweigh the negative aspects of the technology. Hopefully, RFID will become more widely adopted and by doing so become more refined in the process.
References: Exforsys Inc. http://www.exforsys.com/tutorials/supply-chain/can-rfid-help-your-supply-chain/1.html
Louis' CIS Blogspot
The author of this blog is Louis Paolillo. This is a student's blog for the CIS 600 class (LINK) at Quinnipiac University (LINK) taught by Professor Bruce White (LINK) . The author of this blog makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an "as-is" basis. Opinions expressed on this blog are author's personal opinions and do not represent opinions of Quinnipiac University (LINK) or opinions of Professor Bruce White (LINK). This blog will focus on computers, technology, business and information systems.
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