Filed under: Before the bell, Analyst upgrades and downgrades, Google (GOOG), Time Warner (TWX), Whole Foods Market (WFMI), BP p.l.c. ADS (BP), Alcatel-LucentADS (ALU)

Alcatel-Lucent (NYSE:ALU) was raised to “neutral” from “underperform” at Merrill Lynch, according to 24/7 Wall St. The financial website also reports that Whole Foods Market (NASDAQ:WFMI) was cut to “neutral” from “buy” at UBS.

Citigroup added Google (NASDAQ:GOOG) to its Top Picks Live list, according to Briefing.com. The news service reports that Time Warner (NYSE:TWX) was also added to the list.

Societe Generale raised its rating on BP (NYSE:BP) to “hold” from “sell” according to MarketWatch.

Douglas A. McIntyre

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Filed under: Forecasts, Deals, Consumer experience, Competitive strategy, Google (GOOG), Microsoft (MSFT), Entrepreneurs

This post is part of my series featuring established companies and the smaller, more aggressive or innovative rivals that may eventually succeed them.

I remember way, way back to November 2006 when Wall Street was stunned that Google (NASDAQ:GOOG) was paying the ungodly sum of $1.65 billion for privately held YouTube. How were they to monetize this goofy, home video web site? Since November 2006, it appears that Google got a bargain when compared to other social networking web sites.

Facebook has over 80 million users including a new Facebook profile for Democratic presidential nominee Barack Obama. Facebook attained Wall Street relevancy last year when Microsoft (NASDAQ: MSFT) agreed to pay the unheard of $246 million for a 1.6% ownership stake. That October 24, 2007, Microsoft investment valued Facebook at nearly $10 billion in the private equity world. As of yet, there is no filed Facebook IPO, but investors bet the company will file an IPO before the end of 2009.

The new player capturing headlines in the social networking world is LinkedIn. The company is designed for the business and professional world. The more than 23 million registered users represent over 150 different industries. It’s a place to swap ideas, best practices and other opportunities.

LinkedIn was founded in 2002 specifically for the business community. LinkedIn just received a $53 million venture capital investment led by Sequoia Partners. The $53 million represents a 5% stake in the company, therefore valuing LinkedIn at $1.06 billion.

The simple business model of social networking web sites allows for an instant global presence, thus enhancing the underlying values of these companies. In the case of Google, the monetizing of YouTube will begin shortly as Google strategically places quick 15 second ads on the bottom of the requested video. Google will be watched closely by other industry insiders as no one wants to cheapen the freedom and ease of use of the social networks by cluttering them with countless ads.

With fresh growth capital, LinkedIn will expand its marketing efforts globally and grow its user list. The user list is the most valuable asset and Sequoia Partners valued each member at over $50.

The next couple of Google-type IPOs may come from this sector of the Internet … stay tuned.

Georges Yared is the editor of YaredsGameChangers.com and the author of the new report “How to Spot the Next Google.”

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Filed under: Earnings reports, Google (GOOG), Walgreen Co (WAG), Bed Bath and Beyond (BBBY), Kroger Co (KR), Darden Restaurants (DRI), Research in Motion (RIMM), General Mills (GIS), NIKE, Inc’B’ (NKE), KB HOME (KBH), Oracle Corp (ORCL), Red Hat Inc (RHT), United Parcel’B’ (UPS), Palm Inc (PALM), CKE Restaurants (CKR), Rite Aid Corp (RAD)

Here are some highlights from this past week’s earnings coverage from BloggingStocks:

• Bed Bath & Beyond Inc. (NASDAQ: BBBY) Q1 earnings tumbled while revenues rose.
• Casella Waste Systems Inc. (NASDAQ: CWST) posted a narrower-than-expected Q4 loss.
• CKE Restaurants Inc. (NYSE: CKR) Q1 earnings increased but its revenue slipped.
• Darden Restaurants Inc. (NYSE: DRI) swung to a Q4 profit on strong sales at Olive Garden.
• Ericsson (NASDAQ: ERIC) said it might not see Q2 profit growth on lower demand and shipping delays.
• General Mills Inc. (NYSE: GIS) Q4 earnings declined but were in line with expectations.
• Gerber Scientific Inc. (NYSE: GRB) reported solid Q4 and full-year results that pleased investors.
• IHS Inc. (NYSE: IHS) beat Q2 expectations and posted record quarterly cash flow from operations.
• Jabil Circuit Inc. (NYSE: JBL) stronger-than-expected Q3 results led to an analyst’s upgrade.
• KB Home (NYSE: KBH) widened its Q2 loss due to weak sales and falling prices.
• Kroger Co. (NYSE: KR) beat Q1 expectations as consumers sought discounts on food and gas.
• Monsanto Co. (NYSE: MON) beat Q3 earnings estimates but fell short of revenue estimates.
• Nike Inc. (NYSE: NKE) posted better-than-expected Q4 results boosted by international strength.
• Oracle Corp. (NASDAQ: ORCL) posted strong Q4 results that topped analysts’ expectations (see transcript).

• Palm Inc. (NASDAQ: PALM) posted dismal results as revenue fell despite higher sales volume.
• Red Hat Inc. (NYSE: RHT) Q1 revenues soared as results beat Wall Street expectations.
• Research in Motion Ltd. (NASDAQ: RIMM) posted disappointing results and lackluster guidance (transcript).
• Rite-Aid Corp. (NYSE: RAD) swung ot a larger-than-expected Q1 loss on integration difficulties.
• Sonic Corp. (NASDAQ: SONC) earnings warning took shares to a new 52-week low.
• Symmetry Medical Inc. (NYSE: SMA) beat Q1 estimates on increased demand and acquisitions.
• United Parcel Serivce (NYSE: UPS) cut its earnings forecast due to rising fuel prices and less demand.
• Walgreen Co. (NYSE: WAG) posted sluggish Q3 results despite cost-cutting measures.

Also, do the results from Oracle, Research in Motion, and Red Hat point to a bottom for tech stocks? Will Google’s (NASDAQ: GOOG) new CFO be more likely to provide the guidance that analysts crave?

Upcoming results to watch for include H&R Block (NYSE: HRB), Constellation Brands (NYSE: STZ), Apollo Group (NASDAQ: APOL), Family Dollar (NYSE: FDO), WD-40 (NASDAQ: WDFC), and Berkshire Hathaway (NYSE: BRK.A).

Visit AOL Money & Finance for more earnings coverage.

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Filed under: Forecasts, Consumer experience, Competitive strategy, Google (GOOG), Apple Inc (AAPL), Motorola (MOT), AT and T (T), Nokia Corp. (NOK), Research in Motion (RIMM)

This post is part of my series featuring established companies and the smaller, more aggressive or innovative rivals that may eventually succeed them.

Apple (NASDAQ: AAPL) is one of the great stories of corporate America and the stock market. Under the leadership and genius of Steven Jobs, Apple is emerging as the premier technology growth company of this decade and the next. In the past five years the stock has rocketed from $9 to the current $175, and yet the story is actually stronger than ever before.

Apple has three major legs of growth in its arsenal and a distribution system that is second to none. The products of Apple are both cool and revolutionary. The 2002 introduction of the iPod defined the MP3 player space. Apple has sold over 150 million units as of March 2008 and commands over 70% of the market share. Many iPod owners are on their 3rd and 4th units, so the actual penetration of addressable customers has been barely scratched. The newer versions include touch screen and of course can store up to 20,000 songs and numerous movies and pictures.

The Mac computer has been re-engineered these past couple of years and is now the rage of the personal computer market. The new Mac is beginning to enter the traditional enterprise sector while maintaining its dominance in the consumer sector. The Leopard operating system became available in mid-2007 to rave reviews. Apple is taking market share in the competitive personal computer sector while maintaining its pricing structure. The company doesn’t compete on price but offers such superior functionality that buyers do not mind paying full retail price. The attendant software programs are also seeing a resurgence and also carry high margins.

The iPhone is a revolution unto itself. On June 28, 2007, Apple WAS NOT a player in the fiercely competitive cell phone market. On June 29, 2007, Apple became a force to reckon with. The CEO of old traditional global cell phone maker Motorola (NYSE: MOT) said at a conference, “we have no answer for the iPhone.” (Stunning yet true and, by the way, Motorola is still a “sell” as I wrote last year in BloggingStocks.)

The iPhone will launch its new version with twice the juice and half the price. The $199 retail price, down from $399, will not mean less revenues for Apple. Carrier partner AT&T (NYSE: T) is subsidizing the difference in exchange for the two-year subscription from the iPhone customer. Apple has sold 5.4 million units of the iPhone as of the end of March 2008. The often-quoted goal of 10 million units sold by year end 2008 should be accomplished by September. Apple will roll out the new iPhone in 70 countries by year end.

The global race for “smart phone” market share will be a three company race: Nokia (NYSE: NOK), Research in Motion (NASDAQ: RIMM), and Apple.

Apple has a brilliant distribution strategy in place with its powerful, globally placed 232 retail Apple stores. Apple is America’s number one retailer in the valuable metric of sales-per-square-foot of selling space. Last year it topped $4,500 per square foot. Apple controls the customer purchases from soup to nuts, as customers buy software and other accessories in addition to the Mac, iPod or iPhone.

There is no other story in the technology world like Apple … well, maybe Google, (NASDAQ: GOOG), but that’s another story!

Georges Yared is editor of YaredsGameChangers.com and author of the new report “How to Spot the Next Google.”

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Filed under: Management, Google (GOOG)

Google, Inc. (NASDAQ: GOOG), after months of searching for a new Chief Financial Officer, has just named a new one as of this week. Bell Canada (NYSE: BCE)’s Patrick Pichette will take over for the retiring George Reyes. Reyes, who presided over Google’s IPO back in 2004 and was very adept at telling the investor community only what Google wanted the world to know, will be an interesting person to replace indeed.

Pichette will begin with Google on August 1. His recent positions as president of global operations and CFO of Bell Canada no doubt was a large mark on his resume. Google did the right thing here — searched for, and found, a seasoned global exec to represent the financial communications of the world’s hottest internet company.

One area that will be interesting to see develop involves Google’s stubborn approach to not laying it all out on the table. As in, giving all the inside guidance and other details analysts crave so that they can push GOOG shares up or down if those targets are hit or missed every quarter. Google has always been a financial communication maverick and has told the market to stick it many times by not coming forward with a bunch of granular detail about future quarters. What will Pichette do? We’ll see on Google’s Q3 quarterly results call later this year.

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Filed under: Management, Google (GOOG), Dell (DELL), Starbucks (SBUX), International Business Machines (IBM)

Microsoft Corp. (NASDAQ: MSFT) co-founder Bill Gates is riding off into the sunset today, at least he sort of is. The man who made nerds and geeks “cool” is shifting his focus away from the world’s largest software company to his philanthropic work.

Gates contributions to modern society cannot be understated. When he gets older, my 20-month-old son will no doubt be surprised to learn that there was a time when computers were expensive, impersonal devices the size of several refrigerators. Gates helped make the computer personal. Of that there is no doubt. How he did it remains open to debate. The elite geeks despise Microsoft for developing expensive, inferior operating systems that are prone to crashes and computer viruses.

The shift by Gates, which has been expected for some time, comes as the Redmond, Washington-based company is at a crossroads. Back in the 1970s and 1980s, Microsoft was the underdog that upended the tech establishment lead by International Business Machines Corp. (NYSE: IBM).

This time, Microsoft finds itself in the role of Big Blue and Google Inc. (NASDAQ: GOOG) has taken on the Microsoft role. Google is trying to pry open Microsoft’s lock on the desktop by offering services that the software company sells for big profits such as e-mail and spreadsheets for free. Microsoft also has tried and failed to make a dent in Google’s share of the search market.

Will Gates stay retired? I am sure that the good works of The Bill and Melinda Gates Foundation will keep him busy. But other CEOs such as Michael Dell from Dell Inc. (NASDAQ: DELL) and Starbucks Corp (NASDAQ: SBUX)’s Howard Schultz have tried to walk away from the companies they have founded only to wind up running them again. Shares of Microsoft are down more than 20% this year. Some on Wall Street think the company’s best days are behind it.

Gates, of course, is well aware of all of this.

He may be non-executive chairman but he also remains a huge Microsoft shareholder. If things don’t improve over the next few years, Gates may wind up taking his old job back and putting his charity work on hold.

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Filed under: Before the bell, Earnings reports, Management, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Toyota Motor Corp. (TM), Employees, Sony Corp ADR (SNE), KB HOME (KBH), Intuit Inc (INTU)

Before the bell: Futures drift lower as oil sets another record high

Since Apple Inc (NASDAQ: AAPL) is no longer insisting on revenue sharing from mobile operators selling its iPhone, China Mobile Ltd (NYSE: CHL) said this cleared the biggest hurdle in bringing the iPhone to mainland China. They just have to resolve some practical issues now.

KB Home (NYSE: KBH) shares climbed over 5.8% in after-hours trading Thursday. The builder is to report results this morning, a quarterly loss is expected.

Sony Ericsson, the joint venture between Sony (NYSE: SNE) and Ericsson (NASDAQ: ERIC) warned Friday it might not see any profit growth in the second quarter, due to slowing demand for some of its higher-priced phones and a delay in shipping new models to the market and will also experience a gross margin squeeze. ERIC shares are down about 6% in premarket trading.

Intuit Inc. (NASDAQ: INTU) will cut about 575 jobs, or about 7% of its workforce, as the result of a reorganization to Internet-based service. The company expects the cuts to result in a 4 cents a share charge, in the fiscal fourth quarter. Intuit now sees an adjusted fourth-quarter loss of 7 cents to 9 cents a share, a bigger loss than analysts had estimated.

An era is about to end Friday as Bill Gates ends his full-time tenure as Microsoft (NASDAQ: MSFT) — the world’s largest software company — leader. The Microsoft founder and visionary leaves the company after a failed attempt to acquire Yahoo! Inc. (NASDAQ: AAPL) as it tries to gain market shares in internet search where Google Inc. (NASDAQ: GOOG) dominates. It will be interesting to see how the company continues on without his daily guidance, and if anything, perhaps something to watch as investor worry what will happen if Steve Jobs retired.

Toyota Motor Corp. (NYSE: TM) “may implement a broad price hike for cars and trucks sold in Japan to help offset surging prices for steel and other materials, according to a Japanese media report Friday.”

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Filed under: Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO)

Jerry Yang, Yahoo! (NASDAQ: YHOO)’s CEO, and the company’s chairman Roy Bostock sent a letter to shareholders defending the company’s actions following the Microsoft (NASDAQ: MSFT) bid. There was nothing to defend. Those owning the web portal company’s stock got slaughtered.

“Our board of directors and management made a great effort — and conducted in-depth negotiations — to elicit a feasible proposal from Microsoft that made strategic and financial sense for Yahoo, but without success,” the executives wrote, according to The Wall Street Journal.

The comments are bogus on the face of it. Microsoft’s offer got as high as $33 toward the end of negotiations. Yahoo! now trades at $22. That number almost certainly factors in two things that the market already knows. One is that Yahoo! plans to reorganize management to make the company more efficient. The other is that Google (NASDAQ: GOOG) will sell some of Yahoo!’s search ads, which should make the process more profitable.

Looking back on the entire Yahoo! and Microsoft mess, there is only one thing to remember. Yahoo! traded at $21.94 a week before the offer. It trades near the same price now. The only reason the company was ever worth more is because Microsoft needed it.

And, now that is over.

Douglas A. McIntyre is an editor at 247wallst.com.

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Filed under: Before the bell, Major movement, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), General Motors (GM), Anheuser-Busch Cos (BUD), ConAgra Foods (CAG), NIKE, Inc’B’ (NKE), Red Hat Inc (RHT), Palm Inc (PALM)

Before the bell: Futures lower on financials, tech concerns

Reporting today:
Palm Inc. (NASDAQ: PALM) is expected to post a loss of 22 cents a share in the fourth quarter.
ConAgra Foods (NYSE: CAG) is expected to post earnings of 34 cents a share in the fourth-quarter .

Nike Inc. (NYSE: NKE) reported late Wednesday a rise in quarterly profit of 12% to $437.9 million, or 86 cents a share, helped by gains in Europe and Asia. Sales jumped 16% to $5.1 billion. The earnings beat Wall Street’s forecast. Shares are down 4.8% in premarket trading.

Anheuser-Busch Cos. (NYSE: BUD) will likely officially reject InBev NV’s $46.3 billion takeover bid this week and announce plans to lower $1 billion in costs, pay a special dividend and sell off divisions like its theme-park unit to increase its stock price. InBev may then raise its offer.

Yahoo Inc. (NASDAQ: YHOO) defended the deal it made with online search leader Google Inc. (NASDAQ: GOOG), saying it is a more desirable partner than Microsoft Corp. (NASDAQ: MSFT). Yang, Yahoo’s CEO, wrote so in a letter Wednesday. The letter is part of Yahoo’s campaign to protect its strategy and board against a revolt led by activist investor Carl Icahn.

Goldman Sachs downgraded General Motors Corp. (NYSE: GM) to Sell from Neutral and cut its price target to $11 from $19. Most troubling is that the broker said that liquidity concerns could increase. Goldman cut its rating of two other sector stocks as well. Shares are down 5.6% in premarket trading to $12.09.

Red Hat (NYSE: RHT) reported first-quarter results Wednesday after the close. Profit rose almost 7% and revenues grew 32%, inline with estimates. Shares are down 4% in premarket trading.

Telefonica SA said Wednesday it has received 300,000 pre registrations in the U.K. and Spain to buy Apple Inc.’s (NASDAQ: AAPL) new third- generation iPhone.

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Filed under: Products and services, Launches, Google (GOOG), Marketing and advertising

Google, Inc. (NASDAQ: GOOG) continues to make transparency about all people and businesses its top priority. In releasing Trends for Websites this week, the world’s largest search information company made it impossible for websites to hide their numbers from all eyes, including consumers and advertisers. Are you a media buyer who wants to know the reach of a prospective website before you even contact them to negotiate? Visit Google’s Trend for Websites site and find out instantly.

Google then one-upped itself by announcing the Ad Planner product for advertisers. This new product will allow media buyers and advertisers to get an immense amount of help on the best web properties in which to spend ad money. In other words, Google is making life easier for its advertisers to find the largest-impact website in which to advertise — without trial and error. Of course, the new Ad Planner service is free.

Google’s unabated quest to become the world’s largest advertising company continues to move forward. Although these two products may not get much attention from the media after this week, these are huge impacts in terms of the business model that keeps Google’s entire money chest afloat: advertising revenue. When Google said that “we want to help you figure out where your target audience is” in announcing Ad Manager, it wasn’t kidding. The more it makes its ad customers successful, the more business it will bring in. Everyone’s happy, and Google remains solidly on top of the new media advertising world.

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