CHICAGO, Sept. 23, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Google (Nasdaq:GOOGL-Free Report), Yahoo (Nasdaq:YHOO-Free Report), Oracle (NYSE:ORCL-Free Report), Microsoft (Nasdaq:MSFT-Free Report) and Apple (Nasdaq:AAPL-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
Yahoo Tumbles After Alibaba Hits the Market
Google (Nasdaq:GOOGL-Free Report) launched its Android One initiative targeting India, Alibaba completed the biggest IPO ever and Yahoo (Nasdaq:YHOO-Free Report) shares slumped in response.
Google's Android One Launches in India
Google is making a big splash in India with Android One. This is a project that involves a Google-made OS and Google-designed hardware created in conjunction with local hardware-makers like Micromax, Karbonn and Spice (Micromax and Karbonn have 16.6% and 9.5% market share in India).
The OEMs can make their own choices regarding the CPU, GPU, storage, battery-type and camera-type. It is expected that these choices plus the automated OS updates will reduce the cost of ownership while offering a more consistent experience at the very low end of the market. Google has tied with hardware makers and carriers to ensure that the phones take off with no hiccups.
Worth noting is the recent entry of Chinese handset giant Xiaomi in India, which makes phones based on Android. Xiaomi has seen very strong uptake of its phones in India (although it has dumped older versions in the country to date). So Google's comprehensive attack could also be a defense.
Making Sense of Yahoo Post Alibaba IPO
On Friday, Yahoo shed 27% of its holdings in Alibaba as well as a chunk of its market cap. While the shares have risen in recent times as investors tried to get a piece of Alibaba through Yahoo, the question is, does the post IPO sell-off make sense. After all, Yahoo still has a 16%+ stake in Alibaba, $4 billion of cash on its balance sheet, around $5 billion after taxes in Alibaba proceeds and a popular web portal.
After paying out to investors, there still would be a sizeable amount of cash to pursue strategic alternatives. While the tax payout could have peeved investors, it's time to face the reality that key business metrics will not change overnight. And this is what is killing the stock right now.
Other stories you may have missed-
Corporate
Larry Ellison Lets Go, Kind Of: Larry Ellison is stepping down as CEO of Oracle (NYSE:ORCL-Free Report), but this is what he isn't letting go: a 25% stake in the company and the title of CTO. Not only that, he's also replacing Jeff Henley as Chairman of the Board. So basically, his successors (Mark Hurd and Safra Catz as co-CEOs) are now required to prove themselves suitable for the position. They will have separate functions: Hurd on the marketing side and Catz on manufacturing, finance and legal.
Microsoft Replaces Directors: Two members of Microsoft's (Nasdaq:MSFT-Free Report) board, Dave Marquardt and Dina Dublon are being replaced with Teri List-Stoll, executive VP and CEO of Kraft Foods Group and W. Scharf, CEO of Visa. Reasons for the change remain unclear but analysts have speculated that it could have been necessitated by Microsoft's new strategic focus as well as the probability of its raising some debt (Microsoft holds the bulk of its cash offshore).
Google Loses Satellite Exec to Facebook: This isn't the first time that Google lost an executive involved in its connectivity-via-satellite project. This time it's Michael Tseytlin and earlier this month, it was Greg Wyler, along with Brian Holz and David Bettinger. The fact that there appears to be a brain drain in the area leads you to wonder if there is any change in Google's satellite plans.
Former Qualcomm Exec to Head Google Fiber: Dennis Kish, who was the VP and GM of Qualcomm's MEMS Technology Division until 3 months ago when he joined Google, has now been chosen to head its Google Fiber project. Fiber is an initiative to offer high-speed Internet to customers. Kish will report to Craig Barratt, Google's SVP, access and energy. Notably, Barratt is also a former Qualcomm executive and was recently given entry into the inner circle of advisors to CEO Larry Page.
Twitter to Open Office in Indonesia: Not unexpectedly, Twitter is opening an office in a country that loves its service. The office will be in Jakarta (Indonesia), the city that posts the largest number of tweets in the world. Indonesia has a growing number of netizens and other technology companies such as Facebook and Apple also have offices in the country.
Regulatory
Apple Hiring for China Govt Data Requests: Apple (Nasdaq:AAPL-Free Report) is looking for a person to manage and handle data requests by and issue appropriate responses to the Chinese government. This has become necessary since Apple started storing user information on Chinese servers for the first time last month. Governments of countries where data servers are located generally have the right to demand information from such servers.
Germany Wants to See Google Search Algorithm: Google's position as the dominant search engine in Europe is working against it. The problem is simply that when any company is the first stop that people make in their search for goods or information, it creates a position of great power that may be exploited against public interest.
This problem has been exacerbated by the fact that Google is increasingly becoming a retailer itself, thus increasing the chances of anti-competitive behavior. German justice minister Heiko Maas seems to think that Google can be forced to reveal its search algorithm so government agencies can determine fair play, but revealing its key business secrets would be nothing short of suicidal and the service could also be jeopardized by spammers.
Google's search success stems from the quality of its service, which until now had been enough to prove its worthiness. Things may be changing now, although there doesn't appear to be any easy solution.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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