True Value

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Shutterfly CEO Jeffrey Housenbold. Photo by Bloomberg.
True Value

Shutterfly Offers Snapshot of Public Company Peril

By Martin Peers · May 21, 2015 10:00am PDT · 1 comment
There’s little debate that for small companies, being public can be a pain in the neck. The costs of complying with regulatory requirements are high; it can be tough for very small companies to attract Wall Street research and a lot of investors shy away from small stocks out of concern that trading isn’t liquid enough. That’s why there are so... There’s little debate that for small companies, being public can be a pain in the neck. The costs...
Data via Company Filings; Graphic by Peter Schulz
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Tim Armstrong’s Magic Trick

By Martin Peers · May 14, 2015 7:00am PDT · 2 comments
AOL CEO Tim Armstrong developed a reputation as a bit of a klutz over the past five years, caught up in a seemingly never ending soap opera of foot-in-mouth public comments, a revolving door of executives and a corporate strategy that lurched from one thing to another. In the end, though, whether by dumb luck or prescient thinking, he appears to... AOL CEO Tim Armstrong developed a reputation as a bit of a klutz over the past five years, caught...
Apple CEO Tim Cook. Photo by Bloomberg.
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Apple’s Cash Could Be Better Spent on Research

By Martin Peers · May 7, 2015 7:00am PDT
Many investors are surely applauding Apple CEO Tim Cook’s decision to both institute and then aggressively expand big stock buyback and dividend programs to return cash to shareholders. But what is more creditable is Mr. Cook’s more generous approach to research and development. In the past two years, Apple has sharply boosted its spending on... Many investors are surely applauding Apple CEO Tim Cook’s decision to both institute and then...
Amazon CEO Jeff Bezos. Photo by Bloomberg.
Perils of Unknown for Investors Wading Into Amazon
By Martin Peers · Apr 30, 2015 10:01am PDT · 3 comments
Amazon CEO Jeff Bezos. Photo by Bloomberg.
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Perils of Unknown for Investors Wading Into Amazon

By Martin Peers · Apr 30, 2015 10:01am PDT · 3 comments
When Amazon.com reported first-quarter earnings last week, the company surprised investors by revealing that its cloud computing unit, Amazon Web Services, was making a substantial profit, while its e-commerce business wasn’t as profitable as some thought. It was the opposite of what some had expected and a reminder that the inner workings of... When Amazon.com reported first-quarter earnings last week, the company surprised investors by...
Short-selling specialist Jim Chanos. Photo by Bloomberg.
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Shorting Private Stocks Would Be Good for Tech

By Martin Peers · Apr 23, 2015 7:00am PDT · 2 comments
Public market investors are pouring more into the private tech markets, able to put big sums to work and be well-positioned in the event a company goes public. But one thing these investors can’t do in the private-company market is to bet on a stock going down in price, by selling short. That should change. Investors who sell short—selling... Public market investors are pouring more into the private tech markets, able to put big sums to...
Chart by Peter Schulz
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The Truth About Google’s Stock Price

By Martin Peers · Apr 16, 2015 7:01am PDT
For more than a decade, from 2001 until about 2013, Microsoft’s stock bounced around the same price, as investors realized the software giant’s big growth days were over. There are a growing number of signs that Google has entered what could be a similarly lengthy flatline period. What this reflects is that, declining search forecasts included,... For more than a decade, from 2001 until about 2013, Microsoft’s stock bounced around the same...
GoPro CEO Nick Woodman. Photo by Bloomberg.
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Don’t Count GoPro Out

By Martin Peers · Apr 9, 2015 7:00am PDT · 5 comments
Consumer electronics is, by and large, a very tough business. Whether it’s TV sets or smartphones, margins tend to be low and there’s always the danger of a cheap knockoff hitting the market. Indeed, that seems to be the fear investors have about GoPro, the once-hyped action camera maker. After going public last June at $24 per share, the stock... Consumer electronics is, by and large, a very tough business. Whether it’s TV sets or...
Apple CEO Tim Cook. Photo by Bloomberg.
Why Analysts are Flying Blind on Forecasting New Markets
By Martin Peers · Apr 1, 2015 10:00am PDT
Apple CEO Tim Cook. Photo by Bloomberg.
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Why Analysts are Flying Blind on Forecasting New Markets

By Martin Peers · Apr 1, 2015 10:00am PDT
News reports last month of Apple’s latest attempt to launch an online video service prompted Wall Street firm Nomura Research to publish two research reports. One said any new Apple service wouldn’t be attractive to current “core pay TV customers.” The other implied that Apple’s new service could sign up at least 18.5 million consumers by 2017,... News reports last month of Apple’s latest attempt to launch an online video service prompted Wall...
Disney CEO Robert Iger. Photo by Bloomberg.
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Media Investors Are Living in Denial

By Martin Peers · Mar 26, 2015 7:01am PDT
Media company investors appear to be living in their own reality. Pay TV subscribers fell 2 percent in 2014, says Nielsen, while national TV advertising in the fourth quarter dropped 0.9 percent, according to MoffettNathanson. And everyone from Sony to Dish Network to Apple is making it easier for users to cut the cord. Yet a three-year-long... Media company investors appear to be living in their own reality. Pay TV subscribers fell 2...
TripAdvisor CEO Stephen Kaufer. Photo by Bloomberg.
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In Battle for Online Travel Market, TripAdvisor Has Edge

By Martin Peers · Mar 18, 2015 1:02pm PDT
Online travel bookings has to be one of the most commoditized and over-crowded markets on the Web. The points of differentiation tend to be which hotels a site represents, or the consumer-friendliness of its software, neither of which seem a long-lasting guarantee of success. That’s why TripAdvisor, the travel review site, deserves some... Online travel bookings has to be one of the most commoditized and over-crowded markets on the...
Photo by Bloomberg.
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Wi-Fi’s Threat To Cellular May Be Overstated

By Martin Peers · Mar 12, 2015 10:00am PDT · 3 comments
One of the subtle jokes in Woody Allen’s 1972 pre-mobile phone era film “Play It Again, Sam” concerns a character’s habit of calling his office to pass on the various phone numbers at which he can be reached through the day. Its a joke that might become relevant again as Wi-Fi based wireless services, requiring people to plan ahead for Wi-Fi... One of the subtle jokes in Woody Allen’s 1972 pre-mobile phone era film “Play It Again, Sam”...
Facebook CEO Mark Zuckerberg. Photo by Bloomberg.
Twitter vs. Facebook: Wall Street Is Paying More for Less
By Martin Peers · Mar 5, 2015 7:01am PST · 2 comments
Facebook CEO Mark Zuckerberg. Photo by Bloomberg.
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Twitter vs. Facebook: Wall Street Is Paying More for Less

By Martin Peers · Mar 5, 2015 7:01am PST · 2 comments
Here’s a quick quiz. Which social media network should be valued more highly: a) the one that is used by almost everyone daily or b) the one that a minority of people, other than journalists, use? If you answered A, you may be in a position to make some money trading stocks. I’m talking about the current stunning valuation gap between Facebook... Here’s a quick quiz. Which social media network should be valued more highly: a) the one that is...
IAC Chairman Barry Diller. Photo by Bloomberg.
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As IAC’s Focus Narrows, Diller Era Enters Twilight

By Martin Peers · Feb 19, 2015 7:00am PST
Over more than two decades, Barry Diller has invested in everything from online travel to lending and search. But now, six years after spinning off most of those business into separate companies, the future of his flagship company IAC has narrowed to be almost entirely dependent on its online dating business, particularly Tinder. Given that Mr.... Over more than two decades, Barry Diller has invested in everything from online travel to lending...
Apple CEO Tim Cook this week in San Francisco. Photo by Bloomberg.
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Why Tech Sector’s Debt Craze Won’t Last

By Martin Peers · Feb 12, 2015 7:01am PST
The view from the corporate treasury office in many tech companies recalls the Rime of the Ancient Mariner: Cash, cash everywhere and not a penny to spend. As big tech companies continue to leave cash overseas rather than pay taxes to bring it back, they’ve increasingly resorted to borrowing money. This trend, fueled by record-low interest... The view from the corporate treasury office in many tech companies recalls the Rime of the...
Yahoo CEO Marissa Mayer. Photo by Bloomberg.
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What’s Yahoo Worth? Half a Twitter

By Martin Peers · Feb 5, 2015 7:00am PST · 1 comment
The way Yahoo tells it, spinning off its Alibaba stake into a separate company will give investors “valuation transparency” into its core business and its stake in Alibaba. But judging from Yahoo’s stock price in recent days, that clarity is still a ways off. Last week’s confirmation of the widely expected spinoff removed one of the biggest... The way Yahoo tells it, spinning off its Alibaba stake into a separate company will give...
Amazon chief Jeff Bezos with Tory Bruno from United Launch Alliance. photo by Bloomberg
Bezos’ Steady Selling Leaves Amazon Vulnerable
By Martin Peers · Jan 29, 2015 7:00am PST
Amazon chief Jeff Bezos with Tory Bruno from United Launch Alliance. photo by Bloomberg
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Bezos’ Steady Selling Leaves Amazon Vulnerable

By Martin Peers · Jan 29, 2015 7:00am PST
In popular imagination, Amazon.com ranks alongside Google and Facebook as a tech giant able to make long-term bets by virtue of a founder who controls the company and a cash-spewing core business. In reality, however, Amazon has never spewed that much cash, and its founder has been slowly liquidating his stake. Since taking the company public in... In popular imagination, Amazon.com ranks alongside Google and Facebook as a tech giant able to...
Amazon chief Jeff Bezos; photo by Bloomberg
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Why Tech Companies Should Consider Tracking Stocks

By Martin Peers · Jan 22, 2015 7:01am PST
When investing in big successful, founder-controlled companies like Google and Amazon.com, investors have to take the good with the bad—the hugely profitable core business along with the whimsical, money-losing efforts to find new opportunities. But given that stocks of both have underperformed the market in the past 12 months, it’s clear that... When investing in big successful, founder-controlled companies like Google and Amazon.com,...
Warner Bros chief Kevin Tsujihara; photo by Bloomberg
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Hollywood’s Flawed Home Entertainment Numbers

By Martin Peers · Jan 6, 2015 10:00am PST · 2 comments
The final tally on how much consumers spent on home entertainment in 2014 released Tuesday showed a downtick of a couple of percentage points, which given the sharp declines in DVD sales could be seen as hopeful. But the true picture is much worse. That’s because the numbers, released by the industry-funded Digital Entertainment Group to... The final tally on how much consumers spent on home entertainment in 2014 released Tuesday showed...
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The Mystery of Venture Capital Profits

By Jonathan Weber · Sep 11, 2014 7:25am PDT · 2 comments
Everyone loves a ranking, and one of the beauties of the business world is that in most situations it’s easy enough to see who is on top. Who are the biggest, most profitable, most valuable, fast-growing businesses? For public companies at least you can decide among a couple of basic yardsticks and make your own lists in just a few... Everyone loves a ranking, and one of the beauties of the business world is that in most...
Uber CEO Travis Kalanick. Photo by Bloomberg.
For the Well-Connected, Some Venture Investing Now a ‘Safe Haven’
By Jessica E. Lessin · Sep 4, 2014 7:09am PDT · 6 comments
Uber CEO Travis Kalanick. Photo by Bloomberg.
True Value

For the Well-Connected, Some Venture Investing Now a ‘Safe Haven’

By Jessica E. Lessin · Sep 4, 2014 7:09am PDT · 6 comments
Venture capital investing isn’t for the faint of heart. Years of big wins are often followed by years of big losses; consistent performance is hard to come by. From March 2013 to March 2014, U.S. venture investors outperformed the S&P 500 by 40 percent, according to Cambridge Associates, which advises institutional investors. Yet over... Venture capital investing isn’t for the faint of heart. Years of big wins are often...