The problem with Chinese hacking is that an hour later you want to hack again.

Read 'em and weep:

Netflix, Three Others to Join S&P 500 on Dec. 17
Friday, 10 December 2010

Four companies will join the benchmark S&P 500 index after the closing bell on Dec. 17, S&P said in a statement on Thursday. NETFLIX JOINS PARTY as its shares have returned 250 percent this year. The New York Times Co., F5 Networks, Office Depot Inc. and Eastman Kodak Co. were dropped from the 500.

Source: The Associated Press

It is taxes and the American greed. People need to start giving back and knock off sending jobs to other countries. I am not saying all democrats are bad but I am still waiting for change.

Those of us who've been selling this one short for the past weeks are taking a hurting. I have to admit I'm still skeptical though because I don't think they have much room to grow in terms of customers.

This is a great board to pose such a question: Has Netflix maxed out their customer base, you think, or do they have evem more room to grow??

I think they have room to grow but they will need to market thier self a little different I believe.

Tax deal drives up interest rates.
Deal
The U.S. central bank's $600 billion stimulus plan was supposed to lower interest rates. But President Barack Obama's tax deal with Republicans, by rekindling fears of budget deficits in the bond market, has pushed them higher.

As the Fed meets this coming week, the surprise shot in the arm from the fiscal authorities might strengthen the case of hawks at the central bank, who think the economy is already growing of its own momentum. They could argue to scale down the $600 billion in bond purchases announced in November.

"The shift to fiscal stimulus implies that officials would be less inclined to extend the current program beyond the second quarter of 2011," said Richard Berner, an economist at Morgan Stanley.

On Wall Street, economists are busy revising up their forecasts for U.S. economic growth in 2011, in part because the tax deal will offer more short-term stimulus than many expected.

The package, which still needs congressional approval, extends the Bush-era income tax cuts, lowers payroll taxes by 2 percentage points and provides additional jobless benefits.

But it is unclear how much these new Wall Street economic projections factor in the renewed deficit fears that drove yields on benchmark 10-year notes to a six-month high last week. That's a question Fed officials will ponder when they meet on Tuesday.

Moody's Investors Service said it is worried the proposed tax reductions could become permanent when many of them come up for review in the presidential election year of 2012, hurting U.S. finances and credit ratings in the long run...

The bond market is certainly getting flooded right now, Lilo, there's no doubt about that. Stay away from bonds: municipal bonds, long term treasuries, etc., stay away from bonds all together. And ignore the dollars recent rally; instead count on foreign currencies which are paying more right now--although a lot of investors see a bright 2011 for the dollar's value.

Of course, investment firms like Moodys wants to sell you all of this stuff, so they're real concerned right now. But it's the frivolous underwriting exhibited by companies such as Moodys that has killed this market.

FYI The Euro's plans on becoming the world's reserve currency are officially in smithereens. Euro is WAY down to the dollar today.

Yes, buy stocks and sell bonds. Most think we'll see the economy and inflation pick up significantly in 2011. Gold is the greatest hedge against inflation, but the gold craze might finally be over which is fine by me because I'd rather have the money go to corporate finance and stock offerings....keep in mind how ridiculously low interest rates were a few months back...now people are getting out of those bonds as we see their animal insticts coming back!

Barry, this could be the beginning of a beautiful friendship.

Obama Signs Tax Compromise With GOP Into Law
Friday, 17 Dec 2010 | 4:26 PM ET
By: Reuters

U.S. President Barack Obama on Friday signed into law a bill extending Bush-era tax cuts and other benefits based on a deal he brokered with Republicans that angered liberals.

"This is real money that is going to make a real difference in peoples' lives,'' he said at a ceremony to sign the bill at the White House that was attended by congressional leaders from both the Republican and Democratic parties.

Politics always amazes me. They will fight tooth and nail over something, call each other names, but then show up for the photo-op with their arms around one another.

Iran opposition: 'Dark future' awaits the economy
Wednesday, 22 Dec 2010

TEHRAN, Iran - Iran's opposition leaders said Wednesday that a "dark future" awaits the economy because the government didn't listen to economists when it slashed energy and food subsidies in a country already struggling under biting U.N. sanctions.

Former presidential candidates Mir Hossein Mousavi and Mahdi Karroubi support the government's effort to rein in subsidies but said in a rare statement posted on their websites that it is being implemented badly.

The opposition leaders, who believe President Mahmoud Ahmadinejad stole the June 2009 election through massive vote fraud, said the way the government is slashing subsidies only brings more hardship to the country.

Fuel prices have at least quadrupled and bread prices have more than doubled in the past week since the government started dramatically reducing subsidies.

"Enforcing this plan, while Iran is facing tough international sanctions and its economy is in recession with an unemployment rate of over 30 percent and wild inflation, is a burden on medium and low-income families," Mousavi and Karroubi said in a statement posted on kaleme.com.

"Daily closure of factories and their inability to pay salaries on the one hand and exit of capital because of lack of investment security ... on the other herald a dark future for the country's economy. This gets worse when the government has no ears for the views of experts," they added.

President Mahmoud Ahmadinejad has called the subsidy cut plan the "biggest surgery" in Iran's economy in half a century and vowed to fully cut all subsidies by the end of his term in 2013.

The government says it is paying some $100 billion in subsidies annually, although experts believe the amount is about $30 billion. Economists say the plan to slash subsidies could stoke inflation already estimated to be more than 20 percent.

Experts say a gradual reduction of subsidies, not a sudden cut, is the best approach to tackling Iran's economic woes.

"Our people have become used to subsidies over decades. The country's economy and people's way of life have taken shape based on that. By using a shock solution of slashing subsidies, the middle class will cease to exist," prominent economist Mohsen Ranani said recently. "The structure of the economy has to be reformed through a long-term plan, not shocks."

Iran is already under four sets of tough U.N. sanctions over its refusal to halt uranium enrichment, a technology that can be used to produce nuclear fuel or atomic weapons.

The U.S. and its allies accuse Iran of using its civilian nuclear program as a cover to build weapons. Tehran has denied the charges, saying its nuclear program is geared toward generating electricity and producing nuclear medical radioisotopes to treat patients.

Mousavi and Karroubi vowed to remain defiant, saying they already live in a "big prison" and it won't be different if they will be put into an actual "small prison."

The two leaders are under close surveillance by security forces.

"Until today, we have remained steadfast in the path we've chosen. Also, we won't give up this way, which seeks nothing but regain the rights of the people in the future," they said.

http://www.cnbc.com/id/40783779

By SEWELL CHAN
The New York Times
updated 12/24/2010 6:55:02 AM ET 2010-12-24T11:55:02

WASHINGTON — Eighteen months after the recession officially ended, the government’s latest measures to bolster the economy have led many forecasters and policy makers to express new optimism that the recovery will gain substantial momentum in 2011.

Economists in universities and on Wall Street have raised their growth projections for next year. Retail sales, industrial production and factory orders are on the upswing, and new claims for unemployment benefits are trending downward.

Tuesday, December 28, 2010

5 bucks a gallon for gas by 2012?

A former president of Shell Oil has predicted that Americans will be paying $5 for a gallon of gasoline by 2012. He blames growing global demand for oil, tighter supplies and inadequate responses by the U.S. government.

John Hofmeister made his comments during a taped interview Dec. 1, and it aired last weekend on Platts Energy Weektelevision an independent, all-energy news and talk show.

Hofmeister retired from Shell in 2008 and now heads a grass-roots group called Citizens for Affordable Energy. Here's more of what he said:

"If we stay on our current course, within a decade we're into energy shortages in this country big time."

The market is soooooo slooooow today. Here's a story topping the conversation of late.

Halftime: Did China Just Kill Our Bull Market?
On Monday, chatter on the Street had everything to with China’s unexpected rate hike, and whether Beijing would quash the global rally in equities to keep China’s inflation under control. Chinese shares were hit hard on the rate hike news, with the Shanghai index dropping 1.9 percent after rising earlier in the day.

Investors interpreted the developments as a sign that China was willing to sacrifice growth to keep a lid on prices – especially domestic food prices. As you might expect, commodities came under pressure, with crude, wheat, and cotton all in the red.

How should you position now? Both Dennis Gartman and Jon Najarian remain bullish. In fact they say China’s decision to raise rates isn’t a sign of trouble at all – rather it’s a sign that China’s economy is very strong. “If the markets thought China was going to quash the bull we’d see oil down $1 or more, says Dennis Gartman.” “No I don’t think the rate increase is nearly as serious as some people make it out to be.”

Jared Levy shares the sentiment and sees opportunity not only in China but in all the RDEs or rapidly developing economies. “Demand for infrastructure, chemicals and even food,” should remain robust, he says. To play the theme, Levy suggests long positions in FMC Corp and Rockwood Holdings.

Steve Cortes, however, sees the rate hike quite differently. He tells the desk these developments are material and bearish. He thinks the rate hike is just the first move with more to come. “China is behind the curve in fighting inflation. I think China has about 200 basis points to go if they get serious about fighting inflation.”

Cotes is also concerned by the action in the Emerging Markets ETF as compared to the S&P. “The EEM has traded poorly in the recent weeks – it’s off the November high while the S&P is about 2% above that same high. It’s sign that money is flowing out of emerging markets and into the United States.”

As a result Cortes is skeptical of China high fliers such as BHP and Vale and is short Las Vegas Sands (due to their Macao presence) at $50 and again at $47. “I'd be very cautious,” he says.

More interesting news out of China......

China Shrinks Rare Earths Export Quota, Tuesday, 28 Dec 2010 | China said Tuesday it is reducing the amount of rare earths it will export next year by more than 10 percent — likely to be an unpopular move worldwide since the minerals are vital to the manufacture of high-tech products.

China accounts for 97 percent of the global production of rare earths, which are essential to devices as varied as cell phones, computer drives and hybrid cars. Countries were alarmed when Beijing blocked shipments of the minerals to Japan earlier this year amid a dispute over disputed islands.

Concerns over China's grip on rare earths has led countries on a hunt for alternative sources. A number of companies in North America — notably Molycorp in the U.S. and Thompson Creek Metals in Canada — are hurrying to open or reopen rare earth mines. Two Australian companies are also preparing to mine rare earths.

http://www.cnbc.com/id/40828505

No big surprise there, as you've got the chinese saying their going to set prices and in fact that's what they've doing for years and they've been the only player in that market. But the pricing power they have will indeed decline relatively quickly, and thus the strong moves with raising thier rates, cutting precious metals exports, etc.

Lot of discussion right now about the best way to invest in a rising interest rate environment. While most experts don't think it prudent to sell short bonds, in a five year risk-to-reward basis you want to be exiting treasury bonds and be long on stocks (that also favors commodities and overseas economies that are leveraged to those commodities). But really, the question is how these rising rates will affect the overall economy in a 2011 when equities are expected to be on the rise.


Will Rising Bond Yields Set Back the Stock Market?
Thursday, 30 Dec 2010 By: Patti Domm
CNBC Executive Editor

While some traders fear rising bond yields could crimp stocks' gains, some bond strategists do not expect interest rates to rise beyond the range of the past year.

"We look at 2011 as a trading, not trending year," said William O'Donnell, who heads rates strategy at RBS. He expects the 10-year yield to stay in a range of 2.75 percent to 4 percent, the top of its 2010 range.

"I know the economy is percolating along. Our economic staff does not think it's sustainable at the pace we've seen in the last couple of months," he said. Some of the worries are a possible, further 7-10 percent decline in housing prices, high unemployment and now, rising gasoline prices, he said.

Higher rates caught the attention of stock traders once more this week, as a thinly traded bond market saw rates ricochet higher and lower, around two Treasury auctions Tuesday and Wednesday.

First, the Treasury's 5-year auction Tuesday suffered from seriously weak demand, kicking off bond selling and triggering a resulting inverse move higher in yields.

Treasury yields then relaxed going into Wednesday, as buyers moved in, and finished the day lower after a strong showing at the Treasury's $29 billion 7-year auction.

The 10-year ended Wednesday with a yield of 3.37 percent, well below Tuesday's 3.48 percent close, and very near where yields began a volatile trading day Tuesday morning. The 10-year yield again edged higher to 3.4 percent Thursday, after a much stronger-than-expected Chicago purchasing managers' report.

Peter Boockvar, equities strategist at Miller Tabak, said aside from this week's action, the recent backup in rates since November is indicative of more to come.

"I think the violence of the move is pretty telling. It's not like this is a small market. It's a multi-trillion dollar market, trading like an internet stock, which is pretty amazing. It tells me there's a definite change here," he said. "The main theme in 2011 is that it's the bond market more than anything that will determine how equities go. There's nothing that can spoil a party in equities more than higher interest rates."

Wells Fargo Advisers chief equities strategist Stuart Freeman, however, does not see rates as an issue for stocks going into next year. "If you move up to 4 percent or even 4.25, perhaps that's something that's going to be more of an issue," he said. He expects the 10-year to be at 3.5 percent at the end of 2011, but he says that level could be surpassed if the economy proves stronger than expected.

In fact, the stock market may benefit as investors reduce bond positions, he said. That rotation is starting to show up in mutual fund flows. ICI reports that equity mutual funds saw inflows of $335 million last week, breaking a 33-week losing streak.

Pimco senior strategist Tony Crescenzi said the success of the 7-year auction was not a surprise, and it is not really indicative of much. "The 7-year was cheap on the yield curve...It doesn't mean the market looked cheap, but that issue was particularly cheap," said Crescenzi. "I wouldn't get crazy happy about the market because of the 7-year because historically, it's always been an ugly duckling."

"It seems like the market is settling in on its new trading range, which for now seems to be 3 to 3.5 percent (10-year yield), and it's trading in the upper band of the new range," he said. Crescenzi expects the range on the 10-year to be roughly 3 to 4 percent in 2011, though it is possible it could slip back below 3 percent.

"Early in the year, the economy is likely to be strong enough to keep people romanticizing about the idea of both higher inflation and a rate hike, and that'll prevent the yield from declining below 3 percent," he said.

While much of the wild action in bonds may be over for the week, O'Donnell said the year end may spur some buying before the end of Friday as traders square positions, and that may generate some more volatile moves just because volume is so light.

Full Article

America = Military Industrial Complex?. Nah. At $50 Billion, Facebook is now bigger than Boeing (and still growing).....

Goldman Invests in Facebook at $50 Billion Valuation
Monday, 3 Jan 2011 | 5:22 AM ET The New York Times

Facebook, the popular social networking site, has raised $500 million from Goldman Sachs and a Russian investor in a deal that values the company at $50 billion, according to people involved in the transaction.

The deal makes Facebook now worth more than companies like eBay, Yahoo, and Time Warner.

The stake by Goldman Sachs, considered one of Wall Street’s savviest investors, signals the increasing might of Facebook, which has already been bearing down on giants like Google. The new money will give Facebook more firepower to steal away valuable employees, develop new products and possibly pursue acquisitions — all without being a publicly traded company. The investment may also allow earlier shareholders, including Facebook employees, to cash out at least some of their stakes.

The new investment comes as the Securities and Exchange Commission has begun an inquiry into the increasingly hot private market for shares in Internet companies, including Facebook, Twitter, the gaming site Zynga and LinkedIn, an online professional networking site. Some experts suggest the inquiry is focused on whether certain companies are improperly using the private market to get around public disclosure requirements.

The new money could add pressure on Facebook to go public even as its executives have resisted. The popularity of shares of Microsoft and Google in the private market ultimately pressured them to pursue initial public offerings.

So far, Facebook’s chief executive, Mark Zuckerberg, has brushed aside the possibility of an initial public offering or a sale of the company. At an industry conference in November, he said on the topic, “Don’t hold your breath.” However, people involved in the fund-raising effort suggest that Facebook’s board has indicated an intention to consider a public offering in 2012.

There has been an explosion in user interest in social media sites. The social buying site Groupon, which recently rejected a $6 billion takeover bid from Google, is in the process of raising as much as $950 million from major institutional investors, at a valuation near $5 billion, according to people briefed on the matter who were not authorized to speak publicly.

“When you think back to the early days of Google, they were kind of ignored by Wall Street investors, until it was time to go public,” said Chris Sacca, an angel investor in Silicon Valley who is a former Google employee and an investor in Twitter. “This time, the Street is smartening up. They realize there are true growth businesses out here. Facebook has become a real business, and investors are coming out here and saying, ‘We want a piece of it.’”

The Facebook investment deal is likely to stir up a debate about what the company would be worth in the public market. Though it does not disclose its financial performance, analysts estimate the company is profitable and could bring in as much as $2 billion in revenue annually.

Under the terms of the deal, Goldman has invested $450 million, and Digital Sky Technologies, a Russian investment firm that has already sunk about half a billion dollars into Facebook, invested $50 million, people involved in the talks said.

Goldman has the right to sell part of its stake, up to $75 million, to the Russian firm, these people said. For Digital Sky Technologies, the deal means its original investment in Facebook, at a valuation of $10 billion, has gone up fivefold.

Representatives for Facebook, Goldman and Digital Sky Technologies all declined to comment. Goldman’s involvement means it may be in a strong position to take Facebook public when it decides to do so in what is likely to be a lucrative and prominent deal.

As part of the deal, Goldman is expected to raise as much as $1.5 billion from investors for Facebook at the $50 billion valuation, people involved in the discussions said, speaking on the condition of anonymity because the transaction was not supposed to be made public until the fund-raising had been completed.

In a rare move, Goldman is planning to create a “special purpose vehicle” to allow its high-net worth clients to invest in Facebook, these people said. While the S.E.C. requires companies with more than 499 investors to disclose their financial results to the public, Goldman’s proposed special purpose vehicle may be able get around such a rule because it would be managed by Goldman and considered just one investor, even though it could conceivably be pooling investments from thousands of clients.

It is unclear whether the S.E.C. will look favorably upon the arrangement.

Already, a thriving secondary market exists for shares of Facebook and other private Internet companies. In November, $40 million worth of Facebook shares changed hands in an auction on a private exchange called SecondMarket. According to SharesPost, Facebook’s value has roughly tripled over the last year, to $42.4 billion. Some investors appear to have bought Facebook shares at a price that implies a valuation of $56 billion. But the credibility of one of Wall Street’s largest names, Goldman, may help justify the company’s worth.

Facebook also surpassed Google as the most visited Web site in 2010, according to the Internet tracking firm Experian Hitwise.

Facebook received 8.9 percent of all Web visits in the United States between January and November 2010. Google’s main site was second with 7.2 percent, followed by Yahoo Mail service, Yahoo’s Web portal and YouTube, part of Google.

For Mr. Zuckerberg, the deal may double his personal fortune, which Forbes estimated at $6.9 billion when Facebook was valued at $23 billion. That would put him in a league with the founders of Google, Larry Page and Sergey Brin, who are reportedly worth $15 billion apiece.

Even as Goldman takes a stake in Facebook, its employees may struggle to view what they invested in. Like those at most major Wall Street firms, Goldman’s computers automatically block access to social networking sites, including Facebook.

Private Sector Job Creation Highest Ever For ADP Report Published: Wednesday, 5 Jan 2011 | The private sector created an eye-popping 297,000 jobs from November to December, according a report from ADP that was the highest number the payroll firm has ever reported.

In its monthly report compiled with Macroeconomic Advisors, ADP said the service sector accounted for the bulk of the creation, with 270,000 jobs while goods producers supplied the remaining 27,000.

Manufacturing saw a gain of 23,000 jobs while construction was unchanged. Large businesses saw the fewest gains, with 36,000 jobs, while medium-sized businesses, with between 50 and 499 workers, created 144,000 positions.

The number was far higher than the 100,000 economists expected the ADP report to show and sets the stage for what could be a positive surprise Friday when the government releases its monthly nonfarm jobs report. That report is expected to show 140,000 jobs were created.

http://www.cnbc.com/id/40922361

I'm interested in knowing, do any members here manage their own stock portfolios through online autotrading networks such as E-trade, or other services? In particular, those of you who are professional traders/brokers, do you also use e-trade (or scotttrade, etc.) to supplement your income? If so, what is the fee levied by your employer for any trading knowledge you've received?

I ask, because while I was in the banking industry I was required to report my personal equity earnings every year and levied with about a 2% fee for advantageous knowledge about the market I've received from my employer. But I'm interested in knowing what sort of trading fee professional brokers are charged by their firms for using private trading services, and do you feel it's fair. when I was a broker fresh out of school in the early 2000's e-trade accounts were pretty much non existent. Now, anyone with a computer and $500 can buy/sell any and all companies traded on the NYSE.

What about investment bankers? Do you also manage your own stock portfolio online, and do your employers levy a fee for any intellectual property rights they feel they're due?

Ice, we took about $1,000, which was what we felt comfortable losing at the time, and set up an account with an online service. We've bought and sold various stocks over the years, and I think that the account grew by a couple of hundred bucks as of the last statement.

For my SEPIRA, we use our local bank's investment division, and our bonds we use a brokerage house. We also have a 403b and a 401k from old jobs which are small, so we've just left them in place.

Don't know if that helps to answer your questions.

Most brokers are forced to pay about 5-10% of any additional earnings they accrue outside of their firm's formal structure. Can't speak for I-bankers, but with 90 hr work weeks I doubt they much time to breath much less actively manage their own portfolios. Plus, all of the I-bankers I ever knew had plenty of company sponsored carefully hedged mutual funds and annualized funds in addition to their IRA's.

Most brokers and traders also end up combining clients with other brokers in order to increase everyone's business. It's hard to get established in this business, but once you get there it really starts to kind of snow-ball with potential windfalls of profit available every minute of the trading day.

SB - it sounds like you're well diversified there And as was mentioned, it's easier than ever now to manage and control your own portfolio with all of the trading information that's readily available to anyone who seeks it. Don't be afraid to get in the game -- it's easy, and fun!

Everyone should play the stock market.

WASHINGTON -- The unemployment rate plunged to 9.4 percent in December as employers added 103,000 jobs during the month - far fewer than expected, the government reported Friday.

While those numbers were somewhat disappointing, analysts said the economic recovery continues to gain steam and that 2011 looks more promising than 2010.

Forecasters had expected that December might be when the economy turned the corner to strong hiring, with most projections showing 175,000 new jobs or more. So, the 103,000 net job total was both surprising and disappointing, though still positive.

http://www.miamiherald.com/2011/01/07/2005217/unemployment-rate-drops-to-94.html#ixzz1ANipGRVj

Apple's stock is down almost 15 points today in the wake of news that CEO Steve Jobs is taking another medical leave. Quite frankly, I can't believe more people don't sell short Apple (and Google as well for that matter).

In order to maintain the virtual monopoly they currently have in the tech industry requires constant innovation. Without Jobs, people doubt if Apple can maintain its hold on the industry. His uncertain future can have huge ramifications across the sector.

But again, I really don't understand why Apple and Google are two of the most commonly held securities considering the always changing landscape of technological culture and applications. No way these companies can maintain their control with all of the burgeoning companies not only domestically but throughout the world (Russia, China, India) not to mention the emerging markets who will present another market share up for grabs.

At over $600 a share, Google is the most overvalued piece of junk in the market IMO>

My folks have a SEPIRA also, SB, and my dad still uses a broker for some stuff but I help him stay diversified in the market. It's tough to eek out those profits if you don't actively manage, but really, as internet savy and current events oriented as some of our members here on the bb are, it'd almost be silly not to try and atleast make a few bucks off the market on their own.




Steve Jobs is maybe the greatest CEO of our era, and I'm glad to see Apple rallied big time after that initial plummet. This is the third time he's taken an indefinitie medical leave, btw.

I'm with you on google, in that I wouldn't invest too directly, but Apple is relatively cheaply priced, and they actually finished up today and are now reporting serious earnings in spite of Jobs' uncertain future.

I'm not a tech guy, but investing in cloud computing is the way to go for investors who want to get into the tech sector (and every investor wants to get in the tech sector.)

When I was with the local economic development agency, I was asked to give a speech about Y2K immediately after the New Year, how it had been hyped up, fizzled out, and the forecast for the economy, given the dependence on tech stocks. My closing line in the speech was, "After all, how long can we expect people to pay $500 a share for something named 'Yahoo'?" Not to give myself any sort of pat on the back, but it closed today at $16.50.

Future American president (?) Donald Trump on Obama's meeting today in Washington with the Chinese : "I don't believe in holding dinner with people who take advantage of you and laugh behind your back!"

Obama says "I want to see the Chinese sell MORE!" Poppycock! Put a 25% tax on what they make THEN we start to see job creation in America because prices will start to equalize. We're rebuliding China, and it's all being shipped over here! The same goes with OPEC, they're doing it to us with the oil prices. Bernanke says 5 or 6 years before employment gets better but it will be more...

People deny inflation is going on but it's already here if you look at food and gas prices. Granted, wage push inflation has not yet happened, but we want it for wage growth but they haven't created it yet!! We have an indebted society right now and this is evidenced by the fact that 10 year treasury yields are UP, UP, UP.

How can we increase profits when all our products are being made in China.

Nothing special there...replaced by Google, Facebook and Twitter
Things change every 5-7 years! Maybe even faster now. It is a whole new world June and Ward...

Speak of the devil, just a few days after Jobs steps down at Apple, Google has a new CEO, 37 yr old co-founder Larry Page. Page is a 'techie', not a businessman, a fact that has investors worried in spite of Google's rising stock and higher than expected earnings report. Page is taking over for the 55 yr old Eric Schmidt who will stay on in some sort of advising role.

There aren't many CEO's of $160 billion market cap companies without experience, but that's exactly what you have here. Google is continuing to rely on its search engine (which sucks IMO), youtube (doubled earnings last year) and their 300,000 a day selling Android phone (not as good as the I-phone).

Fathersson is precisely correct in that Google is worried about FAcebook which has now surpassed Google as the number one visitied site on the internet. Some are naturally concerned about this, others not so much. Google of course is trying sell the move as a progressive step forward but they've made some very questionable business decisions in the past (pulling out of China) and not having a business pro running things as the company gets bigger and bigger could be disastrous.



No more adult supervision at Google

They've been grooming him to be CEO and it's not surpising this all comes in the wake of the Apple problems. It's hard to not think about GOOGLE Maps, Search, Earth, or Adwords, because they've almost become synonymous with the internet itself..in some ways google IS the internet. Whatever AOL, Yahoo or alto Vista couldn't accomplish, google has done.

Google is a rather amazing company to work for too (especially if you don't like codes of dress or hygiene), they pay for their employees lunches, laundry or anything that might take their minds off work. Their CEO's are worth about 15 billion a piece. Frankly, though, I've seen drops in the service they've been providing and I can't help but think it's because of the laxed attitude they have over there and in the tech industry in general. Which is why these events don't surprise me. Google is absolutely still a stock that is somewhat undervalued when considering the long term growth prospect, but I'll continue to sell short along with many other investors.

They provide a free service to us, the user, which is paid for from advertising (slows internet speed) and yep, they still make money off of you and I despite not charging a dime for use of their services, off of all the infinite information we share with the internet each and every day. But really, Google Adwords are the real source of revenue, as google gets paid everytime you click on an ad brought through their website.

Something else to think about ...many companies have succeeded in the past and many companies have failed. It doesn't take much for a trillion dollar company to go to a 100 billion dollar company in a short time. Pieces of Google's data base could be sold or end up in different hands or any number of buyout possibilities; it doesn't take much for the CEO's to take their maney and run, selling off the crucial parts of their company to some huge Chinese or Russian subsidiary.