independent

Monday 21 April 2014

4 winners and losers: Apple falls while Facebook dazzles

Technology stocks report mixed bag of results this week

Marissa Mayer, Chief Executive Officer of Yahoo in Davos
Marissa Mayer, Chief Executive Officer of Yahoo in Davos

IN what is a big week for technology stocks, we have already seen a few winners and losers emerge.

While Apple’s apparent failure to inspire in China weighed on the stock earlier in the week and Yahoo also failed to convince the markets, Facebook's ability to make money from mobiles lit up Wall Street last night.

These are just snapshots, of course, but they come as the focus continues to shine on the technology sector against the backdrop of a debate on whether the industry is in bubble-mode.

1.Apple lost $40bn of its share value following its results this week and while that might seem a blip considering the size of the company, the tumble came despite record sales of iPhones and iPads while it is also suffering from growing competition from the Android market.

The main concern here is future growth.

2.Yahoo also failed to impress this week.

While chief executive Marissa Mayer was forced into insisting the internet company was on the right track, its revenues are still going in the wrong direction.

The problem here seems to be its inability to sell ads as it fights to compete with the likes of Google and Facebook.

3.Facebook, on the other hand, this week proved that it has finally cracked how to flog mobile ads.

And its share price performance reflected that success.

They gained after Facebook said jumped 77pc to $2.6bn in the last quarter of the year including $1bn from advertising on mobile phones.

It’s less than two years since the company floated and spent its first year trying to convince the market as it struggled to find the best way to make money.

4.Google reports results tonight but there has already been good news from the search engine giant this week. The company is ridding itself of the Motorola Mobility smartphone business which it bought less two years ago for $12.4bn in what many had considered a big financial mistake.

China’s Lenovo Group is buying it for $2.9bn and it’s pretty obvious Google miscalculated what it was worth.  Still, all eyes will be on Google tonight when it reports the latest set of results.

@ailishohora

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