Mobile and Video Growth Leads to Revenue Jump for Facebook

Facebook reported strong earnings for the fourth quarter of 2014 with revenue increasing by 49 percent to $3.85 billion. Much of that growth is due to a strong mobile showing. Notably, mobile advertising accounts for 69 percent of the company’s advertising revenue and more than 520 million people now access Facebook solely from their mobile devices. Many of those mobile visitors are watching videos. Facebook says the videos on the social network are now racking up 3 billion views per day. Continue reading Mobile and Video Growth Leads to Revenue Jump for Facebook

Following its Record Quarter, Netflix Eyes Global Expansion

Yesterday’s fourth-quarter earnings report indicates that Netflix added 13 million subscribers in 2014, including 4.3 million during the final three months (marking the company’s strongest quarter of subscriber gains to date). Netflix earnings also grew to a quarterly high of $83.4 million. “Internet TV is growing globally and Netflix is leading the charge,” claims CEO Reed Hastings. Netflix continues to invest heavily in original content and expand internationally as part of its effort to fend off growing competition from Amazon, HBO and YouTube. Continue reading Following its Record Quarter, Netflix Eyes Global Expansion

Netflix Reports Strong Q2 Earnings, Unveils International Plans

Netflix reported second quarter earnings higher than analysts’ estimates, and announced that original series “Orange Is the New Black” helped lift its number of subscribers past 50 million. Net income more than doubled to $71 million, while sales grew 25 percent. Netflix added 570,000 domestic streaming customers, bringing its U.S. total to 36.2 million. During the quarter, the company raised fees $1 to $2 a month for new customers of its online service to help finance original content. Continue reading Netflix Reports Strong Q2 Earnings, Unveils International Plans

Google, Facebook Look to Expand Reach of Internet Access

Led by Greg Wyler, founder of O3b Networks, Google’s plans to increase Internet access through satellites surge forward. In order to reach unwired regions, Google plans to spend an estimated $1 billion to $3 billion on a fleet of satellites. The project is expected to begin with 180 small, high-capacity satellites orbiting the earth at lower altitudes than traditional satellites. Both Google and Facebook are looking to increase revenue and earnings, and have pinpointed users in these remote regions to do so. Continue reading Google, Facebook Look to Expand Reach of Internet Access

Major Retailers Continue to Downsize Due To Poor Earnings

Major retailers continue to downsize as a result of poor earnings, which could lead to the elimination of thousands of store locations. Most experts agree that much of the problems experienced by retailers can be attributed to Amazon’s success, with annual sales approaching $100 billion. Best Buy, Office Depot, RadioShack, Sears and Staples are among the major companies that have already announced the planned closing of multiple locations.  Continue reading Major Retailers Continue to Downsize Due To Poor Earnings

Netflix Passes 34 Million Subscribers, Previews Price Increase

Netflix announced on Monday that it plans to raise the price of its streaming video service for new members by a dollar or two per month. The service, which now has more than 34 million paid U.S. subscribers, is justifying the rate increase based on its continued investment in original programs, including series such as “House of Cards” and “Orange Is the New Black.” In addition to its first-quarter earnings report yesterday, Netflix announced opposition to Comcast’s proposed acquisition of Time Warner Cable. Continue reading Netflix Passes 34 Million Subscribers, Previews Price Increase

The Amazon Effect: RadioShack and Staples to Close Stores

RadioShack’s shares fell by 24 percent after holiday sales came in dramatically under expectations. The company has now announced that it will shutter 1,100 stores, leaving 4,000 brick-and-mortar locations in the U.S. Meanwhile, Staples announced that it would close 225 stores by next year, as the office supply superstore continues to move its business online, which already accounts for half of its total sales. Can physical retail stores survive in an Amazon-dominated world? Continue reading The Amazon Effect: RadioShack and Staples to Close Stores

Amazon Says It May Increase Shipping Fees of Prime Service

Amazon announced in a fourth-quarter earnings conference call that it might be raising prices on shipping fees through its Amazon Prime program. The $79-a-year shipping service could go up in price by as much as 50 percent, increasing the company’s bottom line by close to $500 million. The announcement came as a pleasant surprise to investors following a slow holiday season for Amazon and its lowest growth rate in several years. Continue reading Amazon Says It May Increase Shipping Fees of Prime Service

Verizon Will Likely Respond to T-Mobile’s Aggressive Prices

Following a 3 percent drop in market value, Verizon has hinted at plans to get competitive in pricing, which customers will likely appreciate, but investors might not. The telco lost about $4 billion of its value, and some say it’s directly related to the competition among telcos to be the most aggressively priced. T-Mobile has been most notably aggressive in its pricing strategies, attracting new customers and possibly forcing Verizon to lower its fees as well. Continue reading Verizon Will Likely Respond to T-Mobile’s Aggressive Prices

Netflix Sees Spike in Subscriber Base, Profits Remain Slim

Netflix posted its third quarter earnings yesterday, announcing that it has added 1.3 million U.S. customers. The video service ended the quarter with 29.93 million paid domestic users. While Netflix’s latest figures suggest the service has surpassed HBO and Showtime in number of U.S. customers, the company’s profit margin remains low in comparison to leading premium cable networks. Regardless, stock was up nearly 10 percent following the earnings results. Continue reading Netflix Sees Spike in Subscriber Base, Profits Remain Slim

BlackBerry Selling Phones Directly After Bleak Earnings Report

If things weren’t already looking bleak enough for BlackBerry, the company released its latest earnings report on Friday. Second quarter results for the three months ending August 31 show revenue of $1.6 billion, down 49 percent from the previous quarter and 45 percent from the same quarter last year. The company also reported an adjusted loss of $248 million. And on the heels of a near $1 billion inventory markdown, BlackBerry announced it will start directly selling unlocked smartphones. Continue reading BlackBerry Selling Phones Directly After Bleak Earnings Report