Trefis Top 5 – April 28 Insights (NOK, NFLX, EMC, NYT, DELL)


In today's action, we discussed some potential headwinds for Nokia's ( NOK ) stock in light of its recent earnings announcement. We take a look at the impact Netflix ( NFLX ) has on 'cord cutting' or converting customers from pay-TV. We also review Trefis members' views on EMC's ( EMC ) virtualization software market share, how the New York Times ( NYT ) might be affected by Google's ( GOOG ) new algorithm and Michael Dell's insistence that Dell (DELL) is not a PC company.

3 Negative Factors Slowing Nokia's Near-Term Outlook

Nokia ( NOK ) recently announced its Q1 2011 earnings, in which it provided a weak outlook for Q2 2011 and discussed a few factors responsible for this outlook. Nokia expects its mobile phones revenue to decline from Eur 7.09 billion in Q1 2011 to Eur 6.35 billion in Q2 2011, and anticipates a drop in operating margins from 9.8% to 7.5% during the same period. This is unwelcome news as the company is already struggling to stabilize its competitive position against Apple (AAPL), Research in Motion (RIMM), Motorola Mobility (MMI) and Samsung in the mobile phone market - and, more specifically, in smartphones. The main factors that the company cited for the weak outlook are after-effects from the Japan tragedy, a lack of dual-sim devices and fewer new handset introductions expected in the next quarter.

See article.

Netflix Dismisses Cord Cutting Argument

Netflix ( NFLX ) recently released its Q1 earnings and based on continued growth in subscribers and revenue growth aided by price increases. Although Netflix's business model is unique, it still competes with Apple's (AAPL) iTunes, Hulu, video on demand (VoD) services from pay-TV providers like Comcast (CMCSA), Time Warner Cable (TWC) and Google ( GOOG ) which recently announced plans to launch a paid streaming service via Youtube.

See article .

EMC & VMware Show Strong Q1 Results

VMware (VMW), owned by EMC ( EMC ), leads the virtualization software market with a share of 45% and competes with players like Microsoft (MSFT), Oracle (ORCL) and Citrix (CTXS). VMware reported strong earnings for Q1 2011, which raised its stock price by almost 11% in the past week and also boosted EMC stock by 6%. VMware is crucial for EMC as it constitutes around 40% of its stock price, by our estimates.

See article.

Is Dell a Consumer PC Company? Not Really, Says Mr. Dell

Dell's (DELL) core business as a personal computer manufacturers puts the company in competition with big names like HP (HPQ), Apple (AAPL), Acer (TPE:2353) and Toshiba. But Dell has lately diversified away from its core business by acquiring high-end technologies, such as storage and security systems, as well as extending its services portfolio. (See Could Dell's Cloud Push Complete its Transition to a Service Firm?)

See article.

How Google Algorithm Changes Affect NYT

During The New York Times Company's ( NYT ) Q1 2011 earnings conference call, management discussed the negative impact that the recent algorithm changes in Google ( GOOG ) have had on NYT. Specifically, the company showed concern regarding the loss of traffic for its site, a consumer-focused website that provides advice and information on topics ranging from cooking to construction. New York Times competes with News Corp's (NWS) The Wall Street Journal (WSJ) as well as internet-based outlets like Yahoo (YHOO), Google and AOL (AOL).

See article.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: EMC , GOOG , NFLX , NOK , NYT



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