Nokia Launches Windows 8 Phone: Investors Stay Unimpressed!

Shares of Nokia saw a plunge of 16 percent on Wednesday, following the company’s announcement of its new and latest Windows 8 smartphone. Made with new Windows software, Nokia Lumia was the latest initiative by the firm to recover from loses, but it looks like, Lumia failed to impress the company’s investors.

Nokia and Microsoft partnered to step into the market of smartphones. But the faint remarks about the latest innovation seem to have cast a shadow over the joint venture of both the firms.

A failure to break into the market via Lumia can have serious repercussions for Nokia. The Finnish company, who was once a dominant leader in the smartphone market, is now lagging far behind its rivals.

Nokia and Microsoft came together on 2011 for Windows 8 smartphones. Hoping for Nokia to pick up after the downfall is expecting a little too much as there is lot of competition.

Stocks of Nokia closed at $2.38 per share.

Nokia introduced the Lumia 920 and the Lumia 820 Wednesday at a press event in New York. The smartphone has features such as wireless charging and a camera that minimizes photo blur.

As Apple, Motorola, and HTC are also coming up with their latest smartphones this month, Nokia might not get time to get a place in consumers’ heart.

Microsoft also has a lot at stake, with venturing into Windows operating system that would work on computers, laptops and tablets. Microsoft also launched a new Surface tablet this year.

Showing how much of Lumia’s success depends upon Microsoft and Nokia, Steve Ballmer, chief executive, Microsoft showed up at the unveiling of the Lumia phones, where he talked of how Nokia phones embodies the best attributes of the Windows Phone software.

With latest Lumia, Nokia has entered the competitive market with Apple, Google’s Android software smartphones along with other device makers for Windows software.

Now Nokia can just hope it plunges into consumer’s heart with plethora of smartphones coming up soon.… Read the rest

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OnLive Sacks all Employees, Discloses New Owner

The abrupt sale of assets of OnLive and wiping out of all staff on Friday surprised everyone. The cloud gaming company however, broke the silence and stated additional details on the company’s sale Sunday night. It also offered some information about its first new investor.

OnLive has been sold to an affiliate of its first investor Lauder Partners, who was a part of OnLive’s previous series C. The new company is disclosed to have the same name, OnLive.

The company fired all employees and offered less than half of them a job with its new owner. The release also confirmed that all of OnLive’s shareholders, investors, employees and management, got wiped out in the deal.

A release was sent out for reporters Sunday night, which talked of the asset sale. It said, “OnLive, Inc.’s board of directors, faced with difficult financial decisions for OnLive, Inc., determined that the best course of action was a restructuring under an “Assignment for the Benefit of Creditors.” The assignee of the company’s assets then sold all of OnLive, Inc.’s assets (including its technology, intellectual property, etc.) to the new company.”

OnLive also noted to be on a look out for additional funding, to hire back some of the employees that the company fired. However, it also gave the sacked employees a choice to consult for the newly formed OnLive in exchange for options in the new company. Now it is a matter of choice as to how many of them accept the offer, given the fact that they lost all previous shares.… Read the rest

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Facebook Stocks Plunge to a New Low as IPO Lock-up Ends

Shares of the social networking site, Facebook saw a drop of nearly six percent from the day’s opening Thursday as the firm unlocked 271 million shares for trading. The stocks plunged to a new low and dipped below the $20 mark for the first time- nearly 50 percent of its Initial Price Offering (IPO) of $38.

Some analysts believe this trading to be a sign that investors and company’s insiders wanted to get rid of their investments on Facebook. The company seems to have lost its shine and has had a rough time since going public. The social networking site has left many investors anxious about whether the company would be a passing fancy or will recover as it earns revenue from advertising via mobile networks. However, the firm did meet expectations in its first public earnings report.

Facebook is reported to go down on 36 trading days, up on 25 and unchanged on one since going public.

A challenge has been set for Facebook to mon­etize its free service on a smartphone or tablet-sized screen, that too without annoying any of its users. Advertising through mobile phones also comes as a little hope, which can help the firm sail through smoothly.

Facebook is now attempting to make its mark and get stable as the firm recently started to test ads on the mobile devices and computers of users who haven’t liked the products being advertised. The social network labeled these ads as “sponsored”.

Despite the sharp drop in Facebook’s market value price in the last three months, early investors and analysts are still hoping for a boon by selling at the current price. Analysts are also positive that in the long run, Facebook will rise with its plans of advertising via mobile devices, settling all dark clouds. It has been a rough run for Facebook, but various analysts hold positive long-term views for the social network.

The Wall Street Journal also reported that employees who received Facebook shares as compensation will be able to sell their shares only by the end of the year.… Read the rest

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Facebook Stock Expected to See Shift Thursday, Will Investors Sell Shares?

Stumbled due to the slow growth of revenue, the plunge of Facebook stocks was not what many investors expected when the social network went public in May. However, there has been some speculation on the Wall Street that the Facebook stock could take a big hit this Thursday, which marks the first day that will let all investors and its directors sell their stocks to public.

Facebook saw a rocky initial opening, when the network took out its first opening report since going public in May. The social network saw a loss of $743 million, which also slashed down its share prices.

The social network went public with 421 million shares as part of its original offering. Out of that number, around 271 million shares are expected to be unlocked Thursday.

It is reported that Facebook’s less-than-perfect market performance may in fact help the firm with this problem. Investors who are looking to earn some money would be the only ones selling their shares, and as Facebook’s stocks have dropped from its initial price offering of $38, it is not expected to make more money.

There is also speculation that Facebook will unlock more shares in the coming months, as is expected that around 1.8 billion shares will hit the market within the next year.

The social network’s tiered system states that the employees who have received shares as compensation will also have them unlocked in the fall.

There are many analysts who have underestimated the impact that shares could have on Facebook.

Michael Pachter, analyst at Wedbush states that it would not look good only if high-level officials within Facebook sell their shares, which is not at all expected.

On Wednesday, shares of Facebook were closed at a price offering of $21.20, which went up for around four percent for the day, but was down by 44 percent for its IPO of $38.… Read the rest

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Investors Get Angry as Mayer Decides to Keep $4.2B in Dividends

Hardly a month after Marissa Mayer took place as CEO of Yahoo!, investors seem to have got annoyed. It seems like Mayer in not measuring up to investors’ expectations, at least for short-term goals. Following Mayer’s new financial strategy, Yahoo! shares continue to fall sharply as the company sees a downfall of 5.37 percent that is low as compared to what investors expected of dividends.

Earlier in May, Yahoo! announced its plan to sell half of its 40 percent stake in the Chinese company Alibaba that accounts for $7.1 billion. However, investors believed that the proceeds from the sale of Yahoo!’s stake in Alibaba, which is around $4.2 billion would be returned to all shareholders in the form of dividends. This made all shareholders rejoice, but Mayer had some long-term plans. She dismissed the plan of issuing dividends and announced to develop long-term shareholder value.

However, Yahoo! told the Securities and Exchange Commission that the strategy review may cause Yahoo! to revaluate or rethink its current plans, including the company reorganization and share buyback program.

This move by Mayer seems to have been borrowed from Google as the latter is known for not issuing dividends to its shareholders. With this decision, Mayer seems to be in total charge of Yahoo! and ready to take bold decisions.

However, investors do not seem to be happy as they value short-term returns more over long-term decisions.

Now, the question is as to what Yahoo! plans to do with estimated $4.2 billion cash on hand. There have been guesses that Mayer could do some shopping, Yahoo! could take over some other company, invest its money or just keep it intact for a while.

Well, it is just a matter of time, when we will know the CEO’s decision, hoping that it will only strengthen her influence over shareholders.… Read the rest

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