At the end of 2020, I wrote Big Idea 2021: SaaS Companies Will Create 10 Million Jobs with the central thesis that SaaS players would evolve into PaaS to create deeper moats around their core market positions and gain access to the related force multiplier.
To recap on the assumptions:
More good news. SunPower (SPWR) announced impressive Q3 earnings last week. With revenues of $377.5 million, they exceeded the market’s expectations of $350 million, and reported annual growth of 61%. Their EPS grew 82% to $0.60 and beat the Street’s view of $0.56. >>>
Some good news amidst this bloodbath. IBM is second on my recent list of Top 10 Outsourcing Stocks and its recent earnings show why. Despite the tough market, the company had a strong quarter. IBM had grown stronger in the face of the Great Depression and its performance through recent quarters (read earlier coverage of Q407, Q108 and Q208) is another indicator that the company is well prepared to sail through the current market conditions. >>>
Google (GOOG) reported Q3 earnings yesterday that exceeded all market expectations despite the worsening economic conditions. They reported revenues of $5.5 billion with EPS of $4.92. The market was looking for revenues of $5.6 billion and EPS of $4.75. >>>
This week, Intel and AMD reported third quarter results that beat many estimates. However, the rival companies were united in their view that the financial crisis will affect demand in the fourth quarter. >>>
eBay continues to struggle against current economic conditions with rather lackluster Q3 performance. They have reduced their Q4 guidance, raising doubts about a merry Christmas for the company this year. >>>
What is the outlook for India’s outsourcing industry amidst the market turmoil? The Indian IT major, Infosys Technologies (INFY) had expressed their concerns about the recession when they announced their Q407 results earlier this year. Their Q2 results and the outlook for 2008-09, announced on October 11, quantify these concerns. >>>
Digital River, Inc. (DRIV), which provides e-commerce solutions to software publishers and consumer technology companies, is on a roll. The complex licensing and subscription management operations of many software companies are outsourced to Digital River. We haven’t covered Digital River much, but it is a top holding for several internet focused mutual funds. >>>
Bargains abound amidst the financial fiasco. Let’s look for the ones in the handset sector. The iPhone has created a flurry of activity in the handset market; more handset makers are moving towards the convergence device trend. Just yesterday, Nokia released its response to the iPhone, a touchscreen 5800 XpressMusic smart phone called the Tube, right on the heels of HTC’s G1 phone on Google’s Linux-based Android platform.
The financial crisis is making things tough. Handset makers are reeling under the pressure of higher component costs. Nokia lost market share and RIM missed estimates. And yet, there is still a lot of promise for this sector. Let’s take a look at how the top 5 handset stocks are poised in this market.
Also, this morning, HP announced its entry into the smartphone sector.
The financial markets are scary, and amidst this turbulence, earnings season is under way. Micron (MU) reported a larger-than-expected fourth quarter loss yesterday. The company was affected by the oversupply situation in the DRAM and NAND markets. Semiconductor prices continued to plunge and NAND ASP declines outpaced cost reductions; as a result Micron had to writedown its inventory for $205 million. >>>