When industry powered US growth, companies grew by spending on capital investments like factories and machinery. Back in 1975, firms once spent six times more on capital investments than they did on research and development. But as the US shifted toward a services and knowledge-based economy, intangible investments became increasingly important. In 2002, R&D expenditures for the average firm surpassed capital expenditures for the first time. It’s stayed that way since; nowadays, average R&D spending is roughly twice that of capital expenditures.
It’s now as big as Ericsson AB (Nasdaq: ERIC) in the telecom equipment market and is pushing hard to increase its market share in the enterprise and mobile device markets. Its annual revenues are still increasing each year but its profitability has taken a knock in recent times.
Wall Street’s excitement over a game publisher once counted among the stars of the new social Internet has cooled since its December initial public offering. On Friday, analysts slashed their price targets on a stock that dived as much as 22 percent, to $2.21 – more than three-quarters off its $10 debut.
4. Mobile is going to crush Facebook. The logic for Facebook’s price decline is that they have a problem in mobile. They can’t offer all the games they can in a browser. They can’t offer the same ads or branding opportunities. All true.
5. And in the interest of disclosure I bought 150k shares of FB. 50k shares at 33, 50k shares at 31.97 and 50k shares around 32.50. Its a trade, not an investment. Kind of like buying a Mickey Mantle, a Hank Aaron and a Barry Bonds Rookie Card knowing there is a card show in town next week
At a $100 billion valuation, Facebook would be worth about the same as McDonald’s Corp. and nearly half of Google.
The SEC questioned why a money-losing startup used $940 million of $1.1 billion in venture capital to partially cash out early investors rather than invest in growth. Many analysts and some potential investors raised similar questions.
Since Gogo launched in-flight Wi-Fi connectivity in 2008, the company has provided more than 15 million wi-fi sessions to more than 4.4 million registered unique users. Currently, Gogo has contracts to add wi-fi to another 525 planes. Gogo-equipped planes represent approximately 42% of the company’s revenue for the nine months ended September 30, 2011. The company’s earliest contract, which last for ten years, expires in 2018.