Friday, August 3, 2018

Google might return to China. Here's why that's controversial

Google is reportedly planning to get back into China, a lucrative market where it has a long history of tangling with authorities.

The Intercept reported Wednesday that Google plans to launch a search app in China that would block sensitive websites and search terms to comply with Chinese government censorship.

China has hundreds of millions of internet users and a thriving online shopping market, making it impossible for US tech companies to ignore. But jumping back into China presents ethical issues for Google (GOOGL), which has long advocated a free and open internet.

Andy Tian, a tech executive who formerly led mobile strategy and partnerships for Google in China, said the Chinese tech companies that currently dominate search can't compete with Google's product.

"There's a huge void, Google can fill that void," said Tian, who is now CEO of Asia Innovations.

Asked about The Intercept report, Google said in a statement that "we don't comment on speculation about future plans."

Like many other US internet platforms, Google's most popular products �� search, YouTube, Gmail �� have been banned in China for years, blacked out by a vast government censorship apparatus known as the Great Firewall.

But that wasn't always the case.

Google China 1.0

Google launched a Chinese language version of its search engine �� google.cn �� in 2006. It complied with Beijing's censorship laws.

"While removing search results is inconsistent with Google's mission, providing no information (or a heavily degraded user experience that amounts to no information) is more inconsistent with our mission," Google said at the time.

While the search engine was censored, it also flagged to users when information was removed from results. That gave Chinese internet users an idea of what they were not allowed to see.

China blocks Google searches on the eve of the Tiananmen Square massacre in 2014. China blocks Google searches on the eve of the Tiananmen Square massacre in 2014.

"We reminded users in China every single day that they are looking at filtered results," said Tian, who worked at Google when the search engine launched.

Still, critics complained that Google was breaching its own company motto: "Don't Be Evil."

The company's devotion to web freedom, critics charged, was being subverted by a willingness to comply with Chinese censorship in return for access to a huge potential customer base.

Attack and retreat

Google was battling Baidu (BIDU) for market share. Three years after launch, Google had wrestled about a third of the search market away from its Chinese rival.

The dynamic changed in January 2010, when Google charged that Chinese hackers had targeted Google and more than 20 other Western companies and compromised the email accounts of Chinese dissidents living abroad.

Beijing denied that it had been involved in the attacks, but the incident sparked a political fight with Washington.

google.cn screen 2010 A laptop screen displaying the landing page google.cn, which linked to an uncensored Hong Kong site on July 1, 2010, in Beijing.

About three months later, Google made good on a threat to stop offering search in China.

In March 2010, it announced it had stopped running the censored Google.cn service and began routing its Chinese users to an uncensored version of Google based in Hong Kong.

Academics, university students and other researchers relied heavily on Google's search services to access information not available through Chinese search engines like Baidu.

Businesses that depended on Google applications such as Google Docs and Gmail also suffered.

gmail image new

Google wants back behind the Firewall

Google's parent company Alphabet changed its motto in 2015, replacing "Don't Be Evil" with "Do the Right Thing."

From a business perspective, getting back into China is the right thing for Google. It currently offers just a few services in the country �� Google Translate, a file organizing program and a new AI game.

Advertising is Google's main source of revenue, and 1.4 billion potential users are hard to ignore. Facebook (FB), which competes with Google for advertising revenue, is also locked out of China.

Shares in Baidu (BIDU) dropped 8% on Wednesday after The Intercept report was published.

google china booth

Critics and human rights groups are already accusing Google of bending to China's will.

"The reality is that they will be serving the Chinese government," said Lockman Tsui, former head of free expression for Google in Asia.

"The government now tracks people, apps on phones reveal who you are, where you are. They are intrusive," he added. "They collect much more data and Google can be requested to handover these data to the government."

�� Begona Blanco Munoz contributed reporting.

Thursday, August 2, 2018

LogMeIn stock plummets on weak outlook for the year

Cloud-based software company LogMeIn fell more than 24 percent during late-morning trading due to weak outlook for the third quarter.

The Boston-based company reported earnings per share of $1.32 versus Wall Street expectations of $1.25, according to FactSet.

However, it lowered its revenue expectations for the fiscal year by 2 percent. LogMeIn now expects its yearly revenue to fall between $1.185 billion and $1.195 billion, down from its April projection of $1.208 billion to $1.223 billion.

J.P. Morgan downgraded the stock to "Neutral" from "Overweight" on Thursday, pointing to troubling signs in LogMeIn's collaboration sector, which makes up a majority of the overall business. The biggest concern, the investment bank said, is increased competition in collaboration software squeezing renewal rates.

LogMeIn has acquired collaboration rivals in recent years like GoTo and Jive. "But near-term execution issues including competition and possible pricing pressure will likely keep a lid on the stock and that is why we rate shares of LOGM Neutral," J.P. Morgan analyst Sterling Auty said in a note.

Wednesday, August 1, 2018

$2.66 Billion in Sales Expected for Navistar International Corp (NAV) This Quarter

Wall Street analysts forecast that Navistar International Corp (NYSE:NAV) will post sales of $2.66 billion for the current fiscal quarter, Zacks reports. Seven analysts have provided estimates for Navistar International’s earnings. The highest sales estimate is $2.86 billion and the lowest is $2.54 billion. Navistar International reported sales of $2.21 billion in the same quarter last year, which indicates a positive year over year growth rate of 20.4%. The business is expected to announce its next quarterly earnings report on Wednesday, September 5th.

According to Zacks, analysts expect that Navistar International will report full year sales of $9.90 billion for the current financial year, with estimates ranging from $9.63 billion to $10.13 billion. For the next year, analysts forecast that the business will report sales of $10.56 billion per share, with estimates ranging from $10.43 billion to $10.86 billion. Zacks’ sales averages are an average based on a survey of sell-side research analysts that cover Navistar International.

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Navistar International (NYSE:NAV) last posted its quarterly earnings results on Tuesday, June 5th. The company reported $0.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.34 by $0.21. The company had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.43 billion. Navistar International had a negative return on equity of 4.49% and a net margin of 1.69%. Navistar International’s revenue for the quarter was up 15.6% compared to the same quarter last year. During the same quarter last year, the company earned ($0.86) EPS.

A number of equities research analysts have issued reports on NAV shares. JPMorgan Chase & Co. reduced their price target on Navistar International from $45.00 to $38.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 10th. ValuEngine lowered Navistar International from a “buy” rating to a “hold” rating in a research report on Monday, April 23rd. Piper Jaffray Companies set a $44.00 price target on Navistar International and gave the company a “buy” rating in a research report on Wednesday, April 25th. Royal Bank of Canada reaffirmed a “hold” rating and issued a $44.00 price target on shares of Navistar International in a research report on Thursday. Finally, Longbow Research raised Navistar International from a “neutral” rating to a “buy” rating and increased their price target for the company from $25.06 to $50.00 in a research report on Friday, June 1st. Nine investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average target price of $45.56.

Several institutional investors and hedge funds have recently added to or reduced their stakes in NAV. LPL Financial LLC purchased a new position in shares of Navistar International in the 1st quarter valued at about $218,000. Campbell & CO Investment Adviser LLC purchased a new position in shares of Navistar International in the 1st quarter valued at about $233,000. Royal Bank of Canada increased its holdings in shares of Navistar International by 132.8% in the 1st quarter. Royal Bank of Canada now owns 8,135 shares of the company’s stock valued at $285,000 after acquiring an additional 32,926 shares during the last quarter. WINTON GROUP Ltd purchased a new position in shares of Navistar International in the 1st quarter valued at about $292,000. Finally, XR Securities LLC purchased a new position in shares of Navistar International in the 2nd quarter valued at about $350,000. Institutional investors and hedge funds own 81.33% of the company’s stock.

NAV stock opened at $43.52 on Friday. The company has a current ratio of 1.11, a quick ratio of 0.82 and a debt-to-equity ratio of -0.85. The stock has a market capitalization of $4.17 billion, a price-to-earnings ratio of 85.84, a P/E/G ratio of 4.06 and a beta of 2.40. Navistar International has a 1 year low of $28.83 and a 1 year high of $47.73.

Navistar International Company Profile

Navistar International Corporation manufactures and sells commercial and military trucks, diesel engines, school and commercial buses, and service parts for trucks and diesel engines worldwide. The company operates through four segments: Truck, Parts, Global Operations, and Financial Services. It manufactures and distributes Class 4 through 8 trucks and buses in the common carrier, private carrier, government, leasing, construction, energy/petroleum, military vehicle, and student and commercial transportation markets under the International and IC brands; and designs, engineers, and produces sheet metal components, including truck cabs and engines.

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