Tag Archives: amzn

Amazon.com Sues Executive Whom Target Recently Hired

Amazon.com ( AMZN ) is suing logistics and supply chain expert Arthur Valdez, whom Target ( TGT ) recently hired, alleging that Valdez violated the noncompete clause in his contract, according to the Wall Street Journal . Valdez had been an Amazon employee for 16 years and signed a noncompete agreement in 2012 requiring him to wait 18 months before taking a similar position at a rival. The lawsuit, filed Monday in King County Superior Court in Washington, according to the Journal, says that Valdez has already disclosed secrets to Target such as an analysis of Amazon’s holiday operations and its same-day grocery and package business. Valdez’s appointment at Target was announced in February, according to Reuters . Its report says that according to Valdez’s attorney, he isn’t scheduled to start until March 28. Amazon.com stock was up almost 1% in afternoon trading on the stock market today , near 558.50. The stock has an IBD Composite Rating of 66, where 99 is the highest. Shares are up 18% from a recent three-month low of 474. The Journal quoted a Target spokeswoman as saying that the company has taken significant precautions to ensure that proprietary information stays confidential and that Target believes the suit is without merit.

Apple Won’t Shake Up Alphabet, Android In Global Mobile Market

Apple ( APPL ) and its new suite of products won’t shake up Alphabet ( GOOGL )-owned Google Android, said Monness, Crespi, Hardt in an industry update Tuesday. Monness Crespi analyst James Cakmak called Apple’s new product launches that were announced Monday — items including a 4-inch iPhone, a lower-priced Apple Watch and iPad Pro, and updates to the company’s iOS and Apple TV — “lackluster at best.” While Apple’s new iPhone comes with a cheaper $399 entry point, “we believe it does little to disrupt Android’s stronghold on the global mobile market,” wrote Cakmak.  “As of 2015, Android commands about 80% of the market vs. iOS at 15%, per IDC. To be sure, some will prefer the smaller form factor, but as far as changing the global mix, we see little potential shift, especially noting the influx of supply when iPhone annual upgrade plans come up for renewal.” Apple also is doing little to impact Google’s efforts in the Internet of Things, Cakmak said, with the actual front-runner so far turning out to be Amazon.com ( AMZN )‘s  Alexa voice software — Amazon’s answer to Apple’s Siri, Google Now and Microsoft’s Cortana voice-activated personal digital assistants. And since “Apple is actually ahead of Google in encryption (due largely to the open-sourced nature of Android),” said Cakmak, that means “Apple fights the fight while Google can adapt accordingly.” He pointed to the FBI’s disclosure on Monday that it may not need Apple’s assistance after all to unlock an encrypted iPhone used by one of the San Bernardino, Calif., terrorist attackers, since investigators might have found another way to access it .  “Should this hold, it would in tandem support Android’s encryption efforts,” Cakmak said. New iPad Said Still Behind Microsoft Surface On the tablet front, Cakmak said, “While the iPad Pro is looking to replace the laptop, we believe Microsoft’s Surface continues to hold an edge despite the latest updates from Apple.” Some investment banks, including Raymond James , are also expecting Alphabet’s Google division to become more competitive in cloud computing. As Google prepares to hold its cloud user conference, GCP Next 2016, in San Francisco starting Wednesday, Cakmak noted, “With Diane Greene making her first keynote in her senior vice president role, we expect to come away with a better understanding of Google’s angle in either placing more emphasis on the enterprise or storage. This can also provide better clarity into whether Microsoft or Amazon’s AWS should feel greater pressure.” Monness, Crespi maintains a buy rating and 900 price target on Alphabet stock. Alphabet stock was down a fraction, near 759, in midday trading in the stock market today . Alphabet “seemed to be in the shadows of Facebook in the first half of last year,” Rosenblatt Securities analyst Martin Pyykkonen wrote in a research report Tuesday. But Alphabet has gone on to outperform the market and finish “with a full year gain in the same range as Facebook, which was especially driven after new CFO Ruth Porat started at Alphabet in mid-2015.” Pyykkonen said Alphabet’s core business segments “are benefiting from most of the same key growth drivers as Facebook, including mobile, display and video ads, in addition to the longstanding core search advertising business. There has been increasing media attention on Facebook vs. Alphabet’s YouTube in terms of video advertising and revenue growth potential. We think there is room for both players within our current estimates through next year for each company, and video delivery is likely to remain different for each company.” Apple stock was up nearly 1% in midday trading Tuesday, near 107. Amazon stock was up a fraction, near 558.  

Microsoft, Inphi Plan To Leave Amazon, Apple In Digital Drone Dust

Tech giant Microsoft ( MSFT ) and chipmaker Inphi ( IPHI ) plan to leave Apple ( AAPL ), Amazon.com ( AMZN ) and Alphabet ( GOOGL ) in their drone dust come Q3 … digitally speaking. Early Tuesday, the companies introduced a 100-gigabit platform capable of digitally tying multiple data centers within 80 kilometers (about 50 miles). Previously, that breakneck 100G speed was possible only in cross-country networks. Linking data centers to amass cloud size — and speed — will become more necessary as cloud users like  Facebook ( FB ), Alibaba ( BABA ), Yahoo ( YHOO ) and others expand their online footprint, says Jeff Cox, Microsoft senior director of network architecture. Microsoft realized as much in 2012, but the industry’s “long-haul solution” for cross-country information transit was too hefty for use in metropolitan areas, Cox says. It would be the travel equivalent of launching a Boeing 777 to go from John Wayne Airport near Anaheim, Calif., to Los Angeles International Airport 20 miles away. “You’d take a cab, not a 777,” he told IBD. “For those distances across town, we want these large quantities, but that’s the wrong approach.” Trains, Planes, Trucks … And Drones In 2013, Microsoft and Inphi teamed up to solve the problem. Inphi moves data in the same way FedEx ( FDX ) transports packages — by trains, planes and trucks, Inphi CEO Ford Tamer told IBD. The Microsoft-Inphi solution is a 100G “drone.” Inphi also has a 100G long-haul solution under its Coherent platform. But the Coherent platform is more power-consumptive, expensive and requires space to allow excess heat to dissipate, Cox says. He estimates the Coherent platform uses 20 times more power than the new Inphi-Microsoft platform. “Using the Coherent technology would blow your entire power budget,” he said. “It’s fairly impractical at this scale.” Enter Colorz. Microsoft and Inphi’s partnership will be borne out in the Colorz platform — faster than the industry’s current 10G drones and less costly than 100G long-hauls, Tamer says. The 100G drones are capable of moving the digital equivalent of the Library of Congress multiple times in one second. “We do not believe there is any other solution that can achieve what we’ve done in the power and cost envelope,” Tamer said. “For that type of power and that type of performance and that distance, we do believe it’s an industry first.” Who Needs 640KB RAM? Three years ago, Microsoft met brick walls as it sought to reach 100G inside city limits, Cox said. He referenced tech lore when, in 1981, company co-founder Bill Gates asked who would need more than 640 kilobytes, in defense of IBM ‘s ( IBM ) newest PC, based on an Intel ( INTC ) processor. “Almost kind of like 10 years ago, when people asked, ‘Who needs more than 640KB of RAM (computer memory, where 4GB is now standard)?’ ” Cox said. “Then it was, ‘Who needs more than 100G in a metro?’ I think it was hard for people to wrap their heads around it.” Since then, he says, bandwidth needs have multiplied. Cloud providers are leasing or buying data center spaces across the world as their needs outgrow those of traditional consumers like IT and Internet providers. Data center is the industry’s new buzzword, and chipmakers especially are making a hard run for a piece of this market. Over the past year, Intel, Qualcomm ( QCOM ), Broadcom ( AVGO ), Nvidia ( NVDA ) and Integrated Device Technology ( IDTI ) have redoubled their data center efforts in a bid to gain share. “I think now when we talk about Microsoft, Google, Amazon and Facebook, everyone is building these infrastructures,” Cox said. “And the scale of these infrastructures is surprising everyone in the industry.” He added: “There isn’t so much disbelief any longer. I think we’ve proven we weren’t kidding. In fact, I think we underestimated a little.”