Tag Archives: googl

Google Self-Driving Car Chief Urges Congress To OK Safety Tech

The chief of self-driving car development at Google told a U.S. Senate panel Tuesday that “Congress has a huge opportunity to help ensure that self-driving cars can be safely deployed at scale,” as the  Alphabet ( GOOGL ) subsidiary and others push the pedal to the metal on the fast-emerging technology. Chris Urmson, director of the self-driving car program at Google X, was among those testifying at a hearing titled “Hands Off: The Future of Self-Driving Cars,” convened by U.S. Sen. John Thune, R.-S.D., chairman of the Senate Committee on Commerce, Science and Transportation. “We need cars that are fully self-driving,” Urmson said. “The car must be designed to do all the work, so the occupants are not expected to take control of the vehicle at any time.” Urmson pointed to National Highway Traffic Safety Administration estimates that “38,000 people were killed on America’s roads last year, and 94% of accidents involve human error. Self-driving cars can help us change that. Not only could our roads be a lot safer, but self-driving cars could bring everyday destinations and new opportunities within reach of those who might otherwise be excluded from their inability to drive a car.” Google is testing self-driving prototype vehicles in three states, driving 1.4 million miles “in autonomous mode” over the past several years, Urmson said. Senator Urges Rethink To Boost Self-Driving Cars Sen. Thune, in comments before the testimony by Urmson and others, sounded ready to act. He urged federal and state governments to rethink how they regulate and license vehicles for the future. “We must ensure that the United States remains the cradle of innovation and that we continue to lead the way in the development and deployment of automated vehicles,” Thune said. “In addition, questions regarding liability, insurance, privacy, security and infrastructure need answers. These aren’t small things, but none of them is insurmountable.” He pointed to the technology’s ability to not only clear up gridlock, but also improve communities. “To implement this future, we need to challenge ourselves to overcome the 20th century conception of what a car must have … and even the concept of a licensed human driver. Because so much is possible, we must be careful not to stymie innovation because of a lack of imagination,” he said. But the technology is facing a patchwork of state regulations. “Over the past two years, 23 states have introduced 53 pieces of legislation that affect autonomous vehicles, all of which include differ approaches and concepts,” Google’s Urmson said. The hearing comes a month after one of Google’s self-driving cars hit a municipal bus in California. Google has said new software changes will avoid future incidents, but at least one speaker Tuesday urged caution. Mary Louise Cummings, director of the Humans and Autonomy Lab and Duke Robotics at Duke University, said there remain concerns over the cars’ sensors not working properly in some areas. Moreover, she said, “we know people will try to hack into these systems.” And the technology, while developing fast, remains relatively untested. She said that while Google’s cars have driven those 1.4 million miles the past several years, “New York cabs drive 1.4 million miles” every day. Still, there is no question automakers and tech firms are fast heading down the road toward the day they can start selling vehicles that can drive themselves.  Apple ( AAPL ) is among those in the car game, it’s been widely reported, though the company hasn’t confirmed this. NXP Semiconductors ( NXPI ), Mobileye ( MBLY ), Nvidia ( NVDA ) and Ambarella ( AMBA ), among others, are partnering with automakers to develop chips and technology for self-driving cars and sophisticated safety systems in such cars. California’s Proposed Law Seen As Detour For Self-Driving Cars But Google and others have complained about laws impeding progress. In December, California proposed draft rules banning autonomous vehicles that aren’t equipped with human controls and don’t have a licensed human driver aboard. In January, U.S. Transportation Secretary Anthony Foxx introduced the Obama administration’s $4 billion, 10-year plan to get self-driving cars onto U.S. roads in “corridors” throughout the country. The NHTSA said this year that it may set aside some vehicle safety rules to allow more driverless cars to operate on U.S. roads, as part of a broader effort to speed up development of self-driving vehicles. On Friday, the NHTSA said in a report that there are significant legal hurdles to allowing fully autonomous vehicles without steering wheels, according to Reuters. The federal agency will write guidelines for self-driving cars within six months, Foxx said in January. Last month, the agency said the artificial intelligence system piloting a self-driving Google car could be considered the driver under federal law.  

AT&T, Verizon Stock Rally: How TV Auction Could Impact Trading

Shares of  AT&T ( T ) and Verizon Communications ( VZ ) have rallied in 2016, owing to falling interest rates and their relative safety amid the stock market tumult. One factor sure to impact trading for both companies the rest of the year is the government’s auction of airwaves now owned by local TV broadcasters, set to start this month. Shares of the high-dividend-paying AT&T and Verizon are up 13% and 11% so far in 2016, respectively. But higher-than-expected auction spending would hit free cash flow and possibly credit ratings. Many analysts continue to downplay potential spending by wireless phone companies and others, but Citigroup estimates bids could reach $43 billion, in the neighborhood of 2015’s “AWS-3” auction. A Bloomberg survey , meanwhile, estimates the auction will raise only $33 billion, much less than the $60 billion figure floated by some observers in mid-2015. The Federal Communications Commission plans to begin the “Broadcast Incentive Auction” on March 29. The auction, which could last five to six months, will free up an estimated 60 to 80 megahertz of prime, low-frequency radio spectrum for wireless services. Both AT&T and Verizon have talked down their interest in the TV broadcast airwaves, and both have alternatives for spectrum, as IBD reported. T-Mobile US ( TMUS ) has stated it could spend up to $10 billion, while cable TV firm Comcast ( CMCSA ) has filed to be a bidder. There’s fresh speculation Japan-based SoftBank ( SFTBY ), Sprint’s majority owner, could bid, though Sprint ( S ) itself has bowed out. Alphabet ’s ( GOOGL ) Google also recently ruled itself out. Analyst estimates proved far too low for the AWS-3 auction, which ended in January 2015. Most analysts pegged AWS-3 auction spending in the mid-teens of billions of dollars, with the highest estimates around $20 billion. The auction, however, raised more than $41 billion — minus $3 billion in airwaves Dish Network ( DISH ) later surrendered. During that auction, wild rumors about Verizon’s purported spending pressured its stock at points, while AT&T eventually emerged as the top AWS-3 bidder. In the TV broadcast auction, JP Morgan estimates that bidders could spend anywhere from $25 billion to $35 billion. Cowen & Co. estimates AT&T, Verizon and T-Mobile will spend $27.5 billion combined. Comcast and private equity firms loom as wild cards. Several analysts have estimated Comcast’s spending at $5 billion-$6 billion. For the complex, two-part auction to succeed, bidding prices have to reach levels high enough that TV broadcasters follow through and sell the spectrum. If the auction doesn’t proceed as planned, it would be a blow for spectrum-needy T-Mobile, analysts say. Low-frequency airwaves travel over long distances and through walls, improving in-building services. AT&T and Verizon own more than 70% of low-frequency airwaves in the top 100 U.S. markets. FCC Chairman Tom Wheeler, whose legacy will be tied in part to whether the auction succeeds, has downplayed pre-auction comments by AT&T and Verizon, saying it’s normal for bidders to lower expectations.

Groupon Could Get More Users From Facebook In New Social Media Push

Groupon ‘s ( GRPN ) pledge to trim down and over-deliver as it transforms its operations drew praise Tuesday from investment bank William Blair. Groupon interim CFO Brian Kayman and investor relations chief Tom Grant said in meetings with William Blair last week that the company “had a tendency to ‘get ahead of its skis’ in terms of priorities and financial targets,” wrote analyst Ralph Schackart. That “overly-broad approach … led to some mis-execution,” Schackart said. “Going forward, the company is focused on executing against a narrower set of priorities to regain investor confidence, and it is attempting to set less ambitious guidance targets.” In a restructuring expected to be completed by September, Groupon is shutting down in unprofitable countries and scaling back low-margin goods. Groupon reported Q4 earnings that beat consensus, Schackart said, and now Groupon shares “are up 35% year-to-date — the highest of any company on our coverage list.” But it’s now up just 25%, with Groupon stock down 7% in midday trading in the  stock market today , near 3.80. Schackart said “the company will need to show consistent execution against stated guidance for multiple quarters to regain increased investor confidence.” William Blair maintained a market perform rating on Groupon stock. Will Groupon’s Marketing Spend Produce Results? A key focus for investors is Groupon’s $150 million to $200 million incremental marketing investment for 2016, he said, especially since executives “noted that price, frequency and active customers are the three primary revenue drivers, and the incremental marketing spending will be focused on adding new customers.” On Tuesday, Groupon announced a series of website, mobile and tablet enhancements designed to make it easier for merchants to track and manage their Groupon campaigns. Groupon’s plans to use social media and search engine marketing in new ways drew praise. “For example, it might target people on Facebook ( FB ) who do not have the Groupon app with a mobile installation advertisement or bid on higher-level search words than in the past,” Schackart wrote. Other analysts have been more skeptical. “While Groupon has recently shown signs of progress in its transformation to an e-commerce marketplace and its core initiatives (including streamlining its international operations or customer acquisition), we believe there is still a long road ahead in strengthening the company’s positioning in the local ad and/or local e-commerce market,” wrote UBS analyst Eric Sheridan in an industry note on March 9. “Meanwhile, larger Internet companies, predominantly Alphabet ( GOOGL ) subsidiary Google and Facebook, are increasing their efforts to capture local ad dollars, while Amazon ‘s ( AMZN ) same-day delivery service reduces the benefit of a local marketplace.” Sheridan downgraded Groupon to sell from neutral and set a price target of 3.20. Sheridan sees several “key weaknesses” in Groupon’s competitive position, including marketing spend that will pressure near-term margins, rising competition, a shift to lower-margin business and slowing customer and engagement growth. Sheridan blamed those troubles on Groupon’s international retrenchment and its “lack of operating profit scale to drive additional investments in innovation that might counteract the platform strength of Google and Facebook.” Groupon’s changes come as others are also tweaking their strategies. Last week, Angie’s List ( ANGI ) got a revenue outlook boost from Pacific Crest Securities, which praised the online review site’s recent decision to drop its current membership model and replace it with free access to its business ratings and reviews as part of a tiered subscription plan. The addition of the free tier “should reignite user growth,” wrote Pacific Crest analyst Evan Wilson in a research report last week.