Tag Archives: technology

SigFox ‘Internet of Things’ Plan Challenges AT&T, Verizon, T-Mobile

Internet-of-Things (IoT) startup SigFox says it will expand its wireless network using unlicensed frequencies to 100 U.S. cities, posing a challenge to AT&T ( T ), Verizon Communications ( VZ ) and T-Mobile ( TMUS ). The IoT refers to wireless technology that connects industrial, medical, automotive and consumer devices to the Internet. Wireless networks operated by Verizon and AT&T are competing with non-cellular technologies  — mainly Wi-Fi, Bluetooth and ZigBee — in IoT deployment. AT&T, Verizon and T-Mobile have been counting on the IoT, also called machine-to-machine communications (M2M), as a growth driver amid fierce price competition in wireless data services. Both AT&T and Verizon have been focused on Web-connected cars, as well as “smart cities” that have remote monitoring of street lights, utility meters and road conditions. France-based SigFox has been targeting industrial IoT applications. SigFox uses unlicensed, Wi-Fi-type radio frequencies to connect M2M devices. It’s well-funded , having raised more than $150 million from investors, according to TechCrunch. SigFox began testing its technology in Silicon Valley in 2014. According to SigFox, it has 7 million devices connected to its network in 18 countries. “U.S. is a huge growth market for Internet of Things connectivity, especially in smart cities, utilities, shipping and agriculture sectors that require large-scale and cost-effective communication,” said Allen Proithis, president of SigFox North America, in a press release. AT&T and Verizon are pushing the federal government to make high-frequency radio spectrum available for 5G services, which include low-power IoT applications.

Can Alibaba Beat Earnings Expectations On This Important Metric?

China e-commerce giant Alibaba Group ( BABA ) will post quarterly earnings before the market open Thursday, with investors hoping for a strong boost in the value of goods sold on its various platforms. Analysts are looking for the China e-commerce giant to report revenue of $3.58 billion, up 33% in local currency, and EPS of 56 cents, up 21% in local currency, for the company’s fiscal Q4 ended March 31. Alibaba reported better-than-expected fiscal Q3 earnings, but shares fell 4% that day due to a slowdown in a key metric known as gross merchandise volume. GMV is the total value of goods sold on the Alibaba platforms. In fiscal Q3, Alibaba’s GMV rose 23% to $149 billion, slowing from an increase of 28% in fiscal Q2. For the March quarter, Wall Street expects Alibaba is to report GMV growth of 22%, to $112 billion. Among those looking above that consensus, ITG Investment Research analyst Henry Guo projects GMV growth of 23.5%, while RBC Capital Markets analyst Mark Mahaney pegs it at a more optimistic 29%. Mahaney rates Alibaba stock outperform, with a price target of 89. Alibaba stock was down a fraction, near 75.50, in morning trading in the stock market today . The stock is up 27% from a seven-month low of 59.25 touched on Feb. 9. Alibaba competes with JD.com ( JD ), Baidu ( BIDU ) and Tencent Holdings ( TCEHY ) in various segments of China’s Internet economy. JD is China’s largest online direct-sales retailer, Tencent dominates in messaging and gaming, and Baidu is China’s search leader. The four are the largest Internet companies in China and have been investing aggressively in new areas to spur growth. JD is scheduled to report earnings before the market open on May 9.

Zendesk Gains Traction In Enterprise As Q1 Revenue Beats

Zendesk ( Z ) stock jumped after the provider of customer-support software to retailers reported a smaller-than-expected Q1 loss and raised its full-year 2016 revenue guidance. Zendesk stock was up more than 8% in early trading in the stock market today , near 25, and breaking out of a cup-with-handle base at a 23.87 buy point in heavy volume. San Francisco-based Zendesk said it lost 8 cents per share minus items, vs. analysts’ estimate of a 10-cent per-share loss. Revenue rose 62% to $68.5 million, topping views of $66 million. “Zendesk finished Q4 with over 75,600 customer accounts, up from 69,000 last quarter, representing a record 6,600 customer additions,” said Pacific Crest analyst Brendan Barnicle in a research report late Tuesday. “As a result, customer acquisition costs and return on acquisition costs improved in Q1 over Q4.” For 2016, Zendesk forecast revenue  of $302.5 million at the midpoint of its guidance range, which would be up 45%, and is $7.5 million above its earlier guidance of $295 million. Zendesk provides a cloud-based customer service software platform. In November, it announced a partnership with Microsoft ( MSFT ). Zendesk competes with Salesforce.com ( CRM ), Freshdesk and Desk.com. Zendesk is gaining traction in the enterprise market, says Bhavan Suri, an analyst at William Blair. “Zendesk signed 50% more deals with average contract value of more than $50,000, and the average deal size for these transactions increased 30% year-over-year — a clear indication of the company’s success in the enterprise market,” Suri wrote in a research report. However, Zendesk has only a so-so IBD Composite Rating of 64 out of a possible 99. IBD’s Computer-Software Enterprise group ranks just No. 126 out of 197 groups. Zendesk’s stock had plunged on Feb. 5 amid a broad sell-off in tech stocks amid concern over China’s slowdown, tech spending and falling oil prices.