Yahoo for Snapchat?; Why SodaStream Fizzled; The Container Store Coming Up Short

Make it snappy…

Image courtesy of KROMKRATHOG/FreeDigitalPhotos.net

Image courtesy of KROMKRATHOG/FreeDigitalPhotos.net

There’s an expensive little rumor going around that Yahoo is about to plunk down a hefty $20 million to become a part of the magic we call Snapchat. However, the app that has around 100 million users, and doesn’t generate much in the way of revenue, has got some wondering what exactly Snapchat sees in Yahoo. After all, Snapchat already dissed offers from both Google and Facebook. Snapchat, whose valuation is currently pegged at a not-so-modest $10-$20 billion, depending on whom you ask, is getting ready to prance around its latest offering, Snapchat Discovery. In case you hadn’t heard, that service is for professionally produced content, and like regular Snapchat, the content would still disappear after a certain period of time. Good thing Yahoo has been scooping up scads of professional producers to come up with new content. And let’s face it, Yahoo does have a certain knack for distributing all kinds of entertaining and useful content, apps and of course, the all-important ads, which is something from which Snapchat could surely benefit. As for Yahoo, well it needs something to do with all that money it made off of Alibaba Group.

Fizzled out…

Image courtesy of Suat Eman/FreeDigitalPhotos.net

Image courtesy of Suat Eman/FreeDigitalPhotos.net

Just because you’ve got Scarlett Johansson shilling for you, doesn’t mean your earnings are going to be just as star-studded. Case in point: SodaStream, the Israel-based company that went public in 2010, and which just saw its shares plunk down to a new low. Shares of the soda machine-maker fell below $23.00 for the first time. Ever. The company’s own predictions forecasted a 13% hit in its revenue, falling to a paltry $125 million. Certainly, the fact that Coca Cola, together with Green Mountain Coffee, are parading out its own version of a soda-making machine aren’t helping matters. So like every other company with food and beverage offerings that has taken a fiscal punch, SodaStream has made the decision to shift its focus to “health and wellness.”

Contain yourself!

Image courtesy of graur razvan donut/FreeDigitalPhotos.net

Image courtesy of graur razvan donut/FreeDigitalPhotos.net

With a name like “The Container Store” you can’t go wrong. Or can you? Shares of the company took a big a harsh 11% hit after reporting its second quarter earnings. It seems  the company failed to sell enough “containers” and such. Even though it earned over $193 million in revenue, it was several million short of Wall Street predictions. However, all was not lost as the company still managed to pull in an $0.11 per share profit.

Oui Oui Disney; Bitcoin’s Being a Downer; HP is Happily Doing the Splits

Who needs Versailles anyways?

Image courtesy of TeddyBear[Picnnic]/FreeDigitalPhotos.net

Image courtesy of TeddyBear[Picnnic]/FreeDigitalPhotos.net

Apparently going to Disneyland in France is tres outré as the theme park is seeing less and less people coming to strut their stuff at the happiest place on earth…in Europe. But if you were just thinking that a walk along the Seine and a visit to the Eiffel Tower would not be complete without a trip to EuroDisney then fear not mon ami. Disney has decided to whip out $1.25 billion to help save EuroDisney…from itself. The park hasn’t exactly been the Disney epicenter of the world since it opened its doors in 1992, yet Disney alleges that it is the number one tourist destination in Europe. Who knew?

A bitcoin of a drag…

Image courtesy of Victor Habbick/FreeDigitalPhotos.net

Image courtesy of Victor Habbick/FreeDigitalPhotos.net

Bitcoin has reached yet another milestone but its nothing of which to be proud as the crypto-currency just hit a new low. In fact the virtual coins have been experiencing a steady decline since December of 2013 when its high reached an impressive $1,147.00 per coin. There is nothing impressive about the $290.00 mark it saw this weekend. Some experts think the drop in value has a “bit” to do with the fact that because more businesses have begun to accept the currency, more bitcoins are being generated and circulated. Of course, the more something becomes the available, the less valuable it becomes. Then there are those pesky regulatory hurdles that are also cramping bit coin’s style, but mostly its value. Others feel there are other more complicated reasons and explanations – the details of which I will gladly spare you. One of those “others” is Garrick Hileman, an economic historian with the pish-posh London School of Economics, who graciously informs us that “approximately 3,600 new bit coins” are welcomed into the world each day.

It’s not you, it’s me… 

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

It’s splitsville yet again in the magical realm of corporate as HP has now decided to break up…with itself. It’s no secret (especially since it’s a publicly traded company) that HP’s computer and printer divisions were no match for its corporate hardware and services division. I can attest to this on a personal level for having recently junked out of an HP laptop that had a litany of “issues” which a six month old computer should not possess. But I digress. It’s true the corporate and hardware services division was/is growing a lot quicker and when that happens in a company, at least lately, companies decide to split ’em up. Case in point, last week’s not surprising announcement by eBay and its plans to bid adieu to PayPal. As for the shareholders, well now they’ll own shares of two companies. How very lucky for them. Not lucky, however, for the additional 5,000 employees who will need to brush up on their LinkedIn skills. The company employs over 300,000 people and rakes in $110 billion in revenue. Oh and by the way, HP is currently in year four of its five year turn around plan, in case you were wondering.

Twitter Gets Schooled at MIT; Warren Buffet, Car Salesman?!; Hooray for Shorter Lines at the Unemployment Office

Twi-gifted…

Image courtesy of jscreationzs/FreeDigitalPhotos.net

Image courtesy of jscreationzs/FreeDigitalPhotos.net

MIT got a nice little gift from Twitter recently. Well, maybe little isn’t the right word for the $10 million dollars that the social media company is giving to one of the world’s most important academic institutions. The money is to be used for the advancement of…wait for it…social network research. The Laboratory for Social Machines, or LSM for those in the know, housed at MIT’s Media Lab, will seek to explore how people use social media networks and figure out new beneficial ways to use these tools. The researchers will have access and get to slog through every single archived tweet and real-time tweets too. Lucky them. The research should take about five years and will be headed by Twitter’s very own media scientist, Deb Roy, who also conveniently happens to be an associate professor at this extremely distinguished media lab. Roy hopes to, among other things, find ways to “…act on pressing societal problems.” How very useful.

Vroom vroom…

Image courtesy of suphakit73/FreeDigitalPhotos.net

Image courtesy of suphakit73/FreeDigitalPhotos.net

The Oracle of Omaha has welcomed yet another new company into the exclusive and pricey Berkshire Hathaway fold. This time, the lucky seller is the Van Tuyl Group. In case you were wondering, because I know you were, the Van Tuyl group just happens to be the largest privately-owned auto-dealership in all the land, with 78 locations and revenues in the $8 billion range. No word yet on how much Warren Buffet paid for his latest acquisition. Naturally, shares of Berkshire Hathaway went up on the news (seriously, do they ever go down?) of the purchase. By the way, if you’d care to purchase some Berkshire Hathaway stock, it’ll only set you back about $206,000 – per share.

Stake your claim…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

And in keeping with the spirit of yesterday’s exciting and gripping news from ADP about all that job growth, the Labor Department came out with its latest report that the number of people filing for unemployment benefits dropped by 8,000. Which is just what I (and by “I,” I do mean those very intelligent economic experts) suspected would happen. Oh, wait a minute…our very intelligent experts actually predicted that the number of applicants for jobless claims would rise. Whoops. Whatever. The number of claims being filed haven’t been this low since June of 2006, way before that odious Great Recession began to wreak havoc on our fiscal sensibilities. By the way, expect President Obama to take some (maybe more) credit for those promising numbers (whether you agree with that assessment, or not).

Snoop Dogg and Jared Leto Join the Reddit Fray; Jobs They are Aplenty; Soda Delivery Right to Your Door

Reddit already?

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Reddit, the website billed as “The Front Page of the Internet” is itself making headlines for having raised $50 million in funding. Of course, the usual Silicon Valley suspects whipped out their wallets to get a piece of the Reddit action but they weren’t the only ones. Hip-hop icon Snoop Dogg and oh-so-pretty-Oscar-winning-actor Jared Leto wanted in on the Reddit pie too. Reddit, whose content leaves some tongues wagging and other tongues gagging, plans on using that $50 million for all sorts of neat things like hiring more staff, improving its mobile offerings and, of course, ads. Reddit CEO Yishan Wong also has big convoluted plans to give back 10% –  in money, that is –  to the users who so valiantly scourge the internet to find the right stories that drive the traffic which entertains and sometimes horrifies its visitors. However Wong fully admits “that this plan could tally fail.” Totally. We mustn’t forget to mention that unfortunate incident when nude celebrity photos were leaked onto the site. Many thought the leak was extremely uncool. The site was launched back in 2004 and boasts 133 million users.

Sweet September…

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Just in case you were feeling bummed about the economy, because I know that was your first thought when you woke up this morning, then here’s some good news. According to Automatic Data Processing aka ADP, aka those three letters that help decorate your paycheck, just released new data telling us that 213,000 jobs were added in the month of September. That marks the sixth month in a row that job gains are up. It’s especially good news since job gains over the 200,000 mark have a special little way of making the unemployment rate head a wee bit south. And these numbers are just from the private sector which, by the way, gained in all industries. Just wait till you see what numbers the public sector posts. Ooh. I can hardly stand the excitement. Now if the Bureau of Labor Statistics would graciously back up those numbers then all would be right with the world. Almost. Because less people are filing for jobless claims, which happen to be at a seven year low, more and more spending occurs, which leads to more and more economic growth, which leads to…well, you can figure it out from here.

Amazon quench…

Image courtesy of kraifreedom/FreeDigitaPhotos.net

Image courtesy of kraifreedom/FreeDigitaPhotos.net

Thirsty? Then you better log onto Amazon. Quick. That is if you are jonesing for PepsiCo’s latest beverage offering, PepsiTrue. What’s true is that this drink can only be purchased, for now anyways, via the e-commerce website – in 24 packs. What is also true is that it still has calories in it, except 30% less of them. As for the hotly contested high-fructose corn syrup and artificial sweeteners? Those ingredients have been scrapped as a way to win back Millenials who seem to prefer beverages sans those items and have been shifting away from soda for the last several years. And, by initially selling the product on Amazon, PepsiCo, apparently, will be able to gauge the response for the new cola. Now can someone tell me what PepsiCo would have done if this were 1984? Anyone?