Is Google’s (GOOG) infamous hiring spree slowing down? UBS’ Benjamin Schachter thinks it might be. As he points in a research note this morning, the number of open job postings on the company’s career websites has dropped 21% since May. U.S. postings are down 17%; international postings are down 25%. Schachter notes that “postings in [...]
Is Google’s (GOOG) infamous hiring spree slowing down? UBS’ Benjamin Schachter thinks it might be. As he points in a research note this morning, the number of open job postings on the company’s career websites has dropped 21% since May. U.S. postings are down 17%; international postings are down 25%.
Schachter notes that “postings in some key areas are down notably”:
- Ireland, down 28% to 168 open jobs from 227.
- U.K., down 36% to 110 open jobs from 173.
- Mountain View, down 18% to 609 from 744.
“While this is just a data point, and not proof of a hiring slowdown, the posting declines are potentially indicative of slowing headcount growth,” he writes. “We note that there could be a lag effect, and Q3 is usually strong in new graduate hires. However, given management’s comments regarding greater than expected hiring and the resulting margin erosion, we believe that this data may suggest a concerted effort by GOOG to slow opex growth.”
Schachter maintains a Buy rating and $655 target price.
In pre-market trading this morning, Google is down $2.75 at $522.40.
more details ... Citigroup’s Mark Mahaney this morning upgraded ValueClick (VCLK) to Buy from Hold after a recent slide of more than 30% in the company’s share price. Mahaney notes that the company’s online lead generation unit, which accounts for about 15% of revenue, will continue to decline, in part to an ongoing FTC investigation into the sector. But [...]
Citigroup’s Mark Mahaney this morning upgraded ValueClick (VCLK) to Buy from Hold after a recent slide of more than 30% in the company’s share price.
Mahaney notes that the company’s online lead generation unit, which accounts for about 15% of revenue, will continue to decline, in part to an ongoing FTC investigation into the sector. But he says that risks is already captured in the stock - and that the other 85% of the company’s revenue looks strong.
“All Internet advertising companies would appear likely to face some headwind from weakening financial advertising trends stemming from the mortgage sector weakness,” he says. “With VCLK, however, only 5% of its revenue comes from the financial services vertical, reducing this risk.”
Mahaney lists three growth drivers for ValueClick:
- Ongoing fragmentation in Internet usage and advertising spend, which benefits ad networks like VCLK.
- Proliferation of video advertising, which carry “materially higher” CPMs than static ads.
- Acquisition of Medimedia can boost its comparison shopping growth and entry into Asia.
Mahaney nudged his priced target to $25 from $24.
In pre-market trading, VCLK is up 50 cents at $21.
Previously: ValueClick: Needham Upgrades On Valuation; Stock Down 45% Since Late May (August 28, 2007)
more details ... Nvidia (NVDA) “effectively raised guidance” at its presentation yesterday at the Citigroup Technology Conference, according to Citi’s chip analyst Glen Yeung. Yeung wrote this morning that Nvidia sees strength in graphics processor demand in the fiscal second quarter ended May extending into the October quarter with “better-than-expected wafer supply.” Yeung raised his EPS estimate for Q3 [...]
Nvidia (NVDA) “effectively raised guidance” at its presentation yesterday at the Citigroup Technology Conference, according to Citi’s chip analyst Glen Yeung.
Yeung wrote this morning that Nvidia sees strength in graphics processor demand in the fiscal second quarter ended May extending into the October quarter with “better-than-expected wafer supply.” Yeung raised his EPS estimate for Q3 to 47 cents from 46 cents; for the fourth quarter he goes to 50 cents from 49 cents.
Yeung said Nvidia noted that inventories remain low, “and was adamant that it is not seeing double orders.” Lead times were cited as “long” although the company would not quantify, Yeung added.
According to Yeung, Nvidia indicated that its business with Sony (SNE) is solid in the third quarter after seasonal weakness in the second quarter. He also said that it is unlikely Nvidia’s application processor will be in the next generation Apple iPod.
“Nvidia’s momentum should continue to propel the shares near-term,” Yeung concludes. “As a solid growth story in a risky environment, we view NVDA shares particularly in favor.” He maintains a Hold rating on the stock, but boosts his price target to $53 from $48.
I would note, by the way, that Bear Stearn’ chip analyst Gurinder Kalra covered a lot of this ground yesterday, raising estimates on a better supply situation.
This morning, Nvidia is down 27 cents at $52.47.
more details ...
