Star Silicon Valley analyst felled by Facebook IPO fallout

SAN FRANCISCO (Reuters) - The firing of Citigroup stock analyst Mark Mahaney on Friday in the regulatory fallout from Facebook Inc's initial public offering was greeted with shock and dismay in Silicon Valley, where Mahaney was a well-known and well-liked figure.

"Pretty shocked," was the reaction of Jacob Funds Chief Executive Ryan Jacob, who described Mahaney as one of the most respected financial analysts covering the Internet industry.

"I'd put him at the top. If not at the top, then near the top," said Jacob. "He really knew what to look for."

In addition to firing Mahaney, Citigroup paid a $2 million fine to Massachusetts regulators to settle charges that the bank improperly disclosed research on Facebook ahead of its $16 billion IPO in May.

The settlement agreement said Mahaney failed to supervise a junior analyst who improperly shared Facebook research with the TechCrunch news website. (Settlement agreement: http://r.reuters.com/pyj63t)

The settlement agreement also outlined an incident in which Mahaney failed to get approval before responding to a journalist's questions about Google Inc -- and told a Citigroup compliance staffer that the conversation had not occurred -- even after being warned about unauthorized conversations with the media.

Mahaney declined to comment.

Mahaney got his start in the late 1990s, during the first dot-com boom where he worked at Morgan Stanley for Mary Meeker, one of the star analysts of the time. He went on to work at hedge fund Galleon Group before moving to Citigroup in 2005. Unlike most of his New York-based peers in the analyst world, Mahaney worked in San Francisco's financial district, close to the companies and personalities at the heart of the tech industry.

Earlier this month, Mahaney was named the top Internet analyst for the fifth straight year by Institutional Investor. The review cited fans of Mahaney who praised a "systematic" investment approach that allows him to avoid the "waffling" often evidenced by other analysts.

Mahaney's Buy rating on IAC/InteractiveCorp in April 2011, when the stock traded at $33.32, allowed investors to lock in a 51 percent gain before he downgraded the stock to a Hold at $50.31 a few months later, according to Institutional Investor.

But it wasn't only his stock picks that put him in good stead. He earned kudos for simply being a nice guy.

"He's a kind and thoughtful person and that's evident in the way he deals with people," said Jason Jones of Internet investment firm HighStep Capital. "He's very well liked on Wall Street because of that."

A CAUTIOUS VIEW ON FACEBOOK

Mahaney was only indirectly involved in the incident involving the Facebook research, according to the settlement agreement by Massachusetts regulators released on Friday. But the actions of the junior analyst who worked for him provide an unusual glimpse into the type of behind-the-scenes information trading that regulators are attempting to rein in.

While the Massachusetts regulators did not identify any of the individuals by name, Reuters has learned that the incident involved TechCrunch reporters Josh Constine and Kim-Mai Cutler as well as Citi junior analyst Eric Jacobs.

Jacobs, Constine and Cutler all did not respond to requests for comments.

In early May, shortly before Facebook's IPO, Jacobs sent an email to Cutler and Constine. Constine attended Stanford University at the same time as Jacobs.

Constine, who studied social networks such as Facebook and Twitter for his 2009 Master's degree in cybersociology at Stanford, had a close friendship with Jacobs, according to the settlement agreement.

"I am ramping up coverage on FB and thought you guys might like to see how the street is thinking about it (and our estimates)," Jacobs wrote in the email. The email included an "outline" that Jacobs said would eventually become the firm's 30-40 page initiation report on Facebook.

He also included a "Facebook One Pager" document, which contained confidential, non-public information that Citigroup obtained in order to help begin covering Facebook after the IPO.

Asked by Constine if the information could be published and attributed to an anonymous source, Jacobs responded that "my boss would eat me alive," the agreement said.

A spokeswoman for AOL Inc, which owns TechCrunch, declined to answer questions on the matter, saying only that "We are looking into the matter and have no comment at this time."

Ironically, Mahaney was one of a small group of analysts at the many banks underwriting Facebook's IPO who had cautious views of the richly valued offering. Mahaney initiated coverage of the company with a neutral rating.

Analysts at the top three underwriters on Facebook's IPO - Morgan Stanley, Goldman Sachs and J.P. Morgan - started the stock with overweight or buy recommendations.

Earlier this year, Reuters reported that Facebook had pre-briefed analysts for its underwriters ahead of its IPO, advising them to reduce their profit and revenue forecasts.

Facebook, whose stock was priced at $38 a share in the IPO, closed Friday's regular session at $21.94 and has traded as low as $17.55.

"There were tens of billions of dollars in losses based on hyping the name, a lack of skeptical information and misunderstanding the company," said Max Wolff, chief economist and senior analyst at research firm GreenCrest Capital.

"It's highly unfortunate and darkly ironic that one of the signature regulatory actions from this IPO so far involves punishing analysts for disseminating cautious information about Facebook," he added.

(Editing by Jonathan Weber, Mary Milliken and Lisa Shumaker)

11.36 | 0 komentar | Read More

Tech CEOs trade barbs, warm up for holiday tablet wars

SAN FRANCISCO (Reuters) - The biggest names in consumer technology, stung by a string of disappointing quarterly results this month, are suiting up for what's shaping to be the fiercest holiday battle in years.

Investors and consumers have already largely written off flaccid quarterly numbers from tech behemoths like Microsoft, Apple, Google and Amazon. What counts is the next 60 days, when the biggest names in technology do battle at a near-unprecedented scale and pace.

Just on Thursday, Amazon compared its Kindle Fire with Apple's new iPad mini, point by point, in its earnings release, an unusual forum to name rivals. Apple CEO Tim Cook compared Microsoft's Surface tablet to an over-engineered car that can fly and float. And Microsoft went for the iPad, saying its Surface boasted twice its storage.

All three tablets will vie for the shrinking consumer dollar these holidays. By tech standards, it's getting ugly.

"The tablet space is where the growth is. That's why they are all fighting over it. PC shipments are down and some tablet buyers may never buy another PC," said Michael Allenson, strategic consulting director in the Technology and Telecom Research Group at Maritz Research.

"Last holiday season, we saw a lot of buying of tablets in the $200 to $300 price range. This year, the iPad mini and Amazon's Kindle Fires are targeted as large gifts. They are trying to ride that wave and win as much as they can."

The impending clash is far from decided.

Odds-on favorite Apple has lost some of its aura of invincibility, with Google's Android and Samsung making inroads into its reign in smartphones, Microsoft's quickening marketing blitz, and Amazon's Kindle nipping at its heels as the No. 2 tablet in the United States market.

That competition has weighed on Apple's share price, which is at three-month lows after it reported a second straight quarter of disappointing results, sullying its reputation for blowing away Wall Street estimates.

Google is struggling to figure out the dollars and cents of the mobile market and Microsoft is facing witheringly unimpressed reviews for its new Windows 8 platform and Surface tablet.

Meanwhile, Amazon's outlook for the holiday season is being taken as a disappointment, and Best Buy warned late Wednesday that sales and margins are falling.

CLAWS COME OUT

Tech companies hope lackluster calendar third-quarter results mean consumers have held off from buying gadgets so they can save up for something new and shiny this Christmas -- from the lowest-end Fire at $159 to a Surface around $499 or the biggest, fastest, newest iPad at $829.

The technology industry is grappling with a fundamental shift from deskbound computers or heavy laptops to sleek mobile devices like tablets, which are upending the traditional PC model and prompting companies like Google and Microsoft to invest deeply in hardware manufacturing.

Their entry however is raising the competitive stakes. Companies like Apple usually spend most of their time talking about how great their own products are, but with the competition more intense than ever, Apple CEO Cook spared a not-so-kind thought for Microsoft on Thursday.

"I haven't personally played with the Surface yet, but what we're reading about it, is that it's a fairly compromised, confusing product," he said, later adding "I suppose you could design a car that flies and floats, but I don't think it would do all of those things very well."

Cook may have been going for levity, but the Twitterati booed his joke, since after all most gadget-heads would be very content with a flying, floating car.

Microsoft CEO Steve Ballmer, for his part, was pretty impressed with the company's handiwork, notwithstanding reviews that used words like "disappointing" and "undercooked."

"We have a device that's uniquely good at being a tablet and a PC (with) no compromise on either one," Ballmer told Reuters Television ahead of the Windows 8 launch event in New York on Thursday. "Work. Play. Tablet. PC. Boom! One product."

Google Executive Chairman Eric Schmidt, in a talk this month, took a shot at Apple, which has faced a barrage of complaints about glitches in its mapping software since dumping Google's service from its iPhone.

"What Apple has learned is that maps are really hard. They really are hard," he said. "Apple should have kept with our maps."

Not to be outdone in the sniping, Amazon Chief Executive Jeff Bezos took a subtle swipe at Apple's high prices in the Internet retailer's quarterly results statement Thursday, saying "our approach is to work hard to charge less."

Right below those comments, Amazon listed head-to-head comparisons between its $299 8.9-inch Kindle Fire HD tablet, its $199 7-inch Kindle Fire HD device and Apple's iPad mini, which was unveiled on Tuesday.

Analysts were taken aback by how brazen Amazon was being in taking shots at peers.

"I have never seen them directly compare products in a results release like this, and in so much detail clearly calling out their competitors," said RJ Hottovy, an equity analyst at Morningstar. "This shows they are taking the tablet wars very seriously."

(Additional reporting by Bill Rigby in Seattle; Writing by Ben Berkowitz; editing by Edwin Chan and Raju Gopalakrishnan)

11.36 | 0 komentar | Read More

Surface tablet buzz starts, but Windows 8 excitement muted

SEATTLE (Reuters) - U.S. shoppers woke up with mild Surface fever on Friday, lining up in moderate numbers to buy Microsoft's groundbreaking tablet computer designed to challenge Apple's iPad.

The global debut of the Windows 8 operating system was greeted with pockets of enthusiasm, but not the mania reserved for some previous Apple Inc launches.

Microsoft is positioning the slick new computing device, which runs a limited version of Windows and Office with a thin, click-on keyboard cover, as a perfect combination of PC and tablet that is good for work as well as entertainment.

"I like the flexibility of having the keyboard and the touch capability," said Mike Gipe, 50, who works in sales for bank Barclays, and was planning to buy a Surface tablet at Microsoft's pop-up store in Times Square in New York.

"It's the combination of having the consumer stuff and the work stuff," he said, looking forward to using Excel spreadsheets and PowerPoint presentations on the new device.

The Times Square store was the first to sell the Surface -- Microsoft's first ever own-brand computer -- and other Windows 8 devices late on Thursday and will be open through the holiday shopping season. On Friday morning it was crowded with a mix of tourists and local office workers, but the cash tills were not jammed.

"With the other tablets you're a consumer. With this you can have input," said Peter Townsend, on vacation in New York from Australia with his wife, who bought a Surface tablet because he liked the keyboard.

Mark Pauluch, 28, who works for a New York private equity firm, said he would like a Surface because he does not want to take a laptop on a plane, but was disappointed when the sales representative told him the wifi-only Surface would not work with Cisco VPN networking.

"I can't use this to replace my work laptop unless it supports VPN," he said.

MIDWEST, WEST COAST

Elsewhere in the United States, there was solid but not overwhelming interest for the Surface.

"It's a good tablet. I am not a huge i-anything fan, I like Windows," said Matt Shanahan, a software developer who drove four hours to the tiny Michigan Avenue pop-up store in Chicago from Grand Rapids, Michigan to buy a Surface. "My friend and I are software developers and this gives us an opportunity to develop new apps," he said.

In a pop-up store at the San Francisco Centre mall about 50 people lined up to buy the new Surface.

"On an iPad you have to use half the screen for a keyboard, or buy an accessory. I love that the Surface is so integrated, that you can type and use Word and all my other programs," said Malte von Sehested, a textbook creator who bought a Surface.

"With the Surface you get a steeper learning curve -- I had to get someone to show me how to side-swipe, swipe out to get the menus for instance," he said. "It may take a week, before it all becomes natural. That could be a problem for Microsoft. My old dad, he would get hit by that steeper learning curve."

ANALYSTS PATIENT

Wall Street and tech industry experts failed to show great enthusiasm for Windows 8, but were prepared to give Microsoft time to succeed.

"Microsoft did not come out with Windows 8 thinking it will be an overnight success," said Daniel Ives, an analyst at FBR Capital Markets. "But there's hope that this could be the silver bullet of growth (for Microsoft) as well as giving the PC industry some optimism that there's better days ahead."

The next six to 12 months is a "crucial period" for Microsoft to get traction with consumers, added Ives.

Sarah Rotman Epps, an analyst at tech research firm Forrester, said consumers may be best served waiting for tablets running the full Windows 8 Pro and Intel Corp chips, which are due out early next year.

"Windows 8 has a lot of great features, but RT has a long way to go," she said, citing a lack of apps and poor video performance on the Surface.

"It's not really a PC. RT is too restricted. Some people will be happier with the full Windows 8," she said.

Microsoft shares were up 33 cents at $28.21 on Nasdaq on Friday. Apple shares were down slightly after disappointing earnings on Thursday.

(Reporting By Nivedita Bhattacharjee in Chicago, Sinead Carew and Nicola Leske in New York, Edwin Chan in San Francisco; Editing by Alden Bentley)

11.36 | 0 komentar | Read More

Headphone Round Up: Our Top Picks [PICS]

Tinkering in his kitchen, electrical engineer Nathaniel Baldwin created the first set of headphones more than a century ago and sold them to the U.S. Navy. Since that time headphones have evolved from a military tool to a consumer product. By 2016, the headphone manufacturing industry is expected to increase by $1.18 billion, according to market research firm IBISWorld.

Headphones are for more than just hearing your music or taking a call on your mobile -- these days, they're a fashion statement. And there's no lack of options when it comes to color, size and design. Of course, sound quality and price are key factors, too. Whether you're looking for a top-notch set (there are a lot of good ones in this gallery) or something that makes a statement (we listed colorful and bling-y ones, too), we've got you covered.

[More from Mashable: Parrot Zik Bluetooth Headphones: High End and High Comfort]

Check out our photo gallery of headphones (12 in total) and tell us, which ones are your favorite?

Ematic's Mint II Designer headphones ($14.99)

These candy-colored headphones have an adjustable headband and cushion-y ear pads.

[More from Mashable: 5 Volume-Limiting Headphones Designed for Children]

Click here to view this gallery.

Photo courtesy of iStockphoto, ShaneKato

This story originally published on Mashable here.

11.36 | 0 komentar | Read More

Tech CEOs trade barbs, warm up for holiday tablet wars

SAN FRANCISCO (Reuters) - The biggest names in consumer technology, stung by a string of disappointing quarterly results this month, are suiting up for what's shaping to be the fiercest holiday battle in years.

Investors and consumers have already largely written off flaccid quarterly numbers from tech behemoths like Microsoft, Apple, Google and Amazon. What counts is the next 60 days, when the biggest names in technology do battle at a near-unprecedented scale and pace.

Just on Thursday, Amazon compared its Kindle Fire with Apple's new iPad mini, point by point, in its earnings release, an unusual forum to name rivals. Apple CEO Tim Cook compared Microsoft's Surface tablet to an over-engineered car that can fly and float. And Microsoft went for the iPad, saying its Surface boasted twice its storage.

All three tablets will vie for the shrinking consumer dollar these holidays. By tech standards, it's getting ugly.

"The tablet space is where the growth is. That's why they are all fighting over it. PC shipments are down and some tablet buyers may never buy another PC," said Michael Allenson, strategic consulting director in the Technology and Telecom Research Group at Maritz Research.

"Last holiday season, we saw a lot of buying of tablets in the $200 to $300 price range. This year, the iPad mini and Amazon's Kindle Fires are targeted as large gifts. They are trying to ride that wave and win as much as they can."

The impending clash is far from decided.

Odds-on favorite Apple has lost some of its aura of invincibility, with Google's Android and Samsung making inroads into its reign in smartphones, Microsoft's quickening marketing blitz, and Amazon's Kindle nipping at its heels as the No. 2 tablet in the United States market.

That competition has weighed on Apple's share price, which is at three-month lows after it reported a second straight quarter of disappointing results, sullying its reputation for blowing away Wall Street estimates.

Google is struggling to figure out the dollars and cents of the mobile market and Microsoft is facing witheringly unimpressed reviews for its new Windows 8 platform and Surface tablet.

Meanwhile, Amazon's outlook for the holiday season is being taken as a disappointment, and Best Buy warned late Wednesday that sales and margins are falling.

CLAWS COME OUT

Tech companies hope lackluster calendar third-quarter results mean consumers have held off from buying gadgets so they can save up for something new and shiny this Christmas -- from the lowest-end Fire at $159 to a Surface around $499 or the biggest, fastest, newest iPad at $829.

The technology industry is grappling with a fundamental shift from deskbound computers or heavy laptops to sleek mobile devices like tablets, which are upending the traditional PC model and prompting companies like Google and Microsoft to invest deeply in hardware manufacturing.

Their entry however is raising the competitive stakes. Companies like Apple usually spend most of their time talking about how great their own products are, but with the competition more intense than ever, Apple CEO Cook spared a not-so-kind thought for Microsoft on Thursday.

"I haven't personally played with the Surface yet, but what we're reading about it, is that it's a fairly compromised, confusing product," he said, later adding "I suppose you could design a car that flies and floats, but I don't think it would do all of those things very well."

Cook may have been going for levity, but the Twitterati booed his joke, since after all most gadget-heads would be very content with a flying, floating car.

Microsoft CEO Steve Ballmer, for his part, was pretty impressed with the company's handiwork, notwithstanding reviews that used words like "disappointing" and "undercooked."

"We have a device that's uniquely good at being a tablet and a PC (with) no compromise on either one," Ballmer told Reuters Television ahead of the Windows 8 launch event in New York on Thursday. "Work. Play. Tablet. PC. Boom! One product."

Google Executive Chairman Eric Schmidt, in a talk this month, took a shot at Apple, which has faced a barrage of complaints about glitches in its mapping software since dumping Google's service from its iPhone.

"What Apple has learned is that maps are really hard. They really are hard," he said. "Apple should have kept with our maps."

Not to be outdone in the sniping, Amazon Chief Executive Jeff Bezos took a subtle swipe at Apple's high prices in the Internet retailer's quarterly results statement Thursday, saying "our approach is to work hard to charge less."

Right below those comments, Amazon listed head-to-head comparisons between its $299 8.9-inch Kindle Fire HD tablet, its $199 7-inch Kindle Fire HD device and Apple's iPad mini, which was unveiled on Tuesday.

Analysts were taken aback by how brazen Amazon was being in taking shots at peers.

"I have never seen them directly compare products in a results release like this, and in so much detail clearly calling out their competitors," said RJ Hottovy, an equity analyst at Morningstar. "This shows they are taking the tablet wars very seriously."

(Additional reporting by Bill Rigby in Seattle; Writing by Ben Berkowitz; editing by Edwin Chan and Raju Gopalakrishnan)

11.36 | 0 komentar | Read More

How to Get Windows 8 Now

Microsoft officially launched its Windows 8 operating system Friday, but you will only find the software on brand new computer systems.

[More from Mashable: Windows 8 Users, Google Wants You Back [VIDEO]]

The good news, however, is that you can now upgrade existing systems to Windows 8 Pro via digital download or through various retailers.

Understanding the Different Windows 8 Retail Options

In the past, Microsoft has offered Windows in lots of different flavors. For instance, Windows 7 was available in six different varieties -- something we found just a little bit insane. Fortunately, Microsoft has cut down its Windows 8 offerings quite a bit.

[More from Mashable: Bing Releases 'One-Stop-Shop' for Election 2012 Info]

For home users, the only version of Windows 8 you can buy in stores as either an upgrade or new software package is Windows 8 Pro. There is a more basic version of Windows 8 (dubbed simply, "Windows 8"), but it's only available pre-installed on select tablets and PCs. OEMs and system builders can purchase standalone versions of Windows 8 and Windows 8 Pro from retailers such as Newegg and Amazon.com. Windows 8 Enterprise is available via Microsoft's Software Assurance program and to MSDN and TechNet Professional subscribers.

Windows 8 was designed to work natively with touch screens and to bridge the usability gap between traditional PC computers and tablets. In addition to Windows 8 for consumers, Windows 8 Pro for enthusiasts or businesses, there is also Windows 8 Enterprise for large organizations (think Pfizer).

Upgrade Quickly and Cheaply

Upgrading your existing PC is the easiest way to get your hands on Windows 8 Pro. The company is offering users of Windows 7, XP SP3 and Windows Vista a device upgrade for $39.99 until January 31, 2013. To make sure your system can handle it, check the requirements here.

Meanwhile, customers who buy a Windows 7 PC now -- or did so after June 2, 2012 -- can upgrade to Windows 8 Pro for even less -- $14.99 via its Windows Upgrade Offer.

Although Windows 8 Pro is already downloadable by a click of a button online, it can also be purchased boxed software too. Windows 8 Pro is available via various retailers, such as Amazon ($68.88), Best Buy ($69.99) and Microsoft's store ($69.99). You can get a copy of the software on DVD or just get an activation code.

And of course, if you've been relying on an old PC for too long, manufacturers have already added Windows 8 to its systems. From the Acer Aspire S7-391 to the Dell XPS 13, there are a slew of options available with Windows 8. For a full list, click here.

Microsoft is also offering a free Media Pack add-on for Windows 8 Pro, which turns your machine into a Media Center PC, so you can watch and record live TV. Those who purchase Windows 8 Pro can request a coupon code for the upgrade, which is good until January 31, 2012.

How are you going to get Windows 8? Let us know in the comments.

Toshiba

Click here to view this gallery.

This story originally published on Mashable here.

11.36 | 0 komentar | Read More

Surface tablet buzz starts, but Windows 8 excitement muted

SEATTLE (Reuters) - U.S. shoppers woke up with mild Surface fever on Friday, lining up in moderate numbers to buy Microsoft's groundbreaking tablet computer designed to challenge Apple's iPad.

The global debut of the Windows 8 operating system was greeted with pockets of enthusiasm, but not the mania reserved for some previous Apple Inc launches.

Microsoft is positioning the slick new computing device, which runs a limited version of Windows and Office with a thin, click-on keyboard cover, as a perfect combination of PC and tablet that is good for work as well as entertainment.

"I like the flexibility of having the keyboard and the touch capability," said Mike Gipe, 50, who works in sales for bank Barclays, and was planning to buy a Surface tablet at Microsoft's pop-up store in Times Square in New York.

"It's the combination of having the consumer stuff and the work stuff," he said, looking forward to using Excel spreadsheets and PowerPoint presentations on the new device.

The Times Square store was the first to sell the Surface -- Microsoft's first ever own-brand computer -- and other Windows 8 devices late on Thursday and will be open through the holiday shopping season. On Friday morning it was crowded with a mix of tourists and local office workers, but the cash tills were not jammed.

"With the other tablets you're a consumer. With this you can have input," said Peter Townsend, on vacation in New York from Australia with his wife, who bought a Surface tablet because he liked the keyboard.

Mark Pauluch, 28, who works for a New York private equity firm, said he would like a Surface because he does not want to take a laptop on a plane, but was disappointed when the sales representative told him the wifi-only Surface would not work with Cisco VPN networking.

"I can't use this to replace my work laptop unless it supports VPN," he said.

MIDWEST, WEST COAST

Elsewhere in the United States, there was solid but not overwhelming interest for the Surface.

"It's a good tablet. I am not a huge i-anything fan, I like Windows," said Matt Shanahan, a software developer who drove four hours to the tiny Michigan Avenue pop-up store in Chicago from Grand Rapids, Michigan to buy a Surface. "My friend and I are software developers and this gives us an opportunity to develop new apps," he said.

In a pop-up store at the San Francisco Centre mall about 50 people lined up to buy the new Surface.

"On an iPad you have to use half the screen for a keyboard, or buy an accessory. I love that the Surface is so integrated, that you can type and use Word and all my other programs," said Malte von Sehested, a textbook creator who bought a Surface.

"With the Surface you get a steeper learning curve -- I had to get someone to show me how to side-swipe, swipe out to get the menus for instance," he said. "It may take a week, before it all becomes natural. That could be a problem for Microsoft. My old dad, he would get hit by that steeper learning curve."

ANALYSTS PATIENT

Wall Street and tech industry experts failed to show great enthusiasm for Windows 8, but were prepared to give Microsoft time to succeed.

"Microsoft did not come out with Windows 8 thinking it will be an overnight success," said Daniel Ives, an analyst at FBR Capital Markets. "But there's hope that this could be the silver bullet of growth (for Microsoft) as well as giving the PC industry some optimism that there's better days ahead."

The next six to 12 months is a "crucial period" for Microsoft to get traction with consumers, added Ives.

Sarah Rotman Epps, an analyst at tech research firm Forrester, said consumers may be best served waiting for tablets running the full Windows 8 Pro and Intel Corp chips, which are due out early next year.

"Windows 8 has a lot of great features, but RT has a long way to go," she said, citing a lack of apps and poor video performance on the Surface.

"It's not really a PC. RT is too restricted. Some people will be happier with the full Windows 8," she said.

Microsoft shares were up 33 cents at $28.21 on Nasdaq on Friday. Apple shares were down slightly after disappointing earnings on Thursday.

(Reporting By Nivedita Bhattacharjee in Chicago, Sinead Carew and Nicola Leske in New York, Edwin Chan in San Francisco; Editing by Alden Bentley)

11.36 | 0 komentar | Read More

Star Silicon Valley analyst felled by Facebook IPO fallout

SAN FRANCISCO (Reuters) - The firing of Citigroup stock analyst Mark Mahaney on Friday in the regulatory fallout from Facebook Inc's initial public offering was greeted with shock and dismay in Silicon Valley, where Mahaney was a well-known and well-liked figure.

"Pretty shocked," was the reaction of Jacob Funds Chief Executive Ryan Jacob, who described Mahaney as one of the most respected financial analysts covering the Internet industry.

"I'd put him at the top. If not at the top, then near the top," said Jacob. "He really knew what to look for."

In addition to firing Mahaney, Citigroup paid a $2 million fine to Massachusetts regulators to settle charges that the bank improperly disclosed research on Facebook ahead of its $16 billion IPO in May.

The settlement agreement said Mahaney failed to supervise a junior analyst who improperly shared Facebook research with the TechCrunch news website. (Settlement agreement: http://r.reuters.com/pyj63t)

The settlement agreement also outlined an incident in which Mahaney failed to get approval before responding to a journalist's questions about Google Inc -- and told a Citigroup compliance staffer that the conversation had not occurred -- even after being warned about unauthorized conversations with the media.

Mahaney declined to comment.

Mahaney got his start in the late 1990s, during the first dot-com boom where he worked at Morgan Stanley for Mary Meeker, one of the star analysts of the time. He went on to work at hedge fund Galleon Group before moving to Citigroup in 2005. Unlike most of his New York-based peers in the analyst world, Mahaney worked in San Francisco's financial district, close to the companies and personalities at the heart of the tech industry.

Earlier this month, Mahaney was named the top Internet analyst for the fifth straight year by Institutional Investor. The review cited fans of Mahaney who praised a "systematic" investment approach that allows him to avoid the "waffling" often evidenced by other analysts.

Mahaney's Buy rating on IAC/InteractiveCorp in April 2011, when the stock traded at $33.32, allowed investors to lock in a 51 percent gain before he downgraded the stock to a Hold at $50.31 a few months later, according to Institutional Investor.

But it wasn't only his stock picks that put him in good stead. He earned kudos for simply being a nice guy.

"He's a kind and thoughtful person and that's evident in the way he deals with people," said Jason Jones of Internet investment firm HighStep Capital. "He's very well liked on Wall Street because of that."

A CAUTIOUS VIEW ON FACEBOOK

Mahaney was only indirectly involved in the incident involving the Facebook research, according to the settlement agreement by Massachusetts regulators released on Friday. But the actions of the junior analyst who worked for him provide an unusual glimpse into the type of behind-the-scenes information trading that regulators are attempting to rein in.

While the Massachusetts regulators did not identify any of the individuals by name, Reuters has learned that the incident involved TechCrunch reporters Josh Constine and Kim-Mai Cutler as well as Citi junior analyst Eric Jacobs.

Jacobs, Constine and Cutler all did not respond to requests for comments.

In early May, shortly before Facebook's IPO, Jacobs sent an email to Cutler and Constine. Constine attended Stanford University at the same time as Jacobs.

Constine, who studied social networks such as Facebook and Twitter for his 2009 Master's degree in cybersociology at Stanford, had a close friendship with Jacobs, according to the settlement agreement.

"I am ramping up coverage on FB and thought you guys might like to see how the street is thinking about it (and our estimates)," Jacobs wrote in the email. The email included an "outline" that Jacobs said would eventually become the firm's 30-40 page initiation report on Facebook.

He also included a "Facebook One Pager" document, which contained confidential, non-public information that Citigroup obtained in order to help begin covering Facebook after the IPO.

Asked by Constine if the information could be published and attributed to an anonymous source, Jacobs responded that "my boss would eat me alive," the agreement said.

A spokeswoman for AOL Inc, which owns TechCrunch, declined to answer questions on the matter, saying only that "We are looking into the matter and have no comment at this time."

Ironically, Mahaney was one of a small group of analysts at the many banks underwriting Facebook's IPO who had cautious views of the richly valued offering. Mahaney initiated coverage of the company with a neutral rating.

Analysts at the top three underwriters on Facebook's IPO - Morgan Stanley, Goldman Sachs and J.P. Morgan - started the stock with overweight or buy recommendations.

Earlier this year, Reuters reported that Facebook had pre-briefed analysts for its underwriters ahead of its IPO, advising them to reduce their profit and revenue forecasts.

Facebook, whose stock was priced at $38 a share in the IPO, closed Friday's regular session at $21.94 and has traded as low as $17.55.

"There were tens of billions of dollars in losses based on hyping the name, a lack of skeptical information and misunderstanding the company," said Max Wolff, chief economist and senior analyst at research firm GreenCrest Capital.

"It's highly unfortunate and darkly ironic that one of the signature regulatory actions from this IPO so far involves punishing analysts for disseminating cautious information about Facebook," he added.

(Editing by Jonathan Weber, Mary Milliken and Lisa Shumaker)

11.36 | 0 komentar | Read More

Is This the Slimmest iPhone Case Ever?

Though iPhones may be beautiful just the way they are, you'll still need a case to protect them. But how minimalist can an iPhone case get?

[More from Mashable: Which Blends Better: iPhone 5 or Samsung Galaxy SIII? [VIDEO]]

Enter Slimline. Stanley Prato and Gaetan Policard are Miami-based entrepreneurs wanted to create a case that would simplify protection. Slimline was their answer. Raising your iPhone just enough off the any surface to keep it protected are two flexible polyurethane strips. The shell of the case is made of polycarbonate.

[More from Mashable: Watch SNL Hilariously Spoof iPhone 5 Critics, Factory Workers]

With the iPhone 5 being the slimmest and lightest iphone yet, the Slimline was designed to seamlessly protect your phone without looking like an ad-on.

Production is set for the end of the year, a deadline the two friends hope to meet with their Kickstarter fund. They have received $12,280 of the pledged $25,000 goal.

1. Case Zero 5

At just 0.5 mm, the Zero 5 is seriously slim. Made of durable "TR90" material, it comes in a clear matte, clear gloss or a range of colors. For: iPhone 4/4S, iPhone 5, Cost: $19.90

Click here to view this gallery.

This story originally published on Mashable here.

11.36 | 0 komentar | Read More

Tech CEOs trade barbs, warm up for holiday tablet wars

SAN FRANCISCO (Reuters) - The biggest names in consumer technology, stung by a string of disappointing quarterly results this month, are suiting up for what's shaping to be the fiercest holiday battle in years.

Investors and consumers have already largely written off flaccid quarterly numbers from tech behemoths like Microsoft, Apple, Google and Amazon. What counts is the next 60 days, when the biggest names in technology do battle at a near-unprecedented scale and pace.

Just on Thursday, Amazon compared its Kindle Fire with Apple's new iPad mini, point by point, in its earnings release, an unusual forum to name rivals. Apple CEO Tim Cook compared Microsoft's Surface tablet to an over-engineered car that can fly and float. And Microsoft went for the iPad, saying its Surface boasted twice its storage.

All three tablets will vie for the shrinking consumer dollar these holidays. By tech standards, it's getting ugly.

"The tablet space is where the growth is. That's why they are all fighting over it. PC shipments are down and some tablet buyers may never buy another PC," said Michael Allenson, strategic consulting director in the Technology and Telecom Research Group at Maritz Research.

"Last holiday season, we saw a lot of buying of tablets in the $200 to $300 price range. This year, the iPad mini and Amazon's Kindle Fires are targeted as large gifts. They are trying to ride that wave and win as much as they can."

The impending clash is far from decided.

Odds-on favorite Apple has lost some of its aura of invincibility, with Google's Android and Samsung making inroads into its reign in smartphones, Microsoft's quickening marketing blitz, and Amazon's Kindle nipping at its heels as the No. 2 tablet in the United States market.

That competition has weighed on Apple's share price, which is at three-month lows after it reported a second straight quarter of disappointing results, sullying its reputation for blowing away Wall Street estimates.

Google is struggling to figure out the dollars and cents of the mobile market and Microsoft is facing witheringly unimpressed reviews for its new Windows 8 platform and Surface tablet.

Meanwhile, Amazon's outlook for the holiday season is being taken as a disappointment, and Best Buy warned late Wednesday that sales and margins are falling.

CLAWS COME OUT

Tech companies hope lackluster calendar third-quarter results mean consumers have held off from buying gadgets so they can save up for something new and shiny this Christmas -- from the lowest-end Fire at $159 to a Surface around $499 or the biggest, fastest, newest iPad at $829.

The technology industry is grappling with a fundamental shift from deskbound computers or heavy laptops to sleek mobile devices like tablets, which are upending the traditional PC model and prompting companies like Google and Microsoft to invest deeply in hardware manufacturing.

Their entry however is raising the competitive stakes. Companies like Apple usually spend most of their time talking about how great their own products are, but with the competition more intense than ever, Apple CEO Cook spared a not-so-kind thought for Microsoft on Thursday.

"I haven't personally played with the Surface yet, but what we're reading about it, is that it's a fairly compromised, confusing product," he said, later adding "I suppose you could design a car that flies and floats, but I don't think it would do all of those things very well."

Cook may have been going for levity, but the Twitterati booed his joke, since after all most gadget-heads would be very content with a flying, floating car.

Microsoft CEO Steve Ballmer, for his part, was pretty impressed with the company's handiwork, notwithstanding reviews that used words like "disappointing" and "undercooked."

"We have a device that's uniquely good at being a tablet and a PC (with) no compromise on either one," Ballmer told Reuters Television ahead of the Windows 8 launch event in New York on Thursday. "Work. Play. Tablet. PC. Boom! One product."

Google Executive Chairman Eric Schmidt, in a talk this month, took a shot at Apple, which has faced a barrage of complaints about glitches in its mapping software since dumping Google's service from its iPhone.

"What Apple has learned is that maps are really hard. They really are hard," he said. "Apple should have kept with our maps."

Not to be outdone in the sniping, Amazon Chief Executive Jeff Bezos took a subtle swipe at Apple's high prices in the Internet retailer's quarterly results statement Thursday, saying "our approach is to work hard to charge less."

Right below those comments, Amazon listed head-to-head comparisons between its $299 8.9-inch Kindle Fire HD tablet, its $199 7-inch Kindle Fire HD device and Apple's iPad mini, which was unveiled on Tuesday.

Analysts were taken aback by how brazen Amazon was being in taking shots at peers.

"I have never seen them directly compare products in a results release like this, and in so much detail clearly calling out their competitors," said RJ Hottovy, an equity analyst at Morningstar. "This shows they are taking the tablet wars very seriously."

(Additional reporting by Bill Rigby in Seattle; Writing by Ben Berkowitz; editing by Edwin Chan and Raju Gopalakrishnan)

11.36 | 0 komentar | Read More