More Focus on Mobile

by Jay Pestrichelli on October 23rd, 2012

Last night Yahoo announced its quarterly earnings and surprised the street by beating estimates handily. The beat itself was great for the stock, but the plan Marissa Mayer laid out for the future of the company snapped the ever-dismal feeling shareholders have experienced for years.  The fact that there is a coherent plan is wonderful  by itself, but bubbling mobile up to the top of the list was probably the most well received snipit.  Here’s a nice summary of Yahoo’s plan on paidcontent.org : 5 Ways Marissa Mayer plans to change Yahoo.

When Mayer pointed out the frequent use of smartphones as “checking the weather, checking sports scores, stocks and financial info, watching videos, sharing photos, getting the latest news, playing games” one can’t help but think that yahoo is well positioned if they just tried a little harder.

Since December of last year, Buy and Hedge has talked about mobile as a core catalyst for technology’s second renaissance in a post titled Important Trends for 2012.

This is also a theme that has plagued Facebook. Even before its infamous IPO, analysts were already pointing out their lack of focus and growth on the mobile part of their business. Maybe they see a turn-turn around back to those levels when they can prove The Street that they've got it right.

Of course there’s no mobile without the data providers and charts of Verizon (VZ), AT&T (T) and Sprint (S) all show how playing the infrastructure can be as good as a way to invest.

The same goes for the devices as proven by Apple’s dominance. MSFT’s first entry into hardware with the Surface should prove interesting as we wrote about last week before Microsoft's earnings. Google of course stumbled here this quarter, but give them time…after all they are Google and in my opinion there is no smarter company out there today.

But we haven’t seen any company really excel when it comes to software. Just ask Zynga (ZNGA), the mobile game maker, how things are going. That leaves room for Yahoo and Facebook to grow. Charts for these companies look very different than Apple’s. And while they may never reach that kind of growth, expect a leader to emerge soon. It might not be one of these companies, but its just too big of an opportunity for it to under-perform any longer. 


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