Rocco Huang

Finance Professor, Michigan State University

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Nasdaq OMX Group Logo
  • commented 4/25/12
  • tags: NDAQ
  • Comment on NASDAQ OMX Average Transaction Fee per Derivative Contract

    Competition should drive fees down to US level. [ less... ]
    Comment on NASDAQ OMX Average Transaction Fee per Derivative Contract Competition should drive fees down to US level.
    NYSE Euronext Logo
    NYX $45.19
  • made a price estimate 4/25/12
  • tags: NYX
  •  U.S. Derivative Trading Volume
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     U.S. Derivative Trading Volume
     
    Microsoft Logo
    MSFT $55.81
  • made a price estimate 4/23/12
  • tags: MSFT
  •  Discount Rate
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     Intelligent Cloud Operating Margin
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     Discount Rate
     Productivity And Business Processes Operating Margin
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     Intelligent Cloud Operating Margin
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    Apple Logo
    AAPL $72.79
  • made a price estimate 4/23/12
  • tags: AAPL
  •  Discount Rate
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     Apple Gross Profit Margin
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     iPhone Pricing
     R&D % of Gross Profit
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     Discount Rate
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     iPhone Pricing
     R&D % of Gross Profit
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    AT&T Logo
    T $25.42
  • made a price estimate 4/23/12
  • tags: T
  •  Discount Rate
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     Investment Revenues
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    Nasdaq OMX Group Logo
  • commented 11/7/11
  • tags: NDAQ
  • From a risk perspective, derivative trading revenues are more valuable than cash equity trading revenues, because they tend to increase in market volatility/turmoil, and provide a little bit counter-cyclical offset for the decline in cash equity trading revenues in a bear market. Every exchange knows it and therefore the competition for derivative trading volume is going to be intense. [ less... ]
    From a risk perspective, derivative trading revenues are more valuable than cash equity trading revenues, because they tend to increase in market volatility/turmoil, and provide a little bit counter-cyclical offset for the decline in cash equity trading revenues in a bear market. Every exchange knows it and therefore the competition for derivative trading volume is going to be intense.
    Cisco Logo
  • commented 10/13/11
  • tags: CSCO
  • This business line's fate will be similar to HP's recently divested (for only $89 million) video conferencing business called Halo. Few customers are willing to spend so much money on dedicated hardwares. Nowadays there are many business-class, high-reliability, HD quality, video conferencing solutions that are more affordable, customizable, and flexible. [ less... ]
    This business line's fate will be similar to HP's recently divested (for only $89 million) video conferencing business called Halo. Few customers are willing to spend so much money on dedicated hardwares. Nowadays there are many business-class, high-reliability, HD quality, video conferencing solutions that are more affordable, customizable, and flexible.
    Cisco Logo
    CSCO $29.36
  • made a price estimate 10/13/11
  • tags: CSCO
  •  Products Gross Profit Margin
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     Products Gross Profit Margin
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    Baidu Logo
  • commented 10/8/11
  • tags: BIDU
  • 56% cut is probably too high and will come down significantly as the partners do have other competitive options (e.g. Alibaba) [ less... ]
    56% cut is probably too high and will come down significantly as the partners do have other competitive options (e.g. Alibaba)
    Baidu Logo
  • commented 10/8/11
  • tags: BIDU
  • Going forward, Baidu will have to set up R&D and marketing, now that the low-hanging fruits are gone. EBITDA margin should converge to that of Google. [ less... ]
    Going forward, Baidu will have to set up R&D and marketing, now that the low-hanging fruits are gone. EBITDA margin should converge to that of Google.
    Alphabet Inc. Logo
    GOOG $483
  • made a price estimate 10/8/11
  • tags: GOOG
  •  Discount Rate
     Other Revenues & Bets EBITDA Profit Margin
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    Alphabet Inc. Logo
  • commented 10/8/11
  • tags: GOOG
  • Gmail ads have low conversion ratios due to low user interests. Folks in the middle of reading and replying emails usually are busy and don't pay attention to ads. Gmail is more a loss-leader for the search ad business than a profit center on its own. [ less... ]
    Gmail ads have low conversion ratios due to low user interests. Folks in the middle of reading and replying emails usually are busy and don't pay attention to ads. Gmail is more a loss-leader for the search ad business than a profit center on its own.
    Akamai Logo
    AKAM $137
  • made a price estimate 10/8/11
  • tags: AKAM
  •  SG&A as % of Gross Profits
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     SG&A as % of Gross Profits
     R&D as % of Gross Profits
     
    eBay Logo
    EBAY $27.54
  • made a price estimate 10/8/11
  • tags: EBAY
  •  Discount Rate
     Capital Expenditures as % of EBITDA
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     Capital Expenditures as % of EBITDA
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    Amazon Logo
    AMZN $688
  • made a price estimate 10/8/11
  • tags: AMZN
  •  Discount Rate
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    AOL Logo
    AOL $26.05
  • made a price estimate 10/8/11
  • tags: AOL
  •  Page Views per AOL Unique Visitor
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     Page Views per AOL Unique Visitor
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     SG&A Costs (As % of Revenues)
     
    Expedia Logo
    EXPE $140
  • made a price estimate 10/8/11
  • tags: EXPE
  •  HomeAway Revenue Commission
     eLong Revenue Margin
     Revenue Margins on Hotel Bookings
     CAPEX as % of Revenue
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     HomeAway Revenue Commission
     eLong Revenue Margin
     Revenue Margins on Hotel Bookings
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    Expedia Logo
  • commented 10/8/11
  • tags: EXPE
  • Google's Hotel Finder, in the experimental stage, is a serious threat
    http://www.google.com/hotelfinder/ [ less... ]
    Google's Hotel Finder, in the experimental stage, is a serious threat http://www.google.com/hotelfinder/
    Expedia Logo
  • commented 10/8/11
  • tags: EXPE
  • Google's Flight Search is a serious threat
    http://www.google.com/flights/ [ less... ]
    Google's Flight Search is a serious threat http://www.google.com/flights/
    Kayak Logo
  • commented 10/8/11
  • tags: KYAK
  • Google has released Google Flight
    http://www.google.com/flights/
    Kayak is dead on arrival. Google has ITA, which Kayak relies on for data, and Google 's interface is much better than Kayak. Kayak's cluttered interface (remember the numerous pop-up windows after you initiate a search?)delivers poor user experience. [ less... ]
    Google has released Google Flight http://www.google.com/flights/ Kayak is dead on arrival. Google has ITA, which Kayak relies on for data, and Google 's interface is much better than Kayak. Kayak's cluttered interface (remember the numerous pop-up windows after you initiate a search?)delivers poor user experience.
    Expedia Logo
  • commented 10/8/11
  • tags: EXPE
  • If Google enters the online hotel reservation market with a similar business model as Kayak.com, and simply directs traffic to major hotels' own reservation pages (possibly also with the option of paying with Google Wallet) with a fixed finder's fee, then hotel groups will gain a lot bargaining power against the verticals such as Expedia/Priceline. If Google can direct significant traffic at a lower costs, hotel groups will either stop allocating wholesale rooms to Expedia/Priceline, or negotiate for much lower commissions. [ less... ]
    If Google enters the online hotel reservation market with a similar business model as Kayak.com, and simply directs traffic to major hotels' own reservation pages (possibly also with the option of paying with Google Wallet) with a fixed finder's fee, then hotel groups will gain a lot bargaining power against the verticals such as Expedia/Priceline. If Google can direct significant traffic at a lower costs, hotel groups will either stop allocating wholesale rooms to Expedia/Priceline, or negotiate for much lower commissions.
    Expedia Logo
  • commented 10/8/11
  • tags: EXPE
  • The current profit margin for the online travel agencies brokering hotel rooms is unacceptably high, in particular considering the low cost of online operation and the zero inventory costs in selling "virtual goods". With increasing internet savvy and consolidation among the hotel franchises, very soon they are going to fight back. And competition among the online sites is going to help drive down the margin too. [ less... ]
    The current profit margin for the online travel agencies brokering hotel rooms is unacceptably high, in particular considering the low cost of online operation and the zero inventory costs in selling "virtual goods". With increasing internet savvy and consolidation among the hotel franchises, very soon they are going to fight back. And competition among the online sites is going to help drive down the margin too.
    Expedia Logo
  • commented 10/8/11
  • tags: EXPE
  • Tripadvisor announced that, according to ComScore data, its monthly unique visitor number has broken the 50 million mark in July 2011. [ less... ]
    Tripadvisor announced that, according to ComScore data, its monthly unique visitor number has broken the 50 million mark in July 2011.
    Expedia Logo
  • commented 10/8/11
  • tags: EXPE
  • On 10/3, TripAdvisor appointed Julie M.B. Bradley as chief financial officer, which suggested that IPO of Tripadvisor was not far away.
    As a separate entity from Expedia, Tripadvisor can improve users' perception of its neutrality, as Expedia certainly has incentives to have a cozy relationship with the hotels, which are not always pleased with comments/reviews on Tripadvisor.com
    [ less... ]
    On 10/3, TripAdvisor appointed Julie M.B. Bradley as chief financial officer, which suggested that IPO of Tripadvisor was not far away. As a separate entity from Expedia, Tripadvisor can improve users' perception of its neutrality, as Expedia certainly has incentives to have a cozy relationship with the hotels, which are not always pleased with comments/reviews on Tripadvisor.com
    Expedia Logo
  • commented 10/8/11
  • tags: EXPE
  • Tripadvisor.com will realize its full value after finally split into a separate entity, and hopefully will become an attractive acquisition target for whoever (Microsoft,Google, etc) desires to build up in the social travel content area. [ less... ]
    Tripadvisor.com will realize its full value after finally split into a separate entity, and hopefully will become an attractive acquisition target for whoever (Microsoft,Google, etc) desires to build up in the social travel content area.