Facebook Finally Figures It out (Reuters)
Shares of the social media monster are set to jump 17 percent this morning, riding the momentum of strong quarterly results. The company reported revenue of $1.8 billion and net profit of $333 million, up from $1.2 billion in revenue and a loss of $157 million year over year. As a result, brokerage houses near and far raised their ratings and price targets — some even above the company’s original initial public offering (IPO) price — for the formerly laggard online site. JMP Securities analyst Ronald Josey explained, “Facebook has discovered the formula to begin significantly extracting value from its 1.16 billion global users. For as many geniuses as they have, it’s about time they figured it out.
Newest English Royal Already Setting Country Right (CNBC)
Of course we all expect big things from the newest, and pinkest, member of the Royal Family in Great Britain but so much, so fast? Less than a week old, the child-without-a-name has uplifted the spirits of the British people and soon may be credited with helping the country’s economy escape its lethargy. Britain’s economy expanded at the fastest rate since 2011, with growth of 0.6 percent in Q2 13 — doubling the rate from the previous quarter. And while it does look like the services sector was driving the economic train, there was also growth in agriculture, production and construction quarter over quarter. Let’s see what good news surfaces in the baby’s second week of life.
SAC Left Holding the Bag (Bloomberg)
Hedge fund managers at SAC Capital Advisors LP are sitting on pins… and more pins this morning as the world’s biggest financial companies determine their fate. With charges likely to be levied soon against SAC for insider trading, companies like Deutsche Bank AG and Goldman Sachs Group Inc. are deciding whether it’s in their best interests to continue working with the beleaguered traders. However, the choice isn’t an easy one, as companies have to weigh the cost of disassociating because many currently have millions of dollars in active accounts with the Stamford, Conn-based company. However, in this post-2008 environment, banks have been said to refocus efforts on ethical dealings… Now, they just have to define what “ethical” means in this case.
