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Comcast surges with Internet growth

Adds 336,000 Internet Customers

The cable giant this morning reported fourth-quarter earnings of $0.47 per share on revenue of $15.04 billion, blowing past consensus estimates of $0.41 on $14.92 in revenue. Comcast said it gained 336,000 Internet customers while losing 17,000 video subscribers, beating analyst projections of 242,000 Internet additions and a loss of 140,000 basic cable-TV accounts. The company also announced a $6.5 billion stock buyback and raised its dividend 44 percent. CMCSA is up more than 6.5 percent on tradeMONSTER's extended-hours platform.

Kellogg Buys Pringles for $2.7 Billion

The cereal maker stepped in to buy the division from Procter & Gamble as Diamond Foods backed out of the deal because of its accounting scandal. PG and DMND said they called off their earlier $1.5 billion agreement, adding that no breakup fees would be incurred. K is up nearly 3.5 percent today, and PG is up fractionally.

Hartford Jumps With Paulson Move

Billionaire investor John Paulson, who owns a 8.4 percent stake, is urging the company to spin off its property and casualty insurance businesses. The hedge-fund giant said the move could lift the stock by 40 percent to 60 percent. In a letter to the CEO disclosed late yesterday, he said "these issues should be Hartford's highest priority." HIG is up 5.5 percent this morning.

Zynga Drops on Concerns Over Growth

The game company, best known for its presence on Facebook, reported adjusted fourth-quarter earnings of $0.05 per share on revenue of $311.2 million versus the consensus forecast of $0.03 EPS on $302 million in revenue. But management said after yesterday's close that the number of online players remained unchanged from the previous quarter at 54 million, raising growth concerns. ZNGA is down nearly 6 percent in the pre-market.

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Comcast surges with Internet growth

DDoS attacks spread to vulnerable IPv6 Internet

Network operators have concerns about the readiness of IPv6 to withstand network attacks, Arbor Networks finds.

(Credit: Arbor Networks)

The idyllic byways of the next-generation IPv6 Internet now suffer an affliction previously limited to the mainstream IPv4 Internet: distributed denial-of-service attacks.

And worse, the still-immature IPv6 network is being caught with its pants down when it comes to repelling the DDoS attacks. That's the conclusion of Arbor Networks' latest annual study on the Internet's operational security, released today.

Only 4 percent of survey respondents reported seeing IPv6 DDoS attacks--but it shows the IPv6 Internet is no longer free of them.

(Credit: Arbor Networks)

"This is a significant milestone in the arms race between attackers and defenders," Arbor Networks said. "We believe that the scope and prevalence of IPv6 DDoS attacks will gradually increase over time as IPv6 is more widely deployed."

For the moment, the volume is still relatively small--only 4 percent of survey respondents reported seeing IPv6 DDoS attacks--but that's a worrisome harbinger.

DDoS attacks use a swarm of computers to swamp a target machine on the Internet with traffic so it's unusable. Such attacks sometimes are launched from botnets of compromised computers for criminal reasons--but now the top cause is ideology such as that evident in Anonymous' coordinated protest attacks.

DDoS attacks send traffic to a particular Internet address, and today the vast majority of those addresses are handled by Internet Protocol version 4, or IPv4. IPv6, which vastly increases the number of possible addresses to deal with the fact that IPv4 is running out of them, is gradually becoming a reality as those with servers and network gear invest in the new network.

Ideology is the top motivation for DDoS attacks now, Arbor Networks' survey respondents said.

(Credit: Arbor Networks)

IPv6 isn't the main route for attacks, since it's still a relative backwater, but two problems make IPv6 particularly vulnerable. First, with the relatively immature network infrastructure, many network operators don't have the ability to scrutinize network traffic well enough to distinguish DDoS attacks from benign traffic. Second, gateways that link IPv4 and IPv6 must store lots of "state" information about the network traffic they handle, and that essentially makes them more brittle.

Arbor forecasts greater protections, though. "Twenty percent of respondents indicated that they have no plans to mitigate IPv6 DDoS attacks. We suspect that priorities within these organizations may evolve rapidly as IPv6 network traffic becomes more prevalent," Arbor said.

Investments in countermeasures are expensive--but so are DDoS attacks.

Survey respondents reported varying costs of dealing with a DDos attack: about $1,300 or $8,000 in two cases, $250,000 or $300,000 in two others, and $1 million to $1.5 million in two others. And of course there are other costs, for example when a business or government can't get work done or sell products.

Survey respondents commonly reported 1 to 10 DDoS attacks per month, but some reported hundreds.

(Credit: Arbor Networks)

Powerful attacks the "new normal"
The study, a global survey of network operators such as Internet service providers, also finds that DDoS attacks have become more powerful, more sophisticated, and more routine. And the leading cause: ideological attacks such as launched by Anonymous after MegaUpload arrests.

"Ideology was the most common motivating factor for DDoS attacks in 2011, followed by a desire to vandalize," Arbor Networks said. The finding is "one of the single most important data points in this year's report, with major implications in terms of threat assessment, situational awareness, and continuity of operations for network operators, governmental bodies, law enforcement agencies, and end customers alike."

Assorted software packages are used to launch DDoS attacks.

(Credit: Arbor Networks)

Although the top bandwidth of an attack decreased from 2010's 100 gigabits per second to 2011's 60 gigabits per second, it's increasingly common to see attacks that send tremendous traffic, Arbor said.

"During the survey period, respondents reported a significant increase in the prevalence of flood-based DDoS attacks in the 10Gbps range. This represents the 'mainstreaming' of large flood-based DDoS attacks, and indicates that network operators must be prepared to withstand and mitigate large flood attacks on a routine basis," the report said.

Growing DDoS sophistication
In earlier years, distributed denial-of-service attacks traveled by lower-level network protocols such as TCP (Transmission Control Protocol), which is used to ensure that data is successfully delivered across a network.

Now, though, attacks are moving to higher-level services such as HTTP (Hypertext Transfer Protocol), which is used to send Web pages to browsers; DNS (Domain Name Service) for translating text-based Internet addresses into their numeric equivalents; SMTP (Simple Mail Transfer Protocol) for sending e-mail; HTTPS for encrypted Web page communications; and voice over Internet Protocol (VOIP).

That's driven in part by new attack software. "HTTP GET and HTTP POST [two HTTP commands] were the most common application-layer DDoS attack vectors, more sophisticated mechanisms such as Slowloris, LOIC, Apache Killer, SIP call-control floods, SlowPost and HOIC are increasingly prevalent," Arbor found.

HTTP, used when a browser fetches a Web page from a server, is the most common application protocol for DDoS attacks, but other avenues include the standards for Net address lookups, e-mail, and voice communications.

(Credit: Arbor Networks)

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DDoS attacks spread to vulnerable IPv6 Internet

Chinese Internet Stocks on the Upswing — Ctrip.com and NetEase.com Showing Growth

NEW YORK, NY--(Marketwire -02/15/12)- Chinese Internet stocks have been on the upswing of late, outperforming the S&P 500 by a sizeable margin over the last month. Over that period, TickerSpy's Chinese Internet Stocks Index (CHDOT) is up more than 9 percent -- helping Chinese shares traded in New York to a five-month high, Bloomberg reports. Five Star Equities examines investing opportunities in China's Internet Sector and provides Stock research on Ctrip.com International Ltd. (NASDAQ: CTRP - News) and NetEase.com, Inc. (NASDAQ: NTES - News). Access to the full company reports can be found at:

http://www.fivestarequities.com/CTRP

http://www.fivestarequities.com/NTES

Chinese internet stocks listed in the U.S. often move in accordance with investor sentiment towards China's economy. According to a recent report from Barron's "Chinese Internet stocks are prominently listed on U.S. exchanges, and are among the most widely-held Chinese stocks." Fears of a hard economic landing in China pushed shares of internet firms towards 52-week lows in the early stages of 2012. However recent measures from China's government have restored some optimism regarding the direction of China's economy.

China's economy expanded by 9.2 percent in 2011 from a year earlier and 8.9 percent year-on-year in the fourth quarter, according to the National Bureau of Statistics (NBS). "There is not likely to be any dramatic decline in China's economy this year and a soft landing will be achieved," Pan Xiangdong, chief economist with China Galaxy Securities, said in an interview with Xinhua.

Five Star Equities releases regular market updates on China's Internet Sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at http://www.fivestarequities.com and get exclusive access to our numerous stock reports and industry newsletters.

The number of those accessing the Internet grew 12.2 percent last year, said the China Internet Network Information Center. There were 356 million mobile Internet users in the country by the end of 2011, a year-on-year increase of 17.5 percent. Even still, the proportion of China's population who are Internet users, 40 percent, is low compared with that of developed Asian countries - for example, the Internet analysis firm Miniwatts Marketing Group says that more than 70 percent of the Japan, South Korea and Singapore population are online.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.fivestarequities.com/disclaimer

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Chinese Internet Stocks on the Upswing -- Ctrip.com and NetEase.com Showing Growth

Google Webmaster Tools Tries To Simplify Search Queries Report

A couple weeks ago, we reported that Google Webmaster Tools added features. But I missed some of the design updates to the web reports.

If you go to the search query report, you will see that Google cleaned up those charts by defaulting the report to not show percent (delta) changes in the report. Here is an animated GIF showing me turning on more details and turning them off:

I don't know if this went live the same time we reported the other changes but there are subtle differences here.

A WebmasterWorld thread has one user complaining the reports look unprofessional. But I personally like the look. Here is what he said:

They've changed the graphs and the number of keywords under the search queries from 10 to 25. The graph looks rather unprofessional, especially at the point when a peak is reached as it is cut off.

Functionality in this section has now been dumbed down, as you are required to switch from "Basic" to "With Change" listings to retain functionality. As with other Google services, advanced features have disappeared altogether or been moved.

Tedster, the WebmasterWorld administrator, said despite what you think, it makes the reports "more useful" and I do agree.

Forum discussion at WebmasterWorld.

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Google Webmaster Tools Tries To Simplify Search Queries Report

Should You Redesign Your Site for SEO?

While search engine optimization is about making changes to a website in order to attract search engine spiders, improve search engine visibility, and generate more visitors and traffic to a site, it has very little to do with website design. SEO is based on the content of a website, not its “look”. Many potential SEO clients wonder whether they need to redesign their site when getting started with an SEO campaign. It may not be necessary, but in some cases it can’t hurt. While the design of a website doesn’t impact SEO results directly, it can have a big effect on whether or not visitors from the search engines ever convert once they land on your site. If you are investing in SEO, it’s important to make sure that your website is worth the effort. If your website is guilty of any of the following, it’s probably time for a redesign:

It Looks Outdated
The right design for a business website is mostly a matter of taste. Of course, this is subjective. What one person loves, another is bound to hate. There is no way to please everybody. Although, what can be agreed upon is whether a site looks outdated. The web is always evolving and businesses are expected to evolve along with it. If a website hasn’t been designed in over 5 years, it’s probably time for an update. An outdated looking website is unprofessional and may no longer be user friendly. Business websites should be redesigned very 3-5 years or so to keep it fresh. Content doesn’t need to be completely rebuilt, but it should be tweaked over time so that it is still current and accurate.

Decline in Conversions
Most businesses have peak seasons and slower seasons. It’s expected that many business websites will not convert at a steady rate all year long. However, if you see a downward trend in conversion (sales, leads, etc.) over a long period of time it could mean that your website is to blame.

Costly Updates
If you make many changes to a business website each year and are paying lots of money for these changes, since you can’t make them yourself, it’s probably time to analyze the cost of the changes against the cost of a redesign that incorporates an easy to use content management system. Of course, if you are going to invest in a CMS, it will be necessary to take the time to learn how to use it. If you only make a few changes a year, this investment may not be worthwhile.

Optimization Difficulty
If you are going to invest in an SEO campaign, it’s worth doing it correctly. This means that changes will need to be made to a website’s content, meta tags, and social sharing elements. The technical functionality of some websites makes it difficult to do so. If you aren’t able to easily implement website changes for SEO purposes, it’s worth investing in a website redesign.

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Should You Redesign Your Site for SEO?