The Argy-Bargy About H-1B Visas is All About Dollars … At Tech Companies AND Universities

We at Technology Bloopers are not big fans of President Trump, but his administration’s putting pressure on tech companies’ hiring software engineers from India and China to replace Americans does seem to be consonant with his pre-election promises.

But apparently it is even worse than that. We heard a couple of days ago about one local company that not only hired a bunch of Indian H1B visa-holders, fired their American staff, and replaced them with these imported folks … after they were trained by the Americans. And this noxious practice has apparently been going on for some time, according to the Stateline folks at The Pew Charitable Trusts.

Three months of coder school is not much training compared with that of the better-trained—often in American universities—and more-experienced visa-holders. But why are these American universities welcoming these foreign students? It’s because those students come bearing big funds for their education. (At state universities, it is simply that the international students must pay the same (higher) prices as out-of-state American students.) We have heard that among some of these students it is said that PhD stands for “Parents have Dough”. Interestingly, those international students are more prone to cheat on their exams. Hmmm … does that mean that their future code will be less trustworthy than that of Americans?

We wonder why the big Silicon Valley tech companies have not done a better job on their own of training software engineers. Couldn’t they be hiring “junior” software engineers from the coder schools and boosting their capabilities with on-the-job training. We suspect one reason is that it is more expensive to do that than to hire foreign help. And more time-consuming. And another reason may be that they didn’t do a good job of forecasting their growth and concomitant demand for those software engineers. Maybe the current visa flap will motivate them.

But it may not be the fault of these companies. Americans may too lazy, or too afraid to be “uncool”, to study STEM (Science/Technology/Engineering/Mathematics) courses so there is not enough local talent to fill the needs of Silicon Valley. Graduates with strong STEM knowledge are polar opposites to “art history majors” , a term used derogatorily to connote enjoyable-but-low-paying jobs.

YouTube Takes Bigger Slice of Overall Television Pie

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Google is certainly getting a lot out of the $1.76 billion they spent buying YouTube almost exactly 10 years ago today. As of early 2013 YouTube was experiencing one billion unique viiewes/visitors every month, nearly one out of every two people on the Internet, use it for myriad purposes. Anyone at all can upload or watch videos of cats or dancing babies, and Google benefits because it can charge advertisers to put ads adjacent to those videos.

But either Google had great vision a decade ago or they have more recently realized that they have a great medium, arguably better than conventional television. However, a recent study by Nielsen and Google shows that YouTube and conventional (“linear”) TV may be more complementary than competitive. People are watching TV on YouTube and they are watching YouTube on their TVs, so the gap between the two media is shrinking. In fact, it is shrinking so much that Google has just signed up CBS for its imminent web TV service. And, notwithstanding some folks’ criticisms of CBS, its leader seems to be pretty savvy.

Is Amazon the New Apple?

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Will Apple topple from its perch as the world’s most valuable company? The stock market didn’t reflect Apple’s declining smartphone sales far enough ahead, which led to a drop in share price when year-over-year Q1 iPhone sales declined nearly 15%. And while the overall market grew about 4%, leader Samsung stayed flat, and a handful of Chinese companies rose ominously. Apple’s reliance on the iPhone for growth has become a weakness.

But there is another important consequence. If you look at total market capitalization (total shares times share price), Apple is declining rapidly and Amazon is rising rapidly. For the last 3 calendar quarters, the top 5 companies in the world have included only Apple, Alphabet, Microsoft, Amazon, Berkshire Hathaway, and Exxon Mobil, and the top 3 were only Apple, Alphabet, and Microsoft. But Apple’s market cap(italization) in 1Q2015 was more than double ANY other company, while in 1Q2016 there were 7 other companies with market caps over half of Apple’s. But In 1Q2015 Amazon was not in the top 10. It was #10 in 3Q2015, and #4 in 1Q2016 (getting profitable helped a lot). And Amazon is not dependent on one product line.