Despite numerous criticism, jokes and pessimism about Apple Inc.’s (Nasdaq: AAPL, stock) latest gadget, iPad, Apple was caught off-guard when it announced that the international launch of the (sanitary) iPad will have to wait, at least for another month. Reason – Apple sold 500,000 iPads in the first week on the market. Apple further predicted that the demand will continue to exceed the supply over the next couple of weeks, easily sending the stock price higher.
iPad was so popular (and dangerous) that Israel has banned the iPads from entering the country so if you’re carrying one, don’t say FinanceTwitter didn’t warn you. Well, apparently Israel is confiscating iPads at the airports because some rumours claimed Apple iPads work on different WIFI network standard that it could jeopardize Israel’s domestic network *funny huh?*.
Anyway the earnings calendar is here again and judging by how the Dow Jones and Technology sector performs, there’s little to worry about and one would just long the stock market. Dow Jones has breached the psychological 11,000 points and the technology stocks are galloping like a Viagra-fed bull. Internet giant Google Inc. posted a 37% profit jump for the first quarter 2010, Intel Corp. announced quarterly profit that nearly quadrupled thanks to 44% jump in sales while chip maker AMD (Advanced Micro Devices Inc.) reported record 34% revenue jump.
Instantly investors concluded the tech spending by companies and consumers are picking up. Tech-research firm ISI Group projects that overall revenues from technology companies will rise more than 10% for the first quarter, compared with a 16% decline a year earlier. Standard & Poor’s forecasts a 79% increase in tech earnings for the quarter from year-ago. The growth in technology sector is so incredible that the hiring is heating up. Google said it hired 786 new employees in the first quarter while Intel expects to hire 1,000 to 2,000 in 2010.
But investors didn’t like what they saw – spending too much on people – immediately sending the stock price down almost 5% in extended trading. Also investors were expecting Google to beat analysts estimate by a mile hence the excuse in dumping the stock. Apple Inc. is expected to announce its earnings next week and assuming it didn’t do what Google did (hiring) but beat analysts expectation by huge margin, the stock should be able to gap-up nicely.
However Apple Inc.’s share prices have been going up crazily and it would be too greedy not to take some money off the table so I do not wish to break the discipline *grin*.
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