Here's a few earnings releases from some technology companies that I know a lot of people own or follow.
Netflix completely missed their earnings estimates AND their guidance was poor and the stock has been crushed over the past day and a half. I am concerned that the company will continue to struggle from competition from Verizon/Red Box, as well as some direct to tv deals that seem to be taking hold through cable and satellite providers
Priceline.com had a very good earnings release and saw heavy internet traffic in the prior quarter as travelers used their platform to shop for valued deals. Despite the earnings release, I think the stock is slightly overvalued and I would wait for a pullback in their shares.
Groupon has been one of the ugliest Initial Public Offering stocks that I can ever remember. Back when the company came publice at $24/share and then shot up to $28/share, I wrote here how anyone who owned the stock should dump it and take any profits they may have made b/c the company has continually lost money and they are having a hard time monetizing their business....btw the stock is now trading at $11.75/share and despite the low share price, the company is losing money and I expect the stock to trade down into the single digits.
Znyga, which is the maker of the popular "Words With Friends" App, as well as some other interact games played on iphones/ipads as well as other technology devices, came public at $15/share and has since traded down to $8.50/share. The reason? Just like Groupon, the company has yet to figure out a way to make money off their popular games. Despite the fact that I know a ton of people who love the games, I wouldn't buy the stock until they figure out a way to make money.
Apple reports their most recent quarters earnings tonight and while the company has had incredible success over the past 6 months, I am not quite sure how their earnings will look in the first quarter..when AT&T released earnings yesterday, they made it a point to mention how they've seen a fall off in Iphone/Ipad sales...as I've written, at some point the company is going to see a drop off in the consumer's affordibility as some middle and lower class individuals won't spend the money for Apple's products. Also of concern is the price action of Apple's stock over the past several weeks; the stock has moved down in a rather strong manner and while the trading volume in the stock is low, I still don't know if that is a sign of how their earnings will look. As of right now, I would probably sit on the sidelines and wait for their earnings and guidance to come out. If I were interested in owning the stock, I would buy about 1/4 to 1/5 of the total number of shares I wanted to own and if the stock moved down in price, I could buy more (it's called dollar cost averaging).
In looking at the overal market, I'm starting to find stocks (and Mutual Funds) very attractive in price and I will be looking to buy more stock and Mutual Funds for my clients over the next several days as company earnings reports and guidance in general look good.
