Tech stocks led the market higher, mainly premarket, Wednesday after a series of impressive earnings reports after the close yesterday from big hitters. Intel Corporation (INTC) and Yahoo! Inc. (YHOO) posted big beats and traded sharply higher, while International Business Machines Corp. (IBM) also beat estimates but ended the day lower. The Nasdaq led the major indices higher, closing up 2.1%. Money rotated out of some extended stocks like the Chinese Internet leaders SINA Corporation (SINA) and Sohu.com, Inc. (SOHU), and into high beta tech like Amazon.com, Inc. (AMZN) and Netflix, Inc. (NFLX).
Also, VMWare, Inc. (VMW) posted a blowout quarter last night and ended today day up nearly 14%, which lifted the whole cloud sector. After the close today, F5 Networks, Inc. (FFIV) is the latest cloud to beat estimates and trade sharply higher. It appears a series of strong reports from the sector are bringing it back into favor after a period in the doghouse, with the strong response to narrow beats suggesting even higher prices ahead.
UPDATE: Apple Inc. (AAPL) just released its report, a very impressive one, beating on EPS and revenues, as well as guiding higher. Below are key stats on the report, from Business Insider
- March qtr. revenue: $24.67 billion vs. $23.34 billion Street consensus, $24.86 high Street estimate, $25.34 billion “blogger” consensus, $25.7 billion “real” expectations (based on prior performance vs. guidance)
- March qtr. EPS: $6.40 vs. $5.36 Street consensus, $5.98 high Street estimate, $6.33 “blogger” consensus, $7.06 “real” expectations (probably too high)
- March qtr. iPad shipments: 4.69 million vs. 6.2 million Street consensus (via Piper Jaffray), 6.8 million “blogger” consensus
- March qtr. iPhone shipments: 18.65 million vs. 16.6 million Street consensus (via Piper Jaffray), 18 million “blogger” consensus
- March qtr. Mac shipments: 3.76 million 3.6 million Street consensus (via Piper Jaffray), 3.7 million “blogger” consensus
- June qtr. revenue guidance: $23 billion vs. $23.8 billion Street consensus, $23.4 billion Piper Jaffray expectations
- June qtr. EPS guidance: $5.03 $5.25 Street consensus, $4.73 Piper Jaffray expectations
*DISCLOSURE: Scott Redler is long JDSU, AMZN, POT, CIEN, REDF, GLD, LVS, CYD, MGM, OIH, BKS. Short SLV.
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