Tech news for this week was dominated by Apple's earnings. Apple's staggering 35 million iPhone sales in Q2 offered a major shot in the arm after an unusual – for Apple – drift in its share price. Estimize consensus was looking for an iPad driven quarter which probably means Apple has kept this one in the bag for later! The 'feel good' factor of its earnings extended into the broader market when Tech stocks enjoyed a moment in the sun.
However, two Tech stocks brought to my attention from the crew at HCPG were Akamai Technologies (NASDAQ: AKAM) and NetEase (NASDAQ: NTES). Unfortunately, Akamai took a major hit on earnings after a strong seven months, but this may not be the killer it might otherwise be. While NetEase has been steadily climbing since breaking past its $50 overhang and is currently pressuring $60, although recent trading volume has been light.
Akamai is an interesting beast. Monday's earnings focused on its lower-than-expected Q2 guidance which overshadowed its positive Q1 results. The earnings pattern may mirror 2011, which if treated as expected will surprise if the company reports a stronger quarter-on-quarter. Executive departures have added another layer of uncertainty into the mix which has pushed the stock into the 'unwanted' category, but is this opinion justified?
According to Insider Cow:
LEIGHTON F THOMSON, director officer (Chief Scientist) of AKAM recorded the purchase of 100,000 shares of AKAM at $33.14 (total of $3,314,000) today.