Google and Apple Shine, But Tech Looks Weak -- Barron's

by: SA Eli Hoffmann

Excerpt from our One Page Barron's Summary (receive it weekly by email by signing up here):

PLUGGED IN: As the Industry Shows Weakness, Google Romps and Apple Shines by Mark Veverka

Highlighted companies: SAP AG (NYSE:SAP), Yahoo! Inc. (NASDAQ:YHOO), Google Inc. (NASDAQ:GOOG), Motorola Inc. (MOT), Apple Computer Inc. (NASDAQ:AAPL), Nokia Corp. (NYSE:NOK)
Summary: Veverka looks at tech-sector earnings last week. Some highlights:

  • SAP AG (SAP): Met targets and suggested Q2's miss was just a "blip." Warned that its software license revenue will fall in the low range (15-17%). "Any way you slice it, this kind of news ain't good... now there are signs that the economy is truly softening."
  • Yahoo! Inc. (YHOO): Came in well below expectations of $1.3B. This could be, "a referendum on the economy and advertising spending."
  • Google Inc. (GOOG): Quarterly profits nearly doubled y/y. "When Google ultimately misses its numbers, the overvalued tech tape could finally meet its match."
  • Motorola Inc. (MOT): Missed estimates of $11B by a full $1B. RAZR sales are no longer growing like they were. Competition from Nokia Corp. (NOK) means margin pressure for both companies. "Broad consumer resilience certainly seems absent when Motorola misses."
  • Apple Computer Inc. (AAPL): The staying power of the iPod is impressive. Mac sales are up 30% -- 4x industry growth. Intel-based Macs continue to gain market share due to aggressive pricing, and anticipation of Apple's Boot Camp operating-system. Apple "continues to amaze and defy."
Comparison SAP Yahoo Google Apple Nokia Motorola 22 10 06Quick comment: Earnings conference call transcripts: SAP AG Q306Yahoo! Q306Google Q306Motorola Q306Nokia Q306Apple F4Q06 • Seeking Alpha analysis: SAP: We Had An 85% Win Rate Against OracleA Long Oracle/Short SAP StrategyCallidus' SAP Deal Could Bring It Momentum • Yahoo!: Who Could Acquire Yahoo?Third Quarter Score: Google 49, Yahoo 0Yahoo Loses GroundFacebook Acquisition Not a Panacea for YahooYahoo Comments Suggest Market-Wide Ad WeaknessYahoo Continues To Face ChallengesDow Jones: Maybe Our Online Business is Part of Yahoo's ProblemTime For a Shakeup at YahooYahoo's Fundamentals Are DeterioratingYahoo's Recent Quarter Not Helping Refute Claims It's a "Google-Laggard"Yahoo on the Defensive on Social Networking, Video and You TubeYahoo Discusses its "Panama" Search Engine Advertising PlatformIBM and Yahoo Beat Earnings: Past "Day-After" Stock PerformanceYahoo and Google Earnings Indicative of Unhealthy Reliance on Online AdvertisingYahoo Issues Weak Guidance for Q4Yahoo Downgraded Due to Lost Market Share • Google: Google's Numbers Continue to Improve, Beating Even Aggressive EstimatesThe Most Important Quote From Google's Conference CallOn Google's Fantastic Quarter, CapEx and 'Free' PublicityHow To Play Google EarningsGoogle's Q3 Results in its Own WordsGoogle Reports Blowout Quarter • Motorola: Cellphone Market Report: RAZR Mania Peaked, Sony Ericsson Growing FastestWhere’s That Pickup In Business Spending? The Economy's In Trouble Without ItCommunication Chip Producers To Suffer From Weak Motorola Handset SalesMotorola Comments on Sales Shortfall • Nokia: Nokia Comments on Declining PricesNokia: Strong Q3, But Plunging Margins Pressure Stock; Bad News for TI?Nokia Discusses Mainland Penetration with Partner China Mobile • Apple: Why I'm Selling AppleApple's Post-Earnings Gains Usually Happen Before the Market OpensBear Stearns: Apple Poised to Benefit from Holiday DemandApple Discusses Bootcamp and LeopardApple Discusses iPods and iTunesApple Discusses Mac SalesApple Discusses Pricing for Hard Drives, Flash Memory and LCD PanelsQuick Read on Apple EarningsApple's Cheap Shot Against Microsoft