The technology sector was very bullish during today's session, rising over 1.49% before the close. The sector was driven by Apple's (AAPL) 1.77% gain as it recovers from its recent dip from $644.00 to $530.12. Some important tech stocks did not perform well. Facebook (FB) was down 9.62% with more than 77 million shares trading hands, continuing its fall from grace after a weak IPO. Pandora (P) was also very bearish and finished more than 9% down for the day after 7.59 million shares had been exchanged.
The technology sector was one of the highest growing sectors today driving up the Nasdaq as it grew by 1.18%. The Nasdaq recorded the highest growth of the market indices as the Dow Jones and the S&P 500 lagged behind at 1.01% and 1.11%, respectively. The positive trend is encouraging for the rest of the week for the tech sector. However, one must not be sucked in too easily. Last Monday, the tech sector posted gains of more than 2.50% for the day, but lost much of this growth during a mainly bearish week.
Nonetheless, there are certain stocks in the sector which are very attractive for this week and the coming month of June. Nokia (NOK) is particularly attractive. It is up more than 4% right now and is currently trading at a price/sales ratio of just 0.21 with a market capitalization of $11.05 billion.
- LeCROY Corporation (LCRY) up 55.36%
- A123 Systems (AONE) up 18.81%
- SouFun Holdings Limited (SFUN) up 15.57%
- Valence Technology (VLNC) up 14.49%
- Spreadtrum Communications (SPRD) up 10.37%
- LDK Solar Co. (LDK) down 19.20%, down 1.66% after hours
- Pandora Media down 10.18%
- Tower Semiconductor (TSEM) down 9.72%
- Facebook down 9.62%
- magicJack VocalTec (CALL) down 9.41%
- On Monday, Facebook announced that it would release its own smart phone next year. This move is seen as an attempt to counter recent claims that Facebook is unable to monetize its consumer base. Analysts are skeptical that Facebook will be able to capture a significant part of the market due to the significant competition and the large market share already occupied by Android phones and iPhones (here).
- Research In Motion (RIMM) has lost its chief legal officer, in another high profile resignation after the head of global sales and the two chief executives stood down. The executive had been at the company more than 12 years. Research In Motion has come under increasing scrutiny for its strategic approach, loss of market share, and poor growth (here). Research In Motion also had a notable drop in after hours trading falling over 11% after announcing job cuts.
- Samsung (SSNLF.PK) has faced delays in the shipping of its new smart phone, the Samsung Galaxy SIII, which went on sale in 28 different countries today. It is only experiencing a shortage of supply in the Pebble Blue version. This delay is due to Samsung's aim "to meet the highest internal quality standards and to provide the best quality Galaxy S3 to customers" (Samsung's Statement here).
- Google (GOOG) has announced that the computers running its Chrome operating system are going to be upgraded with faster software and a new interface after criticism that they were too slow. This is another attempt by Google to step up its attempt to wrest market share of the growing personal computers market away from Apple, and Microsoft (MSFT) (here).
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.