4 ETFs To Play Apple’s Stellar Quarter

Once again, technology giant Apple (AAPL) beat analyst expectations and continues to be the envy of the technology world.  This outperformance is likely to provide support to the PowerShares QQQ (QQQ), the iShares Dow Jones US Technology ETF (IYW), the Technology Select Sector SPDR (XLK) and the Vanguard Information Technology ETF (VGT).  Read more of this post

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Four ETFs Driven By Apple And IBM’s Stellar Performance

Technology giants, Apple Inc. (AAPL) and International Business Machines (IBM) reported stellar quarterly earnings, smashing analyst expectations and shinning a ray of light on the technology sector and the exchange traded funds (ETFs) that track it.

Apple reported a fourth quarter increase in revenue to $26.7 billion, while boasting gross margins of 38.5 percent and net income of $6 billion, or $6.43 per share, beating Apple’s own forecasts of revenues of $23 billion and a gross margin of 36 percent.  Furthermore, these numbers crushed the $3.38 billion in net income that the Cupertino, California-based company boasted for the same period the previous year.  This jump in revenue was primarily driven by increased consumer spending and hence better than expected sales, which included 16.24 million iPhones, 7.33 million iPads, 4.13 million Macs and 19 million iPods.  Analysts were expecting sales in the realm of 15.5 million iPhones, 6.2 million iPads, 4.2 million Macs and 19 million iPods.  Read more of this post

Four ETFs To Play Microsoft’s Income Jump

Core products pushed revenues and net income up at Microsoft (MSFT) in the third quarter, further extending out the exceptional earnings season witnessed by the technology giants and giving further support to the Software HOLDERs ETF (SWH), the iShares Dow Jones US Technology (IYW) and the Technology Select Sector SPDR (XLK) and the Vanguard Information Technology ETF (VGT).

According to Microsoft’s Chief Financial Officer, demand for both Windows and Office products have thrived as businesses of all sizes increased technology purchases.  Furthermore, a new version of Microsoft’s flagship software, Windows 7, has sold more than 240 million licenses since its debut a year ago, making it the fastest selling operating system in the company’s history.   Another factor that aided in Microsoft’s performance was sales of Office 2010 which generated $5.13 billion in the quarter and, similar to Windows 7, sold 20 percent more units since the product’s launch that it did of the previous version of Office during the same time period.  Read more of this post

Four Small Cap ETFs Positioned To Grow

A sustainable economic recovery is likely to not be intact until financial institutions start lending and the credit markets loosen up, at which time small-cap exchange traded funds (ETFs), like the iShares Russell 2000 (IYW), the PowerShares Dynamic Small Cap (PJM), the Vanguard Small-Cap ETF (VBR) and the PowerShares Zacks Small Cap Portfolio Fund (PZJ) will reap the benefits.

Historically speaking, small caps have been the leader in sustainable economic recoveries.  One reason behind this is that small-cap companies, which generally have market values of under $2 billion, are more nimble and quicker to react to changes in market conditions and therefore are more likely to reap the growth benefits of increased lending than large-cap companies. Read more of this post

Four ETFs To Play Apple’s $20 Billion Revenue Quarter

Once again, technology giant Apple (AAPL) crushed upwardly revised guidance for the company’s fiscal 4th quarter 2010 reporting an all-time record in quarterly revenues and earnings pushing the PowerShares QQQ (QQQQ), the iShares Dow Jones US Technology ETF (IYW), the Technology Select Sector SPDR (XLK) and the Vanguard Information Technology ETF (VGT) higher.

Apple boasted quarterly revenues of $20.34 billion and earnings of $4.31 billion, while witnessing earnings per share to reach $4.64, smoking analyst expectations by more than 13%.  To put the Cupertino, California-based revenue numbers into perspective, analysts expect revenue by search engine giant Google (GOOG) to reach $21.6 billion for all of 2010.  Read more of this post