The bullish sentiment from Jim Cramer continued for the week of April 29 2013 to May 3 2013. Of the 56 companies covered by Cramer, 51 (or 91%) of the calls were bullish. The bullish calls are warranted, though they are not contrarian, for companies in the technology sector. The Nasdaq 100 on an equal-weighted basis rose 2.77%, as measured by the Direxion ETF (QQQE). The index is up 4.86% for the month. The technology stocks getting favorable calls are listed in the table below: [See also: 4 Bullish Technology Calls from Jim Cramer]
Facebook (FB) earned $0.12 per share in the first quarter on sales of $1.46 billion. As expected, the company improved mobile activity by 10% from the previous quarter to 665 million daily active users. Mobile monthly active users (“MAU”) rose to 751 million users. The mobile channel made up 30% of advertising sales in the quarter. Facebook has 9.5 billion in cash.
Investors should note that Facebook made $1.15 per user, with revenue falling 14% in North America from the previous quarter.
Akamai (AKAM) rallied from $36, and closed recently at $45.27 after reporting quarterly results. The company guided current quarter revenue of $368 million – $378 million. Earnings is expected to be $0.44 – $0.46 per share. Both estimates are in-line with consensus. When Akamai is compared with related companies, the company has a high forward P/E (“price of profit”). This is justified, because sales are increasing steadily and demand for volumes of data through streaming video continues to grow:
Priceline.com (PCLN) and Expedia (EXPE) were both bullish calls from Cramer. Shares moved in different directions. Priceline received a negative cover story from Barron’s. Barron’s thinks that profits will be hurt due to competition. Google (GOOG) is now providing travel data and details that include showcase prices. Users may now click a booking button. Fellow competitor Expedia reported quarterly results that were subdued. Expedia expects Hotwire to hurt earnings by between $20 million and $30 million in earnings.
Investors should expect competition from Priceleline’s Express Deals hotel service site to be negative for Expedia.
In the HR/financial software space, Cramer liked Workday (WDAY). Workday shares slumped earlier in April when 63 million shares were unlocked, tripling the share float to 89 million shares. The company released an update to its mobile app. An analyst at BMO recently gave a market perform rating and a $60 target price for the software company. Investors should beware of the bearishness for the company: 17% of the shares were being shorted (as at the end of March 2013).
Written by Chris Lau