Apple, Yahoo, Broadcom – all up in relief rally?
Jittery technology investors breathed easier on Tuesday after Apple, Yahoo, VMware and Broadcom all gave quarterly reports that were not as bad as some had feared — and in some cases, even were pretty good.
Apple said it sold 6.9 million iPhones , 11 million iPods and 2.6 million Macs (Aren’t we supposed to be on the brink of recession?) Apple shares jumped 11 percent, and here’s what fund manager Ted Parrish at Henssler Asset Management LLC had to say:
The company has one of the best product pipelines, I think, and I don’t see any changes in that in the near-term. The laptops complement the group of the iPhones and iPods, and any improvements in the operating system will help take some Windows business from Microsoft. Looking further out, I think Apple is in the catbird seat.
Nonetheless, Apple CFO Peter Oppenheimer was predictably cautious about the company’s outlook, even in the usually bustling holiday season:
Looking ahead, visibility is low and forecasting is challenging and as a result we are going to be prudent in predicting the December quarter.
Yahoo shares surged 10 percent after its results, even though profit plunged 64 percent as corporate advertisers cut back spending. Are investors hoping for cost savings after Yahoo lays off at least 10 percent of its workforce in the current quarter? Or perhaps even the meager 1 percent rise in quarterly revenue was better than a fall?
Here’s what CEO Jerry Yang had to say to his employees, courtesy of Silicon Alley Insider:
The steps we are taking are not easy for us as a company, but as we become more fit as an organization, decision-making will be faster and it will be easier for us all to get more done and stay focused on our strategy. These changes will also prepare us to better deal with the macroeconomic downturn.
(Reuters photo: Apple Chief Executive Officer Steve Jobs shakes hands with Yahoo CEO Jerry Yang. Sept 1, 2007)