With Apple, Microsoft ahead, this is no time for vacation
Interestingly, talk about both Microsoft and Apple has been pretty positive ahead of their quarterly results, despite the rancid economy. When it comes to Apple, whose stock has been among the best performers in tech this year, the chatter is about the new iPhone, which it launched in June to big fanfare.
“I think the key is that core consumer demand is there,” Hudson Square Research analyst Daniel Ernst said in a recent Reuters story. “There are lines for $400 phones. Clearly they’re well positioned, and when the PC market comes back, we believe they’re going to take significant share.”
As for Microsoft, quarterly results may not be so hot, but the company is lately benefiting from some upbeat buzz. Investors appear excited about the roll-out of Windows 7, talk has resurfaced about a possible deal with Yahoo (which also reports this week), and its search engine, Bing, seems to be making headway against Google.
Here’s how Todd Lowenstein, a portfolio manager at HighMark Capital Management, summed it up in another Reuters story. “There’s been a sentiment shift,” he said. “They’ve turned the corner in a lot of their businesses.”
We’ll know soon enough if so much optimism is justified. We could be witnessing a sea-change in technology, after IBM and Intel’s positive reports. But, then again, are we expecting too much? Are Microsoft and Apple setting up investors for disappointment? And what about Yahoo? Could negative comments from the web company about advertising prove a major setback?
Pay close attention. This is no week for the beach.
Keep an eye on:
- AOL’s Tim Armstrong is all over the media today, offering up bits like this in a series of interviews about the web company: “Advertisers are going to be driving to Internet Road and AOL is a major property on Internet Road.” (Reuters)
- The Boston Globe’s biggest union will vote today on a new contract — and it looks like it may be another close one (NY Post)
- Harry Potter shows no signs of slowing down, even at his age (Reuters)