Tech Index April 9 2009

The Battle Road Tech Index™ rose 2.2 percent for the week ended April 9, 2009, closing at 1199. Year-to-date, the index is up 19.9 percent, having started at a value of 1000. For the week, 19 of the 25 Index components were in positive territory.

Though the index was down for most of the shortened trading week, news of profits from Wells Fargo on Thursday brought on a rally, giving investors hope that the economy may be improving. This could offer a reprieve to tech budgets under pressure, so far 2009. The following companies were notable movers for the week:

Netflix (NASDAQ: NFLX) rose 9.0 percent this week. The company announced last week that it would raise prices for customers renting Blu-ray discs through the online rental service, which should help margins that have been pressured by the expensive products. This week, the company announced an agreement with MTV Networks, a division of Viacom, and South Park Digital Studios. The agreement would allow Netflix to stream South Park episodes and Nickelodeon shows on its website, for subscribers to watch instantly on their computers and TVs. This will give Netflix subscribers access to popular franchises such as SpongeBob SquarePants, Dora the Explorer, and others, which should strengthen the company’s portfolio of TV offerings.

Research in Motion (NASDAQ: RIMM) gained 8.2 percent over the week. RIMM continues to perform well after its most recent earnings release, when the company beat its EPS guidance and increased its forecast for the quarter ending in May. In addition, HTC, a Taiwanese smartphone maker, reported earnings this week. The CEO Peter Chou said that he sees signs of a global smartphone recovery. This bodes well for RIMM, as RIMM will be a significant beneficiary once an economic recovery is underway.

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