Tech Index February 5 2010

The Battle Road Tech Index™ rose 1.0 percent for the week ended February 5, 2010, closing at 1565. For the week, 17 of the 25 Index components rose in value. Year-to-date, the index is down 6.9 percent, having started at a value of 1680.

The following companies were notable movers for the week:

Shares of Research in Motion (NASDAQ: RIMM, $66.75) rose 7.7 percent this week on rumors that the maker of the BlackBerry is preparing to launch two new models this spring. One of the new smart phones may feature a long-awaited, touch-enabled Internet friendly operating system.

Cisco Systems (NASDAQ: CSCO, $23.70) gained 5.5 percent this week after reporting better than expected results for its January ending quarter. The company reported revenues of $9.8 billion and earnings of $0.40 per share on a non-GAAP basis. The Street had been expecting revenues of $9.4 billion and EPS of $0.35. At the end of the quarter, Cisco had cash reserves of nearly $40 billion. The company is planning to hire several thousand new employees and expects over 20 percent year over year growth in the April ending quarter.

Amazon.com (NASDAQ: AMZN, $117.39) fell by 6.4 percent for the week, amid concerns that the online retailer will relinquish its dominant position in online book sales, as the industry moves from hardcover and paper back books to digital media. At issue is whether Amazon.com’s favored pricing policy for e-books — $9.99 for the digital version of hardcover books that list price anywhere from $25 to $35 per copy– will be acceptable to book publishers. Book publishers, such as Macmillan, appear to want to price their books at a higher level than Amazon.com’s $9.99 price point. The issue has come about a as a result of Apple’s (NASDAQ: APPL, $195.46) decision to allow book publishers to price electronic versions of their books as they wish, as Apple readies the roll-out of the new iPad. Intriguingly, Apple has already announced that it will support the Amazon Kindle reader, which will allow books purchased on Amazon.com to be read on the new iPad.

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