Tech Index June 4 2010
The Battle Road Tech Index™ fell 0.1 percent for the week ended June 4, 2010, closing at 1691. For the week, 19 of the 25 Index components fell in value. Year-to-date, the index is up 0.7 percent, having started at a value of 1680.
Akamai (AKAM), Salesforce.com (CRM), eBay (EBAY), and Google (GOOG) were notable movers for the week:
Akamai (NASDAQ: AKAM, $41.91) shares rose 5.5 percent this week as the markets remained volatile. Akamai is the leader in content delivery service. Major news events cause spikes in internet usage, and as Akamai delivers a significant portion of the world’s web traffic, this week’s events could be a tailwind for the company. Akamai is also delivering live streaming video of BP’s attempts to plug a deepwater oil rig in the Gulf of Mexico.
Shares of Salesforce.com (NYSE: CRM, $89.64) gained 3.6 percent this week as the economy continues to recover. Salesforce.com makes money from the number of employees using its services in a customer account, and with employment across the economy increasing, its revenue growth should benefit.
Shares of eBAY (NASDAQ: EBAY, $21.99) climbed 2.7 percent, amid comments from the company’s CEO that it expects to generate between $1.5 billion and $2 billion in transaction volume through its recently introduced iPhone application which has been downloaded more than 10 million times from the Apple website, including 8 million downloads in March.
Google (NASDAQ: GOOG, $498.72) rose by 2.7 percent, possibly in anticipation of the company’s growing mobile advertising opportunity, following its green light from the FTC to buy AdMob, which some feared might provoke anti-trust concerns. The successful launch of the iPad, and a new version of the iPhone, could give mobile advertising a lift in the months ahead.
