Tech Winners & Losers: Amazon
07/24/08 - 02:32 PM EDT
Priya Ganapati
Tech stocks were trading mixed Thursday with Amazon and Qualcomm among the big gainers, and Omniture and Cadence Design Systems losing ground following poor earnings reports.
Amazon(AMZN Quote - Cramer on AMZN - Stock Picks) rose $10.92, or 15.5%, to $81.46 as it continued to show strong profits in the face of a weak economy. The Internet giant posted second-quarter profit of $158 million, or 37 cents a share, up 102% from $78 million, or 19 cents a share a year ago. Analysts were looking for the company to earn 26 cents a share. The company's profit included a noncash gain of $53 million that was recognized on the sale of its European DVD rental assets. Revenue rose 41% to $4.06 billion and was higher than analysts' expectations of $3.95 billion. Qualcomm(QCOM Quote - Cramer on QCOM - Stock Picks) gained $8.75, or 19.5%, to $53.57 after it reached a deal with Nokia(NOK Quote - Cramer on NOK - Stock Picks) over a long-standing patent licensing dispute. Qualcomm said it has settled all litigation with Nokia, while Nokia withdrew its complaint with the European Commission. Shares of Nokia were up 76 cents, or 2.8%, to $27.46. Outsourcing services company Syntel(SYNT Quote - Cramer on SYNT - Stock Picks) was up $2.23, or 6.8%, to $34.82 after it beat analysts' estimates in the second quarter. Syntel reported EPS of 42 cents a share , 4 cents better than analysts' consensus. Revenue rose 28.7% to $103.4 million, which was higher than Street expectations of $102.5 million. The company offered fiscal 2008 guidance of EPS in the range of $1.74 to $1.82 and revenue in the range of $412 million to $422 million. That was in line with analysts' estimates.
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