Tech Winners & Losers: Amazon
08/11/08 - 02:40 PM EDT
Priya Ganapati
Technology stocks were up Monday, along with the major market indices, as Amazon(AMZN Quote - Cramer on AMZN - Stock Picks) and Apple(AAPL Quote - Cramer on AAPL - Stock Picks) emerged as the leaders of the sector's rally.
Shares of Amazon jumped $9.37, or 11.6%, to $89.90 on speculation that its Kindle electronic book reader is likely to be a big hit among consumers. Citigroup analyst Mark Mahaney sparked off the buzz with his note that said he expects Kindle's unit sales to be twice as high as his original estimate. Mahaney expects 380,000 devices to be sold in 2008, up from 190,000 forecast earlier. Apple gained $6.20, or 3.6%, to $175.75 following comments by CEO Steve Jobs said that more than 60 million applications for the iPhone have been downloaded, so far, and the company has gained $30 million in revenue. Apple hopes iPhone apps will contribute about $360 million in new revenue a year. IAC/Interactive(IACI Quote - Cramer on IACI - Stock Picks) was up 91 cents, or 4.9%, to $19.47 after it said the company's plan to split itself into five parts will be completed on Aug. 21. IAC plans to spin off HSN shopping network, Ticketmaster, Interval, and LendingTree into four companies, each of which will trade on the Nasdaq. Graphics chip maker Nvidia(NVDA Quote - Cramer on NVDA - Stock Picks) was up 41 cents, or 3.7%, to $11.41, a day ahead of its second-quarter results. Analysts are expecting earnings of 12 cents a share on revenue of $908.4 million during the quarter, compared with earnings of 34 cents a share on revenue of $935.3 million, the year before.
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