This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

4 Tech Giants Searching for Upside

NEW YORK ( TheStreet) -- Tech earnings season got off to a rocky start with Google's (GOOG) mixed earnings report, and investors are bracing this week for a round of big-tech quarterly postings that are likely to be tinged by continued weak PC sales and worries of supplies coming out of Japan.

The tech giants scheduled to report this week are Apple (AAPL - Get Report) (Wednesday), Intel (INTC - Get Report) (Tuesday), IBM (IBM - Get Report) (Tuesday) and Qualcomm (QCOM - Get Report) (Wednesday).

Weakness in the global PC market could pose challenges for Intel, but CEO Paul Otellini remains bullish.

Last week, research firm IDC noted that the global PC market contracted during last quarter, the first such shrinkage since the recession. Fuel and commodity prices, combined with the impact of the Japanese earthquake, contributed to a 3.2% decline, said IDC, which had predicted growth of 1.5% compared to the prior year's quarter.

"IDC's mention of weaker-than-expected commercial demand may trigger incremental investor concern, in our view," said Bill Shope, an analyst at Goldman Sachs, in a note released last week.

Goldman was looking for the PC market to grow 6.4% year-over-year in 2011, although Shope admits that this forecast may now be optimistic. "We recently noted that a 0% PC unit growth rate was possible for 2011, and data from the first quarter of 2011 has now made this a much more probable scenario to consider."

Fluctuations in the PC market could spell trouble for Intel, in particular, and have already prompted a number of analysts to lower their estimates for the No. 1 semiconductor company.

A downturn in consumer spending, a trend noted by both Cisco (CSCO) and HP (HPQ) last quarter, could potentially dent Qualcomm and Apple this week. A bigger challenge for Apple -- and the rest of the tech sector -- is getting hold of components in the aftermath of the Japanese earthquake.

For IBM, convincing investors that there is plenty of runway ahead for its shares may be the biggest hurdle, even if it reports a solid set of results.

Read on for more details on what to expect from Apple, Intel, IBM and Qualcomm's earnings.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $129.75 0.62%
INTC $33.34 -0.24%
IBM $174.58 0.52%
QCOM $68.82 0.58%
FB $78.98 -0.01%

Markets

DOW 18,097.59 +73.53 0.41%
S&P 500 2,117.33 +9.04 0.43%
NASDAQ 5,028.6640 +23.2730 0.46%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs