Facebook insiders collectively decided not to sell shares. The absence of additional shares is helping Facebook trade above $30. In addition, a powerful user-base in the mobile channels is supporting future growth. Facebook must generate revenue and profit margins in the mobile space to sustain its rally.
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3. Electronic Arts Inc.
): Develops, markets, publishes, and distributes game software and content for video game consoles, personal computers, mobile phones, tablets and electronic readers, hand held game players, and the Internet. Market cap at $4.35B, most recent closing price at $14.24.
Short-volume declined by December 31, but is still at 23.7 million shares. Shares were over $15, but traded recently at $14.24 after GameStop (GME) said holiday sales declined by 4.6% in the United States. Globally, sales declined 6.4%.
Only Nintendo’s Wii U is giving hope that consumer interest in console games will improve. Investors should also recognize digital sales will only increase as a total of revenue. This would justify upside in the next few quarters.
4. NVIDIA Corporation
): Provides visual computing, high performance computing, and mobile computing solutions that generate interactive graphics on various devices ranging from tablets and smart phones to notebooks and workstations. Market cap at $7.63B, most recent closing price at $12.21.
Short-selling volume was around 20 million shares. The stock sold-off sharply from above $13 after the company announced its console-gaming initiative through “Project Shield” at CES.
Fundamentally, Tegra chips will play an increasingly important role in mobile gaming. Despite its absence in Apple, Android sales will only increase. NVIDIA is well-positioned for sales in the mobile space.
5. Microchip Technology Inc.
): Develops and manufactures semiconductor products for various embedded control applications worldwide. Market cap at $6.54B, most recent closing price at $33.59.
Bearishness increased to 19.4 million shares in the last two weeks of December 2012. Shares appear to have bottomed at $29, closing recently at $33.59. MHCP has a new MGC3130 chip. The chip can recognize hand gestures in 3 dimensions, and has a range of 6-inches. By using electrical fields, the chip can track gestures while using 90% less power.