This Day On The Street
Continue to site
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 Buys And A Sell From Jim Cramer

For the week ending February 8 2013, Jim Cramer covered more companies with a bearish tone. Of the 39 calls made, Cramer was bearish on nearly one-quarter, or 25%. This is a slight increase from the previous week, in which 20% of the companies mentioned were negative. The Nasdaq Index (QQQ) rose around 0.49% for the week, while the S&P 500 (SPX) continued its ascent, up 0.37%. [Related list:  3 Buys, 2 Sells from Jim Cramer as Dow Reaches 14,000]

The continued rise in markets attracted investors, despite risk rising that stocks will correct to the downside. Any drop in stocks will likely be driven by company-specific bad news. For example, voice and language solutions maker Nuance (NUAN) plunged after reporting weak sales for its health care segment. Akamai (AKAM) dropped after giving light Q1 guidance.

A few notable calls made by Cramer last week are:

Table 1

4 Tech Buys and a Sell from Jim Cramer

Analysis and Discussion


Analysis and Discussion

Akamai Technologies, Inc. (AKAM). Buy. Akamai could be facing heavy competition, which will hurt profits. Akamai, over the last few quarters, focused on higher-margin cloud apps, security, and e-commerce to differentiate itself from rivals. The dual focus on low-margin and high margin segments was discussed at the conference call. This did little to stop the company from recovering from the 15% drop for the week.

Facebook, Inc. (FB). Buy. Facebook shares failed to rise last week, despite quarterly results from Zynga (ZNGA) and LinkedIn (LNKD). Zynga reported a decline in R&D and operational costs, but still relies on Facebook as a source of revenue. LinkedIn reported strong sales growth in all segments of its business. Talent Solutions rose 90% year over year, while ad sales increased 68%. Users are slowing down in their use for Facebook. In a Pew survey, 61% said that they took a break of several weeks or more at least once. 28% said the site is less important to them compared to a year ago.

Google (GOOG). Buy. Google shares are at a 52-week high, closing recently at $785.37. Chairman Eric Schmidt made the headlines, as it was disclosed that he will sell 42% of his stake in the company. Despite his 1% ownership (and 3.2% voting power), this could limit further upside for Google. When Microsoft (MSFT) executives sold shares regularly in the past, upside in Microsoft shares was limited for several years.

Google shares were downgraded by two analysts. During the week, the company announced a display ad-deal with Yahoo (YHOO).

Netflix, Inc. (NFLX). Buy. Shares are close to a 52-week high, closing recently at around $181. Rival Coinstar (CSTR) is vying to compete more effectively against Netflix. Coinstar’s voice streaming service is still in beta. Netflix emailed former subscribers a 1-month free offer. This trial may be canceled anytime. Users who stay onboard may get Netflix service for $7.99 a month.

Skyworks Solutions Inc. (SWKS). Sell. Skyworks reported earnings on January 30, which beat estimates. Revenue grew, while earnings improved by 16% compared to the previous year. Strong demand for wireless-chips is expected to continue. Skyworks anticipates earnings $0.47 per share next quarter. Skyworks trades in the middle of its range, up 24.6% from a 52-week low and 23.9% below its 52-week high. Skyworks has a forward P/E of 9.6

( List compiled by Kapitall Contributor CHRIS LAU)


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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs