This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

David Einhorn Swings at Apple, Hits Dell: Tech Weekly

Stocks in this article: AAPL HPQ DELL TSLA GOOG QCOM

NEW YORK ( TheStreet) -- David Einhorn scored a small victory in his shareholder battle against tech Goliath Apple (AAPL - Get Report) this week, winning a court order to keep the company from eliminating its preferred stock, a vehicle the hedge funder says could be the key for returning billions in cash to investors.

Late Friday, a court blocked Apple's shareholder vote as a result of a lawsuit brought forward by Einhorn.

This may allow the famed short-seller turned activist to push a case for increasing the company's dividend as his fund, Greenlight Capital, adds to a more than half-billion-dollar Apple bet.

Einhorn and Apple were at the heart of a big week for a handful of tech titans that also included the earnings of struggling PC-makers Hewlett-Packard (HPQ - Get Report) and Dell (DELL - Get Report) and an all-important quarterly report from electric-car maker Tesla (HPQ - Get Report), as the company's founder Elon Musk tries to charge up excitement about its Model S sports car.

Although Einhorn's legal victory against Apple culminated a week of back and forth between the tech giant and its most vocal investor, the company also made headlines for new product speculation.

Rumors in February that Apple was developing its own smart watch drew a strong response from TheStreet's readers this week.

Of the 1,455 people who voted in a recent poll, 75% said they would buy an iWatch if Apple released such a product. Just 13% of respondents said "No," with another 13% saying they weren't sure.

A smart watch could be big business for Apple, which recently has faced concerns about its continuing innovation. Morgan Stanley analyst Katy Huberty believes the watch could be worth as much as $10 billion to $15 billion in annual revenue for Apple, assuming a $200 price point.

Meanwhile, speculation continued that Apple may ink a carrier relationship with China Mobile (CHL) after Qualcomm (QCOM - Get Report) announced a new Long Term Evolution (LTE) chipset on Thursday, the RF360 Front End Solution, which for the first time ever offers a truly global 4G LTE design for mobile devices.

Investors, including Einhorn, aren't just thinking about Apple, even as the battle rages as to whether it is a $200 dollar stock or whether Google (GOOG) can rise to $1,000.

Data released on Wednesday indicate that, as a result of its iPhone 5, Apple has taken the smartphone lead from Samsung.

Tech research firm Strategy Analytics reports that Apple shipped an estimated 27.4 million iPhone 5s during the fourth quarter, taking the smartphone crown from Samsung's Galaxy S3 and accounting for 13% of all smartphones sold globally. Some 17.4 million iPhone 4S were sold, up from 16.2 million in the previous quarter.

Samsung shipped 15.4 million Galaxy S3s, down from 18 million in the third quarter, when the device topped the smartphone charts. Together, Apple's iPhone 5 and iPhone 4S accounted for one in five of all smartphones sold globally during the fourth quarter, according to Strategy Analytics.

Apple shares ended the week down 5.1% at $450.81.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs