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!

Samsung Unloads on Apple: Tech Weekly

Another Apple analyst, Sterne Agee's Shaw Wu, also decreased his Apple estimates ahead of potential product refreshes in the second half. He cut his revenue forecast to $41.3 billion from $42.9 billion for the March quarter, and lowered his earnings estimates to $10 a share from $10.25. Both fiscal 2013 and 2014 were reduced. Wu said the bigger iPhone refresh isn't likely to happen until 2014. The price target was lowered to $630 from $715, and the "buy" rating remained steady.

Still, not everyone on Wall Street is negative on Apple.

BTIG analyst Walter Piecyk upgraded Apple to "buy" from "neutral," setting a $540 price target, implying 25% upside from current levels. Piecyk noted that the stock is reflecting low buy-side expectations, as the sell-side moves, one by one, to cut earnings estimates.

Piecyk lowered fiscal 2013 revenue by $6 billion to $174 billion, "due mainly to lower estimated iPhone and iPad sales," noting increased competition and the coming upgrade to the iPhone 5S, expected in the summer, will slow iPhone sales until then.

Is Apple Capitulating?

Piecyk based his upgrade, in part, on his expectations that Apple will release a bigger iPhone, as well as a lower-priced iPhone for emerging markets. There is also additional revenue for 2014 due to an unspecified product, which Piecyk believes can add as much as $5 billion in revenue. Apple has been rumored in recent months to be releasing a so-called iWatch sometime this year.

Shares of Apple gained 2.8% this week to finish at $443.66.


There was other news outside of Samsung and Apple this week. Netflix (NFLX) and Facebook (FB) teamed up to integrate Netflix's service with Facebook, allowing its streaming members in the U.S. to link their Netflix and Facebook accounts.

"It's a great feature for Netflix," Hudson Square Research analyst Dan Ernst said in a phone interview this week. "Adding social recommendations is one of the more useful features for Netflix. I think it makes a lot of sense."

Shares of Netflix were little changed at $184.85, while Facebook fell 4.7% to $26.65.


VMware (VMW) and EMC (EMC) announced plans to create a new company, Pivotal, aimed at the booming big-data market.

EMC will own 69% of the spinoff, while VMware will hold the remaining 31%. Virtualization specialist VMware also raised its operating margin outlook at the joint strategic forum held earlier this week.

Shares of both companies enjoyed strong weeks, with VMware tacking on 12% to finish at $83.85, while EMC gained 4.3% to $25.35.


Earnings season starts next week, with Oracle (ORCL) set to report results Wednesday after the close of trading.

The business-software giant, which was upgraded earlier this week, is expected to earn 66 cents a share on $9.39 billion in revenue.

-- Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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