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Apple Drops on iPhone Worries: Tech Winners & Losers

(Updates from 11:32 a.m. ET with closing information.)

NEW YORK ( TheStreet) -- eBay (EBAY - Get Report) shares fell 3.65% to $54.05 after the Internet e-commerce giant posted first-quarter results that were mixed.

The San Jose, Calif.-based firm earned 63 cents a share on $3.7 billion in revenue for the quarter ending March 31. Analysts polled by Thomson Reuters were expecting earnings of 62 cents a share on $3.76 billion in revenue. Analysts surveyed by Estimize were looking for 63 cents a share on $3.78 billion in revenue.

For the second quarter, eBay said it expects earnings between 61 cents and 63 cents a share. Sales are expected to be between $3.8 billion and $3.9 billion. Analysts polled by Thomson Reuters are looking for 66 cents a share on $3.95 billion. For the full year, eBay expects revenue to be between $16 billion and $16.5 billion, with earnings between $2.70 a share and $2.75 a share. Wall Street consensus is at $16.38 billion and earnings of $2.74 a share

UBS analyst Eric Sheridan wrote the company is still in investment mode, especially as it pertains to PayPal, its online payments arm, so the lower costs associated with the first-quarter are not likely to continue. "As eBay continues to invest in both Marketplaces & PayPal, we continue to expect modest margin pressure in 2013," Sheridan wrote. He believes that eBay will continue to see strong growth, led by advances in mobile, and there was no change from the noisy first quarter. He noted "the flywheel of new users & addressable market opportunity (especially mobile) for the entire eBay ecosystem will continue to drive strong revenue growth in the coming years."

Yahoo! (YHOO - Get Report) shares were off 1.18% to $23.42 as the company announced a new Weather app for iOS devices.

The new app incorporates pictures from Flickr, Yahoo!'s photo app to show local conditions, in addition to reading about the weather. "With a tilt of your phone, get lost scrolling through photos reflecting the current weather in places that matter to you. We like to think of it as flipping through a stack of postcards from your travels," the company said on its blog.

Yahoo's weather services on the iPhone were a talking point on the company's earnings call earlier this week. CEO Marissa Mayer was asked about the weather app on Apple's iOS and if there was anything more to be done with that and she pointed to the fact that the Ybing (the little oval on the left hand side of the app that is Yahoo!'s logo) is helping people familiarize themselves with Yahoo!'s offerings. This announcement shows there is more to do with Yahoo! Weather than what we've seen previously.

Yahoo! Weather will be available for free and will launch internationally in 30 languages.

Verizon (VZ - Get Report) shares were rising 4.1% to $51.57 after the telecom giant posted results that were better than expected.

New York-based Verizon earned 68 cents per share on revenue of $29.4 billion, generally beating analyst estimates. Analysts forecast Verizon to earn 66 cents in adjusted earnings on revenue of $29.6 billion, according to consensus estimates polled by Bloomberg.

Verizon Wireless, the company's primary growth driver, solidly beat expectations. Analysts polled by Bloomberg forecast wireless margin of 48.92%, according to 10 estimates, and postpaid average revenue per account (ARPA) of $149.07, according to five estimates. Verizon Wireless added 677,000 post paid subscriber additions with an ARPA of $150.27 a month. Wireless profit margins came in at 50.4%.

Verizon also announced it activated 4 million Apple (AAPL - Get Report) iPhones during the quarter, a jump of 25% year-over-year. That was higher than some on the Street were expecting, but Verizon noted 2 million iPhones were 3G devices, which is somewhat of a concern.

Apple is slated to report results Tuesday after the market close. Analysts polled by Thomson Reuters are looking for Apple to earn $10.07 a share on $42.53 billion in revenue for the quarter ended March 31.

Apple shares were initially higher on the numbers, but that didn't stop the sell off from continuing in Apple, which was recently off 1.88% to $395.26.

Closing prices: EBAY dropped 5.9% to $52.82, YHOO fell 1.9% to $23.26 and AAPL fell 2.7% to $392.05. VZ ended the day up 2.8% to $50.91.

-- Written by Chris Ciaccia in New York

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