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

Midday Wrap: Apple Talk Shifts From Headphones to Displays:

NEW YORK (TheStreet) -- Apple (AAPL - Get Report) dominated the StockTwits' streams Friday. But the talk went beyond the headlines concerning Apple's potential buy of headphone maker Beats Electronics. By midday investors had shifted focus to how an Apple partnership was working out for Pixelworks (PXLW).

$PXLW Is not fading finally. Revenue shows that Apple is for real here and with them buying competitors this year - just an added bonus.

? Nosh (@Nosh) May. 9 at 12:37 PM

The video display chip designer was among the top trending companies on by early afternoon. It reported a lower first quarter loss than expected Thursday evening on higher-than-anticipated revenues. Shares climbed nearly 10% by midday.

The company is small with just a $121 million market cap. But it has big clients. Sales to Apple and NEC make up more than 10% of its revenue each. Sales to Hitachi, Panasonic and Epson also each made up more than 10% of sales, according to an SEC filing.

More importantly, it boasts technology that promises to bring the video quality of large screen televisions to mobile devices. On the earnings conference call, CEO Bruce Walicek said the company would launch the technology in "sampling devices" this quarter. "This will be the industries first video display processor that brings the video quality of large screens to mobile screens," Walicek said.

Crisp mobile displays are considered particularly important for Apple, which has driven demand for high resolution screens on portable devices with the "Retina display" on its iPads.

$PXLW don't know how it's trading at this low of a price...should be valued higher

? Dre1012 (@Dre1012) May. 9 at 10:18 AM

Some investors argue that Apple will want the highest resolution screen possible for its next generation mobile devices -- fueling demand for Pixelworks' products. And, if all the iPhone-like Droid phones out there are any indication, the mobile industry quickly takes Apple's lead.

$PXLW market cap is too low for what's going on here.

? _flipper_ (@_flipper_) May. 9 at 12:25 PM

Sentiment on Pixelworks is 95% bullish, according to StockTwits' analytics. The bullishness was only increased by some of the financials revealed Thursday night. Pixelworks' margins expanded in the first quarter to 59% from 48.1% in the same quarter a year ago. They were up sequentially as well. Revenues grew 64%, year-over-year, to $13.5 million--though they were down from the fourth quarter, a fact management attributed to seasonality of orders.

Despite the bullishness, there is some concern that management is not ramping up production fast enough to prove outsized demand or that Pixelworks' can redefine display technology. But many investors still believe that the company will increase production in the second half of the year, as promised.

@Dre1012 Once the topline shows evidence of the 'ramping up of production' they keep talking about, we'll see some more interest.

? Robert Jeffery (@TSOGR) May. 9 at 10:22 AM

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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 $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.59 -0.97%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs