Unlike Samsung, Apple ( AAPL) received nothing but criticism from Wall Street. Jefferies analyst Peter Misek cut his estimates on Apple earlier in the week. He forecasts that Apple will earn $9.52 a share on $41.34 billion in revenue in the current quarter, down from $10.04 and $42.69 billion. Misek cut his price target to $420 from $500 and maintained his "hold" rating. UBS analyst Steven Milunovich lowered his estimates to $9.66 a share from $10.05, and reduced his estimate on iPhone shipments by 1.5 million to 35.5 million. He cut iPhone numbers by 1 million to 28.5 million in the next quarter. The price target went to $550 from $600, but the "buy" rating remains unchanged.
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. Follow @Commodity_Bull