Welcome to Week 18 of the Big Idea Portfolio. Enthusiasm for Apple
|S&P 500 SPDR||$127.15**||$137.00||7.75%|
Source: Yahoo! Finance.
* Tracking began at market close on Jan. 6, 2012.
** Adjusted for dividends and other returns of capital.
Even though Apple blew away estimates last quarter, investors spent most of the past week taking profits. Analysts aren't so bearish. One, in particular, now says we shouldn't be surprised to see Apple become a multitrillion-dollar company. Berkshire Hathaway chairman Warren Buffett also said he wouldn't be surprised to see the Mac maker outperform over the next decade.
Yet Buffett also said he wouldn't buy. Why? He doesn't understand the business well enough. Buffett also cautioned against shorting Apple, which is up roughly 39% year to date. (Get a full rundown of what Buffett and Munger said about Apple and Google.)
Riverbed, meanwhile, saw its shares decline ahead of this week's product rollouts at the annual Interop trade show in Las Vegas. The show, which highlights advancements in network and Internet technology, will see Riverbed competing with peers for technical recognition for some of its newest gear. The Steelhead Cloud Accelerator, developed in concert with Akamai Technologies, is among the three "Best of Interop Awards" finalists the company revealed in a press release.
In earnings news, LinkedIn
Finally, on Tuesday, Research In Motion
At just 5 times trailing earnings and less than 7 times next year's profits, RIM is flirting with deep value territory. But is the stock really a bargain? I've serious doubts existing profits are sustainable when Apple, Google, and the new team of Microsoft and Nokia are after its core business.
The week that was
So much for the rally. Investors took to the hills last week as the Nasdaq
Poor payroll results didn't help much. Employers added just 115,000 jobs in April, far less than the 170,000 expected per a Reuters survey. Oil prices also dropped below $100 per barrel, and fear as measured by the CBOE Volatility Index, or "VIX," rose 17% for the week. The message? Investors aren't yet sure about committing capital in this market environment.
See you back here next weekend for more tech-stock talk. And remember, there are many growth opportunities out there outside the technology sector. We've outlined a few of our favorites in the Fool's latest special report -- "These Stocks Could Skyrocket After the 2012 Presidential Election." Also be sure to add the Big Idea portfolio stocks to your Foolish Watchlist for ongoing, up-to-the-minute coverage. Both the report and the Watchlist are 100% free:
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple, Berkshire Hathaway, Google, Rackspace Hosting, Riverbed Technology, and salesforce.com at the time of publication. Check out Tim's Web home, portfolio holdings, and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
The Motley Fool owns shares of Apple, Berkshire Hathaway, salesforce.com, Google, Microsoft, Riverbed Technology, and LinkedIn. Motley Fool newsletter services have recommended buying shares of Rackspace Hosting, salesforce.com, Berkshire Hathaway, Nokia, Google, LinkedIn, Microsoft, Riverbed Technology, and Apple, creating bull call spread positions in Microsoft and Apple, creating a bear put spread position in salesforce.com, and creating a synthetic long position in Riverbed Technology. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.