Welcome to week 49 of my stock-picking throwdown with Mr. Market. Let's get right to the numbers:
Company |
Starting Price* |
Recent Price |
Total Return |
---|---|---|---|
Akamai |
$22.23 |
$20.18 |
(9.2%) |
Harris & Harris |
$6.22 |
$5.71 |
(8.2%) |
IBM |
$126.97** |
$110.64 |
(12.9%) |
Oracle |
$22.64** |
$21.64 |
(4.4%) |
Taiwan Semiconductor |
$9.81** |
$9.85 |
0.4% |
AVERAGE RETURN |
-- |
-- |
(6.86%) |
S&P 500 SPDR |
$123.67** |
$93.11 |
(24.71%) |
DIFFERENCE |
-- |
-- |
17.85 |
Source: Yahoo! Finance.
* Tracking began on Aug. 7, 2008.
** Adjusted for dividends and other returns of capital.
What a week for my tech portfolio! A huge rally and generous dividend payments added three percentage points an already large gap between Mr. Market and I.
Tech wasn't the only winner. Goldman Sachs
Even so, Wall Street seems to prefer biotechs to bankers, and some consumer-staples firms are still struggling to rally. Take Johnson & Johnson
The week in tech
Digitally inclined investors also had plenty of earnings reports to dig into, highlighted by good news from Intel
Google
Turning to the not-yet-public segment of the market, new data shows that both Facebook and Twitter could be more valuable than any of us had thought. Facebook now has 250 million users, and it engages them on a scale that rivals Yahoo!
That's not as outrageous as it sounds. History says that tech markets are prone to disruption, and tech investors do best when they're patient -- just like David Gardner has been. He produced a decade of 20% returns in the real-money Rule Breaker portfolio. Tom Gardner's "simpleton portfolio" was also a 10-year winner. I believe that, with these five tech stocks, I will achieve similar success.
Checkup time!
Now let's move on to the rest of today's update:
- One week after Wall Street began to love Akamai again, Goldman Sachs analyst Derek Bingham now rates the top content delivery network (CDN) a "sell." He's cut his next-quarter and full-year estimates by a penny apiece. Bingham's reasoning? Increased competition from Limelight Networks
(NASDAQ:LLNW) and others in Akamai's core CDN business. (Yawn.) We already know this is true. Wake me when rivals are cutting in on ad delivery and other enhanced services, which currently account for 50% of new revenue. - IBM was able to cut its way to growth in the second quarter, reporting 17.8% per-share earnings growth despite a 13.3% drop in revenue. But organic growth could be on the way: Big Blue raised full-year guidance to $9.70, from $9.20 per share.
There's your checkup. See you back here next week for more tech stock talk.
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