Tech Stocks Mixed as Nasdaq Hits Record High

Strategic Insights -

Tech stocks were mixed on Friday as the Nasdaq hit a new record high, but some names, including Qualcomm and Microsoft, struggled to keep pace. Analysts from major firms weighed in on the sector, offering differing views on the prospects of various companies. While some expressed optimism about the long-term prospects of Apple, others cautioned that the recent rally may be nearing its end.

Key Takeaways:

  • Guy Adami, managing director of stockmonster.com, downgraded Qualcomm, expecting it to remain a "disaster" due to recent earnings reports.
  • Tim Seymour, managing partner of Triogem Asset Management, and Steve Grasso, director of institutional sales at Stuart Frankel, both agreed that Microsoft is a sell after its 10.5% rally on Friday.
  • David Seaburg, managing director and head of sales trading at Cowen & Company, identified Google and Akamai Technologies as solid investment opportunities in big-cap tech.
  • Seaburg also predicted that Time Warner (TWC) will "go much higher" in the wake of the failed Comcast merger, with Grasso adding that the company's quality assets make it a top pick among the three companies.
  • Adami cited Disney as his top pick and recommended buying HomeAway (AWAY) and Freeport-McMoRan (FCX) for their final trades.
  • Grasso advised taking profits in Salesforce.com (CRM), while Seymour said to take profits in Vale (VALE).

Statistics:

  • Nasdaq hit a record high on Friday.
  • Microsoft rallied 10.5% on Friday.
  • Google has the best risk-to-reward setup in big-cap tech, according to David Seaburg.
  • Time Warner (TWC) traded higher after the failed Comcast merger.
  • Charter Communications (CHTR) stock rose on speculation of a potential Time Warner acquisition.
  • Apple's earnings will be released after the close on Monday.

Sources:

  • TheStreet (http://www.thestreet.com/story/13126062/1/sp-500-nasdaq-close-near-records-as-amazon-microsoft-jump.html)
  • CNBC's "Fast Money"
  • stockmonster.com
  • Stuart Frankel
  • Triogem Asset Management
  • Cowen & Company
  • TheStreet (http://www.thestreet.com/story/13123776/1/qualcomm-qcom-earnings-report-q2-2015-conference-call-transcript.html)
  • TheStreet (http://www.thestreet.com/story/13124829/1/microsofts-strong-quarter-led-by-the-cloud--3-biggest-takeaways.html)
  • TheStreet (http://www.thestreet.com/story/13125429/1/comcast-ceo-brian-roberts-time-to-move-on-without-time-warner-cable.html)
  • TheStreet (http://www.thestreet.com/story/13126021/1/charter-communications-chtr-stock-rises-today-on-possible-time-warner-cable-bid.html)