Apple, Ford, VMware Surge; Broadcom Plummets - Google Announces New Product

July 24, 2013

        Apple (AAPL) closed up $22.81 (5.44%) due to Q3 earnings that were better than expected, narrowly beating analysts' estimates by 2.33% in terms of earnings-per-share. Additionally, investors are excited for a potential new product in Q4. The iWatch, a new smartwatch that had the potential to revolutionize the field of "wearable technology", has investors excited as well. These two facts have caused APPL to jump in price.
        Shares of Ford(F) were up over 3% in early trading as the company reported revenue growth of 13%, greatly exceeding analyst estimates. The company has been facing growing sales in the US, and losses in Europe and Asia have narrowed. Ford has recently stated it will begin developing its own hybrid car systems after finishing a partnership with Toyota. In addition, the company plans on hiring over 800 new workers to keep up with the rising demand for its vehicles. With all this in place, the company recently raised its guidance for the next few quarters.
        VMware, a virtualization and cloud computing company jumped nearly 17%. or almost $12, after their Q3 earnings beat expectations and the stock received two upgrades from analysts. The company has shown remarkable growth this quarter, and their "vSphere" virtualization software is starting to show an increase in usage.
         Broadcom(BRCM) became one of the largest movers on the Nasdaq today, sinking a staggering 15%. The company reported earnings that were slightly below estimates yesterday, and lowered its revenue expectations for its third quarter. Seven analysts downgraded the stock today, sending it down to multi-year lows. BRCM dropped nearly $5 on a volume of 66 million, over eight times its daily average.
        Google(GOOG) announced a new device called the Chromecast. The Chromecast is a USB-like device that connects into the HDMI port of your TV. When connected to the Internet, it allows for the user to use YouTube, Pandora, Netflix, and basically all types of media accessible through Google Chrome. Unlike competing devices, such as the Apple TV, the Chromecast is designed to use a phone, tablet, or laptop as a remote control. Priced at $35, it poses a big threat to competing devices. Google also announced that it will soon be releasing its next generation of Nexus Tablets that will yield sharper screens and slimmer bodies. Its stock has been fairly volatile today, starting the day up a couple percent and then gradually dropping into negative territory.

Sources:
www.barrons.com
http://finance.yahoo.com/

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