Each week, I endeavor to report the results of the Big Idea Portfolio, a collection of five tech stocks that I believe will crush the market over a three-year period. I’ve done it before; my last tussle with Mr. Market ended with me beating the index’s average return by 13.35%.
Real money was on the line then as it is now, which means any one of the five stocks you see below could cause me a lot of public embarrassment. This time Apple Inc. (NASDAQ:AAPL) took a hit, and that’s despite some really good news from T-Mobile.
At its “Un-carrier” event, the Deutsche Telekom unit revealed a plan that ends subsidies but still allows shoppers to purchase the latest smartphones without much upfront investment.
Specifically, T-Mobile says it will ask customers to kick in an initial deposit on premium handsets and pay the balance over 24 months. Official support for Apple’s iPhone — including the iPhone 5 — arrives on April 12 while LTE service is live now in seven markets. T-Mobile plans to offer LTE coverage for as many as 200 million U.S. customers by the end of this year.
Color me thrilled. T-Mobile’s LTE moves should push incumbent carriers to improve both speed and access on their own networks. Apple Inc. (NASDAQ:AAPL), meanwhile, gets another carrier pushing its iGear at the same premium prices the company has enjoyed for years.
Courtesy: Apple Inc. (NASDAQ:AAPL) Press Info
Among my five tech stocks, only Riverbed Technology, Inc. (NASDAQ:RVBD) and salesforce.com, inc. (NYSE:CRM) rallied. Neither move was enough to keep me from losing even more ground to Mr. Market — another 178 basis points, to be specific, as every major index rallied.
|Company||Starting Price*||Recent Price||Total Return|
|Apple Inc. (NASDAQ:AAPL)||$416.26**||$442.66||6.3%|
|Google Inc (NASDAQ:GOOG)||$650.09||$794.19||22.2%|
|Rackspace Hosting (NYSE:RAX)||$41.65||$50.48||21.2%|
|S&P 500 SPDR||$124.39**||$156.67||25.95%|
Among the other tech stocks making news last week: