I went out on a limb last week, and now it’s time to see how that decision played out.
- I predicted that Microsoft Corporation (NASDAQ:MSFT) would close lower on the week. Steve Ballmer’s surprising pending resignation led to a spike a week earlier, but it seemed overblown for a company that will struggle in the transformation from a software company to one that excels at products and services. Mr. Softy’s stock took a 4% hit on the week. I was right.
- I predicted that the tech-heavy Nasdaq would outperform the
Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI). This has been a tricky call lately, so how did it play out this time? Well, this was a bad week for tech stocks. The Nasdaq moved 1.9% higher, and that was worse than the Dow Jones Industrial Average 2 Minute (INDEXDJX:^DJI)’s 1.3% slip. I was wrong.
- My final call was for OmniVision Technologies, Inc. (NASDAQ:OVTI) to beat Wall Street’s income estimates in its latest quarter. The maker of image sensors used in digital cameras, smartphones, and tablets has been cashing in on the popularity of portable computing gadgetry. It had also been posting blowout quarterly results over the past year. I was banking on seeing the trend continue. Analysts were looking for a profit of $0.43 a share during the quarter, and it came through with adjusted net income of $0.55. The stock fell on OmniVision Technologies, Inc. (NASDAQ:OVTI)’s disappointing outlook, but it was still a beat looking back. I was right.
Two out of three? I can do better than that.
Let me once again whip out my trusty, dusty, and occasionally accurate crystal ball to make three calls that may play out over the next few trading days.
1. Tesla Motors Inc (NASDAQ:TSLA) will close lower on the week
Everything seems to go right for Elon Musk these days, and Tesla Motors Inc (NASDAQ:TSLA) shareholders are grateful. the maker of plug-in electric cars has seen its shares pop fivefold.
The future’s bright for Tesla Motors Inc (NASDAQ:TSLA), but its $20.5 billion market cap seems a bit extreme for where it is in its life cycle. Against this backdrop, the market’s showing plenty of volatility, making high-beta stocks vulnerable. Tesla Motors Inc (NASDAQ:TSLA) has bucked the malaise so far. August was the market’s worst month in more than a year, but Tesla Motors Inc (NASDAQ:TSLA) had no problem moving higher. It hit a new high earlier this past week.