These Popular Tech Names Are Ripping Higher
The most hated stock rally in history continues to charge restlessly higher, as the Dow Jones Industrial Average and S&P 500 make fresh all-time highs on a daily basis. The Nasdaq is still well below the peak that it saw during the dot-com bubble, but some well-known tech names are ripping higher.
For the first time in company history, shares of Google (NASDAQ:GOOG) crossed above $900 on Wednesday. Shares first hit $800 less than three months ago. Aside from receiving publicity from Google Glass and self-driving cars, the gatekeeper to the Internet has been attracting heavy attention from hedge funds and continues to build excitement with its ever-expanding platform.
On Wednesday, the California-based company kicked off its three-day developer conference Google I/O in San Francisco. Google announced that Android has 900 million activations to date, compared to 400 million activations at last year’s conference. It also unveiled a new subscription music service called All Access, which will be a direct competitor to other streaming services such as Spotify and Pandora (NYSE:P). All Access will launch in the U.S. for $9.99 per month, with a free 30-day trial.
Chris Yerga, engineering director at Google, explains, “We wanted to service the power of Google to surface music we know you are going to love. Radio without rules, your one click access to music, your personal library blended with ours.”
Yahoo (NASDAQ:YHOO), one of the few names from the dot-com bubble to survive, has also logged some impressive moves. Shares have jumped 36 percent year-to-date, nearing a market cap of $30 billion. Since new chief executive officer Marissa Mayer — formerly a long-time employee of Google — joined the company in July 2012, shares have surged more than 70 percent.
Most recently, Yahoo’s CFO Ken Goldman said the company plans to keep the momentum going by becoming more relevant with young adults. It will advertise more at sporting events and other places.
In a conference in Boston on Tuesday, Goldman said, “Part of it is going to be just visibility again in making ourselves cool, which we got away from for a couple of years.”
Analyst Heath Terry from Goldman Sachs (NYSE:GS) also raised his price target on Yahoo from $27 to $30 a share on Tuesday. He believes Yahoo’s Alibaba stake is worth twice the original estimate.
Even some of the left-for-dead tech companies have been on the upswing this year. Shares of Hewlett-Packard (NYSE:HPQ) and Dell (NASDAQ:DELL) have gained 45 percent and 32 percent year-to-date, respectively. Netflix (NASDAQ:NFLX) shares have more than doubled, and it is the best performer this year in the S&P 500.
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