Apple, Tech Starts 2013 'Zipping' Higher
NEW YORK ( TheStreet) -- Thanks in large part to Congress resolving the fiscal cliff (for now), tech stocks were enjoying one of the strongest days in recent weeks, led by notables such as Apple (AAPL) and Facebook (FB) .
Apple shares were up 2.22% to $544.00 on rumors the company is testing a new iPhone , as well as some positive comments from the analyst community.
Topeka Capital Markets analyst Brian White said Apple was his top large cap pick for 2013, citing the recent 25% correction since Apple made its all-time high in September.
"We believe tax-related selling was largely to blame for the downward bias in the stock price as we exited 2012 and this created a negative news cycle around Apple that we believe will be broken as we enter 2013," White wrote in his note. "We believe there is still plenty to look forward to at Apple, including the potential for greater choices (i.e., colors, sizes) around the next iPhone in 2013, combined with accelerating momentum with the iPad mini and continued strength with the iPad franchise at large."
Facebook shares were enjoying another strong day, gaining 5.1% to $27.98 on the back of some positive comments made by Wall Street analysts, most notably about Facebook Exchange and the company's ability to monetize its mobile strategy.
William Blair analyst Ralph Schackart touted Facebook Exchange, an ad product that allows advertisers to reach users based on their browsing history. "Based on our findings, we believe FBX ads are being rapidly adopted by advertisers, and pricing has the potential to increase by three times, although timing of pricing ramp is unknown," Schackart wrote in his report. He rates Facebook "outperform."
JP Morgan analyst Doug Anmuth talked up the social network's ability to make money off its mobile users, which now surpass 600 million of its more than 1 billion monthly users. Anmuth raised his revenue estimates for mobile to $2.37 billion in 2013 and $4 billion in 2014, up from $2 billion and $3.3 billion, respectively. He rates shares "outperform" and lifted his price target to $35 from $29.
"We see car sharing as highly complementary to traditional car rental, with rapid growth potential and representing a scalable opportunity for us as a combined company," Ronald L. Nelson, Avis's chief executive, said in a statement.
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