| Battle Road Tech Index
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March 12, 2010 - The Battle Road Tech Index™ rose 2.7 percent for the week ended March 12, 2010, closing at 1715. For the week, 21 of the 25 Index components rose in value. Year-to-date, the index is up 2.1 percent, having started at a value of 1680.
Akamai (AKAM), Research in Motion (RIMM), and EMC (EMC) were notable movers for the week:
Shares of Akamai (NASDAQ: AKAM, $31.94) climbed 9.4 percent to a new 52-week high this week as optimism around a tech spending recovery soared. Akamai is well positioned to capture additional revenue when businesses invest in web technologies. Further, with new premium video content coming online regularly, revenue from media delivery is poised to resume its growth as well.
Shares of Research in Motion (NASDAQ: RIMM, $75.34) rose 8.4 percent this week mainly driven by negative news surrounding its competitors. Palm (NASDAQ: PALM, $5.53) is struggling to establish a foothold in the very competitive smart phone market, and it has been reported that its Pre and Pixi phones are losing traction to phones like the Blackberry Tour. Research in Motion is also expected to post a beat and raise quarter on March 31when it reports its quarter ended February.
EMC (NYSE: EMC, $18.88) rose 5.7 percent this week. IDC reported on March 5 that total revenue for the storage industry rose year-over-year in the fourth quarter of 2009 for the first time since the third quarter of 2008 (albeit at a rate of only 0.2 percent). EMC remained the leader of the external storage market with 23.7 percent share, ahead of IBM (NYSE: IBM, $127.94) with 16.8 percent and HP (NYSE: HPQ, $52.36) with 12.1 percent. EMC also led the NAS market, which grew 12.6 percent over the year. The company’s exposure to and leadership in all segments of the storage market has allowed it to hedge its lagging high-end system revenue with strength in certain key areas such as the NAS market.
About the Battle Road Tech Index: The Battle Road Tech Index™ monitors the stock market performance of 25 of the most influential world-wide technology stocks. The index values each stock equally, in order to avoid over-weighting the largest cap components. The indexis updatedby Battle Road Research on a continuous basis, and we provide weekly commentary on its performance at www.battleroad.com, and www.battleroadblog.com.
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