The International Consumer Electronics Show (CES) takes place in Las Vegas every year, and technology companies and innovators have been re-inventing the cutting edge at the event for 40 years now.
The 2015 CES ran recently, and several of of the biggest tech plays were at the center of the action.
So, let’s review what four of the top gadget-designers, chip-makers and social media giants had to share.
Here’s some of the biggest news from the tech sector so far this year:
Apple Inc. (NASDAQ:AAPL) Gives Labor Market a Boost
Apple Inc. (NASDAQ:AAPL) announced recently that sales through the iTunes App Store jumped 50% in 2014. Last year, developers made $10 billion in revenue from iTunes.
The iTunes store currently carries 1.4 million apps available for purchase — all of which are compatible with the iPhone, iPad and iPod Touch.
Apple also revealed that it has created or supported over a million jobs, which includes 627,000 jobs in iPad and iPhone applications and 334,000 jobs created as a result of Apple’s spending and growth.
Today, Apple directly employs 66,000 people in the U.S.
The Apple earnings announcement is scheduled for after the bell today. For its Q1 earnings report, Apple is headed for 15.4% annual sales growth and 22.7% earnings growth. AAPL is a “strong buy.”
Facebook Inc (NASDAQ:FB) Goes on a Buying Spree
Facebook Inc (NASDAQ:FB) also announced two new acquisitions recently.
First, Facebook acquired Wit.ai, a voice-recognition startup based in Palo Alto, California. Financial terms weren’t disclosed, but speculation is that Facebook will leverage the acquisition to create its own voice product, perhaps in the likes of Skype or Siri.
Then, Facebook announced that it is buying QuickFire Networks Corp., a San Diego-based startup that specializes in video-compression technology. QuickFire’s technology reduces the bandwidth needed to stream videos, which could help Facebook host videos on its own platform.
Speaking of acquisitions, WhatsApp — the mobile-messaging app that Facebook bought for $22 billion — hit 700 monthly million active users in December 2014, which is a 100 million increase from August 2014.
All of this makes me optimistic about Facebook’s profit potential. Facebook will release its fourth-quarter earnings and fiscal year 2014 results after market close tomorrow, Jan. 28.
Currently, the earnings estimate is for 48 cents per share on $3.78 billion in revenue, which translates to 54.8% annual earnings growth and 46.2% sales growth.
Intel Corporation’s (NASDAQ:INTC) Big Developments
Intel Corporation (NASDAQ:INTC) also made headlines to start the year off.
First, at CES the firm revealed the Intel Curie module, which is designed to advance wearable tech. Approximately the size of a button, the Curie is a computing platform that can be embedded into footwear, apparel and accessories. The Intel Curie tracks motion, connects wireless and has its own rechargeable battery.
Other innovations include flying multi-coper drones and camera spanning robots. In addition, Intel announced that it is investing $300 million to encourage diversity within its workforce.
Intel also announced its new line of Core microprocessors. The Broadwell chip is smaller and more compact than previous generations and boosts general performance and battery life. Starting soon, consumers will be able to buy products powered by these next-gen Intel processors.
Intel announced record sales and earnings growth before the opening bell on Jan. 16. For the fourth quarter, Intel posted net income of $3.7 billion, or 74 cents per share, on $14.72 billion in revenue.
Compared with Q4 2013, Intel’s results represented 39% bottom-line growth and 6.4% top-line growth. Analysts were expecting 66 cents per share on $14.70 billion in sales. So, Intel posted a 12.1% earnings surprise and a modest sales surprise. Buy INTC stock.
Yahoo! Inc. (NASDAQ:YHOO) Faces Merger-Mania Pressure
Finally, Yahoo! Inc. (NASDAQ:YHOO) has been at the center of some merger and acquisition rumors.
First, YHOO shares rose after activist investor Starboard Value publicly pressured CEO Marissa Mayer to pursue a merger with AOL, Inc. (NYSE:AOL). Starboard is pushing for an AOL merger with the belief that it will help Yahoo reduce costs and improve profitability.
Starboard also voiced concerns that Yahoo is considering a deal to buy either CNN or Scripps Networks Interactive, Inc. (NYSE:SNI), both media companies.
So, there is plenty of speculation about how Yahoo will spend the money it received from the earlier Alibaba Group Holding Ltd (NYSE:BABA) initial public offering.
In the meantime, I’m looking forward to Yahoo’s fourth-quarter earnings announcement today after market close.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
