I predicted that Glu Mobile Inc. (NASDAQ:GLUU) would close higher on the week. The publisher of mobile apps had seen its shares lose nearly half of its value over the past year, and Tuesday’s earnings report seemed like a good time to tell its side of the story. Glu Mobile Inc. (NASDAQ:GLUU) ended up posting a quarterly loss on declining revenue, restating its past three years of financials along the way. The stock fell 10% on the week. I was wrong.
I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average (Dow Jones Indices:.DJI). This has been a tricky call lately, so how did it play out this time? Well, this wasn’t a good week for stocks. The Nasdaq moved 0.8% lower, and the Dow managed to close 1.5% lower. I was right.
My final call was for Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) to beat Wall Street’s income estimates in its latest quarter. The company behind the popular Keurig single-cup coffee brewer has been posting blowout quarterly results over the past year. I was banking seeing on the trend continue. Analysts were looking for a profit of $0.77 a share during the quarter, and it came through with net income of $0.82. The stock didn’t move higher on the news, as revenue came in a bit light, but it was still a beat on the bottom line. 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
There’s no denying that Tesla Motors Inc (NASDAQ:TSLA) is this year’s market darling. If you’d taken the money that you were going to use to buy a Volt or a Leaf at the start of the year and invested it in Tesla Motors Inc (NASDAQ:TSLA), you’d have enough money now to buy a pair of Tesla Model S sedans.
However, even the hottest stocks take a breather. Tesla Motors Inc (NASDAQ:TSLA) soared after a truly blowout quarter last week, but the stiff valuation should cool the stock after the latest short squeeze subsides. My long-term prognosis for Tesla Motors Inc (NASDAQ:TSLA) is bullish, but I think it shifts into reverse over the next few days.
My first call is for Tesla Motors Inc (NASDAQ:TSLA) to close lower on the week.
2.The Nasdaq Composite will beat the Dow this week
Tech has been a big winner in recent years, so betting on tech over stodgy blue chips has been a good bet for me more often than not.
I’m going to stick with this pick. Most of the names in the composite are just too cheap at this point, and tech should be what carries us through the economic recovery. Yes, earnings reports have been rough in some places this season, but the long-term outlook is still quite favorable. The market is ripe for the tech-stacked secondary stocks to continue to outpace the 30 megacaps that make up the Dow Jones Industrial Average.
3. Brocade will beat Wall Street’s earnings estimates
Some stocks are just flat-out better than others.
