A more than 6% rally in Motorola Mobility (NYSE: MMI) after solid quarterly results wasn’t enough to lift technology sector exchange traded funds (ETFs), which were flat at Friday’s open.
Motorola Mobility reported a smaller quarterly loss as smartphone sales rose.
The company is “one of the best plays on the growth of Android smartphones,” said Evercore Partners in a note.
First-quarter results “showed smartphone units up 80% year over year, and tablet should add another layer to the story,” they wrote.
“However, increasing competition may add to quarterly volatility and research and development investment may rise as Motorola Mobility differentiates its hardware and software offering from other Android vendors,” the analysts added. “Longer-term, an expanding market should drive continued growth in the subscriber base, while an expanding product offering grows the revenue opportunity within existing customers.”
ETFs with the largest positions in Motorola Mobility include Broadband HOLDRS (AMEX: BDH), iShares S&P North America Technology-Multimedia Networking Index Fund (NYSEArca: IGN) and First Trust NASDAQ CEA Smartphone Index Fund (NasdaqGM: FONE).
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