Technology exchange traded funds may extend their rally Wednesday after quarterly results from Apple (NasdaqGS: AAPL) that knocked analyst profit and revenue estimates out of the park.
Apple shares shot above $400 in after hours trading Tuesday following the blowout quarterly results. The stock was briefly halted but rose nearly 6% at last check.
The quarterly beat was driven by sales of iPads and iPhones. Apple sold 9.3 million iPads in the quarter and 20.3 million iPhones, which offset weakness in sales of Macs and iPods, according to Jefferies analysts.
The company’s guidance was “even more conservative than it typically is, which we believe is due to the large number of new product launches this fall,” they wrote in a note Tuesday. “We would be buyers as we view the guidance as too conservative and believe the new products will drive the stock higher.”
Reports surfaced Tuesday afternoon right before the earnings report that some members of Apple’s board have discussed CEO succession since Steve Jobs went on medical leave.