The Nasdaq-100 PowerShares QQQ (NasdaqGM: QQQ) rallied more than 2% at Wednesday’s open to lead the major indexes. Top holding Apple (NasdaqGS: AAPL) jumped 10% after another quarter of strong earnings from the tech and market bellwether.
“Apple had another blowout quarter, with revenue and earnings per shares way above expectations,” said FBN Securities analysts. “Apple is still executing very well.”
The solid showing alleviated concerns in recent weeks that had pushed Apple below $560 a share and the 50-day moving average. FBN, which has an outperform rating on Apple, raised its target price on the stock to $800.
Apple represented 17.8% of QQQ as of April 24.
Morningstar analyst Michael Holt said it was the second-best quarter ever for Apple, with total revenue growth of 59%, more than 80% growth in iPhone shipments and 150% year-over-year growth in iPad shipments.
However, he raised concerns about the long-term sustainability of the company’s fat profit margins. His fair value estimate on Apple is $670 a share. Looking ahead, Apple guided lower.
QQQ is up about 16% so far this year, while the S&P 500 has posted a roughly 10% gain, with the outperformance being driven by strength in Apple and the tech sector.
PowerShares QQQ
