The rally in the United States technology sector has pushed the Nasdaq Composite index into positive territory with more lifts expected.
Apple was one of the top contributors on the Nasdaq, also topping the blue chip Dow Jones Industrial Index.
Craigs Investment Partners broker Chris Timms said yesterday Apple's fourth-quarter guidance was much better than expected.
Apple's guidance pointed to a return to sales growth on a quarterly basis which could indicate reaching a bottom in sales and a return to growth over the medium term.
"We believe this is a big confidence booster for the stock. The company's margin guidance will also help alleviate the fears of further margin erosion.''
So far, it looked as though Apple's new entry level iPhone SE had been complementary to its iPhone franchise, not cannibalistic like many thought it could be, he said.
Management said the iPhone SE helped grow the company's global market share, particularly in emerging markets where Apple had little presence.
Also, the company was still experiencing strong demand for the iPhone 6, despite the upcoming release of the iPhone 7 in September, Mr Timms said.
The question going through every investor's mind was whether Apple could grow iPhone sales again. It would be particularly difficult over the next couple of quarters due to the strong growth produced in the previous corresponding periods.
"It will get more difficult given the high-end smartphone market is reaching saturation point as the majority of people willing to buy a high-end smartphone have already bought one.''
Apple remained a quality technology stock with a growing range of products and services. The company had strong margins, an unmatched cash hoard and relatively recurring revenue streams from users upgrading to new versions of the devices.
Craigs acknowledged Apple faced strong competition from other device manufacturers but the Apple ecosystem generated strong brand loyalty. Purchasing one Apple product was likely to lead to purchases of additional devices.
Amazon surprised investors with another impressive result, Mr Timms said.
Revenue and earnings comfortably beat expectations, driven by an acceleration in revenue growth both from its North American and international retail businesses.
Margins expanded across the board, which was remarkable given the significant investment the company was making internationally, he said.
Amazon was one of the highest quality internet companies in the sector, given its consistent innovation, execution and the size of the opportunities it was targeting.
The company's willingness to take large risks and its focus on driving innovation had led to the company being one of the few early internet entrants to have extended its leadership over the past 20 years, Mr Timms said.
Amazon controlled dominant positions in two important and fast-growing markets - e-commerce and cloud infrastructure.
Amazon's share price had recovered strongly following its large fall in January when its fourth-quarter result missed market estimates. It was now sitting at all-time highs.
Google erased any concerns of a slowdown in advertising spending with another strong result indicating further market share gains, he said.
Revenue accelerated for the fourth consecutive quarter, mobile search being the primary driver.
Google reported a profit of $US5.9 billion ($NZ8.22 billion), up 21.4% on the previous year. Earnings per share of $US8.45 increased by 20.4%. Both were well ahead of expectations.
Free cash flow jumped to $US7 billion, up nearly 53% and at its highest level ever.
At the end of the quarter, Google had $US78.5 billion in cash and cash equivalents, or $US112.65 a share.
Google was trading at a "large discount'' to its peers despite having arguably the best fundamentals in the sector, Mr Timms said.
"We believe mobile will remain a big tailwind for Google over the medium term given it has only just reached 50% of all search queries. There is also still a significant amount of ad spending yet to shift from traditional mediums to digital and mobile.''
Cloud infrastructure, virtual reality and machine teaming all remain significant growth opportunities for Google.
