Winners & Losers
Monday's Tech Winners & Losers
Priya Ganapati
02/04/08 - 04:32 PM EST
Tech stocks were down modestly as investors mulled over Microsoft's unsolicited bid for Yahoo! and await Cisco's earnings later this week.
Shares of Yahoo!(YHOO Quote - Cramer on YHOO - Stock Picks) continued to gain after Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks) offered $44.6 billion, or $31 a share, for the company Friday. Yahoo was up 95 cents, or 3.3%, to $29.33. Shares of Microsoft remained mostly unchanged, up 7 cents, or 0.2%, to $30.53.
Real Networks(RNWK Quote - Cramer on RNWK - Stock Picks) gained 29 cents, or 4.9%, to $6.24 after the company's Rhapsody music service partnered with Yahoo! to replace Yahoo!'s Music Unlimited service.
In the next few weeks Yahoo!'s music subscribers will migrate to Rhapsody's digital music service, where they will have the opportunity to maintain their existing pricing tiers for a limited time before being offered new alternatives.
Handset maker Palm(PALM Quote - Cramer on PALM - Stock Picks) gained 37 cents, or 6.1%, to $6.39 after an analyst at JP Morgan upgraded the stock to underweight from overweight on the belief that new products and its recently introduced Centro smartphone will help drive revenue.
Motorola(MOT Quote - Cramer on MOT - Stock Picks) fell 47 cents, or 3.7%, to $12.22 after a downgrade to sell from neutral by AmTech Research amid reports that the company might sell its cell phone business.
"Motorola's plans to evaluate strategic options hurts the long-term upside case in that a sale would come at depressed values and the process alone will impair turn-around attempts," said Mark McKechnie in a research report. McKechnie set a price target of $12.69 for the stock.
Cisco(CSCO Quote - Cramer on CSCO - Stock Picks) fell $1.04, or 4.2%, to $23.89 ahead of the company's second-quarter earnings Wednesday.
Analysts polled by Thomson Financial are expecting EPS of 38 cents in the second quarter on $9.79 billion in revenue, compared with EPS of 33 cents on $8.43 billion in revenue a year ago. For the third quarter, analysts expect earnings of 39 cents a share on $10.19 billion in revenue, compared with earnings of 34 cents a share on $8.86 billion in revenue.
Google(GOOG Quote - Cramer on GOOG - Stock Picks) fell $20.05, or 3.9%, to $496. The company has raised anti-trust concerns around Microsoft's bid for Yahoo. The proposed deal, if completed, is expected to hurt Google the most.
Shares of Broadcom(BRCM Quote - Cramer on BRCM - Stock Picks) fell $1.17, or 5%, to $22.26 after a JP Morgan analyst downgraded the stock to neutral from overweight.
An unstable economic environment and the company's focus on baseband chips used in communications puts pressure on its operating margins and stock, the analyst said.