Tech Winners & Losers: XM Satellite
07/21/08 - 02:19 PM EDT
Priya Ganapati
Tech stocks were trading slightly lower Monday as investors waited for an earnings report from sector giant Apple(AAPL Quote - Cramer on AAPL - Stock Picks).
XM Satellite Radio(XMSR Quote - Cramer on XMSR - Stock Picks) added 50 cents, or 5.8%, to $9.04 after it said it anticipates a 17% jump in subscribers from a year ago. As part of its preliminary second-quarter results, XM said it added 322,000 new net subscribers in the quarter. Sirius(SIRI Quote - Cramer on SIRI - Stock Picks) also gained 11 cents, or 4.8%, to $2.39 on the news. Sirius and XM are trying to close a $4.6 billion merger deal. Shares of Yahoo!(YHOO Quote - Cramer on YHOO - Stock Picks) were down 60 cents, or 2.7%, to $21.85 after the company offered Carl Icahn a seat on its board. Icahn agreed to withdraw his slate of directors from the ballot and vote in favor of the current board. Video-games publisher Activision Blizzard's(ATVI Quote - Cramer on ATVI - Stock Picks) CEO Robert Kotick will be the only director from Yahoo!'s current board to not stand for re-election. Chip maker Broadcom(BRCM Quote - Cramer on BRCM - Stock Picks) shed $1.32, or 4.6%, to $27.47, a day ahead of the company's second-quarter earnings report Tuesday. Analysts are expecting EPS of 36 cents on revenue of $1.1 billion for the quarter. For the third quarter, analysts expect earnings of 38 cents a share on revenue of $1.15 billion. Broadcom is likely to post strong results but investors will be mainly concerned about whether continued growth in the company's Wi-fi and Bluetooth business is enough to offset likely slower growth in its Ethernet business, said Shaw Wu, an analyst with American Technology Research in a report. IT security company Check Point Software Technologies(CHKP Quote - Cramer on CHKP - Stock Picks) lost 85 cents, or 3.5%, to $23.22, ahead of its second-quarter results. Analysts are expecting earnings of 43 cents a share on revenue of $195.09 million for the quarter, vs. earnings of 38 cents a share on revenue of $176.19 million a year ago.
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