Tech Winners & Losers: Salesforce.com
Tech stocks were trading lower on Thursday, with the Nasdaq shedding 4 points to 2385 as a surge in crude oil prices and a weakening dollar dampened the mood on Wall Street.
Salesforce.com (CRM) plummeted 17% to $53.91 a day after providing quarterly guidance below analysts' expectations.
The San Francisco-based software company signaled a potential slowdown in bookings growth and a rise in marketing expenses. Although Salesforce doesn't disclose bookings data, its deferred revenue grew at 49% year over year during the second quarter and only 2% consecutively, indicating a drop-off in new bookings.
Shares of IAC/Interactive (IACID) were up 7.5% to $16.51 on its first day of trading as a spin-off. IAC, which includes Ask.com and Evite, had been part of a larger Internet conglomerate that was split into five separate companies.The other spin-offs were also surging on Thursday. HSN (HSNI) was up 19% to $15. Interval Leisure Group (IILG) was up 12% to $15.82. And Ticketmaster was up 10.3% to $23.86. Only the Tree.com (TREE) (formerly Lending Tree) lagged behind the other spin-offs, up a modest 3.9% to $7.71. JDS Uniphase (JDSU) saw its share plunge 14% to $10.23. The communications equipment provider had posted a wider-than-expected loss in the fourth quarter and missed Wall Street estimates. Shares of Synopsys (SNPS) were also on a downward slide after providing fourth-quarter guidance below Wall Street estimates. The stock was down 11.1% to $21.46 . Citigroup lowered its rating on the design-automation software company to sell from buy. Shares of Semtech (SMTC) were up 3% to $15.50 after it reported a 29% increase in second-quarter profit, topping analysts' estimates. Second-quarter revenue rose 16% to $78 million, matching Wall Street expectations.
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