NEW YORK (TheStreet) -- EMC (EMC) shares fell 1.4% to $26.48 after the announcement of a new acquisition.
Storage vendor EMC announced today that it had purchased cloud storage management company TwinStrata. The price and other details of the acquisition were not disclosed. EMC's press release said that TwinStrata would provide a "embedded cloud access capabilities to its enterprise data service platform VMAX3, its new and far-more agile data center infrastructure." "TwinStrata's advanced cloud tiering technology, which "enables customers to move infrequently accessed data to the public cloud for lower TCO," the press release said.
Nicos Vekiarides, the CEO and co-founder of TwinStrata, wrote in an email that the purchase would not harm existing TwinStrata customers. As part of EMC, Vekiarides wrote Twinstrata will continue to enable customers to extend on-premise storage into one or many public or private cloud providers. "Instead, the purchase would give customers the same product and service as part of a wider, market-leading cloud portfolio and global brand behind it," the CEO said in the email.
Tesla (TSLA) shares fell 3.2%% to $215.65 after it was reported that the company is being sued in China.
Reuters reported that Chinese businessman Zhan Baosheng, who registered the Tesla trademark in China before the electric car manufacturer expanded there, is suing the company, demanding that they stop sales and marketing activities and shutdown showrooms and supercharging facilities in China. He is asking for 23.9 million yuan ($3.85 million) in compensation. The case will be heard by the Beijing Third Intermediate Court on August 5.
Tesla could not be reached for comment for this story.
Zhan, who is based in Guangdong, registered the trademarks for the name Tesla in both English and Chinese in 2006. He sought to sell the trademark to Tesla, but negotiations collapsed. Last year, Chinese regulators agreed with Tesla that Zhan's copyrights were invalid, but Zhan is appealing that decision.
Despite optimistic predictions from analysts and the release of a new game, shares of King Digital Entertainment (KING) are down 3.9% to $19.92.
King, the maker of the wildly popular mobile game Candy Crush Saga, had a disappointing IPO in late March, when the stock, priced at $22.50 a share, closed at $19. It did not reach the IPO price until last week, with investors concerned that the company's signature game is a one-hit wonder. Recently, analysts have become more optimistic. Yesterday, Michael J. Olson of Piper Jaffray upgraded King's rating to "overweight" from "neutral," and raised the price target to $28 from $19. Olson cited the success of other King mobile games, including Pet Rescue, Farm Heroes, and Bubble Witch 2. According to the note, the catalyst for King shares will be the release of a new game, Candy Crush Soda. He models 31% growth in 2014 and 15% growth in 2015, in line with consensus estimates. Similarly, Doug Anmuth of J.P. Morgan reiterated his "overweight" rating and $30 price target, citing the same games' success and more than $800 million of free cash flow. Investors, however, are unconvinced. After a brief surge, the stock closed below $21 on Monday and is continuing to fall.
Apple (AAPL) shares slipped 1.8% to $94.21 following an analysts note.
Though shares hit a new 52-week high of $95.99 yesterday, UBS analyst Steven Milunovich urged caution, while reiterating his "buy" rating and $100 price target. He wrote that Apple might have to contend with "smartphone pricing in China's high-end market [that] could come under some pressure" due to losing market share to Samsung and state-ordered sales reduction dictated by China's State-owned Assets Supervision and Administration Council.
Apple will release its third quarter fiscal earnings report on July 22 after market close. Additionally, CEO Tim Cook is said to be looking for new people to add to the company's board of directors, according to a report in The Wall Street Journal.
Despite another analyst upgrade, Netflix (NFLX) shares fell 4.6% to $439.67.
William V. Power of R.W. Baird raised his price target on Netflix to $505 from $470, noting recent monthly consumer surveys in the United States and the United Kingdom that suggest subscriber momentum. Growth in the UK was particularly strong: Netflix adoption there reached a new record of 18% in June. The healthy trend in the U.K. "likely bodes well for the coming France and Germany launches." These launches are expected to run smoothly because "Netflix's global brand has become more recognizable and the company has become better at international launches." In addition to the new European market launches, catalysts of 2014 growth include "new originals, including season 2 of Hemlock Grove, season 3 of Lillyhammer and the introduction of Marco Polo and BoJack Horseman."
This upgrade follows Goldman Sachs' upgrade on July 1, which upgraded the stock to "buy" and raised the price target to $590 from $380. Echoing Baird, the Goldman report claimed that Netflix will reach 61.7 million international subscribers by 2017, nearly five times the number it has now. After the Goldman note, Netflix shares jumped 7.4%.
--Written by Laura Berman in New York >Contact by Email.
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