Tech Winners & Losers: Hewlett-Packard
Tech stocks were down Tuesday led by
Hewlett-Packard
after it announced a $13.9 billion merger with services company
Electronic Data Systems
.
Shares of
Hewlett-Packard
(HPQ) - Get Report
fell $3.29, or 7%, to $43.54 after the company announced that
with
Electronic Data Systems
(EDS)
in a $13.9 billion deal. EDS was valued at $25 a share by H-P.
The merger would make the combined entity the No. 2 player in the consulting and technology services market after
IBM
(IBM) - Get Report
. EDS gained 35 cents, or 1.4%, to $24.42.
Shares of
Dell
(DELL) - Get Report
, which competes with HP in the PC business, rose 52 cents, or 2.7%, to $19.90 on the news of the HP-EDS deal.
Wireless broadband service provider
Clearwire
(CLWR)
added 49 cents, or 3.8%, to $13.24 though the company posted a wider-than-expected
.
Still, Clearwire investors remained optimistic because of the company's plans with
Sprint Nextel
(S) - Get Report
for a $14.5 billion WiMax merger deal.
Mobile games provider
Glu Mobile
(GLUU) - Get Report
gained 24 cents, or 5.8%, to $4.35 following its first-quarter results. Revenue in the quarter was $20.6 million vs. $15.7 million the year before.
Glu posted net loss of $6 million vs. net loss of $764,000 a year ago. Excluding charges it broke even on earnings compared with a loss of 9 cents a share, the year before. Analysts were expecting revenue of $19 million and a loss of 17 cents a share.
For fiscal 2008, Glu guided revenue in the range of $96.5 million and $100 million, higher than analysts' expectations of $92.17 million. The company said it expects earnings, excluding charges, to range between 19 cents and 22 cents a share for the year.
Sirius
(SIRI) - Get Report
satellite radio shed 4 cents, or 1%, to $2.84, a day after the company reported first-quarter revenue
.
Sirius reported a loss of $104.1 million, or 7 cents a share, in the first quarter, lower than a loss of $144.7 million, or 10 cents a share, the year before. Revenue rose 33% to $270.4 million. Analysts were expecting a loss of 7 cents a share on revenue of $271.5 million.
Video-games publisher
Electronic Arts
(ERTS)
shed $1.18, or 2.2%, to $53.09 ahead of the company's fourth-quarter earnings report.
Analysts are expecting $834.8 million in revenue during the quarter and break- even EPS. For the first quarter, analysts expect EA to report revenue of $592 million on a loss of 12 cents a share.