NEW YORK (TheStreet) -- Micron Technology (MU) was a big loser before market open, tumbling 2.9% to $22.47 as investors continued to digest the company's deal with Rambus (RMBS).
On Tuesday, the two companies ended their 13-year dispute. As part of the settlement, semiconductor specialist Micron has agreed to pay Rambus $280 million over seven years as a license to use its patents. Micron is also the most active pre-market Nasdaq stocks on share volume of 885,632.
Shares of Cisco (CSCO) fell 0.9% to $21.02 before market open as Citi initiated coverage of the tech giant with a sell rating and an $18 price target. "We forecast revenue grows at a slower 3-5% pace over the next 3 years than both Cisco's existing 5-7% long-term growth target and the Street at 6%, from share loss in Cisco's core routing and switching markets," wrote Citi analyst Ehud Gelblum, in a note released on Wednesday. "We expect this slowing revenue growth and uncertainty around Cisco's position in the data center to result in multiple compression despite an attractive 4% dividend and 9% free cash flow."
Cisco missed Wall Street's revenue forecast when it reported its first-quarter results last month, weighed down by weak tech spending. The switchmaker also pointed to the fallout from the controversy over National Security Agency spying, which damaged its business in China.
The San Jose, Calif.-based firm hosts its financial analyst meeting in New York on Thursday.