NEW YORK (TheStreet) -- Graphics chip maker Nvidia (NVDA) tanked Friday after issuing a lower-than-expected second quarter forecast and receiving a price cut. AOL (AOL) soared by double digits after beating analysts' estimates, while Yelp (YELP) continued to gain ground on talk that it is looking for a buyer.
Nvidia tanked 7.4% to close at $20.83. The company took a beating after issuing a lower forecast for its second quarter. Nvidia now expects to generate revenue of $1.01 billion, within a 2% range higher or lower, but analysts were expecting $1.18 billion for the quarter.
A Wedbush analyst also cut Nvidia's price target to $24 a share from $25, citing the likelihood the company will continue to face challenging foreign exchange rates and a slowdown in the PC market as Windows 10 is set to roll out, according to a report in Benzinga. Wedbush, according to Benzinga, is likely to "trade in a tight range until the next significant catalyst."
With these two bits of dour news, Nvidia's announcement that it raised its dividend by 15% to $9.75 a share did not seem to ease investors' concerns.
AOL surged 10.2% to end the session at $43.42.
Investors cheered the online media giant for posting a stronger-than-expected first quarter. AOL reported diluted earnings of 34 cents a share on revenue of $625 million. Analysts were expecting net profits of 32 cents per share on revenue of $593.96 million.