Apple Drops as Plant Catches Fire, Marvell Technology Soars on Upgrade

NEW YORK (TheStreet) -- Apple (AAPL) tumbled after a fire at its sapphire-screen plant in Arizona and a report emerges that fewer billionaire investors are holding its stock. Marvell Technology (MRVL) soared after an analyst upgrade. EMC (EMC) sank after announcing its $1.2 billion buyout bid for Virtustream.

Apple fell 2.2% to close at $129.62.

The iconic computer maker's 1.3 million-square-foot plant in Mesa, Ariz., suffered a fire Tuesday, according to a Bloomberg report. Apple had used the plant to manufacture its iPhone sapphire screens, but more recently was preparing to convert the facility into a data center, according to the report.

In addition to the fire, Apple reportedly has fewer billionaires invested in the stock. According to an Insider Monkey report, 16 of the 19 billionaires that the publication tracks continue to hold Apple shares. In other words, Apple lost three billionaire investors.


Marvell Technology Group soared 2.3% to finish the day at $13.44, on a day when the broader markets retreated.

The storage and semiconductor company jumped after Morgan Stanley upgraded it to overweight from equal weight, as well as raising its price target to $17.50 from $15. 

According to a report in Benzinga, Morgan Stanley analysts stated, "If the company were to divest the wireless business, or otherwise drive it to breakeven, earnings would climb."

On Friday, Marvell faced a sell off after reporting mixed quarterly results. Marvell reported better than expected earnings of 10 cents a share, but its $724 million in revenue was lower than Wall Street expected.


EMC fell 2.1% to close at $26.29.

Investors apparently panned the storage maker's plans to acquire Virtustream for $1.2 billion, even though the deal is designed to bolster its cloud offerings.

The Virtustream deal is expected to boost EMC's profit and revenue next year and will operate as EMC's managed cloud services business, according to a Reuters report. The deal is expected to close in the third quarter.

Virustream is a cloud and services company that allows customers to move all of their applications into the cloud. EMC CEO Joe Tucci, in a statement, said, "With Virtustream in place, EMC will be uniquely positioned as a single source for our customers' entire hybrid cloud infrastructure and services needs."

 

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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