NEW YORK (TheStreet) -- Xoom (XOOM) zoomed. Applied Genetic Technologies (AGTC) - Get Applied Genetic Technologies Corp. Report teaming up with Biogen (BIIB) - Get Biogen Inc. Report was a winning play.
Tech stocks in the S&P 500 rose more than 1% to outperform the wider S&P index and the Dow Jones Industrial Average, both of which fell slightly.
Shares of Xoom, a provider of digital money transferring services soared more than 21% after an announcement that PayPal would acquire the San Francisco-based company in a deal worth about $890 million.
PayPal will pay about $25 a share for Xoom, which provides technology and services for transferring money and paying bills online via smart phones, tablets and computers. Xoom has about 1.3 million customers in 37 countries.
Post-deal, Xoom will operate as a separate entity from PayPal.
PayPal, which provides services for processing invoices and related functions, is a unit of the San Jose, Calif.-based e-commerce web siteeBay (EBAY) - Get eBay Inc. Report although it will be spun off later this month. Paypal said that the acquisition will close in the fourth quarter.
TheStreet has a hold rating on Xoom. It cited strong gains in revenue but had reservations about bottom line results and the company's overall performance compared to other software and service providers and the wider S&P 500.
"We rate XOOM a HOLD," TheStreet analysis said. "The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks."
Applied Genetics Technologies spiked more than 16% after news that it had signed a research collaboration agreement with global, biotech giant Biogen. Cambridge, Mass.-based Biogen will pay Applied Genetics $124, including a $30 million worth of stock.
Applied Genetic will be eligible for milestone payments and royalties ranging from high single-digit to mid-teen percentages of annual net sales for approved drugs that result from the companies' collaboration.
Biogen will receive commercial rights for drugs developed from the partnership.
Teladoc's performance in its first official day as a publicly traded company far exceeded expectations. Shares of the Lewisville, Tex.-based company skyrocketed more than 50% from a starting offering of $19 a share to more than $28 a share.
Teladoc connects patients to more than 700 board certified physicians over the phone. The company says that it accounts for between 500,000 and 800,000 phone and video consultations annually. It expected to raise about $180 million in its IPO but raised more than $270 million.