Tech Under Selling Pressure, TiVo Plunges 5% (TIVO, CSCO, INTC, HPQ, SYNC, S)
The tech sector slid sharply on Friday with broader market slumped on languishing jobs reports. Following are the notable movers within the sector:-
TiVo Inc. (NASDAQ:TIVO) slumped 5.15% to $8.10 as the company sued by Cisco Systems, Inc.(NASDAQ:CSCO) to void four TiVo Inc patents related to digital video recorders, escalating a battle over who has the right to profit from sales of the popular machines. In a complaint filed on Wednesday, Cisco said TiVo has resisted granting a broad license to its technology because doing so would impede TiVo’s capacity to bring — and ultimately settle — lawsuits over its patents, a key source of revenue.
Hewlett-Packard Company (NYSE:HPQ) slid 4.20% after analyst at Jefferies & Co. trimmed its investment rating on the stock from “Buy” to “Hold” and smashed its price target by $7 to $23 a share. A Jefferies analyst commented, “Despite HP’s solid position in cloud computing and its recently announced cost cuts, we believe most of HP’s businesses will be challenged in the near to medium term. Specifically we think tablets will hurt PCs (and Windows 8 will not help), smartphones will hurt printers, and European uncertainty will hurt enterprise IT spending.”
Intel Corporation (NASDAQ:INTC) fell 2.12% to $25.26. Analyst at Baird smashed its estimate on the company ) due to concerns about weak Euro and Chinese demand. The firm says its checks indicate PC CPU/chipset shipments to Asia are down in the mid-single digits Q/Q in Q2, compared with expectations for a single-digit increase, and that channel inventories for Intel chips have grown. In-line with a recent Digitimes report, Baird also believes PC OEMs are lowering their Q3 shipment forecasts.
Sprint Nextel Corporation (NYSE:S) fell 1.17% to $2.54 after analyst at JPMorgan upgraded the stock to Overweight, but has since given back its gains. The upgrade was motivated by Sprint’s low valuation, confidence about its 4G LTE rollout plans, stable mobile industry pricing, and M&A possibilities
Synacor Inc (NASDAQ:SYNC) plunged 16.50% as it gets hit by a trio of valuation downgrades earlier today: Stifel Nicolaus cut the shares to Hold, Citi lowers it to Neutral and BofA Merrill Lynch to Underperform.
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