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Stock Market & Financial Investment News

News Breaks
July 2, 2014
10:44 EDTVMW, GOOG, HPQ, EMC, CSCO, RAX, AMZN, IBMRackspace surges after report on 'going private' talks
Shares of open cloud company Rackspace (RAX) are rising after a technology focused blog said the firm is in talks with a private equity company to figure out a deal that would take it private. WHAT'S NEW: TechCrunch reported that Rackspace has been involved in negotiations with a private equity company for an agreement that would take the company private. A source within Rackspace is quoted as saying that the pressures of being a public firm could be "too much," while another source told the blog that an official announcement regarding the deal could occur as soon as this week. The TechCrunch article added that Rackspace has received bids from both HP (HPQ), which was said to be offering up to $43 per share, and IBM (IBM), though the source added that IBM's offer "fell through." WHAT'S NOTABLE: On May 15, Rackspace announced that it had been approached by a number of other companies that expressed interest in exploring strategic relationships, including partnerships and acquisitions. Rackspace disclosed it had hired Morgan Stanley (MS) to evaluate the proposals and explore other alternatives. Afterwards, analysts from Credit Suisse, Piper Jaffray and JMP Securities gave their opinions regarding potential acquirers of Rackspace, listing HP, Cisco (CSCO), Google (GOOG), Amazon (AMZN), EMC (EMC), VMWare (VMW) and Red Hat (RHT) as among the many potentially interested or suitable matches. ANALYST REACTION: Wells Fargo analyst Gray Powell feels that Rackspace could be "seriously" contemplating a motion to go private. Due to the company's strong balance sheet, Powell notes that the move is possible, but he thinks it is more likely that the company is trying to pressure possible acquirers. Wells continues to maintain an Outperform rating on Raxspace shares. PRICE ACTION: During morning trading, Rackspace jumped $2.23 or 6.6%, to $35.98.
News For RAX;HPQ;IBM;CSCO;GOOG;AMZN;EMC;VMW From The Last 14 Days
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May 13, 2015
15:43 EDTGOOGGoogle moves corporate applications to cloud, WSJ says
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15:22 EDTCSCOCisco May 29.5 straddle priced for 4% movement into Q3
15:10 EDTCSCOCisco May volatility elevated into Q3 and outlook
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15:06 EDTCSCOCisco technical comments before earnings
The stock has been on a strong run since the lows of last October, but the trend has flattened out heading into earnings. The range the shares have been in may be helpful in suggesting where price will head after earnings. The low of the range in the last couple of months has been $27 at the low and $30 at the high. A breakout above $30 on good news would be bullish, potentially moving the shares further into the ten-year high range. Above $30 the following resistance levels could become upside objectives depending on the degree of positive news: $31.09. $32.47, and $33.60. The 10-year high is at $34.24, and this would match with a projection of the top of uptrend channel that runs from September 2011 to present. If the news is a bearish surprise, the 50-day moving average at $28.37 would be the first support with the low of the range at $27 next. If the low at $27 were broken, next support would be at $25.92 and then at $24.98. There is significant support at the $25 area.
15:04 EDTCSCOEarnings Watch: Cowen says Cisco better positioned than most believe
Cisco Systems (CSCO) is scheduled to report results of its third fiscal quarter after the market close on Wednesday, May 13, with a conference call scheduled for 4:30 pm ET. Cisco, a member of the Dow Jones Industrial Average, sells Internet protocol-based networking and other products related to the communications and IT industry and provides related services. EXPECTATIONS: Analysts are looking for earnings per share of 53c on revenue of $12.07B, according to First Call. The consensus range for EPS is 52c-54c on revenue of $11.99B-$12.46B. Along with its last quarterly report, Cisco guided for Q3 EPS of 51c-53c and said it expects its revenue to be up 3%-5% in the quarter compared to the prior year. LAST QUARTER: On February 1, Cisco reported second quarter EPS of 53c, beating the consensus analyst forecast of 51c. Revenue came in at $11.94B, topping the $11.8B consensus forecast. At that time Cisco also raised its quarterly dividend to 21c from 19c. NEWS: On March 11, Cisco announced an extension of its cloud and data center relationship with Microsoft (MSFT) to include a new technology platform designed to accelerate service delivery and streamline the journey to the Intercloud for cloud providers. The new integrated solution combines Windows Azure Pack and Cisco Application Centric Infrastructure to help cloud providers "rapidly deliver hybrid cloud services while drastically simplifying operations and reducing costs," the company said. On May 4, Cisco announced that its board has appointed Chuck Robbins, who most recently served as Cisco's senior vice president of worldwide operations, as CEO, effective July 26. Current CEO John Chambers will assume the role of executive chairman and will continue to serve as the chairman of Cisco's board. STREET RESEARCH: On the day after the company's last report, research firm Piper Jaffray said it saw little downside risk in Cisco shares and believes Cisco is benefiting from a switching upgrade cycle that should sustain throughout 2015. The firm kept an Overweight rating on the stock with a $33 price target. Conversely, Citigroup said that despite the improving demand seen in Q2, Cisco shares remained fully priced at its levels at that time. Citi raised its price target for shares to $25 from $22, but kept a Sell rating on the name. The day after Cisco announced its CEO transition plan, Cowen said it thinks the company is better positioned and business is trending better than most investors believe, as evidenced by the timing of its CEO change. The firm, which believes Robbins is an excellent choice to replace Chambers, reiterated its Outperform rating and $35 price target on Cisco shares. Earlier this week, Pacific Crest upgraded Cisco to Outperform from Sector Perform, as the firm believes the April quarter results could signify the start of a multi-quarter recovery driven by new product cycles across switching, routing, wireless and servers. Pacific Crest, which thinks improving fundamentals and cloud momentum can drive multiple expansion in the second half of 2015 and into 2016, set a $36 price target for Cisco shares. PRICE ACTION: In afternoon trading ahead of Wednesday's report, Cisco shares are up fractionally to $29.30. In the last three months, Cisco shares have declined about 0.5%.
15:04 EDTCSCONotable companies reporting after market close
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14:52 EDTAMZNAmazon launches new mobile advertising platform
Amazon has launched a new advertising platform for mobile app developers that promises to "promote your app to millions of users on Fire tablet wakescreens and mobile placements on the Amazon Mobile Ad Network." Amazon automatically generates advertisements once an ad placement order is submitted, and touts that an ad campaign can be launched in as little as 90 seconds. Reference Link
13:45 EDTCSCOEZchip tumbles after losing spot in Cisco line cards
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13:28 EDTAMZNWal-Mart set to launch Amazon Prime rival, The Information reports
Wal-Mart (WMT) is nearing the launch of a subscription fast-shipping service that will compete with Amazon Prime (AMZN), Amir Efrati of The Information reports, citing people involved with or briefed on the product. The service is an attempt to boost Wal-Mart's online business and should launch in the next few weeks after being pushed back for technical and other issues, Efrati adds. Shares of Amazon are down $2.63 to $428.39 in afternoon trading while Wal-Mart is down 66c to $78.30. Reference Link
13:23 EDTAMZNWal-Mart set to launch rival to Amazon Prime, The Information reports
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12:43 EDTHPQHewlett-Packard volatility elevated into Q2 and outlook
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10:32 EDTCSCOFireEye calls active on renewed takeover chatter
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10:22 EDTCSCOEZchip sees Q2 revenue $27.5M-$28.5M, consensus $28.3M
Sees Q2 gross margins in the 75% range. Says NP-5 product revenues poised for growth in 2015. EZchip (EZCH) expects revenues from Cisco (CSCO) to continue to grow in 2015, 2016. Comments made on the Q1 earnings conference call. EZchip is down 25.24% to $14.62 in mid-morning trading.
09:39 EDTAMZNActive equity options trading on open
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09:04 EDTAMZNHouse Judiciary Committee to hold a hearing
The Subcommittee on Courts, Intellectual Property and the Internet holds a hearing entitled, "Stakeholder Perspectives on ICANN: The .Sucks Domain and Essential Steps to Guarantee Trust and Accountability in the Internets Operation" with Vice President Misener of Amazon.com on May 13 at 10 am. Webcast Link
09:03 EDTIBMIBM partners with Teleflora for large florists network
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08:00 EDTGOOGGoogle fight with EU over 'right to forget' may end up back in court, WSJ says
Google has set up a detailed process to comply with the European Union's "right to forget" rules and removed hundreds of thousands of links in search results for people's names from the European versions of its search engine, but European regulators argue that the company is undermining the decision by not applying it globally, reported The Wall Street Journal. Google says it wants to avoid seting a precedent that one region can set global rules for the Internet and the fight may end up back in court, the report added. Reference Link
07:21 EDTEMCCredit Suisse to hold a conference
4th Annual Disruptive Technology Conference is being held in San Francisco on May 13-14 with webcasted company presentations to begin on May 13 at 10:35 am; not all company presentations may be webcasted. Webcast Link
06:11 EDTGOOGBoeing ends work on only small satellite program, WSJ reports
Boeing is no longer working on a program for HySpecIQ, a private equity-backed startup, which had ordered two Boeing 502 Phoenix satellites that were expected to be launched in 2018, The Wall Street Journal reports. Boeing has ended work on the imaging spacecraft, its only small satellite order, due to the downturn in the natural resources market, the publication adds.
05:58 EDTCSCOStocks with implied volatility above IV index mean; ALTR CSCO
Stocks with implied volatility above IV index mean; Altera (ALTR) 81, Cisco (CSCO) 27 according to iVolatility.
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