Afternoon Buzzers: Google to Challenge Apple With 10-inch Tablet, Netflix Downgraded
Shares of Netflix (NASDAQ:NFLX) declined more than 7 percent after running up significantly over the past couple weeks. Bank of America (NYSE:BAC) downgraded shares to Underperform from Buy, with a price target of $72 per share. The firm explains, “With the stock increasing 31 percent over the past two-weeks, we now believe the risks outweigh the reward heading into Q3. We see net additions significantly below estimates as the biggest risk to the stock.”
Apple (NASDAQ:AAPL) shares edged lower Tuesday after reports indicating that Google (NASDAQ:GOOG) is teaming up with Samsung to offer a 10-inch tablet. “It’s going to be a high-end device,” explains Richard Shim, an analyst at NPD DisplaySearch, according to CNET. “They’ll partner with Samsung and co-brand it with Samsung,”
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Facebook (NASDAQ:FB) shares fell over 1 percent this morning. The company has proposed a $20 million settlement in a class action lawsuit accusing the social network of violating users’ rights with its “Sponsored Stories” advertising feature. The offer was revised upward after a U.S. judge rejected an earlier agreement.
Shares of Research in Motion (NASDAQ:RIMM) fell more than 4 percent on Tuesday. Jefferies’ analyst Peter Misek believes the BlackBerry 10 will not launch until March. “We had hoped for a January launch but now see a March launch as more likely,” he writes in a research note. That would be another setback for the already struggling company and result in no sales of the next generation phones in the February quarter. “Also, our checks point to a tough November quarter, with replenishment rates decreasing as channel partners are cautious on holding RIM inventory.”
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