Noon Buzzers: Facebook Falters Hard, H-P Hit By Euro Weakness
Facebook (NASDAQ:FB) shares are trading lower over 5 percent today near its all-time lows. Late Thursday, Morgan Stanley’s (NYSE:MS) CEO James Gorman appeared on CNBC to discuss the troubled debut of the social-media giant. The bank was the lead underwriter in taking Facebook public. Despite Facebook logging a 22 percent decline in May, Gorman said, “The story isn’t over. It’s only been a little bit of time. There was more hype going into this than any security ever traded. We all need to settle down and get back to the fundamentals of what is this great company doing.”
Shares of SAIC Inc. (NYSE:SAI) dropped 2.1 percent in trading, despite reporting a decrease in first-quarter earnings. Net income for the company came in at $117 million (35 cents per share), compared to $131 million (36 cents per share) a year earlier. However, SAIC beat the mean estimate of 33 cents per share and revenue increased 3.5 percent to $2.78 billion.
Hewlett-Packard Co. (NYSE:HPQ) shares are down 3.79 percent in noon trading. The global PC company received a downgrade from Buy to Hold by Jefferies’ Peter Misek. He says the restructuring efforts will not be enough to offset eurozone weakness and less demand for PCs and printers. Misek also cut his price target on shares from $30 to $23.
Leap Wireless Inc. (NASDAQ:LEAP) shares plunged 9.88 percent Friday. The company will be the first prepaid carrier in the United States to sell the Apple Inc. (NASDAQ:AAPL) iPhone. Leap will sell the iPhone 4S and iPhone 4 starting in late June, but will not offer any subsidies on units. The 16GB 4S model will cost $499, while the 8GB iPhone 4 will be priced at $399, both without any contract.
Groupon Inc. (NASDAQ:GRPN) shares fell more than 9.3 percent by noon. The company’s post-IPO insider lock-up agreement expired today. The expiration of this agreement frees up 93 percent of Groupon’s outstanding shares, essentially doubling the amount of shares available for trading.
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