Pre-Market BUZZERS: RIM Rallies, Facebook and Zynga POP!
Shares of Research in Motion (NASDAQ:RIMM) are up 0.50 percent in pre-market hours today after closing more than 7 percent lower on Monday. Morgan Stanley (NYSE:MS) downgraded the company from Equal Weight to Underweight, saying that the BlackBerry maker would have to shrink operations in order to survive. “We believe the fundamental story at RIM is essentially broken,” analyst Ehud Gelblum said. “The most likely way to unlock value from the company is either through a strategic option or selling off the operations.”
Zynga Inc. (NASDAQ:ZNGA) shares are popping 2.72 percent higher in pre-market trading. The social-gaming company received positive coverage from Piper Jaffray Monday. The firm’s analysis of quarter-to-date AppData indicates that Zynga’s daily average user growth remains in-line with expectations and do not appear to suggest a Q2 miss, which seems to be priced into the stock. The firm believes that Zynga is in the position to be benefited by social and mobile gaming increases. The firm reiterates its Outperform rating on the stock.
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Facebook (NASDAQ:FB) shares are attracting attention early trading up 0.90 percent Tuesday, as the company announced that chief operating officer Sheryl Sandberg is joining its board of directors. “Sheryl has been my partner in running Facebook and has been central to our growth and success over the years,” said CEO Mark Zuckerberg said in a press statement. “Her understanding of our mission and long-term opportunity, and her experience both at Facebook and on public company boards makes her a natural fit for our board.”
Coinstar Inc. (NASDAQ:CSTR) shares are dropping more than 2 percent in pre-market trading. The company announced it has completed its acquisition of certain assets of NCR Corp.’s (NYSE:NCR) self-service entertainment DVD kiosk business. However, it expects the purchase to reduce earnings per share by 40 to 50 cents. “With the closing of the NCR transaction, we have strengthened our ability to bring the value and convenience of Redbox entertainment to new retail partners and their customers,” said J. Scott Di Valerio, chief financial officer of Coinstar, Inc. “While we expect to incur losses during the initial period, as we swap out the acquired kiosks for new Redbox kiosks, we expect the economics to improve and become accretive sometime in 2013.”
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