Market Wrap: Stocks RALLY, Zynga CRASHES 37%, Facebook Earnings REVEALED
Markets closed up on Wall Street today: Dow +1.67%,S&P +0.43%, Nasdaq +1.37%, Oil +0.48%, Gold +0.44%.
On the commodities front, Oil (NYSE:USO) rose to $89.41 a barrel. Precious metals also increased, with Gold (NYSE:GLD) increasing to $1,620 an ounce while Silver (NYSE:SLV) rose 0.02% to settle at $27.49.
Here’s your Cheat Sheet to today’s top stock stories:
BONUS: Facebook (NASDAQ:FB) said Thursday that it booked a net loss of $157 million, or 8 cents per share in the April-June period, primarily due to stock compensation expenses. That compares with earnings of $240 million, or 11 cents per share, in the second quarter a year ago. Revenue grew 32 percent to $1.18 billion from $895 million a year ago. Adjusted earnings of $295 million, or 12 cents per share.
Facebook (NASDAQ:FB) has reportedly hired a team of former Apple (NASDAQ:AAPL) software engineers to help revamp its iPhone app with a major code overhaul. Sources told Bloomberg on Wednesday that four former iOS experts had been hired by Facebook to work on speed and performance enhancements that are expected to be released in the upcoming version of the app for iOS devices.
With stocks in positive territory today, Sprint-Nextel’s (NYSE:S) shares increased 20 percent after reporting its second quarter earnings. For the quarter, it’s loss expanded thanks to the costs from shutting down the Nextel network and additional subscriber exits. On a positive note, the company’s revenue increased more than estimated.
MetroPCS Communications Inc.’s (NYSE:PCS) shares increased 35 percent. The company’s second-quarter earnings jumped 77 percent from spending less per user. Revenue did not meet expectations amid subscriber losses. But MetroPCS backed its full-year guidance and said it remains on track to launch 4G LTE For All by the end of the third quarter.
On the downside, Zynga Inc.’s (NASDAQ:ZNGA) shares tanked 39 percent. The company endured problems with its core Facebook platform for social-games business. It also saw a less than desirable performance from recently purchased “Draw Something” mobile game. This attributed to missing analysts’ expectations and subsequently cutting its full-year forecast.
For the second consecutive day, Netflix Inc.’s (NASDAQ:NFLX) shares dropped. On Thursday, they fell six percent after Wednesday’s 25 percent drop. After reporting its second quarter earnings, it warned it may not hit its domestic subscriber growth targets for 2012.