Ultimate Market Recap: Facebook Still Flailing, Lions Gate Losses
Active Stock Radar: RIM Shares Regress, BofA and Alcoa Pump Dow Up
Research in Motion (NASDAQ:RIMM) shares plunged more than 7 percent in post market hours. The BlackBerry maker announced it hired JPMorgan (NYSE:JPM) and RBC Capital Markets to review the company’s business and financial performance. RIM has seen its market share dwindle over the years as Apple Inc.’s (NASDAQ:AAPL) iPhone has gained popularity.
After closing 9.62 percent lower during regular trading. Facebook (NASDAQ:FB) shares continued to edge lower in late trading. The social-media giant is reportedly expanding its efforts on creating a smartphone. Nick Bilton from the New York Times writes, “One engineer who formerly worked at Apple and worked on the iPhone said he had met with Mark Zuckerberg, Facebook’s chief executive, who then peppered him with questions about the inner workings of smartphones. It did not sound like idle intellectual curiosity, the engineer said; Mr. Zuckerberg asked about intricate details, including the types of chips used.” Also, Facebook options are now available for trading. Thus, providing investors with a cheaper way to play Facebook shares.
Bank of America Corp. (NYSE:BAC) shares closed 4 percent higher on Tuesday and continued to climb higher in extended trading. The JPMorgan multi-billion dollar loss fall-out has investors running towards banks with less publicized problems.
Despite trading near 52-week lows, shares of Alcoa Inc. (NYSE:AA) popped 3 percent during regular trading. Shares of the aluminum company were one of the best performers in the Dow Jones Industrial Average on Tuesday as value investors explored the industrial sector.
Lululemon Athletica Inc. (NASDAQ:LULU) shared edged slightly lower in late trading, despite Wedbush Securities initiating coverage on the athletic apparel maker with an Outperform rating. The firm also placed a price target of $90 on shares.
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Wall St. Brief: FTC Hates on Facebook and Why RIMM CRASHES
Research in Motion (NASDAQ:RIMM) shares are down 8% in morning trading after the company’s released its business update on Tuesday. The announcement included a surprise operating loss for the fiscal quarter one, additional job cuts and the hiring of JPMorgan (NYSE:JPM) and RBC (NYSE:RY) to help with a “strategic review; ” this will encompass licensing and partnership opportunities. RIM neither gave details of the loss and employee cuts, nor mentioned a possible sale of the company.
At the AllThings D conference on Tuesday, Apple Inc. (NASDAQ:AAPL) CEO Tim Cook said the company will “double down” on secrecy, but shared enough to keep loyal Apple fans intrigued for months. This included the following nuggets, according to Seeking Alpha: Apple’s TV box is “an area of intense interest,” “we can do more” with Facebook (NASDAQ:FB), different-sized iPads and iPhones and ”If we find we can do more, great.”
Investing Insights: Will Apple Manufacturing Come Back Home?
Facebook (NASDAQ:FB) has received a “second request” by the Federal Trade Commission regarding its Instagram acquisition. The agency has requested lots of data, suggesting a long review. With the Facebook and Instagram control of the mobile photo-sharing market and the launch of Facebook Camera, concerns have been raised by regulators. This comes as Facebook’s shares fell 9.6% on Tuesday to close at $28.84. In early morning trading today, shares rebounded 1.3%.
Now that Google (NASDAQ:GOOG) has Motorola under its control, AllThingsD has reported that Microsoft (NASDAQ:MSFT) looks toward a settlement in their patent dispute. Android and Xbox injunctions have already been flying around. Last summer, Microsoft and Motorola had been near a deal but not so anymore.
Sony (NYSE:SNE) and Panasonic (NYSE:PC) are the top suitors for an equity stake in Olympus (OCPNY.PK), reported Asahi Shimbun (via Reuters). A decision may be reached by the end of the June with the opportunity for the winner to take a more than 10% stake in the company, valued at several hundred million dollars.
What’s Moving The Needle for These Stocks Today?
Booz Allen Hamilton Holding Corporation (NYSE:BAH): Yesterday, Booz Allen’s Board of Directors announced a cash dividend of $0.09 per share, the second quarterly cash dividend he company has announced. The Board also announced a special cash dividend equivalent to $1.50 per share, and both dividends are payable on June 29, June 11 for stockholders of record. The company expects flat or low-single digit revenue growth and is providing top-line guidance for the first half of this fiscal year.
The Fresh Market Inc (NASDAQ:TFM): This year, The Fresh Market plans on opening 14-1 new stores. The company reports that SSS has increased 4.5%-6.5%, an effective tax rate of 37.5% , and a CapEx of $95M-$105M in FY12.
A Closer Look: The Fresh Market Earnings Cheat Sheet>>
Jos. A. Bank Clothiers, Inc. (NASDAQ:JOSB): Jos. A. Bank misses by $0.09 with a Q1 EPS of $0.53, and a revenue of $201.4M, up 4.2% year over year, misses by $7M. The company states, ”For May, both our comparable store sales and Direct Marketing sales are up compared to the same period last year, continuing the positive trend established in the last five weeks of Q1.”
Investing Insights: Jos. A. Bank Earnings Cheat Sheet>>
Neonode, Inc (NASDAQ:NEON): According to a recent post on Seeking Alpha written by James Altucher, Neonode could be a possible candidate for acquisition, and the shares could be driven to $30 because of core business alone.
Monsanto Company (NYSE:MON): According to Monsanto, grain’s demand curve is becoming more noticeable, and the company claims that this growth is a result of a dietary shift rather than population growth. The company continues by mentioning the decrease of arable land per capita and that U.S. corn and soybean production exceeded initial targets. Monsanto is seeing rapid growth in Brazil has expectations of vegetable to become the third most productive platform in the recent future. The company is currently having discussions in China in order to find a manner to expand its footprint in corn. Monsanto has raised its FY12 EPS guidance from $3.49-$3.54 per share to $3.73-$3.78 per share vs. a consensus of $3.56. Q3 EPS should be $1.57-$12 per share vs. a $1.29 consensus. According to CEO Hugh Grant, the strong performance is not due to a precarious planting season, but it is about real demand from acres that were planted higher.
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Bank of America (NYSE:BAC): According to the Bank of America CEO, the legacy asset servicing costs are peaking, but LAS costs should begin to drop. Outlines for the next phase of the “New BAC” should be outlined in July. Bank of America states that Moynihan teams have their work cut out for them, and they need time to grow loans. The company states that growth is needed for C&I loans.
Apple Inc. (NASDAQ:AAPL): Bloomberg cites Einhorn’s quarterly letter to investors in claiming that as a result of long positions in Apple and Seagate Technology (NASDAQ:STX) as well as a small, successful, short position in Diamond Foods (NASDAQ:DMND), David Einhorn’s Greenlight Capital fund has increased 6.8% in Q1.
A Closer Look: Should We Get Ready For An Apple Product Onslaught?
Facebook, Inc. (NASDAQ:FB): Not only is Facebook’s ad revenue growth slowing down, the company’s Payments growth, which saw a surge last year following Facebook’s required 30% cut on virtual goods sales, dropped quarter over quarter in Q1. Henry Blodget believes that 75% growth is optimistic, and the fact that top Payments cutoper Zynga is currently encountering slowing growth. Facebook sees hope in its App Center and believes it may raise Payments revenue.
Investing Insights: 8 HUGE Negative Catalysts for Facebook Investors>>
AT&T, Inc. (NYSE:T): At the Nomura U.S. Media, Cable & Telecom Summit, AT&T’s CEO expressed that price increases in wireless should help in Q2, and margins are rising as a result of slowing phone sales.
Nokia Corporation (NYSE:NOK): According to iVolatility, Nokia option implied volatility has been raised near the top of its 52-week range. Following checks indicating slow Lumia phone sales, MKM Partners downgraded Nokia, and the price target has been dropped to $2.
3 Scorched Stocks Grabbing Headlines Now
Teavana Holdings, Inc. (NYSE:TEA): The present acquisition should not affect earnings per share, this excludes that transaction and integration expenses are expected to be in the range of 4c-5c. According to expectations, the acquisition should dilute earnings per share by 2c. By FY13, the acquisition might increase earnings per share by 3c-4c. Q1 shows an EPS of $.0.10 in-line, and a revenue of $44.3M, up 27% year over year, which misses by $0.6M
Research In Motion Limited (NASDAQ:RIMM): Following the FQ1 warning it included in its “business update,” Research in Motion took a 10% hit to its stock. Practically no analyst has a positive opinion about the company, and many do not believe in the emergence of a buyer who will offer a significant premium. Baird sees no hope in Facebook or Microsoft having interest, and Stene Agee thinks that RIM may only receive a deal at or below current levels. According to Bernstein, the BB10 launch “will most likely turn into a disaster.”
Featured Reading: Research in Motion: The Decline and Fall>>
UDR, Inc. (NYSE:UDR): UDR Inc is offering 19M shares for $25.70 per share, Spot Secondary. The deal is priced at the lower end of a $25.70-$26.35 range. For the offering, Bank of America Merrill Lynch and JPMorgan took the role of book running managers.
Daily Stock Buzz: Will RIMM Sink or Go Bobbing for Apple?
Research in Motion (NASDAQ:RIMM) shares are down more than 7 percent in afternoon trading. The BlackBerry maker announced it hired JPMorgan (NYSE:JPM) and RBC Capital Markets to review the company’s business and financial performance. CEO Thorsten Heins also announced that the company would report a first-quarter operating loss and plans on cutting its work force.
Apple Inc. (NASDAQ:AAPL) shares are higher almost 1% in afternoon trading. CEO Tim Cook said during the D: All Things Digital conference that Apple is preparing to release some “incredible” new products. However, he did not provide many details as he promised to “double down” on secrecy.
Don’t Miss: Will Apple Manufacturing Come Back Home?
Shares of Monsanto Co. (NYSE:MON) gained 2.70 percent in morning market trading as the company expects a stronger-than-expected third-quarter. Monsanto expects earnings to come in at $1.57 to $1.62 per share, above estimates of $1.29 by analysts.
LinkedIn Corp. (NYSE:LNKD) shares reversed lower down 2 percent in Wednesday afternoon trading. The professional social networking company received an upgrade from Neutral to Buy over at Citigroup (NYSE:C). “LinkedIn has so far demonstrated strong execution,” explained analyst Mark Mahaney.
After falling more than 9 percent on Tuesday, Facebook (NASDAQ:FB) shares are down another 2.46% in afternoon trading. Concerns continue to surround the social-media company as it is reportedly dipping its toes into the smartphone market. Options also began trading yesterday, which gives investors another way to play shares without purchasing them outright.
Investor Insight: Pandora Receives Even MORE Competition
Late Radar Movers: Lions Gate and TiVo Report Quarterly Losses
Shares of Lions Gate Entertainment Corp. (NYSE:LGF) fell 7 percent after the closing bell. The media company reported a net loss of $22.7 million (17 cents per share) for the fourth-quarter, compared to a net gain of $48.7 million (34 cents per share) a year earlier. Revenue increased 71.2 percent to $645.2 million from the year-earlier quarter.
TiVo Inc. (NASDAQ:TIVO) shares dropped more than 3 percent in late trading as the company reported disappointing results for the first-quarter. TiVo logged a loss of $20.8 million (17 cents per share), compared to a net gain of $139 million ($1.04 per share) a year earlier. Tom Rogers, President and CEO of TiVo, said, “Our first quarter represented a solid start to the year for TiVo with our results in line with our financial outlook and as we continued to execute on our key objectives. Global adoption of TiVo progressed as we grew our subscription base 27% year-over-year, or by 524,000 subscriptions.”
Don’t Miss: Does This Spell BAD NEWS for Pandora?
After falling almost 8 percent during regular market hours, Research in Motion (NASDAQ:RIMM) shares edged slightly higher in extended trading. The BlackBerry maker recently announced it hired JPMorgan (NYSE:JPM) and RBC Capital Markets to review the company’s business and financial performance. CEO Thorsten Heins also announced that the company would report a first-quarter operating loss and plans on cutting its work force.
Despite a pullback across the markets on Wednesday, Apple Inc. (NASDAQ:AAPL) shares managed to close 1.2 percent higher and continues to attract interest after the closing bell. The tech giant launched the official iOS app for its 2012 Worldwide Developers Conference, and also posted the full conference schedule on its website. The conference begins on Monday, June 11 with a keynote presentation, as expected. Most Apple enthusiasts know that a keynote presentation usually contains the introduction of some new software, and if they’re lucky, some new hardware as well.
Shares of Facebook (NASDAQ:FB) continue to struggle in public trading. The social-media company traded down to as low as $27.86 on Wednesday, representing new lows since it began trading on the Nasdaq (NASDAQ:QQQ) on May 18. Shares finished the day at $28.19 and continued to edge lower in late trading.
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