Gains For Apple Enough to Lift Tech Sector Higher; Millenial Media Slammed After $225-Mln Acquisition

By Staff,

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Technology stocks are narrowly higher this afternoon with shares of technology companies in the S&P 500 advancing about 0.1%.

In company news, Millennial Media Inc. ( MM ) is down over 17% at $7.03 a share, keeping some distance from its $6.45 session low after announcing a $225-million acquisition of a rival mobile-ad company and its Q2 sales lagged Street estimates.

The proposed stock swap for Jumptap Inc is intended to better position MM against larger competitors like Google ( GOOG ) in the mobile-ad space. MM will issue around 24.6 million shares of its stock to Jumptap investors, with the final number determined at closing based on the company's share price at that time.

Separately, MM said revenue during Q2 rose 45% over the same quarter last year to $57 million, trailing analyst forecasts by $2 million. EPS of $0.02 beat estimates looking for a $0.01 per share gain.

Also contributing to the downward momentum are downgrades of the stock today by Canaccord Genuity and Northland Securities.

In other sector news,

(+) BRCD, Q3 earnings of $0.19 per share top analyst estimates by $0.07. Revenue falls 3.4% year over year to $536.6 mln, still beating the consensus view by $17.7 mln. Projected Q4 EPS beats by at least $0.02 per share; revenue guidance was in-line with estimates.

(-) CREE, Sees fiscal Q1 EPS of $0.36 to 0.41, trailing consensus view by at least $0.02 per share. Revenue guidance was in-line with estimates. Q4 earnings of $0.38 per share beats by $0.01. Revenue climbs 22.7% to $375 mln, roughly matching estimates.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: GOOG , MM

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