Technology stocks are narrowly higher with shares of technology
companies in the S&P 500 climbing just 0.1% in late-afternoon
In company news, Internet stocks - including Facebook (
) and Google (
) - are lower today following a downgrade of the sector to In-Line
from Attractive at Morgan Stanley, believing those stocks are
likely due to soon cool down after an extremely strong run in
"We see a more balanced risk-reward following strong
performance," analyst Scott Devitt wrote in a new research note
Monday. That performace included a combined 57% rise for stocks in
the Morgan Stanley Internet universe year to date. By comparison,
the Nasdaq Composite index is up 28% in 2013.
"Outperformance has been driven by multiple expansion rather
than positive estimate revisions," he continued, concluding he
believes current valuations "could be full despite strong secular
FB shares are down 2.4% at $46.37 today while GOOG is off 0.3%
at $1,013.31 a share after Morgan Stanley dropped the stock from
its Best Idea list. The research shop also includes Amazon.com (
), eBay (
), LinkedIn (
), Priceline (PCLN), Groupon (GRPN), Pandora Media (P), Zynga
(ZNGA), WebMD Health (WBMD) and OpenTable (OPEN) in its Internet
In other sector news,
(+) GOGO, Net loss widens from year-ago to $0.22 per share but
still beats analyst forecasts by $0.09. Revenue for the in-flight
wi-fi service provider rises 48% year over year to $85.4 mln,
topping estimates by $8.56 mln.
(-) CRUS, Barclays issues research note saying Apple (AAPL) has
stopped using the company's amplifers in its iPad Air tablets,
eliminating as much as $40 mln in yearly revenue. Also, CEO Jason
Rhode last week sells over 100,000 of his CRUS shares.
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