Technology Sector Update for 12/01/2016: FIT,SMTC,FCEL

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Technology stocks fell for a second day in a row, with shares of tech companies in the S&P 500 dropping to a 2.0% decline.

In company news, Fitbit ( FIT ) shares advanced during Thursday trading following reports the company was nearing a deal to acquire rival smart watch manufacturer Pebble in a deal valuing the target company at between $34 million to $40 million.

Pebble has been approached before with deal proposals, with would-be suitors Intel ( INTC ) and watch-maker Citizen said to have rebuffed by CEO Eric Migicovsky over the past two years. But the company also has increasingly grappling with financial troubles, with The Information reporting Pebble had idled about a quarter of its workforce earlier this year.

Citing three people familiar with the talks, The Information said Fitbit would phase out the Pebble name over time and was most interested in its patent portfolio. One of the sources also said Pebble was desperate to sell, explaining the $40 million pricetag would "barely cover (its) debts.

FIT shares recently were up more than 1% at $8.46 each, previously climbing as high as $8.59 a share earlier today.

In other sector news,

(+) SMTC, Adjusted Q3 EPS of $0.37 per share tops analyst mean by $0.01 per share. Revenue climbs 21.7% from year-ago levels to $140.9 mln, beating Street by $3 mln. Guides Q4 earnings above expectations. Oppenheimer upgrade to Outperform from Perform.

(-) FCEL, Lays off 96 employees - or 17% of workforce - as part of a company-wide restructuring that temporarily includes reducing production rate by 50%. Projected Q4 revenue of $23 mln to $25 mln trails Street view by at least $34.9 mln.

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) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Technology , Commodities
Referenced Symbols: FIT , INTC , SMTC , FCEL

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