Sector Update: Technology
Technology shares are higher in pre-bell trading. Rovi Corporation ( ROVI ) shares are up 1% after it said STM Holdings Limited has chosen DivX Video Service to power its new video-on-demand service in China.
As part of the licensing agreement STM will use DivX Plus Streaming, Rovi's streaming format with DivX DRM, as well as Rovi TotalCode, a video encoding solution. These solutions will initially be deployed to power a new STM service that will offer access to video entertainment in over 20,000 internet cafes in Greater China.
And, E*Trade ( ETFC ) is raised to buy from neutral at Goldman Sachs. Goldman also raised its price goal to $19 from $13.50. ETFC is up more than 2% in pre-market trade.
"...the recent regulatory sign-off on ETFC's capital plan creates a significant idiosyncratic opportunity to unlock shareholder value, which could lead to EPS doubling over the next 3 years and is not reflected in consensus estimates or the stock's valuation, in our view," analyst Alexander Blostein reportedly said.