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Technology Sector Update for 03/21/2018: CRM,MULE,FSCT,OTIV,DBX


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Technology stocks turned slightly lower in late Wednesday trading, with shares of tech companies in the S&P 500 losing slightly more than 0.2% in value while the Philadelphia semiconductor index held on for a nearly 0.5% gain.

In industry news:

European Union officials are preparing to soon unveil a digital tax on U.S. tech giants, according to a France 24 report Wednesday. The new tax is the latest measure by the 28-nation common market to levy fees on Silicon Valley giants like Alphabet's Google (GOOG,GOOGL), Amazon ( AMZN ) and Facebook ( FB ) and could further inflame a growing trade fight between the EU and the Trump White House. The proposed digital tax would be applied based on the user's geography although companies with less than $924 million in yearly revenue may not face the new fees, the news service said.

Among technology stocks moving on news:

- Salesforce.com Inc ( CRM ) was down about 1% in late Wednesday trading, trimming most of a 4% morning decline to a session low of $120.20 a share, that followed the customer retention and management software company last night saying it was acquiring Mulesoft ( MULE ) for $6.5 billion in cash and stock. Under terms of the proposed transaction, Mulesoft investors will receive $36 and 0.0711 of a Salesforce.com share, representing a 36% premium over the stock's closing price Monday prior to reports Tuesday of a possible deal between the companies. Salesforce.com said the acquisition will boost its long-term revenue goals, raising its target range for the 12 months ending in January 2022 by $1 billion over its prior guidance, now expecting between $21 billion to $23 billion in FY22 revenue. Mulesoft shares Wednesday rose more than 6% to $44.58 a share, reaching a record high for the second day in a row.

In other sector news:

+ On Track Innovations ( OTIV ) shares rose Wednesday after the near-field communications and cashless payment company exceeding analyst expectations with its Q4 revenue. Revenue rose to $6.7 million during the three months ended Dec. 31, 2017, from $4.7 million in the year-ago period and beating the $5.6 million two-analyst consensus call. It also narrowed its net loss to $0.02 per share from $0.03 per share during the final three months in 2016. A single analyst polled by Capital IQ had been modeling a $0.01 per share profit for the company.

+ ForeScout Technologies (FSCT) was advancing Wednesday, climbing as much as 6% to a session high of $31.00 a share, after the network security company a priced a $14.5 million follow-on public offering of 500,000 shares of its common stock at $29 apiece, a 2.6% discount to Tuesday's closing price for the stock. Several pre-IPO investors and other company insiders also sold nearly 2.1 million shares in a concurrent secondary offering, generating just over $39.8 million in gross proceeds. ForeScout did receive any proceeds from the secondary offering.

Dropbox (DBX) Wednesday raised the projected price for its initial public offering of stock by $2 to a new range of $18 to $20 per share, the cloud-services company disclosed in a new Securities and Exchange Commission filing. Dropbox is expecting to price its IPO on Thursday, offering 26.8 million shares while selected early investors are selling another 9.2 million shares in the deal.

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

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This article appears in: Technology , Commodities
Referenced Symbols: AMZN , FB , CRM , OTIV




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