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Technology Sector Update for 06/12/2018: TWTR,MVIS,ACIA,MDSO


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Top Tech Stocks

MSFT +0.18%

AAPL +0.22%

IBM +0.08%

CSCO +0.29%

GOOG +0.45%

Technology stocks firmed on Tuesday, with shares of tech companies in the S&P 500 adding over 0.3% in value today while the Philadelphia semiconductor index also was posting a more than 0.3% gain.

Among technology stocks moving on news:

+ Twitter ( TWTR ) raced to its best share price since April 2015, climbing over 7% to $44.33 apiece after analysts at J.P. Morgan increased their price target for micro-blogging platform by $11 to $50 a share and also reiterating their Overweight stock rating for the company's stock. The move follows Twitter June 7 pricing a $1 billion private placement of its 0.25% convertible senior notes due 2024 with qualified institutional investors. Underwriters at Goldman Sachs, Morgan Stanley and J.P. Morgan also exercised their overallotment options in full to buy an additional $150 million of the convertible notes, generating $1.15 billion in gross proceeds for the company. Twitter also negotiated $268 million in private hedging transactions to limit dilution of existing shareholders if the new notes are converted into common stock and also issued warrants to counter-parties to buy up to 20.1 million shares with a strike price of $80.20 a share - double the stock's $40.10-a-share closing price last Wednesday - and generating up to $186.8 million in gross proceeds for the company.

In other sector news:

+ Acacia Communications ( ACIA ) rose Tuesday after the networking equipment manufacturer reaffirmed its Q2 earnings guidance and said it still was unclear how soon the company could resume selling components to Chinese smartphone-maker ZTE. The U.S. Department of Commerce on Monday detailed its $1.4 billion settlement with ZTE, which was accused of selling phones to North Korea and Iran in violation of international sanctions. Suppliers from the United States have been barred from selling to ZTE since April and the government said the ban will remain in place until the fines are paid and ZTE places $400 million in a bank escrow account.

- Medidata Solutions ( MDSO ) was inching lower Tuesday afternoon, drifting between gains and losses after announcing its $195 million acquisition of cloud data analytics provider SHYFT Analytics. Medidata said it expects the deal will bring a platform for clinical development together with a platform for commercial and real-world data analytics. The transaction is expected to close before the end of June.

- Microvision ( MVIS ) declined Tuesday, at one point dropping almost 8%, after the miniature projection copmany priced an $18 million public offering of 14.4 million shares of its common stock at $1.25 each, representing a 3.1% discount to Monday's closing price. The company issued a 30-day option to underwriters to buy up to 2.16 million additional shares to cover potential over-allotments. After paying underwriter discounts and other offering expenses, Microvision expects net proceeds of around $15 million prior to any exercise of the over-allotment options. It plans to use the new funds for general corporate purposes as well as for working capital and capital projects.

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: ACIA , MDSO , MVIS , TWTR



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