Tech Today: Hock Tan Makes His Case; Previewing Cisco, Liking Workday


Here are some things going on today in your world of tech :

As the Qualcomm turns

Shares of Qualcomm (QCOM) are up $1.37, or 2%, at $65.36, in early trading, as it appears the company is moving toward a meeting with Broadcom (AVGO) about the latter's hostile bid on Valentine's Day, this Wednesday, February 14th.

Broadcom's CEO, Hock Tan, was on CNBC's Squawk Box a short while ago, making his case in discussions with David Faber and Jim Cramer.

Faber asked Tan what he'll do on Wednesday to convince Qualcomm's board. Tan simply repeated "we have a compelling offer," and that he's been on the road talking to Qualcomm holders and they all want "the board to engage with us."

When asked if he would axe Qualcomm's licensing business, Tan said, "What we will do is reset the business model over a period of time that will make it sustainable."

Tan also said if no agreement is reached, and if he doesn't get his entire slate of nominees elected on March 6th, at Qualcomm's annual shareholder meeting, he will walk away. "This is a binary proposal," he said.

Broadcom shares are $4.35, or 1.9%, at $239.85.

Previewing Cisco

Some positive sentiment for Cisco Systems (CSCO) ahead of its earnings report on Wednesday are up $1.16, or 2.8%, at $40.69, on an upgrade at Instinet to Buy from Neutral, with a $46 price target.

Analyst Jeffrey Kvaal writes that the company is seeing an "uptick" in its switching equipment for cloud computing giants such as Microsoft (MSFT) and Google, and that the uptick is "durable."

He also thinks the company's going to enjoy a return to buying of " campus " switches through 2019.

RBC Capital analyst Mitch Steves also raised his price target to $44 from $40, while reiterating his Outperform rating.

Twitter still challenged

Analysts keep assessing last week's surprise Q4 report from Twitter (TWTR). BMO Capital's Daniel Salmon, reiterating a Market Weight rating, raises his price target to $28 from $22, writing that if the company can "keep costs in check, we believe the story could become more interesting as top-line pressures fade,"

He adds, however, "but we also believe the work gets harder from here as low-hanging fruit has been picked and Facebook (FB) still looms large."

Twitter stock is down 2 cents at $31.49.

Cheers for Workday

Shares of Workday (WDAY) are up $2.01, or 1.8%, at $114.97, after Needham & Co.'s Scott Berg raised his rating to Buy from Hold, while adding a $130 price target, writing that he was wrong the last 12 months, but that now he thinks improved sales are in the offing for its financials software, and that financials are the key to any stock price above $100.

"Our recent industry checks found that this improvement in sales traction is underway," he writes.

First Solar overvalued

Shares of solar energy firm First Solar (FSLR) are up 31 cents, or half a percent, at $61.53, after Credit Suisse's Michael Weinstein started coverage this morning of the shares at an Underperform rating, with a $55 price target, writing that he likes many things, such as its "aggressive transition" to its newer "Series 6" technology, and its "strong balance sheet," but that "major catalysts are behind us," and the company faces risk "if tariffs are withdrawn."

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

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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