Technology Sector Update for 04/24/2017: AVID,MSFT,DTRM,CYOU
Top Tech Stocks
Technology stocks were enjoying a strong advance to begin the new week, with shares of tech companies in the S&P 500 climbing just under 1.0%.
In company news, Avid Technology ( AVID ) jumped out to a big gain on Monday after the digital video and audio company today said it has formed a multi-year strategic alliance with Microsoft Corp ( MSFT ) to collaborate on and market cloud-based platforms and services targeting the media and entertainment industries.
Financial terms of the new partnership were not disclosed although the companies said they expect to deliver a continuous stream of hosting and service offerings over the next 18 months, with the first wave of offerings slated for a phased release during the second half of 2017.
The companies also said they both intend to make "significant mutual commitments and investments in technology, product development and go-to-market efforts." Microsoft has commited to invest additional resources and funding to support development of products by Avid designed for Microsoft's Azure cloud-based platform.
AVID shares were holding on to more than a 3% gain this afternoon following an 8.4% rise earlier today to a session high of $5.54 a share. MSFT shares also were higher, rising more than 1% in recent trade after this morning climbing almost 2% to a new record high of $67.22 a share.
In other sector news,
(+) DTRM, (+7.4%) Lake Street raises price target by $2 - or almost 67% - to $5 a share, also reiterating its Buy investment recommendation.
(-) CYOU, (-6.9%) Projected non-GAAP Q2 EPS of $0.46 to $0.56 trails Capital IQ consensus by at least $0.32 per ADS. Also sees Q2 revenue in a range of $110 mln to $120 mln, also trailing Street view by at least $21.1 mln. Q1 earnings, revenue beat analyst means.
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