By Dan Gallagher, MarketWatch
SAN FRANCISCO (MarketWatch) -- Microsoft Corp. saw its shares
jump Wednesday following a report that the company is narrowing its
list of CEO candidates, while several social-networking stocks
slipped ahead of the expected pricing of Twitter's IPO.
The Nasdaq Composite Index slipped a fraction to 3,930, while
the Morgan Stanley High-Tech Index was up 0.5%. The Philadelphia
Semiconductor Index gained 0.3%.
Microsoft (MSFT) shares were up more than 3% to $37.85. Reuters
reported late Tuesday that the company has narrowed down its
"shortlist" for CEO candidates, which reportedly include Ford (F)
chief Alan Mulally and former Nokia (NOK) CEO Stephen Elop. Former
Skype CEO Tony Bates is also reportedly on the list of candidates.
The candidates are being considered to replace outgoing chief Steve
Ballmer.
Also, Nomura analyst Rick Sherlund raised his price target on
the stock, citing the potential for a new leader and reorganization
"potentially extracting a lot more value out of the current
assets." He raised his price target to $45 from $40, still rating
the shares as a buy.
"We believe many investors are effectively being caught 'off
sides' on Microsoft, still focusing on what could go wrong with the
fundamentals, rather than what could go right with new management
and likely changes in cost structure, disposition of money losing
consumer businesses Bing and Xbox, corporate governance changes and
financial engineering potentially extracting a lot more value out
of the current assets," Sherlund wrote. "The harder issue will be
repositioning the product portfolio to address faster growth
opportunities for the enterprise cloud businesses and what it means
to deliver innovative new consumer productivity products."
Twitter (TWTR) is expected to price its IPO tonight, ahead of a
debut on the New York Stock Exchange on Thursday. The company
currently plans to price 70 million shares in a range of $23-$25
per share.
Shares of Facebook (FB) were down 2%, while LinkedIn (LNKD) shed
1% and Yelp (YELP) dropped more than 6%. Groupon (GRPN) was down
nearly 4%.
Qualcomm (QCOM) shares edged higher by a fraction ahead of the
company's fiscal fourth-quarter report, due after the close.
Activision Blizzard (ATVI) shares were up 0.5% to $16.62. The
company reported that "Call of Duty: Ghosts" has sold more than $1
billion into retail stores in its first 24 hours after the launch
of the latest iteration of the blockbuster first-person shooter
franchise. However, the company's statement Wednesday morning
differs from launch figures from previous year's releases;
Activision said last year's "Call of Duty: Black Ops 2" sold
through more than $500 million to end customers in its first 24
hours.
"Although it is too early to assess sell-through for Call of
Duty: Ghosts, it's launching at a time when the franchise has never
been more popular," Bobby Kotick, CEO of Activision Blizzard, said
in Wednesday's statement. Activision also reports quarterly results
after the closing bell.
Apple (AAPL) shares slipped by a fraction in afternoon trades.
The Wall Street Journal reported that the company has lined up new
contract manufacturers to increase production of its iPhones and
iPads.
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