Shares of Carvana (CVNA), the used-car online marketplace based in Phoenix, Arizona, are down $2.33, or almost 16%, at $12.67, after the company’s shares debuted on the New York Stock Exchange this morning. CEO Ernie Garcia III was kind enough to talk with me by phone for a little bit following the offering. Garcia previously served as a “financial strategist” at DriveTime, and as managing director of corporate finance, and subsequently “director of quantitive analytics." Carvana’s offering is a little overshadowed today by the surging IPO of another tech name, software distributor Cloudera (CLDR), whose stock is up 20%. Carvana, founded in 2012 as a subsidiary of used car dealer and financing outfit DriveTime, in nearby Tempe, was spun out as its own operation in 2014. The offering had been priced at $15 per share, in the middle of an expected range of $14 to $16, but opened below that, at $13.50.
Canaccord Genuity’s Michael Graham today initiates coverage of messaging-cum-camera company Snap (SNAP) with a Hold rating, and a $22 price target, writing that he’s a “fan” of theirs, but the product needs to “evolve,” and Snap is challenged to get the growth required to drive upside to the stock. Snap shares today are up 32 cents, or 1.5%, at $22.33. “We are fans of the Snap platform and believe it will become much more mainstream,” writes Graham. “That said, while Snap's relevancy is very high with young, domestic audiences, the platform may need to evolve to resonate with older and international crowds." “Monetization needs to expand as quickly as we have ever seen to achieve the revenue growth and operating leverage reflected in our model, and this carries significant execution risk."
Shares of Cloudera (CLDR), the startup that has Intel’s (INTC) backing, and gets paid for distributing Hadoop open-source software, have opened for their first day of trading and are surging, up $3.48, or 23%, at $18.48. Cloudera competes with Hortonworks (HDP), and with privately held MapR, among others. The stock opened at $17.80, after pricing at $15, above a […]
China has been a worry for investors in fiber optic stocks this year, and Stifel Nicolaus analyst Patrick Newton, who is generally very positive on names such as Lumentum Holdings (LITE), nevertheless cuts his price targets this morning on several of them, after digging into the details of China’s sluggishness. Newton, who has Buy ratings on Lumentum, on Finisar (FNSR), on Fabrinet (FN), and on Oclaro (OCLR), cuts his targets for all four, after detecting evidence of a slowdown that has persisted into this month. His target on Lumentum goes to $52 from $57; for Finisar, he drops it to $33 from $39; for Fabrinet, he cuts to $48 from $52; and for Oclaro, he’s now at $11 from $12. "Over the last several weeks we have made several checks into China in an attempt to discern the potential timing for the release of Chinese tenders associated with the anticipated 100G provincial builds,” writes Newton.
Here are some things going on today in your world of tech: Shares of Hadoop software vendor Cloudera (CLDR) are set to open for their first day of trading any moment now, after the company priced the deal at $15, above a prior range of $12 to $14. Shares of Qualcomm (QCOM) are down $1.69, or 3%, at $51.52, after the company this morning slashed half a billion dollars from its outlook for this quarter, saying Apple (AAPL) continues to interfere with royalty payments the company is owed, and will continue to do so during the legal dispute between the two. Speaking of litigation, chip equipment maker ASML Holding NV (ASML) fired its counter-shot at Japan’s Nikon (7731JP), which filed suit against ASML on Monday, and against ASML's supplier, Germany’s Carl Zeiss SMT GmbH, for infringing on Continue reading "Tech Today: Qualcomm Warns, Downgrading Amazon, Debating WDC"
Shares of hard disk drive and memory chip maker Western Digital (WDC) are up $7.69, or almost 9%, at $93.40, in early trading, after it reported yesterday afternoon fiscal Q3 revenue and profit that topped analysts’ expectations, and recovered from early losses, after forecasting this quarter higher as well. Interestingly, reviews are going in opposite directions, with Morgan Stanley’s Katy Huberty raising her rating on the shares to Overweight from Equal Weight, while Wells Fargo’s Maynard Um cut his rating to Market Perform from Outperform. Um keeps his “valuation range” on the shares of $90 to $100, and writes that he is “impressed” with the company’s “execution” and its outlook for $12 per share in earnings. But upside in the stock is limited because "multiple expansion will be challenging as every quarter that passes is one closer” to a peak in the payoff from NAND flash chips.