Historic Facebook debut falls flat
SAN FRANCISCO |
SAN FRANCISCO (Reuters) – The historic initial public offering of Facebook Inc did not go as planned on Friday, as the social networking company’s sky-high valuation combined with trading glitches left the stock languishing near its offering price at the market close.
Facebook shares began trading late Friday morning and opened 11 percent above the $38 offering price, but after peaking at about $45 slid rapidly at the end of the day to close at $38.23. The IPO was the third-largest in U.S. history and valued eight-year-old Facebook at $104 billion.
Gap raises profit outlook, shares rise
(Reuters) – Gap Inc (GPS.N) raised its yearly profit forecast, prompted by first-quarter earnings that topped Wall Street estimates and rising sales, and its shares rose 8 percent after hours.
For the full year, Gap estimated earnings of $1.78 to $1.83 a share, above the $1.75 to $1.80 it forecast in February.
“It’s important to remain measured in our outlook given that our biggest selling seasons are still ahead of us,” said Chief Financial Officer Sabrina Simmons.
FBI probes JPMorgan, shareholders back Dimon
TAMPA, Florida |
TAMPA, Florida (Reuters) – The FBI has opened an inquiry into the multibillion-dollar trading losses at JPMorgan Chase, stepping up pressure on the bank after key U.S. agencies said they were looking into high-risk trades that first drew regulators’ attention last month.
The news did little to spook investors, who sent the stock higher Tuesday, or shareholders, who backed embattled Chief Executive Jamie Dimon at the bank’s annual shareholders meeting, with a vote rejecting a proposal to split the jobs of CEO and chairman.
Sony slides to three-decade low on strategy doubts
TOKYO |
TOKYO (Reuters) – Shares in Sony Corp slumped more than 7 percent to near 32-year lows, as investors doubted the Japanese consumer electronics giant has a strategy to fix its loss-making TV business and compete in the smartphone market against Apple Inc and Samsung Electronics.
The last time Sony shares were this low, in the summer of 1980, its first Walkman portable cassette player had just gone on sale in the United States. So far this year, Sony has seen more than $3 billion wiped off its market value.
Chesapeake wins breathing space with $3 billion loan
(Reuters) – Chesapeake Energy Corp said it had received a $3 billion loan from Goldman Sachs and Jeffries Group that will give it breathing room to sell assets and close a funding gap this year.
The company, which has been embroiled in a corporate governance crisis that prompted its move to replace co-founder Aubrey McClendon as chairman, said the new unsecured loan will be used to repay money borrowed under its existing $4 billion revolving credit facility.
Economy fear still persist..Cisco outlook underwhelms,
(Reuters) – Cisco Systems Inc (CSCO.O) forecast quarterly earnings below Wall Street’s expectations, accentuating concerns about global technology spending and the network equipment maker’s ability to weather persistent economic weakness.
Shares in the company, which relies on government and corporate spending on Internet gear, slid more than 8 percent after hours, despite beating analysts’ third-quarter earnings estimates by a penny.
The company, which Chief Executive John Chambers a year ago admitted had “lost its way” after several quarters of sub-par growth, forecast revenue growth of 2 to 5 percent in the fourth quarter.
Cognizant cuts outlook on weak banking demand
(Reuters) – Information technology services provider Cognizant Technology Solutions Corp (CTSH.O) lowered its full-year forecast for the first time in nearly four years, citing weak demand from financial services clients in North America.
The company echoed sentiments expressed by its India-based rivals like Infosys Ltd (INFY.NS) and Wipro Ltd (WIPR.NS) as they battle lower discretionary spending by clients especially in the financial services segment.
However, analysts believe Cognizant will continue to outperform rivals and beat its full-year targets.
Treasury to sell more AIG common stock
WASHINGTON |
WASHINGTON (Reuters) – The Treasury Department said on Friday it plans a third sale of the common stock of American International Group (AIG.N) that it acquired as part of the government bailout of the insurer in 2008, at the height of the financial crisis.
The Treasury said the size and price of the offering are to be determined. Buyers purchased $6 billion of AIG common stock in March and $5.8 billion worth in May 2011.
RIM shares crumble as demo devices fail to inspire
TORONTO |
TORONTO (Reuters) – Shares of Blackberry maker Research in Motion dipped to an 8-year low on Thursday, after this week’s demo of its make-or-break new operating system failed to inspire investors and tech gurus.
Research In Motion Ltd (RIM.TO) gave developers and analysts a glimpse of its next-generation BlackBerry 10 smartphone at its annual BlackBerry World showcase. Most agree that the software looks decent, but analysts doubt that the product will be able to reverse RIM’s fall from grace.
