Finisar (FNSR) is down 20% on Friday, after its third-quarter earnings and guidance disappointed.
Analysts are weighing in on the stock today, and while a number cut their price targets on the stock following the news, bulls remain optimistic about Finisar going forward.
Adobe Systems (ADBE) will report first-quarter earnings next week, and Cowen & Co. expects a good quarter from the software giant.
Analysts J. Derrick Wood and Rakesh Kumar reiterated an Outperform rating and raised their price target by $20, to $140 on Friday, writing that they expect steady growth execution from Adobe, and are optimistic about the health of its growth vectors in both Digital Media and Digital Marketing.
RBC Capital Markets’ Mark Mahaney and Jim Shaughnessy have a new review out of Voice-Activated Internet (VAI) players, arguing that VAI will be a major long-term trend that represents a significant opportunity for Amazon.com (AMZN) and Alphabet (GOOGL), thanks to Alexa and Google Home, respectively.
They reiterated an Outperform rating and $900 price target on Amazon, arguing that it could potentially see $10 billion in VAI revenue by the year 2020.
Benchmark’s Mark Miller is out defending Western Digital (WDC) after recent weakness Friday, writing that the selloff is a buying opportunity.
Both Western Digital and Seagate (STX) presented at an investor conference where one source said a modest pause in cloud demand is expected in the first half of the year, with demand accelerating in the back half of 2017.
Cowen & Co.’s Paul Silverstein and his team met with Juniper Networks (JNPR) management at last week’s Mobile World Congress, and were encouraged by their upbeat tone–but are still wary of the stock.
Silverstein reiterated a Market Perform rating and $30 price target on the stock Friday, writing that Juniper remains committed to revenue growth between 3% and 6% this year. The company says that will lead to 25% operating margins, but he calls attaining this long-term target a “Sisyphean task.”
Snap Inc. (SNAP) is trading higher on Friday, but it sold off earlier this week on worries it could be excluded from indexes. Another major issue that has investors concerned is its decelerating daily average user growth.
Aegis Capital analyst Victor Anthony has an update on that issue Friday, taking a deeper dive to see where SnapChat’s strengths and weaknesses are. He found that DAU is weak in most major developed countries–the US, Canada, UK, Australia, Japan, Spain, and South Korea. In the first quarter, only Russia and Germany appeared to have strong DAU growth.
STMicroelectronics (STM) fell on Thursday, following reports that delays in its production of a 3D sensor for the next Apple (AAPL) iPhone could push back the launch.
Northland Capital argued that delays were to be expected, and the news was a buying opportunity. Today, Bluefin Research has a note out on the topic. Analyst John Donovan writes that while the rumors originated with DigiTimes, whose “track record is sketchy at best,” he felt the story sounded plausible and warranted more investigation.
VeriFone Systems (PAY) reported a better-than-expected third-quarter late Thursday, although that hasn’t helped the stock this morning.
VeriFone said it earned 21 cents a share, a penny ahead of analysts’ estimates. Revenue of $457 million was an 11.1% decline year over year, but still came in ahead of the $449.4 million consensus estimate.
Here are some things going on in your world of tech:
Snap Inc. (SNAP) ended slightly lower on Thursday. Pivotal Research is concerned about Snap’s use of restricted stock units, and FBN Securities initiated coverage of Snap with a Hold rating.
Apple (AAPL) supplier Ibiden announced that it will be the first company in Japan to power 100% of its Apple manufacturing with renewable energy. Speaking of Apple suppliers, STMicroelectronics (STM) fell today on reports it may be late delivering iPhone 8 components. Elsewhere, Drexel Hamilton asks if Apple is one of the most underappreciated stocks in the world.
Finisar (FNSR) is plunging after hours, following its disappointing third-quarter earnings and guidance.
The fiber optics firm said it earned 59 cents a share on revenue of $380.6 million. Analysts were looking for 62 cents a share on revenue of $389.7 million.
Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.
