TECH STOCKS: Cisco, NetApp Shares Fall; Angie's List Soars
02/14/2013| 10:51am US/Eastern
By Dan Gallagher, MarketWatch
SAN FRANCISCO (MarketWatch) -- Technology stocks fell on Thursday, weighed down by selloffs for Cisco Systems Inc. and NetApp Inc. with some offsetting gains coming from Internet stocks such as Angie's List Inc.
The Nasdaq Composite index (RIXF) slipped 0.3% to 3,188 while the Morgan Stanley High-Tech Index (MSH) fell 0.3% and the Philadelphia Semiconductor Index (SOX) was down by a fraction.
Cisco (>> Cisco Systems, Inc.) shares fell 2% after the network giant reported a small sales gains for its second fiscal quarter and issued a forecast that was in line with Wall Street's estimates. The stock had rallied 25% since the company's prior earnings report.
"Investors may have to wait a bit longer if they were hopeful that Cisco Systems' earnings report would spark a rally in tech," wrote Scott Thompson of FBR Capital on Thursday, who added that the results "fell short of breakout performance."
Also down following its earnings report was NetApp (>> NetApp Inc.) , which was last trading down 2.5%. Earnings jumped 32% at the provider of network storage solutions, but NetApp's shares had also run up by more than 36% over the last three months.
Rohit Chopra of Wedbush kept his neutral rating on NetApp following the results, writing that "we remain cautious on the uncertain spending environment and advise investors to remain on the sidelines until signs of sustainable growth and visibility emerge."
One notable gainer was Angie's List (>> Angie's List Inc), which surged 30% following strong results and a positive forecast. Raymond James upgraded the stock to a strong buy rating before the opening bell.
Nvidia Corp. (>> NVIDIA Corporation) shares slipped by a fraction after Needham & Co. downgraded the chip maker to a hold rating following its results. "Rising opex growth is outpacing revenue growth, eliminating any earnings leverage," analyst Rajvindra Gill wrote in a note.
BlackBerry (RIMM) shares edged up 1% after falling more than 5% near the open. A regulatory filing by former co-CEO Jim Balsillie showed the former leader of the smartphone maker had sold all of his shares in the company. He had held an ownership stake of more than 5% as recently as late 2011, according to Dow Jones Newswires.
Balsillie stepped down as co-CEO in early 2012 as part of a major shake-up at the company that brought in current chief Thorsten Heins, who is leading the launch of the new BlackBerry 10 platform.
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