By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Tech stocks showed some muscle
Wednesday, with gains from Groupon Inc., Amazon.com Inc. and
Netflix Inc. helping to counter losses elsewhere in the sector.
Groupon (GRPN) shares rose 5.4%, to close at $5.58, after Sterne
Agee analyst Arvind Bhatia raised his rating on the online daily
deals and e-commerce company to buy from neutral and set a
$9-a-share price target on the stock.
In a research note, Bhatia said his upgrade wasn't based on
expectations for Groupon's upcoming fourth-quarter results, but on
a "greater conviction in the company's ability to evolve beyond its
current business, its ability to execute internationally and its
positioning within mobile commerce."
Amazon (AMZN) shares rose more than 4%, to end the day at
$269.47. The company announced an expanded content-licensing
agreement with CBS Corp. (CBS). The deal adds CBS and Showtime
shows such as "Everybody Loves Raymond" and "United States of Tara"
to the Amazon Prime Instant Video lineup.
Netflix (NFLX) also had a strong day, rising 4.7% to end the day
at $186.27. J.P. Morgan analyst Doug Anmuth raised his price target
on Netflix's stock to $205 a share from $180, saying that recent
meetings with company management suggest that Netflix's original
series "House of Cards" is off to a strong start just 12 days after
release.
Anmuth also said that Netflix is likely to push further into
original programming "as it looks to differentiate itself from
other streaming services such as Amazon Prime and Hulu, along with
cable networks like HBO (TWX) and Showtime."
Dell Inc. (DELL) shares gave up 2 cents to close at $13.77.
Bernstein Research analyst Toni Sacconaghi cut his rating on the PC
maker to market perform, or neutral, from outperform, and said in a
research note that he believes the company's plan to go private
will succeed.
Cisco Systems Inc. (CSCO) closed with a gain of 17 cents a share
at $21.14 in advance of the company's quarterly results, due after
the close of trading.
Among tech companies slated to report quarterly results after
the market close NetApp Inc. (NTAP) rose 1.2% to close at $35.82
and Applied Materials Inc. (AMAT) edged up by 11 cents a share to
close at $13.77. Online professional review company Angie's List
Inc. (ANGI) and graphics chip company Nvidia Corp. (NVDA) closed in
the red.
The Nasdaq Composite Index (RIXF) rose more than 10 points to
close at 3,196, and the Philadelphia Semiconductor Index (SOX) and
the Morgan Stanley High Tech 35 Index (MSH) also ended the day in
positive territory.
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