By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Tech stocks were mixed by midday
Friday, as Microsoft slipped following mixed Wall Street reactions
to its wide reorganization the day before, and Dell shares traded
down on the lastest plan from billionaire activist Carl Icahn.
Offsetting those losses were Netflix and Yelp -- the latter of
which set a new all-time high on a positive analyst note.
Icahn, who along with Southeastern Asset Management is opposing
an effort led by Dell (DELL) Chief Executive to take the PC company
private, on Friday proposed an offer that would value Dell shares
at $14 each, along with a warrant for every four shares tendered.
Michael Dell's current offer to take Dell private values the
company at $13.65 a share.
Investors didn't immediately rally behind Icahn's offer, as
Dell's shares slipped by 0.2% to $13.31. The meeting for
shareholders to approve or reject Michael Dell's privatization bid
takes place next Thursday, July 18.
Microsoft Corp. (MSFT) shares pared back by 1%, to $35.31, one
day after Chief Executive Steve Ballmer unveiled a major
realignment of the software giant's business operations.
"While we understand that the company's changes have the
potential to improve efficiencies, we believe Microsoft is in need
of innovation, not a more streamlined operating structure," wrote
David Hilal of FBR Capital, who maintained a market perform rating
on the stock. "Furthermore, we believe a company of Microsoft's
size, as well as where it sits in the sluggish PC environment,
faces considerable execution risk and a significant lag time before
any material impact."
The Nasdaq Composite Index (RIXF) was flat at 3,578 by midday,
while the Philadelphia Semiconductor Index (SOX) was up 0.3%.
Advancers included Amazon.com Inc. (AMZN), which continued to
reached a new high of $304.75 a share after climbing above $300 for
the first time on Thursday.
Yelp Inc. (YELP) shares rose more than 4%, to $39.13 -- hitting
a new all-time high during the session. Before the market opened,
Needham & Co. analyst Kerry Rice initiated coverage of the
online review and recommendation company with a buy rating and $45
a share price target.
In a research note, Rice said he took his position on Yelp
because the company "has successfully established itself as a key
online marketing and lead generation platform for
small-and-medium-sized businesses in North America and is taking
strides in becoming a necessary advertising medium for local
businesses worldwide."
Online medical-information company WebMD Health Corp. (WBMD) saw
its shares surge more than 26%, to $34 after it raised its
full-year forecast following better-than-expected second-quarter
results.
Netflix Inc. (NFLX) shares rose more than 3.7%, to $253.15
following reports that the company was in talks about producing
another season of the series "Arrested Development."
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