By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Tech stocks put in a broad slate
of gains Friday, even with several bellwethers closing in the red,
on a day that was dominated by mixed Wall Street reactions to
Microsoft Corp.'s reorganization plan and Dell Inc.'s slip
following the latest proposal from billionaire activist Carl
Icahn.
Offsetting those losses were Netflix Inc. and Yelp Inc. -- 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 Michael Dell 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, in league with the
equity firm Silver Lake, 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 3 cents to close at $13.32. The meeting for
shareholders to approve or reject Michael Dell's privatization bid
takes place next Thursday.
Microsoft Corp. shares (MSFT) pared back by 2 cents to close at
$35.67 a 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), however, rose almost 22
points, to close at 3,600, while the Philadelphia Semiconductor
Index (SOX) rose 0.6%.
Advancers included Amazon.com Inc. (AMZN), which reached another
high of $307.55 a share after climbing above $300 for the first
time Thursday.
Yelp Inc. shares (YELP) hit an all-time high during the session
before closing with a gain of more than 5% at $39.40. 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 25%, to close at $33.82, after it raised
its full-year forecast following better-than-expected
second-quarter results.
Netflix Inc. shares (NFLX) rose more than 5% to $257.26
following reports that the company was in talks about producing
another season of the series "Arrested Development."
Additionally, Netflix was seen as benefiting from the
announcement that the studios that own rival Hulu have decided not
to sell the online video-streaming service but to maintain joint
ownership and recapitalize it.
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