July 25--Today: Wall Street ends week on a down note as Pandora, Maxim Integrated,
Market report: Post-earnings declines balanced by Apple, HP gains
Disappointments at the end of a busy earnings week sent Silicon Valley technology stocks lower Friday, but the sector still outperformed the major Wall Street indexes thanks to Apple and Hewlett-Packard's gains.
Oakland streaming-music firm
Informatica had the largest percentage decline in the SV150, falling 12.3 percent to $30.65 after celebrating what it termed a "significant corporate milestone" in its earnings report, the data-management software company's ability to surpass $1 billion in sales in a 12-month period. Investors seemed more concerned with Informatica's future earnings than its past, however, as Informatica's forecast came in lower than outside estimates and the company said its chief financial officer would depart before the end of the year, leading to at least three analyst downgrades.
The most high-profile drop belonged to Pandora, which should be used to post-earnings declines after going through the same process in the previous quarter. The Internet radio leader shed 10.3 percent to close at $25.75 amid concerns about user growth, but at least a couple of analysts defended Pandora's performance.
Needham analyst Laura Martin, for one, recommended purchasing the stock as it sank, writing in a note, "The slight decline (in listener hours) can be attributed to seasonality with more people on vacation in June than March."
San Jose networking company
"We think Maxim will be found with some content in the iWatch," he wrote.
Apple counterbalanced the declines Friday, adding 0.7 percent to its highest closing price since 2012, $97.67, despite learning of a patent lawsuit against incoming acquisition Beats Electronics. Hewlett-Packard, the second largest tech company in Silicon Valley after Apple, increased 1.1 percent to $35.43 after settling a lawsuit filed by music legend Chubby Checker over an app meant to measure a man's member that used his name.
Up: Salesforce, HP, AMD, Apple,
The SV150 index of Silicon Valley's largest tech companies: Down 3.1, or 0.2 percent, to 1,558.85
The tech-heavy Nasdaq composite index: Down 22.54, or 0.5 percent, to 4,449.56
The blue chip Dow Jones industrial average: Down 123.23, or 0.72 percent, to 16,960.57
And the widely watched Standard & Poor's 500 index: Down 9.64, or 0.48 percent, to 1,978.34
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