By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Microsoft Corp. jumped Friday on
news that CEO Steve Ballmer is planning to retire, which gave a
boost to the tech sector despite some post-earnings selloffs on
stocks like Pandora Media and Marvell Technology.
Microsoft (MSFT) was up nearly 6% at $34.28 by late morning, as
the software giant announced that Ballmer will be stepping down
within the next 12 months. The stock was the top gainer on the Dow
Jones Industrial Average.
"Beyond this, we expect sum of the parts and capital return
scenarios to drive the stock," wrote Walter Pritchard of Citigroup,
maintaining a $35 price target on the shares.
The Nasdaq Composite Index (RIXF) was last up 0.3%, to 3,648.
The benchmark was on track to end the week with a gain of more than
1%. The Philadelphia Semiconductor Index (SOX) was up by a
fraction, while the Morgan Stanley High Tech 35 Index (MSH) rose
0.5%.
Another sharp gainer in the software sector was Autodesk Inc.
(ADSK), which jumped more than 9% a day after the design-software
company reported results.
On the other hand, shares of Pandora Media Inc. (P) slumped more
than 11% after the Internet-radio company posted a disappointing
outlook. Sitfel Nicolause and Raymond James both downgraded the
stock to neutral ratings.
"While Pandora delivered a strong 2Q driven by increasing mobile
monetization (mobile revs up 92% year-over-year) and lower content
costs, we believe the risk reward on shares is now more balanced
with shares up 130% year-to-date and trading above our previous $20
price target," Aaron Kessler of Raymond James wrote to clients.
Marvell Tech (MRVL) shares fell more than 5% to $12.26. The chip
maker reported better-than-expected results for the second fiscal
quarter late Thursday, though earnings still fell about 34%.
Pacific Crest analyst Michael McConnell wrote that the company's
margin guidance could be seen as disappointing to some.
"We are cautious on sustainability of Marvell's mobile traction,
which may have been driven more by price than technology," he
wrote.
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