By Rex Crum, MarketWatch
Sprint falls after ending T-Mobile bid
SAN FRANCISCO (MarketWatch) -- Groupon Inc. and Sprint Corp.
were two of the biggest losers in the tech sector Wednesday after
the online daily deal company released disappointing earnings and
Sprint said it would drop plans to acquire T-Mobile.
Groupon (GRPN) fell 18% to $5.81 a share, after it reported
Tuesday a second-quarter profit of a penny a share, excluding
one-time items, on $751.6 million in revenue. While Groupon's
earnings met Wall Street analysts' forecasts, its sales fell short
of the consensus estimate of $762 million.
Groupon also said that for its third quarter it expects to break
even or earn up to two cents a share, on sales in a range of $720
million to $770 million. Analysts surveyed by FactSet had forecast
Groupon to earn 3 cents a share on $760 million in revenue.
Mobile-phone network operator Sprint (S) slumped by almost 17%
to $6.07 a share after it scrapped its effort to acquire T-Mobile
(TMUS) and said it would replace Chief Executive Dan Hesse with
Marcelo Claure, a billionaire investor who previously ran
mobile-phone distributor Brightstar Corp. T-Mobile shares fell
almost 9% following the announcements.
Cognizant Technology Solutions Corp. (CTSH) was also in the red,
falling more than 15%, to $42.31, after the IT services company cut
its revenue growth forecast for the year.
Gains came from Netflix Inc. (NFLX), Oracle Corp. (ORCL),
Amazon.com Inc. (AMZN) and Facebook Inc. (FB).
AOL Inc. (AOL) rose by 5%, to $40.96 a share, after the online
media company reported a 12% increase in quarterly revenue, led by
advertising sales of $451.7 million.
More must-read news from MarketWatch:
Sprint ends its pursuit of T-Mobile, changes CEO
Groupon may not be the bargain stock it seems
Subscribe to WSJ: http://online.wsj.com?mod=djnwires