By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Technology stocks were modestly
lower Monday, led by shares of Apple Inc., which slipped back below
the $600 level.
Apple (AAPL) shed 3.2% to close at $583.98, as the Nasdaq
Composite Index (RIXF) edged down by 0.7% to close at 3,046.
The Philadelphia Semiconductor Index (SOX) also was down a
fraction.
Also in the red were shares of Netflix Inc. (NFLX), which lost
4.3% to close at $80.14.
Apple was highlighted in a lengthy report by the New York Times
over the weekend, which took a look at the methods the company
resorts to minimize its tax liability. The article noted these
methods are used by many high-tech firms and companies in other
industries.
Shares of Microsoft Corp. (MSFT) traded up 0.1% to $32.02 after
the software giant unveiled a digital-reader partnership with
bookseller Barnes & Noble Inc. (BKS), whose shares soared 51.7%
to close at $20.75.
Shares of Demand Media Inc. (DMD) jumped 14.6% to close at $8.31
following a report over the weekend that the company pulled out of
a deal to go private.
According to a report by the AllThingsD tech blog, Demand Media
was "deep into discussions" with Thomas H. Lee Partners. a
Boston-based private-equity firm, to go private in a $1.2 billion
deal. Citing unnamed sources, the story said Demand pulled out for
reasons that included "complications related to its financing and
the ability to retain executives in its aftermath."
Evercore downgraded shares of Demand Media to equal weight on
Monday, noting that the stock has reached the broker's price target
in relation to the news.
"We believe the reported discussions speak to the attractive
valuation of Demand Media, particularly given the unfolding,
potential boom in domain-name registrations in light of recent
actions by ICANN. DMD is a leading participant in the domain-name
market," according to analyst Ken Sena.
Shares of Nvidia Corp. (NVDA) edged up a fraction to close at
$13. ThinkEquity analyst Suji De Silva trimmed his price target for
the chip maker's stock to $14 from $15, while maintaining a hold
rating.
"We expect Nvidia to benefit from recovering broader demand, but
expect consumer-PC recovery to be measured and limited near-term
upside. We also expect handset-revenue headwinds as Samsung
transitions to an in-house application processor from Nvidia," he
wrote.