By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Tech stocks mostly rose Thursday
morning, led by sharp gains from Pandora Media Inc., while Netflix
Inc. slid following a pair of broker downgrades.
Pandora (P) rose as much as 10%, to a 52-week-high of $23.75 a
share, after the Internet radio company on Wednesday named Brian
McAndrews as its new chief executive. McAndrews replaces long-time
CEO Joe Kennedy, who said in March that he would retire.
McAndrews' had previously headed up digital advertising company
aQuantive, before Microsoft Corp. (MSFT) purchased the firm for
$6.2 billion in 2007. Mark Mahaney, an analyst with RBC Captial
Markets, said McAndrews appointment is "a positive for Pandora," as
the company works to expand its advertising efforts, especially in
the mobile-device market.
Netflix Inc. (NFLX) slid more than 2% in early trades, though
was last down about 1.6%, to $303.20. Morgan Stanley analyst Scott
Devitt lowered his rating on Netflix to equal weight from
overweight, and Richard Greenfield, of BTIG, cut his rating on the
stock to neutral from buy.
Both analysts said the main reason for their actions was the
valuation of Netflix's stock, which has more than tripled in price
this year. The moves also come after Netflix premiered its latest
original series, "Derek", which stars, and was created by Ricky
Gervais.
Dell Inc. (DELL) edged up by a penny a share to $13.86 after the
computer giant's shareholders approved a plan by CEO Michael Dell
to take Dell private at $13.88 a share.
Yahoo Inc. (YHOO) shares rose 2.5%, to $29.91. On Wednesday,
Yahoo CEO Marissa Mayer told the TechCrunch Disrupt SF Conference
that Yahoo has topped 800 million active monthly users.
Other gains came from Groupon Inc. (GRPN), which rose 5%, to
$12.11, Apple Inc. (AAPL), Facebook Inc. (FB), NetApp Inc. (NTAP)
and Yelp Inc. (YELP).
The Nasdaq Composite Index (RIXF) rose 4 points to 3,729 and the
Philadelphia Semiconductor Index (SOX) edged into positive
territory.
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