Tech Stocks Starting to Build on Morning Advance

Technology stocks were extending earlier gains during Wednesday trading, with shares of tech companies in the S&P 500 climbing slightly more than 0.2%.

In company news, MobileIron (MOBL) fell to a new 52-week low, sinking nearly 16% to its lowest price since October 2016 at $3.20 a share, after the mobile networking software firm last night said chief executive Barry Mainz was stepping down and warned Q3 revenue at the company likely will trail Wall Street expectations.

Based on preliminary calculations, the company is projecting revenue during the three months ended Sept. 30 in a range of $42 million to $43 million, lagging the Capital IQ consensus by at least $2.2 million.

Separately, MobileIron last night promoted chief financial officer Simon Biddiscombe to replace Mainz as CEO and company president, effective immediately. In a related move, Shawn Ayers, currently the company’s vice president of finance, was selected to serve as interim CFO during the search for a permanent finance chief.

Following the downbeat forecast and executive shuffle, analysts at Raymond James Wednesday lowered their investment recommendation for MobileIron shares to Market Perform from Outperform.

In other sector news,

(+) IBM, (+9.4%) Non-GAAP Q3 EPS of $3.30 improves on $3.29 per share profit during same quarter last year and beats the Capital IQ consensus by $0.02 per share. Revenue slips 0.4% from last year to $19.15 bln, topping the $18.63 bln Street view. Reaffirms above-consensus FY17 earnings outlook.

(-) SRAX, (-25.4%) Discloses plans to explore strategic alternatives for its SRAXmd health care business, including spinning off the unit into a standalone public entity or a potential sale in addition to other possible transactions.

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