Facebook Keeps Breaking the Floor

Aug 31, 2012, 1:55 pm EST
Facebook Keeps Breaking the Floor

Facebook just won’t stop falling.

Shares of Facebook (NASDAQ:FB) were off 4% to around $18.30 early Friday after getting some bad news on the research and analysis front.

BMO Capital Markets’ Daniel Salmon says Facebook is likely to see more weakness in its advertising revenues. In his research, he got negative feedback from two out of every three advertisers, which prompted him to cut his price target for FB from $25 to $15. Read 

Workday Files for a $400 Million IPO

Aug 31, 2012, 10:40 am EST
Workday Files for a $400 Million IPO

Cloud operator Workday filed for an IPO on Thursday evening that could raise as much as $400 million.

Started in 2005, Workday is a top provider of enterprise resource planning (ERP) software, which helps companies manage their payroll, HR and other core functions. The co-founders, who include David Duffield and Aneel Bhusri, helped to build the pioneer of the industry, PeopleSoft. That company now is part of the Oracle (NASDAQ:ORCL) empire.

As of now, Workday has about 325 customers, which include biggies like AIG (NYSE:AIG), Four Seasons Hotels, Kimberly-Clark (NYSE:KMB) and Lenovo. The largest installation covers more than 200,000 employees. Read 

Splunk: A Big Quarter for Big Data

Aug 30, 2012, 4:54 pm EST
Splunk: A Big Quarter for Big Data

Big Data — which involves analyzing huge amounts of information to help with things like sales strategies to security – is one of tech’s hottest trends. And one of the top players riding that trend is Splunk (NASDAQ:SPLK), which posted a standout earnings report for its second quarter late Thursday and was surging in after-hours trading.

Q2 revenues spiked by 71% to $44.5 million, and the company suffered and adjusted loss of 1 cent per share, with both figures beating Wall Street estimates of $39.8 million and 4 cents per share, respectively.

The company also added almost 400 new customers — including Salesforce.com (NYSE:CRM), Expedia (NASDAQ:EXPE) and the US Postal Service — to put its total above 4,400. Read 

Pandora Turns Up the Volume

Aug 30, 2012, 11:26 am EST
Pandora Turns Up the Volume

In the second quarter, Pandora (NYSE:P) showed it can keep up the growth momentum. Revenue came to $101.3 million, up 51% over the past year, while the outlook remains robust. For the next quarter, the company expects revenues of $115 million to $118 million, which fits the Wall Street consensus of $115.4 million.

On the news, the shares are up 19% to $12 in today’s trading.

While social operators like Facebook (NASDAQ:FB) and Zynga (NASDAQ:ZNGA) struggle with their mobile efforts, Pandora has been faring much better. The revenues from the segment were $59.2 million, which was up a sizzling 86% for the past year. Read 

Yelp: A Lesson In Lockups

Aug 30, 2012, 11:19 am EST
Yelp: A Lesson In Lockups

A lockup is a contract that a company has with its founders, investors and employees. It prevents them from selling any shares after an IPO, usually for a 180-day period. So at expiration, it is typical to see a spike in selling, which can drive down the stock — just as has happened withf Facebook (NASDAQ:FB), Groupon (NASDAQ:GRPN) and LinkedIn (NYSE:LNKD).

Yet the lockup phenomenon is far from fool-proof. Just take a look at Yelp (NYSE:YELP). Yesterday it’s lockup expired and the stock surged by 22.5%!

How could something like this happen? It’s important to keep some things in mind. First, for example, a lockup expiration does not necessarily mean that the insiders will dump their shares. Simply put, some managements have fairly tight control over their organizations — as seems to be the case with Yelp. In yesterday’s trading, the stock saw volume of 8.6 million shares, while52.7 million shares were freely tradable because of the lockup expiration. Read 

Brain Drain Continues at Zynga

Aug 29, 2012, 2:20 pm EST
Brain Drain Continues at Zynga

After reaching an all-time low of $2.66 in early August, Zynga‘s (NASDAQ:ZNGA) stock has staged a nice rally, and just a week ago, the shares had recovered to $3.30. But the continued loss of key people has turned Zynga back around, and the stock is back around the $3 mark after a 2%-plus drop-off Wednesday.

The brain drain at Zynga shouldn’t be a surprise, as ZNGA’s compensation is focused primarily on stock grants.

The latest defection came this week. According to a report in AllThingsD, Zynga Chief Creative Officer Mike Verdu has left the company to create a startup that will focus on mobile games. Zynga is an investor in the deal, but it’s a clear sign that the company’s top minds see better opportunities elsewhere. Read 

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