A.M. Buzzers: Facebook Edges Lower, Starbucks and Dollar General Drag
Facebook (NASDAQ:FB) shares edged lower this morning. Ironfire Capital’s Eric Jackson recently said that he thought the social network had no future beyond the next few years. “In five to eight years they are going to disappear in the way that Yahoo (NASDAQ:YHOO) has disappeared,” Jackson told the CNBC’s Squawk on the Street on Monday. “Yahoo is still making money, it’s still profitable, still has 13,000 employees working for it, but it’s 10 percent of the value that it was at the height of 2000,” he said. “For all intents and purposes, it’s disappeared.”
Shares of Starbucks Corp. (NASDAQ:SBUX) dropped 3.93 percent in early trading. The coffeehouse giant announced it is buying bakery chain La Boulange in a deal valued at $100 million. Starbucks will start replacing its current lineup of baked goods early next year. “We’ll take it one store at a time, starting in metropolitan areas around the U.S. where there’s demand,” said Cliff Burrows, president of Starbucks Americas. Panera Bread Co. (NASDAQ:PNRA) shares also fell 1.6 percent, as Starbucks move into baked goods looks to impact business.
Don’t Miss: LinkedIn Takes Facebook to School
Dollar General Corp. (NYSE:DG) shares declined nearly 3 percent this morning, despite reporting strong earnings for the first-quarter. Net income for the discount retailer increased to $213 million (63 cents per share), compared to $157 million (45 cents per share) a year earlier. “Dollar General is starting off 2012 with strong performance in the first quarter due to excellent same-store sales growth of 6.7 percent, representing the fifth consecutive quarter of accelerating improvement,” said Rick Dreiling, chairman and chief executive officer.
Walgreen Co. (NYSE:WAG) shares fell more than 1 percent in early trading. The company reported May sales of $5.98 billion, a decrease of 1.6 percent from $6.08 billion for the same month a year earlier. “Since Jan. 1, our underlying trend for number of prescriptions filled has improved,” said Walgreens Executive Vice President and CFO Wade Miquelon. “Looking forward, we expect our number of prescriptions filled to be helped as employers and health plans take a variety of steps ranging from changing prescription benefit managers to changing language in new RFPs to provide continued access to Walgreens and our services.”
Investor Insight: Is TV the Next Bullish Catalyst for Apple’s Stock?