Post-Game Action: Dell Crashes 12%, Facebook Lawsuits Emerge
Shares of Dell Inc. (NASDAQ:DELL) crashed more than 12 percent in late trading. The computer company reported disappointing first-quarter results. Net income fell 32.8 percent to $635 million (36 cents per share), compared to $945 million (49 cents per share) a year earlier. Revenue for the quarter also declined 4 percent to $14.42 billion. “We’re committed to continuing our strategy to re-shape Dell’s business as an end-to-end IT provider,” said Michael Dell, chairman and CEO. “We saw continued progress in our first quarter with the innovative IT solutions we’re providing – notably our latest Dell servers, storage, networking and services that deliver customers enhanced productivity.”
Facebook (NASDAQ:FB) shares continued to edge .29 percent lower in extended trading after closing almost 9 percent lower during regular trading hours. Following the glitchy listing of Facebook shares on the Nasdaq (NASDAQ:QQQ), the exchange has officially been sued by an investor who claimed it was negligent in handling orders of Facebook shares. Reuters reports, “Phillip Goldberg, a Maryland resident, is seeking class-action status on behalf of all investors who lost money because Nasdaq (NASDAQ:NDAQ) delayed or otherwise mishandled their buy, sell or cancellation orders for Facebook stock on May 18, the day the social networking giant went public.”
Don’t Miss: Big Banks Under Very Heavy Facebook Fire
Shares of Morgan Stanley (NYSE:MS), the lead underwriter in the Facebook IPO, also headed lower late Tuesday. Massachusetts Secretary of Commonwealth William Galvin has issued a subpoena to the bank. “The Securities Division has put out a subpoena to Morgan Stanley in connection with the analyst’s discussion with certain institutional investors about the revenue prospects for Facebook,” a spokesman for Galvin’s office said.
Take-Two Interactive Software Inc. (NASDAQ:TTWO) shares jumped nearly 4 percent after the closing bell, despite poor financial results. The video game publisher reported a quarterly loss of $66.8 million (79 cents per share), compared to a loss of $22.1 million (27 cents per share) a year earlier. Revenue also dropped 18.7 percent to $148.1 million, but beat the average revenue estimate of $139.9 million.
PetSmart Inc. (NASDAQ:PETM) shares surged almost 9 percent in late trading. The company reported that first-quarter net income jumped 33.5 percent to $94.7 million (85 cents per share), compared to $70.9 million (61 cents per share) a year earlier. “We are pleased to report another quarter of solid earnings growth,” said Bob Moran, Chairman and Chief Executive Officer. “Our performance in the first quarter was due to strength across all three merchandising categories, as well as across services, further solidifying our position as the leading pet specialty retailer.”
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