Afternoon BUZZERS: Radio Gets SIRIUS About Subs, WellPoint and Facebook FLY
Shares of Sirius XM Radio Inc. (NASDAQ:SIRI) are up 0.73 percent this afternoon. The company announced it added 622,042 net subscribers in the second-quarter, an increase of 38 percent from the same period a year earlier. “SiriusXM continues to demonstrate robust growth and strong operating execution despite a challenging economy. Our second quarter subscriber gains mark a record quarter of net additions since the merger of SIRIUS and XM in July 2008,” said Mel Karmazin, Chief Executive Officer.
Alcoa Inc. (NYSE:AA) shares dipped 1.20 percent today. The aluminum giant is set to kick off earnings season late Monday. The average estimate of analysts is for net income of 7 cents per share, a decline of 78.1 percent from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 12 cents.
WellPoint Inc. (NYSE:WLP) shares surged 3.24 percent this afternoon. The health insurer is purchasing managed care provider Amerigroup for nearly $4.46 billion in cash. The deal is expected to help WellPoint better serve Medicaid users. “We believe that this combination will create an industry leader in the government sector serving Medicaid and Medicare enrollees,” WellPoint Chair, President and CEO Angela Braly said in a statement.
Apple Inc. (NASDAQ:AAPL) has gained 0.99 percent today. Brian Blair of Wedge Partners expects the next iPhone to drive a strong December quarter, but believes that only 28 million to 30 million iPhones were sold in the June quarter, which would be markedly down from the 35.1 million in the March quarter. With smartphone growth predictions falling all over the place, he suggests a cautious approach to Apple near-term if consensus forecasts top 31 million.
Facebook (NASDAQ:FB) shares gained 2.87 percent on Monday afternoon. The social-media company’s initial public offering was purchased by several mutual funds. The WSJ reports, “At least 160 U.S.-based mutual funds and exchange-traded funds, including those run by Fidelity Investments, Morgan Stanley Investment Management Inc. and OppenheimerFunds Inc., bought shares of Facebook in May, according to monthly disclosures made in June and July compiled by investment-research firm Morningstar Inc. for The Wall Street Journal.”
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