Early Equity Buzzers: Facebook Fades, Apple Accelerates, Lululemon and Best Buy DROP
Shares of Facebook (NASDAQ:FB) dropped 1 percent in morning trading. In an interview with CNBC after the closing bell, Nasdaq (NASDAQ:NDAQ) CEO Robert Greifeld said the exchange has been “embarrassed” over the Facebook initial public offering debacle and has “apologized to the industry.”
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Men’s Wearhouse Inc. (NYSE:MW) shares crashed more than 15 percent after the opening bell. The company reported that first-quarter earnings came in at 52 cents per share, compared to estimates of 55 cents per share. The company also guided lower for the second-quarter, expecting earnings of $1.12-$1.13 per share, compared to estimates of $1.22 per share.
Apple Inc. (NASDAQ:AAPL) shares increased .40 percent in early trading. A new spec sheet — the kind Apple puts on the packaging of its computers — was sent anonymously to 9to5Mac on Wednesday, detailing a thinner and lighter notebook featuring a higher-resolution display. Though the information is unconfirmed, the spec sheet image describes the new 15-inch model as being 0.74 inches thick and weighing 4.7 pounds, putting it in the same league as the MacBook Air.
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Lululemon Athletica Inc. (NASDAQ:LULU) shares dropped more than 9 percent in a.m. trading. Despite reporting that first-quarter net income increased 40 percent to $46.6 million (32 cents per share) from a year earlier, the company offered a cautious outlook. In the current quarter, Lululemon expects to earn 28 cents to 30 cents per share, below estimates of 33 cents per share by analysts.
Chesapeake Energy Corp. (NYSE:CHK) fade 1.81 percent Thursday morning. According to a report by Reuters, chief executive officer Aubrey McClendon and his family made flights to Paris and Amsterdam that cost $108,000 and counted the trips as a business expense. He also mixed his basketball passion with the company. Reuters reports, “Closer to home, McClendon pursues another of his passions: the Oklahoma City Thunder, the NBA franchise in which he owns a 19 percent stake. As with other assets, McClendon has melded his Thunder interest with Chesapeake business. The energy company signed a $36 million sponsorship deal, and it pays up to $4 million annually to brand the stadium Chesapeake Energy Arena.”
Best Buy Co. Inc. (NYSE:BBY) shares plunged 7.89 percent in morning trading. Company founder Richard Schulze announced he would resign as chairman, which takes effect immediately. The decision was made in order to explore options for his 20 percent stake in the company. “I continue to believe in Best Buy and its future—and care deeply about its customers, employees and shareholders,” Mr. Schulze said. “There is an urgent need for Best Buy to reinvigorate growth by reconnecting with today’s customers and building pathways to the next generation of consumers.”
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