Radar Movers: Apple Continues to Fall, Facebook Recovers
Shares of Apple (NASDAQ:AAPL) closed 1.3 percent lower on Monday and continued to edge lower in early trading today. The tech giant announced it sold more than five million iPhone 5 units in the three days since it reached stores. Although it broke the previous record held by the iPhone 4S, analysts were expecting closer to 8 million units. However, Apple faced supply issues and pre-orders that have not been received yet are not accounted for the 5 million figure.
Facebook (NASDAQ:FB) shares are up 1 percent in pre-market after plummeting 9 percent on Monday. The social media company received another round of negative publicity courtesy of Barron’s over the weekend. The firm published a cover story strongly suggesting that Facebook is worth $15 a share at best. Other social media related names such as Zynga (NASDAQ:ZNGA) and Yelp (NYSE:YELP) also closed lower for the day.
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Caterpillar (NYSE:CAT) shares are down in early trading. The world’s biggest construction and mining company announced a reduction in its forecast for 2015 earnings. Profit is now expected to come in between $12 and $18 per share, with sales of $80 billion to $100 billion.
Shares of Red Hat (NYSE:RHT) are down nearly 4 percent in early trading after reporting financial results for the its second quarter yesterday. Net income fell 12.4 percent to $35 million (18 cents per share), compared to $40 million (20 cents per share) a year earlier. It fell short of the mean analyst estimate of 21 cents per share. On the positive, revenue jumped 14.7 percent to $322.6 million. “Our double-digit growth was driven by demand for Red Hat’s open source technologies that are key to creating innovation, scale and flexibility in our customers’ data centers and their businesses,” stated Jim Whitehurst, president and chief executive officer of Red Hat.
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