Despite the Dow Jones Industrial Average dropping more than 130 points on Tuesday, shares of Microsoft (NASDAQ:MSFT) closed in positive territory. Jefferies analyst Ross MacMillan struck a bullish tone on Microsoft, noting that “the stage is set for a series of value creating events to unfold over the next 18 months.” He gave Microsoft a Buy rating and hiked the price target to $42 from $33. A new operating structure with greater transparency was cited as one of the events, while MacMillan sees the potential for better portfolio focus: which assets should remain as core and what should be viewed as non-core, etc. Microsoft shares are up nearly 30 percent this year.
Yahoo (NASDAQ:YHOO) shares edged slightly higher in late afternoon hours. Yahoo announced quarterly earnings of 34 cents per share, beating expectations of 33 cents per share. “I’m very pleased with our execution, especially as we’ve continued to invest in and strengthen our core business,” said Yahoo CEO Marissa Mayer. “In Q3, we launched new user experiences across many of our digital daily habits — Yahoo Screen, My Yahoo, Fantasy Sports, and more. Now with more than 800 million monthly users on Yahoo — up 20 percent over the past 15 months — we’re achieving meaningful increases in user engagement and traffic.” However, Yahoo’s outlook was a bit disappointing.
Shares of Intel (NASDAQ:INTC) headed lower in late afternoon trading. Intel reported quarterly earnings of 58 cents per share, unchanged from a year earlier. Revenue increased to $13.48 billion, compared to $13.46 billion in the same period last year. Earnings was better than expected, but Intel’s revenue outlook was a bit weaker than anticipated by Wall Street. Intel expects revenue for the fourth quarter to come in around $13.7 billion.
Apple (NASDAQ:AAPL) shares briefly recaptured $500 for the first time in over a month. Apple has named Angela Ahrendts, currently the CEO of British luxury company Burberry, to fill the newly created position of senior vice president of retail and online stores; Ahrendts is scheduled to join in the spring. Apple has not had a retail leader since John Browett left the company a year ago, while CEO Tim Cook has filled the gap as needed since. Ahrendts will report directly to CEO Tim Cook. The position that she will fill at Apple has been vacant for nearly a year.
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