With the Dow (NYSEARCA:DIA) sinking more than 200 points on Wednesday, stocks do not need any more pressure. Unforetunely, these tech stocks (NYSEARCA:XLK) are receiving additional pressure due to earnings, rumors, and downgrades.
Shares of Rubicon Technology (NASDAQ:RBCN) are down more than 5% after receiving a downgrade from UBS (NYSE:UBS) today. The company warned that slowing demand in the LED market is going to hurt Q4 results. Rubicon is projecting revenue of $20 million to $23 million, compared to the previous consensus of $32 million.
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Software maker Adobe (NASDAQ:ADBE) is sliding 8% after announcing 750 job cuts and lowering guidance for 2012 along with its restructuring plan. Adobe now expects revenue growth of 4% to 6%, below the consensus of 9%. As a result, RBC and JMP are downgrading shares. However, Morgan Stanley (NYSE:MS) remains bullish because it believes Adobe has pricing power for its Creative Suite line that isn’t reflected in guidance. Adobe also announced that it will stop developing Flash for mobile browsers.
Apple (NASDAQ:AAPL) shares are down nearly 2% today. DigiTimes’s Cage Chao and Steve Shen wrote that Apple told some suppliers of iPhone 4S parts, that it wants to take delivery next quarter, not this quarter. The move could be seen as a sign that sales are slowing for the device. However, RBC Capital’s Mike Abramsky explains, “The report is at odds with what appears to be continued strong iPhone 4S sell-through at multiple carriers/countries globally (including recent stockouts in some countries).” He goes on to explain that the iPhone 4S is still the top smartphone at AT&T (NYSE:T), Sprint-Nextel (NYSE:S), and Verizon (NYSE:VZ).
Due to Thai flooding, Goldman Sachs (NYSE:GS) is trimming its fiscal year 2012 estimates for Microsoft (NASDAQ:MSFT). The bank believes that flooding will hurt PC shipments and Windows revenue. Goldman is keeping its current 2013 and 2014 estimates, but expects Microsoft shares to remain range-bound in the near-term. Investors continue to wait for positive news on Windows 8.
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Investors are anxiously awaiting Cisco (NASDAQ:CSCO) earnings after the closing bell. Shares are down about 2% in afternoon trading. Cisco is a multinational corporation engaged in the design, manufacturing, and sales of Internet Protocol-based consumer electronics, networking, and other services related to communications and information technology. Shares have been able to outperform competitor Juniper Networks (NYSE:JNPR) after reassuring its 2011 guidance. In August, Cisco announced that for the first quarter of 2012, it expects revenue growth to be in the 1%-4% range, compared to last year. Non-GAAP earnings per share is expected to be 38 cents to 41 cents.
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