3 Tech Stocks Feeling the Heat
Facebook (NASDAQ:FB) shares dropped below their $38 issue price in pre-market trading on Monday. The decline was due to support fizzling out from the underwriters of its IPO last week, following the social media giant’s shaky debut on Friday. Lead underwriter Morgan Stanley defended the $38 price level by purchasing shares on the open market. The SEC will review Facebook’s IPO after company shares were affected by delays and mishandled orders on the first day of trading. Shares of Facebook dropped 10 percent to $34.28 in Monday afternoon trading. Read more: Damn, Facebook, What Happened?
Google (NASDAQ:GOOG) is under investigation by the European Union’s antitrust authorities, warning that the search giant has a matter of weeks to resolve a probe and avoid possible fines over allegations it discriminates against rivals. The EU Competition Commissioner asked Google Chairman Eric Schmidt to address concerns that Google promotes its own search services while stifling competition in advertising. Google has maintained that is disagrees with the commission’s conclusions. Google shares were up 2 percent to $614 in trading. Read more: Will Google Cave to EU’s Ultimatum?
Yahoo’s (NASDAQ:YHOO) directors approved a deal on Sunday to sell around half of its 40 percent stake in Alibaba Group back to the Chinese Internet company. Under the deal, Alibaba will buy the stake, valued at around $7.1 billion. Yahoo has agreed to divest another 10 percent of Alibaba after the Chinese Internet company files for an initial public offering the next few years. Yahoo is expected to sell its remaining stake in the future. The transaction put an end to years of efforts by the two to reach an agreement.
Yahoo intends to use the proceeds to increase shareholder value, primarily by purchasing back a large number of shares. The troubled Internet media company is hoping that this will shore up Yahoo’s sagging stock price, following a string of bad luck with its various CEOs over the past three years. Shares of Yahoo were up 21 cents at $15.63 in afternoon trading. Read more: Will Alibaba Sale Keep Yahoo in the Game?