Shutterfly Soars, Twitter Stalls: Tech Winners & Losers
NEW YORK ( TheStreet) Shutterfly
Citing anonymous sources, Bloomberg reported that Shutterfly hired the boutique investment bank Qatalyst Partners to find a buyer. The sources claimed that potential buyers included e-commerce companies and private equity firms, and may not lead to a transaction.
Shutterfly allows users to apply their digital images to objects such as photo albums, magnets, and mugs. The company's earnings per share in the last fiscal year was 19 cents a share, down from 55 cents a share in the prior fiscal year. As of yesterday's close, shares had declined 12% year to date.
A Shutterfly spokesperson declined to comment.
Anthony Noto, the former Goldman Sachs
From 2008 to 2010, he served as CFO of the National Football League. Noto replaces Mike Gupta, who will become Twitter's Senior Vice President of Strategic Investments.
Noto tweeted yesterday morning, "I could not be more excited about joining the Twitter team & helping them reach every person in the world."
Shares of Vitacost
"We are excited to join such a tremendous organization and believe this will be an outstanding partnership," stated Jeffrey Horowitz, Chief Executive Officer of Vitacost.com in the press release. "This transaction represents a significant premium for our shareholders and the company will benefit by leveraging Kroger's scale and resources to further drive the online healthy living industry to new heights."
Kroger, the largest supermarket chain in the United States, signed a definitive agreement to purchase Vitacost, which sells vitamins and other health products online, for $8 per share in cash, or roughly $280 million. Kroger will finance the deal using debt.
Kroger shares were down slightly, falling 0.10% to $49.48.
Steven A. Rubis of Stifel Nicolaus upgraded the online health information company to "buy" from "hold," giving it a $60 price target. Rubis cited advertising sales growth and strong industry trends. "We believe industry trends and sponsorship activity suggest WebMD advertising growth estimates likely increase rather than decrease," the analyst wrote in the note.
This week, WebMD released its own health tracking mobile app, Healthy Target, built into the company's flagship app. Healthy Target will compete with Apple's