Tesla Slips, King Flips: Tech Winners & Losers

Tickers in this article: AAPL EMC KING NFLX TSLA

NEW YORK ( TheStreet) -- EMC  shares fell 1.4% to $26.48 after the announcement of a new acquisition.

Storage vendor EMC announced today that it had purchased cloud storage management company TwinStrata. The price and other details of the acquisition were not disclosed. EMC's press release said that TwinStrata would provide a "embedded cloud access capabilities to its enterprise data service platform VMAX3, its new and far-more agile data center infrastructure." "TwinStrata's advanced cloud tiering technology, which "enables customers to move infrequently accessed data to the public cloud for lower TCO," the press release said.

Nicos Vekiarides, the CEO and co-founder of TwinStrata, wrote in an email that the purchase would not harm existing TwinStrata customers. As part of EMC, Vekiarides wrote  Twinstrata will continue to enable customers to extend on-premise storage into one or many public or private cloud providers. "Instead, the purchase would give customers the same product and service as part of a wider, market-leading cloud portfolio and global brand behind it," the CEO said in the email.


Tesla shares fell 3.2%% to $215.65 after it was reported that the company is being sued in China.

Reuters reported that Chinese businessman Zhan Baosheng, who registered the Tesla trademark in China before the electric car manufacturer expanded there, is suing the company, demanding that they stop sales and marketing activities and shutdown showrooms and supercharging facilities in China. He is asking for 23.9 million yuan ($3.85 million) in compensation. The case will be heard by the Beijing Third Intermediate Court on August 5.

Tesla could not be reached for comment for this story.

Zhan, who is based in Guangdong, registered the trademarks for the name Tesla in both English and Chinese in 2006. He sought to sell the trademark to Tesla, but negotiations collapsed. Last year, Chinese regulators agreed with Tesla that Zhan's copyrights were invalid, but Zhan is appealing that decision.


Despite optimistic predictions from analysts and the release of a new game, shares of King Digital Entertainment  are down 3.9% to $19.92.

King, the maker of the wildly popular mobile game Candy Crush Saga, had a disappointing IPO in late March, when the stock, priced at $22.50 a share, closed at $19. It did not reach the IPO price until last week, with investors concerned that the company's signature game is a one-hit wonder.

Recently, analysts have become more optimistic. Yesterday, Michael J. Olson of Piper Jaffray upgraded King's rating to "overweight" from "neutral," and raised the price target to $28 from $19. Olson cited the success of other King mobile games, including Pet Rescue , Farm Heroes , and Bubble Witch 2 . According to the note, the catalyst for King shares will be the release of a new game, Candy Crush Soda. He models 31% growth in 2014 and 15% growth in 2015, in line with consensus estimates.