Adobe, Facebook, Quest: Tech Premarket
NEW YORK (TheStreet) -- Adobe(ADBE) shares tanked 6.14% to $30.87 before market open on Wednesday as investors responded to the company's tepid third-quarter guidance, released late on Tuesday.
The software maker comfortably beat Wall Street's second-quarter estimates, but warned of weakening demand in Europe.
Adobe was one of the most active premarket Nasdaq stocks on share volume of 149,088.
The recent momentum in Facebook(FB) shares slowed early on Wednesday, as the social networker's stock slipped 0.41% to $31.78.
Early Wednesday, Evercore Partners initiated coverage of Facebook with an equal-weight rating and a $39 price target. The analyst firm sees Facebook's long-term prospects as very positive, but warned that the company's near-term is "incrementally negative."
Specifically, Evercore cited slowing desktop engagement, the potential displacement of Facebook's 30% cut on mobile virtual goods payments and the potential negative impact of lock-up agreements. "The company's lock-up expirations in late August are likely to place intensive technical pressure on shares," noted Evercore analyst Ken Sena.
Shares of the Menlo Park, Calif.-based firm closed up 1.6% on Tuesday.
Facebook partner Zynga(ZNGA) crept up 0.34% to $5.99 early on Wednesday, after climbing more than 3% during Tuesday trading.
Quest Software(QSFT) fell 0.64% to $26.35 on Wednesday.
The company agreed to a higher buyout bid of $2.17 billion on Tuesday after Insight Venture Partners added Vector Capital as a member of the buyout group. The amendment to the previously announced merger agreement increased the deal's value from $23 a share in cash to $25.75 a share in cash.
The Aliso Viejo, Calif.-based firm was also one of the most active premarket Nasdaq stocks on share volume of 204,450.
--Written by James Rogers in New York.
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