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.
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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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