Dell Pops on Microsoft Rumors: Winners & Losers
CNBC's David Faber is reporting that Microsoft may invest anywhere between $1 billion and $3 billion as part of a private-equity bid for Dell. The form of the investment would be mezzanine financing, which is defined as financing in the form of debt that converts to equity should the debt not be paid back on time and in full.
Shares of Microsoft ticked lower following the reports, off 0.39% to $27.15.
Analysts polled by Thomson Reuters expect Google to earn $10.49 a share on $12.3 billion in revenue this quarter, aided by a slowing decline in click-per-costs (CPC), a key metric for ads.
Deutsche Bank analyst Ross Sandler believes this may be the case. "Reported CPC growth is on the verge of improving, mostly as Google comps the downtick that started back in 4Q11. Some investors use this metric as a proxy for improving mobile monetization, hence any improvement would be a positive catalyst," Sandler wrote in a research note. He rates Google shares buy with an $850 price target.
Research In Motion (RIMM) shares soared, gaining 8.9% to $17.25 followings reports that CEO Thorsten Heins would consider licensing out BlackBerry's operating system, if it made sense.
The German newspaper Die Welt questioned Heins what took Research In Motion so long to make a new operating system, and Heins explained the company had to make it future proof for the next 10 years. The prospect of licensing the new OS was brought up, as Microsoft does with Windows.
"Before you licensed the software, you must show that the platform has a large potential," Heins told Die Welt . "First we have to fulfill our promises. If such proof, a licensing is conceivable."
Apple (AAPL) shares were modestly lower, off 0.36% to $498.18 as the company gets set to report fiscal first-quarter earnings Wednesday.
More than 6.2 million iPhones were activated on Verizon's (VZ) network last quarter, half of which were iPhone 5s. This fact leads some to believe that Apple may have sold as many as 56 million iPhones in the all-important holiday quarter.
Topeka Capital Markets analyst Brian White noted that Verizon has accounted for approximately 11% of Apple's total iPhone shipments over the past six quarters.
"Using this 11% number, we can easily back into a greater than 56 million iPhone shipment number in the quarter. Even with 12% penetration, we can get over 51 million," White wrote in a note.