Stocks Turn Mixed in Late Trades
Facebook's revenue growth has been slowing in recent quarters, raising flags among some who believe the company should show consistently strong revenue growth at this stage of its maturation. The company surprised investors after disclosing, just days before the initial public offering, that its revenue may be hit by more users transitioning to mobile platforms, where advertising is less proven.
Shares of Morgan Stanley(MS) , meanwhile, ticked higher by 0.9%, amid reports that regulators will investigate issues surrounding the Facebook IPO.
Specialty retailer Urban Outfitters(URBN) posted Monday first-quarter profit that topped analysts' expectations. Urban Outfitters earned $34 million, or 23 cents a share, for the three months ended April 30, 3 cents above analysts' views. The stock rose more than 7%.
Shares of Williams-Sonoma(WSM) gained more than 3% after the San Francisco-based upscale home products retailer reported adjusted earnings that topped Wall Street's consensus expectations and lifted the range of its fiscal 2012 profit outlook.
Tuesday brought more buyout news as well with Benihana(BNHN) agreeing to be acquired by private equity firm Angelo, Gordon & Co. for $296 million. The deal values shares of the restaurant operator at $16.30 each in cash, a premium of more than 40% to the stock's average closing price over the 30 days preceding March 13, when Benihana announced plans to examine its strategic options.
The stock jumped 21% on the news. Benihana is now in a go-shop period that allows it to actively solicit third-party proposals through July 1.
Shares of Express(EXPR) tanked more than 27% after its profit forecast for 2012 fell below analyst expectations. The retailer forecast a profit excluding certain items of $1.79 to $1.89 this year. Analysts had estimated $1.95, according to Bloomberg.
-- Written by Andrea Tse and Shanthi Bharatwaj in New York.
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