Tech

  • Today - Tuesday, May 22, 2018
    • Besides a critical evaluation from Consumer Reports, Tesla's (NASDAQ:TSLA) Model 3 needs to sell more expensive editions to keep the company afloat.
    • "Shipping min cost Model 3 right away wd cause Tesla to lose money & die. Need 3 to 6 months after 5k/wk to ship $35k Tesla & live," tweeted Elon Musk.
    • The bare-bones version was supposed to help Musk reach his goal of creating an "affordable mass-market electric car."
  • Monday, May 21, 2018
    • Shopify (NYSE:SHOP) falls by as much as 5.5% following Adobe Systems’ (NASDAQ:ADBE) agreement to buy commerce platform company Magento for $1.68B; SHOP now -2.4% after-hours.
    • SHOP competes against Magento in providing software to build and run web stores and process online orders.
    • Through today’s close, SHOP shares were up 43% YTD.
    • DPW Holdings (NYSEMKT:DPW): Q1 Net loss of $6.06M
    • Revenue of $5.19M (+219.1% Y/Y)
    • Press Release
    • RealPage (NASDAQ:RP) is starting a public offering of 6.5M shares of common stock; greenshoe option for added 975,000 shares.
    • RP -0.4% in after-hours trading.
    • Lead bookrunners: Morgan Stanley and J.P. Morgan. Joint bookrunners: Wells Fargo and RBC Capital. Co-managers: JMP Securities, KeyBanc Capital Markets, and Fifth Third Securities.
    • Source: Press Release
    • Previously: RealPage beats by $0.03, beats on revenue (May 3)
    • Super Micro Computer (NASDAQ:SMCI) announces receiving a letter from the Nasdaq about the company’s noncompliance due to not filing its 10-Q for the March quarter.
    • Super Micro responded that it expects to remain on track to file the delinquent filings on or before the Nasdaq panel’s deadline of August 24.  
    • China Finance Online (NASDAQ:JRJC): Q1 EPADS of -$0.23
    • Revenue of $13.28M (+53.2% Y/Y)
    • Press Release
    • Square (NYSE:SQ) intends to offer $750M of convertible senior notes due 2023 in a private placement; sees greenshoe option for added $112.5M.
    • Related to the pricing of the notes, Square expects to enter into privately negotiated convertible note hedge transactions with one or more of the initial purchasers.
    • Square traded -0.7% to $56.00 in after-hours trading.
    • The company sees using the net proceeds to pay the cost of the convertible note hedge transactions and use the rest for general corporate purposes.
    • Square expects that--in connection with establishing their initial hedge of convertible note hedge and warrant transactions--the hedge counterparties or their affiliates may buy Class A shares and/or enter into derivatives transactions relating to the Class A common stock at the same time or soon after the pricing of the notes.
    • Source: Press Release
    • Previously: Square Cash app gains popularity as a bank account: CNBC (May 18)
    • Tencent (OTCPK:TCEHY, OTCPK:TCTZF) acquires a majority stake in “Path of Exile” publisher Grinding Gear Games.
    • Grinding Gear Games announced via blog post and said it will remain an independent company. 
    • Path of Exile launched on PC in 2013 and Xbox One in 2017 and had more than 14M players as of 2016. Last year, the game saw a 56% Y/Y increase in player engagement.
    • The New Zealand-based publisher plans to launch new Exile expansions this year and next with version 4.0.0 expected to enter beta in early 2020.  
    • Micron (NASDAQ:MU) and Intel (NASDAQ:INTC) announce production and shipment of 4bits/cell 3D NAND technology that leverages a 64-layer structure.
    • The companies also announced development progress on third-gen 96-tier 3D NAND structure that provides a 50% increase in layers.  
    • Micron shares are down 0.3% aftermarket.  
    • Pure Storage (NYSE:PSTGdrops 6.6% aftermarket on Q1 results that beat EPS and revenue estimates with a 40% Y/Y revenue growth. In-line Q2 guidance has revenue of $296M to $304M (consensus: $299.43M). Non-GAAP gross margin expected from 63.5% to 66.5% and operating margin from -7% to -3%.
    • In-line FY19 guidance has revenue from $1.32B to $1.37B (consensus: $1.34B). Non-GAAP gross margin expected from 63.5% to 66.5% and operating margin from 0% to 4%. 
    • Key metrics: Non-GAAP gross margin, 66.3% (-0.1 pts Y/Y); product gross margin, 66.3% (-1.3 pts); support subscription gross margin, 66.3% (+4.2 pts); operating margin, -6% (+7.9 pts); operating cash flow, $18.6M; FCF (ex-ESPP impact), $8.6M; customer add, 300 (total: 4.8K). 
    • Earnings call is scheduled for 5 PM Eastern with a webcast available here
    • Press release.  
    • Previously: Pure Storage beats by $0.05, beats on revenue (May 21)
    • International Game Technology (NYSE:IGT): Q1 EPS of $0.15 misses by $0.12.
    • Revenue of $1.21B (+5.2% Y/Y) beats by $50M.
    • Shares -0.3%.
    • Press Release
    • Adobe Systems (NASDAQ:ADBE) will acquire commerce platform company Magento Commerce for $1.68B.
    • Magento’s platform combines digital commerce, order management, and predictive intelligence across shopping experiences. Current Magento clients include Canon, Paul Smith, and Rosetta Stone.
    • The Magento Commerce Cloud product will join the Adobe Experience Cloud.
    • The deal is expected to close in Adobe’s Q3 and each company will continue to operate independently after the close.
    • Adobe shares are up 1.2% aftermarket.
    • Pure Storage (NYSE:PSTG): Q1 EPS of -$0.07 beats by $0.05.
    • Revenue of $255.9M (+40.1% Y/Y) beats by $4.35M.
    • Shares -0.35%.
    • Press Release
    • Alibaba’s (NYSE:BABA) Ant Financial leads an over $200M Series D round in motion sensing company Orbbec.
    • The round also included SAIF Partners, R-Z Capital, Green Pine Capital Partners, and Tianlangxing Capital. 
    • Orbbec designs and manufactures 3D sensors that work for facial and gesture recognition, 3D measurement, and map reconstructions. The sensors can work in smartphones, robots, or smart home devices.
    • Alibaba shares are up 1.3% to $197.51 on the easing US-China trade tensions. 
    • Previously: Stocks surge at the open as U.S.-China trade war 'on hold' (May 21)
    • Microchip Technology (NASDAQ:MCHP) commences an unregistered offering of senior secured notes of multiple tranches.
    • Microchip will use a combo of the net proceeds from the offering, cash on hand, and borrowings to fund its acquisition of Microsemi (NASDAQ:MSCC).   
    • Microchip shares are up 0.8% to $93.56.    
    • Amazon (NASDAQ:AMZN) expects to expand its cloud computing operations in Latin America a month after AWS opened an office in Buenos Aires.
    • Amazon also has offices in Brazil, Chile, Colombia, and Mexico.
    • The expansion announcement came via a press conference with Teresa Carlson, VP of worldwide public sector. 
    • Amazon shares are up 0.4% to $1,580.87.  
    • Appearing on CNBC, Carl Icahn (NYSE:IEP) says he own shares of Dell Technologies (NYSE:DVMT), and hopes Dell would pay the right price should it choose to purchase the rest of VMware (NYSE:VMW).
    • Previously: CNBC: Icahn takes 'medium' stake in VMware (April 18)
    • Dell jumped by a couple of percent on the Icahn mention, but has since settled back to up 0.75% on the session. VMW -0.5%
    • Lyft (LYFT) wants to launch an electric scooter fleet in San Francisco, according to The Information.
    • Competition: Spin, Bird, and Lime all recently launched scooter services in the area. But the companies didn’t have permission and Lyft is talking with city officials about applying for a permit. 
    • San Francisco plans to issue permits for up to five companies during the 24-month pilot program. Each company could have up to 500 scooters. 
    • Lyft competitor Uber (UBER) recently acquired bike-share startup Jump for $200M.  
    • Previously: Uber acquires Jump Bikes (April 9)
    • China's 21Vianet Group (NASDAQ:VNET) is up 11.6% on heavy volume in a delayed move after Thursday's earnings report.
    • Shares are at their highest point since March 23. They're now down just 16% YTD.
    • On Thursday, the company reported EBITDA nearly doubled to 196M yuan, with EBITDA margin jumping to 24.5% from the prior year's 11.6%.
    • SilverSun Technologies's (SSNT +7%) subsidiary (SWK Technologies) has acquired Info Sys Management for $1.7M. The deal will be effective June 1, 2018.
    • Info Sys Management is reseller of Sage Software and Acumatica solutions, also provides hosting services for business applications to customers throughout the United States. The company currently has offices in Portland, San Diego, Phoenix and Washington, D.C.
    • Press Release
    • Piper Jaffray raises its Splunk (NASDAQ:SPLK) price target from $115 to $130.
    • Rating maintained at Overweight, an 11% upside to Friday’s close
    • Splunk shares are down 1.3% to $115.26.
         
    • Piper Jaffray raises its Workday (NYSE:WDAY) price target from $140 to $150.
    • Rating maintained at Overweight, a 12% upside to Friday’s close.
    • Workday shares are down 1.9%.   
    • UBS downgrades Gogo (NASDAQ:GOGO) from Buy to Neutral.
    • Gogo shares are down 3.2% to $5.12.  
    • GoDaddy (GDDY -1%) announces underwritten public offering of 11.625M shares of its Class A common stock by certain of its stockholders.
    • GoDaddy will not receive any proceeds from the sale of the shares in this offering.
    • Press Release
    • Baidu (NASDAQ:BIDU) announces it will divest its global ad and tools business Global DU business.
    • After the completion of the transaction, Baidu will own about 34% of Global DU’s outstanding shares and won’t have effective control. 
    • The transaction is expected to close in Q3.   
    • Baidu shares are down 5.1% to $240.11.    
    • Altice (OTCPK:ALLVF) is off 1.8% in U.S. trading after word from MSCI that it will delete Altice A shares from its global standard and large-cap indexes.
    • The move is effective May 22, the day the stock goes ex-dividend for a separation of Altice USA (ATUS -3.3%), where Altice shareholders will get 0.4163 share of Altice USA for each share of Altice held.
    • Shares of Altice Class A are down 7.8% in Amsterdam.
    • Snap (NYSE:SNAP) is up 3.6% after bearish Michael Nathanson upgrades to Neutral.
    • "Life as a public company has been nothing short of an unmitigated disaster," he writes, but that's now priced into the stock, after it's dropped 47% since he started his Sell rating 14 months ago.
    • He's raised his price target to $9 from $7, suggesting downside now is just 18%.
    • Nomura Instinet reiterates its Neutral rating on Apple (NASDAQ:AAPL) with a $175 price target, a 6% downside to Friday’s close.
    • Analyst Jeffrey Kvaal says the last quarter’s figures showed soft iPhone X demand and services business growth that was “good not great.” 
    • Kvaal: “iPhone volumes are not deteriorating though iPhone X remains uninspiring.” Apple guidance implied third fiscal-quarter iPhone unit volumes that were better than feared. We do not believe, however, sell through has meaningfully improved.”     
    • Apple shares are up 1.4% to $188.95.    
    • Pareteum (NYSEMKT:TEUM) is up 0.8% premarket after its latest win, a bigger-than-usual $8M three-year agreement for its Cloud Service Platform.
    • An established global MVNO is the customer as part of the launch of a new European-based MVNO; it has 100,000 existing customers.
    • Moving to Pareteum's GCP will enable more options for connectivity for voice, data and SMS.
    • SoftBank’s (OTCPK:SFTBF, OTCPK:SFTBY) Fortress Investment Group is raising a $400M fund for suing tech companies over IP infringement, according to the NY Post.
    • Fortress will buy companies with patent portfolios and lend money to small-cap companies with rich patent portfolios. Fortress has conducted that type of lending for years. 
    • The fund will be the first IP fund for Fortress, which SoftBank acquired in December for $3.3B with the stipulation that Fortress would run independently. 
    • SoftBank’s $100B Vision Fund invests in larger tech companies more likely to be on the receiving end of IP infringement suits.  
    • Previously: SoftBank planning second Vision Fund, Saudi Arabian office (May 15)
    • "Flawless execution" on tactics means the bear case on Roku (NASDAQ:ROKU) is falling apart, Needham says in a bullish reiteration.
    • Shares are up 2.6% premarket, setting the stok up to build on a Friday where it gained 3.3%.
    • In particular, since the stock's debut the company has added the Roku Channel app, which Needham expects will appear on all of Roku's competitors' connected televisions, adding revenue optionality. User adds from Roku TVs are deepening the company's moat as well. (h/t Bloomberg)
    • Analyst Laura Martin reiterated her Buy rating and Street-high $50 price target, implying 41% upside.
    • Needham maintains a Strong Buy rating but lowers its Applied Materials (NASDAQ:AMAT) price target from $72 to $68, a 37% upside to Friday’s close.
    • Firm says AMAT reported a strong Q2 but mixed guidance on a near-term pullback on semiconductors. Management expects the business to recover by Q4 and sees a sustainable WFE in C19. 
    • Needham recommends that long-term investors use the near-term volatility as a buying opportunity. 
    • Source: Briefing.com. 
    • Applied Materials shares are up 2.3% premarket to $50.63.       
    • Wedbush reiterates an Outperform rating on Turtle Beach (NASDAQ:HEAR) and raises the price target from $12.50 to $20, a 25% upside to Friday’s close.
    • Analyst Alicia Reese: “Fortnite exposes a large audience to multi-player games, which is greatly enhanced by communication and directional audio cues. This should benefit Turtle Beach for years to come.” 
    • Source: Bloomberg First Word. 
    • Turtle Beach shares are up 4.8% premarket to $16.74.  
    • Micron (NASDAQ:MU) increases its Q3 guidance ahead of today’s analyst day event.
    • Q3 revenue is now expected from $7.7B to $7.8B (consensus: $7.47B; was: $7.2B to $7.6B) with EPS from $3.12 to $3.16 (consensus: $2.84; was: $2.76 to $2.90). 
    • Watch a live webcast of the 2018 Analyst and Investor Event here starting at 1:30 PM Eastern. 
    • Micron shares are up 4.1% premarket to $55.60.  
    • Previously: NXP Semiconductors, Micron among movers on trade war hold (May 21)
    • Monness Crespi & Hardt upgrades Hortonworks (NASDAQ:HDP) from Neutral to Buy with a $25 price target, a 46% upside to Friday’s close.
    • Firm says the price target is based on an EV/sales ratio of nearly 5.5x 2019E revenue. 
    • Source: Briefing.com. 
    • Hortonworks shares are up 2.7% premarket to $17.53.  
    • FTE Networks (NYSEMKT:FTNW): Q1 EPS of $0.56
    • Revenue of $85.1M (+89.1% Y/Y)
    • Press Release
    • Morgan Stanley downgrades AppFolio (NASDAQ:APPF) from Equal Weight to Underweight.
    • AppFolio shares are down 2.6% premarket to $56.30.        
    • Roper Technologies (NYSE:ROP) will acquire software company PowerPlan for $1.1B in cash. Deal is expected to close in Q2.
    • PowerPlan provides enterprise solutions for taxes, regulations, and budgeting.
    • PowerPlan was owned by private equity firm Thoma Bravo. In 2016, Roper bought Bravo’s business software company Daltek for $2.8B. 
    • Roper says the deal is immediately accretive to FCF and expects PowerPlan to generate about $150M in revenue and $60M in FCF within the first year of ownership.  
    • Morgan Stanley downgrades Medidata Solutions (NASDAQ:MDSO) from Overweight to Equal Weight.
    • Price target: $79, a 2% upside to Friday’s close. 
    • Medidata shares are down 1.3% premarket to $76.50     
    • NXP Semiconductors (NASDAQ:NXPI), Micron (NASDAQ:MU), AMD (NASDAQ:AMD), and Acacia Communications (NASDAQ:ACIA) are among the companies moving after Treasury Secretary Steve Mnuchin said the U.S. and China will “put the tariffs on hold for now.”
    • Mnuchin says the countries will work on a trade framework.
    • NXP Semiconductors gains 2.7% on the improved conditions for an approved acquisition by Qualcomm (NASDAQ:QCOM), which is up 1.6% premarket.
    • AMD gains 1.1% premarket, Micron gains 2.2%, and Nvidia (NASDAQ:NVDA) is up 1.1%.
    • Acacia Communications shares are up 5.2% because the company gets 20% of revenue from China’s ZTE.
    • Other ZTE suppliers that could move on the news: Oclaro (NASDAQ:OCLR), Skyworks (NASDAQ:SWKS), and Silicon Labs (NASDAQ:SLAB). 
    • Previously: Acacia, NXP Semi among movers on U.S.-China thaw (May 14)
    • FireEye (NASDAQ:FEYE) announces plans to offer $525M in convertible senior notes due 2024.
    • Initial purchasers will have a 13-day option to buy up to an additional $75M in notes.
    • FireEye shares are up 0.1% premarket to $17.82. 
    • Cheetah Mobile (NYSE:CMCM): Q1 EPS of RMB0.48 beats by RMB0.03.
    • Revenue of RMB1.15B (-3.4% Y/Y) beats by RMB20M.
    • Shares -2.19% PM.
    • Press Release
    • Boosting its efforts in developing "conversational AI," Microsoft (NASDAQ:MSFT) has bought artificial intelligence startup Semantic Machines.
    • "Intelligent assistants need to be able to have a natural dialogue instead of just responding to commands," said CTO of AI & Research David Ku.
    • Semantic Machines' team previously led automatic speech recognition development for Apple's personal assistant Siri.
    • Huami (NYSE:HMI): Q1 EPS of RMB0.39
    • Revenue of RMB585.92M (+77.0% Y/Y)
    • Press Release
  • Sunday, May 20, 2018
    • Astea (NASDAQ:ATEA): Q1 EPS of -$0.03
    • Revenue of $6.7M (+11.7% Y/Y)
    • 10Q
  • Friday, May 18, 2018
    • Cogeco Communications (OTCPK:CGEAF) has won 23 spectrum licenses at auction, for C$24.3M.
    • The company's subsidiary Cogeco Connexion was the successful bidder on the licenses of 2500 MHz and 2300 MHz spectrum, mainly in the Ontario and Quebec wireline footprint.
    • “As stated in the past, the company has an interest in entering the mobile market only to the extent that it can operate a profitable business within its financial means," says Chief Technology and Strategy Officer Luc Noiseux.
    • "A wireless offering would be complementary to Cogeco Connexion’s current offering to its customers. This is a first positive step in the exploration of our options in the mobile wireless market.”
    • Phoenix New Media (NYSE:FENG) saw its American Depositary Receipts cut to Hold by First Shanghai, but still finished higher in U.S. trading.
    • The bank set its price target on the ADRs to $6.25; they closed on NYSE today at $5.55, up 0.7%.
    • The ADRs are down 15.1% in 2018, but up 73.3% over the past 12 months.
    • The Sierra Wireless (NASDAQ:SWIR) annual shareholder meeting went as management expected, according to results it's announced today.
    • All seven management nominees were elected to board seats, with margins of 91.25% or better
    • Shareholders also signed off on: the firm's accountants (98.48% approval); amendments to the restricted share unit plan (94.2% approval); and executive compensation (89.68% approval).
    • BofA Merrill Lynch started coverage of Zayo Group (NYSE:ZAYO) at Buy, the latest in a bullish run of coverage from analysts.
    • The firm set a $43 price target, implying 26% upside. Shares closed today up 0.3% to $34.14.
    • That move caps a series of upgrades the company got in mid-April and a run of raised targets and reiterated Buys going back to November.
    • Previously: Zayo +1.3% on communications infrastracture deal (May. 17 2018)
    • Previously: Zayo Group +1.2% on $500M buyback program (May. 07 2018)
    • T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S) have amended their $38B acquisition loan agrement to add 10 new lenders to the original six, Bloomberg notes.
    • BNP, Commerzbank, CA-CIB, TD, WFS, Santander, SG, SunTrust, National Westminster and US Bank are joining in.
    • The loan comes in four tranches: a $19B secured bridge loan, an $8B unsecured high-yield bond bridge, a $7B secured term loan B and a $4B revolving credit facility.
    • The seven-year loan and revolvers are expected to be sold at retail.
    • Some Square (SQ +0.1%) customers are using the payment company's Cash app more like a bank account than the company had expected. CEO Jack Dorsey, plans to make the most of it.
    • The money-transfer app had 7M active customers in December, the company told investors in its latest quarterly letter.
    • "People are using this as their primary banking account, and in some cases it's their only bank account," Dorsey said at the Consensus blockchain conference in New York. That shows there's an under-served audience that Square is reaching, he added.
    • Banking aspirations weren't totally out of the blue, though. Last September, Square had announced plans to apply for a banking license in Utah.
    • Previously: Square's Dorsey is sure of cryptocurrency's future, just not sure which one (May 16)
    • Washington Post sources say President Trump pushed U.S. Postmaster General Megan Brennan to double the rate charged to Amazon (NASDAQ:AMZN) and other companies to ship packages.
    • Brennan has resisted, explaining that the arrangements are under contracts and need review by a regulatory commission.   
    • Brennan also explained that the relationship with Amazon is beneficial for the Postal Service. 
    • Amazon spent $21.7B on shipping in 2017, which includes sorting, delivery center, and transport charges. Analysts think the Postal Service delivers roughly 40% of Amazon packages. 
    • The Postal Service reported shipping and package income of $19.5B last year (+12% Y/Y) but lost money mainly due to first-class mail declines. 
    • Amazon shares are down 0.5% to $1,574.43.    
    • Previously: Amazon -4.3% after another Trump tweet (April 2)
    • Previously: Amazon -1% on Trump tweet suggesting post office collusion (April 3)
    • Google (GOOG, GOOGL) is planning meetings with publishers at four of its global offices in the coming week to hear concerns over preparations for Europe's General Data Protection Regulation, the WSJ reports.
    • That comes amid a general climate of unease in publishing over Google's dominance (along with Facebook (NASDAQ:FB)) of the digital advertising market.
    • Google and the publishers will need to hash out some contentious concerns, including who's got the burden of getting user consent for use of personal information, and how that will be done.
    • Google's invited leadership from four critical trade bodies -- the News Media Association, News Media Alliance, European Publishers Council and Digital Content Next -- to attend meetings with its execs next Thursday.
    • Uber (UBER) submits an appeal regarding its license lost in the English city of Brighton.
    • Brighton said the ride-sharing company wasn’t acting “fit and proper” over the data breach and its use of drivers from outside the area. 
    • Uber can remain in operation in the city until the appeals process is complete.       
    • Previously: Uber loses its license in Brighton (May 1)
    • Dell (NYSE:DVMT) is talking with shareholders to gauge interest in a full merger between the company and VMware (NYSE:VMW), according to CNBC sources.
    • Owners of the tracking stock own shares that track VMware performance but not the rest of Dell. 
    • Dell wants to own as much VMware as it can while also cleaning up its capital structure after a string of mergers and spin-outs. 
    • In a public filing, Dell says it’s still considering an IPO, VMware merger, doing nothing, or exchanging its common stock (held by Michael Dell and Silver Lake) for DVMT shares.   
    • DVMT shares are up 5.8% to $78.63. 
    • VMware shares are up 1.3%.    
    • Previously: VMware +6.8% as Dell leans against reverse merger (April 16)
    • After warning of possible litigation due to an "ill-advised" merger, activist investors Mudrick Capital have sued Globalstar (GSAT -0.9%) in an attempt to open the books.
    • The merger -- with FiberLight and other assets also controlled by Globalstar CEO Jay Monroe -- is "self-dealing," Mudrick says: “Globalstar will materially overpay for assets already controlled by Mr. Monroe, while at the same time significantly diluting its minority stockholders’ interests."
    • Jason Mudrick's funds converted to an active stake in April and hold more than 5% of stock but would face significant dilution if the merger goes forward.
    • Thinly traded nano cap ENDRA Life Sciences (NDRA -14%) adds to its retreat since debuting at $5/unit on May 9. Each unit consisted of one share of common stock and one five-year warrant to purchase one share of common at $6.25. Shares are currently exchanging hands at $1.93.
    • The company develops technologies that improve the performance of ultrasound systems.
    • Piper Jaffray upgrades Mellanox Tech (NASDAQ:MLNX) from Neutral to Overweight and raises the price target from $84 to $100.
    • New target represents a 15% upside to yesterday’s close. 
    • Mellanox shares are down 1.2% to $86.02.  
    • Uber (UBER) Chief Product Officer Jeff Holden has left the company, effective yesterday.
    • Holden oversaw the Uber Elevate robo-taxi project.
    • Holden notably met with Federal Aviation Administration Acting Administrator Dan Elwell last week about regulation for Uber Air.  
    • Previously: Uber seeking third launch city for Uber Air (May 9)
    • NXP Semiconductors (NASDAQ:NXPIgains 4.8% on encouraging word out of Beijing about its acquisition by Qualcomm (NASDAQ:QCOM).
    • The WSJ quotes a Beijing official: “The Qualcomm/NXP deal is looking more optimistic now.” 
    • Qualcomm shares are up 1.6% to $57.87.  
    • A proactive dig into company issues leaves Gogo (GOGO +0.9%) bear Northland Securities even dimmer on the company prospects, advising "grab a parachute before continued equity erosion."
    • The firm slashed its price target to $1.50, a whopping 72% downside implied, after re-examining issues that it says are deep and extensive.
    • A lot of risks are "essentially being swept under the rug," says analyst Paul Penney, who says the root issues center on consistent and excessive capex levels that are "simply not sustainable" -- in part due to owning its own expensive network. (h/t Bloomberg)
    • Shares hit a 52-week low of $5.05 on May 8 in the wake of earnings; they're up 6.5% since.
    • Stifel maintains a Hold rating but raises its Zendesk (NYSE:ZEN) price target from $45 to $50.
    • The new target represents a 9% downside to yesterday’s close. 
    • Zendesk share are up 2.8% to $56.64.  
    • PayPal's (PYPL +2.1%)agreement to buy Sweden's iZettle solves some challenges for both the buyer and the seller, according to a Bloomberg opinion piece.
    • The $2.2B deal gives PayPal some traction in in-store payments, an area it's had trouble breaking into. It also gives PayPal a firm footing in some regions  where competitor Square (NYSE:SQ) has little presence.
    • For unprofitable iZettle, it eliminates the uncertainty of a planned IPO, which was seeking a value of more than 10B Swedish kronor ($1.1B), more than 10 times its revenue of 776M kronor. Square, which has a profit, trades at less than 10 times net revenue.
    • While expensive, the acquisition is far cheaper than buying Square, an oft-speculated scenario, Alex Webb writes.
    • PayPal can afford the $2.2B price tag--it gets $6.8B from the sale of loans and receivables to Synchrony Financial (NYSE:SYF) later this year and has a market capitalization of more than $90B and net debt 10% below annual EBITDA.
    • Previously: PayPal confirms it's buying iZettle for $2.2B cash: TechCrunch (May 17)