TECH STOCKS: Apple, Red Hat, VeriFone Highlight Tech Trading

By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech companies ended up putting in a mixed trading session Tuesday, with notable losses coming from Apple Inc. and Red Hat Inc., but decent gains coming elsewhere from the likes of VeriFone Systems Inc.

Apple (AAPL) fell by $9.44 a share, or 2.2%, to close at $Z28.43. Before the market opened, Jefferies analyst Peter Misek trimmed his price target on Apple's stock to $420 a share from $500.

Misek also cut his iPhone sales estimates for the current quarter to 35 million units from 37.5 million and said that checks with Apple's suppliers indicate the next version of the iPhone won't be launched until the third quarter of the year.

Apple is also facing the prospect of greater competition with Samsung, which is expected to unveil its next Galaxy S smartphone at an event in New York City on Thursday night.

Red Hat (RHT) also put in a disappointing performance, as the software company's shares fell almost 5% to close at $50.60. Analyst Walter Pritchard of Citigroup cut his rating on Red Hat to neutral from buy on the grounds that the company is lacking a major source of new revenue growth.

Zynga Inc. (ZNGA) also had a rough go of it, falling by more than 5% to close at $3.73 a share. Macquarie Capital analyst Ben Schachter said in a research note that the idea that Yahoo Inc. (YHOO) might buy the social-media gaming company is "unfounded." Zynga shares rose more than 10% Monday on reports that Yahoo might be interested in acquiring Zynga.

MetroPCS Communications Inc. (PCS) gave up 2.3% to close at $10.26 a share. The mobile-phone carrier urged its shareholders to approve its merger with T-Mobile USA (DTEGY), while the U.S. Federal Communications Commission and the Department of Justice signed off on the proposed deal.

Declines also came from Oracle Corp. (ORCL), NetApp Inc. (NTAP), Cisco Systems Inc. (CSCO) and Facebook Inc. (FB).

The Nasdaq Composite Index (RIXF) ended the day with a loss of 10.5 points to close at 3,242, but the Philadelphia Semiconductor Index (SOX) managed to slip back into positive territory by the time the market closed.

Advances came from VeriFone (PAY), which rose almost 6% to $21.68 a share. Late Monday, the payments-technology and services company said it was replacing Chief Executive Doug Bergeron, effective Tuesday.

Hard-disk drive maker Seagate Technology (STX) rose almost 5% to $34.94 a share. The company said it shipped its two-billionth hard-disk drive.

Glu Mobile Inc. (GLUU) shares climbed almost 17% to end the day at $2.83 after the mobile-games developer said it launched its first real-money gambling game in the U.K. Glu Mobile is partnering with Probability PLC on a mobile slot game using intellectual property from its "Samurai vs. Zombies Defense" title.

Intersil Corp. (ISIL) rose almost 4% to close at $8.85 a share after the communications signal semiconductor company said late Monday it named Necip Sayiner as its new CEO. Sayiner had been CEO at Silicon Laboratories Inc. (SLAB). B. Riley Caris analyst Craig Ellis raised his rating on Intersil to buy from neutral following Sayiner's appointment.

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