TECH STOCKS: Microsoft's A Rare Tech Gainer In Mixed Session

By Rex Crum, MarketWatch Software giant gets lift as Nomura analyst raises price target

SAN FRANCISCO (MarketWatch) -- Microsoft Corp. proved to be a rare, notable gainer among tech stocks Thursday after Nomura Equity Research analyst Rick Sherlund raised his price target on the software giant's stock.

Microsoft shares (MSFT) ended the day up by 1.6%, at $48.83, after Sherlund raised his price target on the company's stock to $56 from $50. In a research note, Sherlund cited Microsoft's gains in cloud-based services, which have aided in the growth of its Office software suite, among the reasons for raising his view on the company's share price.

Sherlund also said Microsoft's board of directors may take up the matter of returning more of the company's cash to shareholders. Microsoft held its annual shareholders meeting on Wednesday, the first with Satya Nadella as Chief Executive.

Separately, book retailer Barnes & Noble Inc. (BKS) said it has terminated a commercial agreement it had with Microsoft regarding B&N's Nook e-reader. Microsoft originally invested in the Nook in 2012.

Among other leading tech stocks, Google Inc. (GOOGL) shares rose 1% to close at $542.58. The company said it will launch kid friendly versions of its Chrome browser and YouTube music streaming service next year.

Amazon.com Inc. (AMZN) rose by 43 cents a share to $316.93 after the company launched a new takeout food delivery service in Seattle that is similar to that offered by Grub Hub Inc. (GRUB). Analysts doubted that Amazon's move will severely damage Grub Hub's business. Still GrubHub's shares gave up 5.6% to close at $34.05.

Apple (AAPL) shares shed 44 cents to close at $115.49, while Facebook Inc. (FB) rose 36 cents to $75.24 a share and Priceline.com Inc.(PCLN) rose by almost $10 to end the day at $1,140.11.

IBM Corp. stock (IBM) gave up 47 cents a share to close at $164.05.. Cantor Fitzgerald analyst Brian White said in a research note that while 2014 "has been another disappointing one for IBM investors", he believes the tech-services giant will show signs of improvement next year, and Big Blue might also face opposition from activist investors.

The tech-heavy Nasdaq Composite Index (RIXF) shed 5 points to end the day at 4,769.

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