TECH STOCKS: Data-storage Deal Leads Tech Action

By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech stocks showed strength in afternoon action Thursday, but some data-storage companies were in the red after Dell Inc. unveiled a lower-than-expected deal to acquire Compellent Technologies Inc.

Shares of Compellent (CML) fell 14.5% to $28.80 after the company said it was in "advanced discussions" about Dell acquiring Compellent for $27.50 a share.

Compellent's shares have risen more than 70% over the past three months on speculation that the company could be a takeover target after Dell lost a bidding war with Hewlett-Packard Co. (HPQ) to acquire 3Par Inc. over the summer.

CommVault Systems Inc. (CVLT), which has also been viewed as a possible data-storage takeover target, fell 3.2%.

Shares of networking-equipment maker Ciena Corp. (CIEND) rose 15% after the company gave a mixed fourth-quarter earnings report, but said it expects its first-quarter sales to surpass analysts' forecasts.

Chinese Internet video-streaming company Youku.com Inc. (YOKU) climbed another 28.5% to $43, one day after soaring 161% in its initial public offering.

E-Commerce Dangdang Inc.(DANG), which rose almost 90% in its IPO Wednesday, added another $2.30 a share, or almost 8%, to $32.19.

U.S. shares of Dutch chip-equipment maker ASML Holding (ASMLD) rose more than 7% after the company forecast fourth-quarter bookings of $2.66 billion and said it expects demand to improve in most of its semiconductor market segments.

Among other tech stocks, declines came from Oracle Corp. (ORCL), Hewlett-Packard Co., Apple Inc. (AAPL) and Intel Corp. (INTC)

(INTC)(INTC)The Nasdaq Composite Index (RIXF) rose 4 points to 2,613, and the Philadelphia Semiconductor Index (SOX) was up slightly.