Fiber-optic network equipment maker Finisar Corporation (FNSR) absolutely blew out its Q3 numbers, turning a profit of 3 cents per share, versus an unadjusted 15 cents per share loss for the same quarter last year. FNSR shares surged upwards 45% during Friday's trading, evidence enough that the market was blindsided by the company's strong performance. Analysts covering the stock noted, however, that the cause behind this change to profitability was not a sudden occurrence, but a result of long-term company strategies, such as setting up an offshore facility and purchasing the needed fabrication and laser supplies. Market sentiment for the company seems positive, with some analysts raising their price targets for the billion-dollar company to $6 per share (the stock currently trades at just over $4).
Meanwhile, much more established technology firm Novell Inc (NOVL) saw its shares tank over 17% during Friday's session, as the company saw declining revenues for the most recent quarter. The software company's outlook also disappointed the market, and many analysts commented that NOVL shares appear to be fully valued or perhaps a bit overpriced, as they have seen a strong run up in recent months. Combined with the less than robust outlook, investors saw little chance for share price appreciation with the stock and were quick to jump ship.
Big Roller Coaster
While nothing seems to stop Google (GOOG) from making news headlines, the company certainly made waves with investors this week, first dropping like a rock on Tuesday when the company's Chief Financial Officer, George Reyes, warned that growth rates for the multi-billion dollar search firm were expected to decline in the future. While few investors would expect any company to be able to avoid the law of large numbers forever, Wall Street was apparently taken aback by the CFO's remarks, plunging GOOG shares down almost 15% from recent highs during Tuesday's trading. The stock hit lows of $338 per share, as investors fled the stock amid growth concerns. However, as the week wore on, GOOG recovered its previous bullishness in the minds of investors and, thanks to positive outlook stipulated by management in Thursday's analyst session, the company's shares closed the week at $378.18. Considering it opened Monday at $381.27 per share, GOOG certainly took quite the roller coaster ride during the week's trading only to end up back where it started.