Today: Earnings reports lead to a variety of Wall Street performances for Silicon Valley companies, as indexes decline overall despite another strong jobs report.
The Lead: Post-earnings performance varies for Silicon Valley companies
The biggest names in Thursday's round of Silicon Valley earnings reports soared higher after revealing their results, but Friday trading was mixed for other companies who detailed their financial performances.
Tesla Motors settled for a 4.5 percent advance, closing at $233.37 as analysts exhibited surprise at the Palo Alto electric car maker's plans for speeding up its production. Tesla said Thursday that it plans to produce 100,000 automobiles in 2015, well ahead of the schedules analysts had expected -- Barclays analyst Brian Johnson, for instance, expected Tesla to produce only 58,000 autos in 2016, when the carmaker could be looking to push out 200,000 cars.
"It appears Tesla's run-rate of production and deliveries is at least one, if not two full quarters ahead of our expectations," Morgan Stanley analyst Adam Jonas said in a note.
Tesla also revealed more details about its planned Gigafactory, a massive battery factory that CEO Elon Musk hopes will bring down costs through mass production of the lithium-ion batteries that power Tesla cars. Early Thursday, Tesla announced that Panasonic had officially signed on as a partner in the effort, and the company said in its earnings announcement that it had broken ground on a site in Reno, though that did not mean it had won the battle for the massive manufacturing facility.
"We've essentially completed the creating of the construction pad for the Gigafactory in Nevada," Musk said in the company's conference call. "We are going to be doing something similar in one or two other states, something I previously said we were going to do."
One of Tesla's partners got its first taste of Wall Street on Friday, as Israeli auto-tech company Mobileye completed an initial public offering that valued it at more than $5 billion, then saw share prices move even higher.
LinkedIn joined social siblings Facebook and Twitter in big post-earnings gains, topping $200 for the first time since March and closing with an 11.7 percent gain at $201.78. Analysts were pleased by the Mountain View company's quarterly performance, but were more excited about increased guidance for the rest of the year and a strong start in LinkedIn's Chinese effort.
"We think that fundamentals will get even stronger in (the second half) as the ad business kicks into high gear, especially in Q4. Lastly, China provides a very attractive optionality for LinkedIn," CLSA analyst James Lee wrote.
GoPro and SunPower were not as fortunate. GoPro, which had more than doubled at times after its IPO earlier this year, disappointed analysts in its first earnings report as a public company and shares plummeted 14.6 percent Friday to $40.97. The company's market cap is still well ahead of its IPO valuation, with shares originally being sold at $24, but analysts are exhibiting doubts about the company's worth, with Citigroup analyst Jeremy David predicting, "the growth rate of GoPro is likely to continue to decelerate."
San Jose solar manufacturer SunPower also suffered Friday, after its earnings report failed to live up to strong earnings from the previous quarter. Shares sank 6.5 percent to $34.36 as analysts voiced disappointment with the company's cloudy forecast.
SunPower "is unable to materially surprise to the upside given they are effectively playing with one hand tied behind their back — they are running at full capacity and building new capacity is a long-process," Credit Suisse analyst Patrick Jobin wrote.
Other SV150 companies that announced earnings Thursday were equally split on Wall Street on Friday. Data-center security company Imperva had the largest percentage increase in the index, gaining 13.9 percent to $25.25, while S.F. biopharmaceutical firm Nektar Therapeutics (up 12 percent to $11.82) and mobile components manufacturer Synaptics (up 8.1 percent to $78.11) also scored. Bringing up the rear was Service Source, down 23.5 percent to $3.39; Mountain View's Audience, which fell 15.5 percent to $8.05; and Palo Alto's Jive Software, which declined 12.1 percent to $6.96.
SV150 market report: Apple completes Beats deal, Google barge push sinking
Wall Street's varied reactions to corporate earnings led to a slight decline in its major indexes Friday, as the monthly jobs report showed continued robust hiring, though lighter than in previous months. Silicon Valley tech stocks also declined overall, as a small gain from Apple couldn't overcome declines from Google and others.
Apple gained 0.6 percent to $96.13 while closing out its acquisition of Beats, the $3.2 billion deal that was the largest in the Cupertino company's history. As part of the closing, Apple paid more than $400 million to Vivendi, a part-owner of the headphones and streaming-music firm. Apple also received preliminary approval for its proposed $450 million settlement in states' and consumers' complaint about its antitrust actions in e-book pricing. Rival Google dropped 1 percent to $573.60 while seemingly giving up on its grand plans for a pair of barges that created a stir last year. The Mountain View search giant confirmed that it is selling the barge it docked in Maine, while one constructed off Treasure Island and moved to Stockton appears to be in limbo. Google also lost a YouTube executive to streaming-music service Spotify and reportedly plans to separate popular photo services from its Google+ social network.
Hewlett-Packard dropped 1.2 percent to $35.19 after agreeing to pay $32.5 million to settle allegations that it overcharged the U.S. Postal Service for computer equipment; the Palo Alto tech giant is getting into the smartwatch game with a high-end offering designed by Michael Bastian. Facebook fell 0.4 percent to $72.36 after the Menlo Park company's social network suffered an outage, and rival Twitter dripped 2.4 percent to $44.13.
Up: LinkedIn, Tesla, AMD, SanDisk, Nvidia, Netflix, Applied Materials, Apple, Electronic Arts
Down: GoPro, SunPower, SolarCity, Twitter, Pandora, Symantec, Oracle, Intuit, Zynga, Workday, Salesforce, Yelp, HP, Juniper, VMware, Google, Cisco
The SV150 index of Silicon Valley's largest tech companies: Down 5.01, or 0.33 percent, to 1,535.7
The tech-heavy Nasdaq composite index: Down 17.13, or 0.39 percent, to 4,352.64
The blue chip Dow Jones industrial average: Down 69.93, or 0.42 percent, to 16,493.37
And the widely watched Standard & Poor's 500 index: Down 5.52, or 0.29 percent, to 1,925.15