The Nasdaq Now: One Merger Deal, Two Fates for OPNET and Riverbed Technology

By Sterling Wong  OCT 31, 2012 12:15 PM

Apple and Facebook were both down on the day.


MINYANVILLE ORIGINAL With major US stock indices having been shut down for two days, many expected volatile trading today with investors seeking to unleash pent-up demand. However, the stock market has seen mild swings thus far.
After opening a few points higher, the Nasdaq Composite (INDEXNASDAQ:.IXIC) was down 0.50% to 2,973.08 points on average trading volume of 750.33 million as of 11:55 a.m. EDT.
OPNET Technologies (NASDAQ:OPNT) was one of the biggest gainers in intraday trading, leaping 29.19% to $41.47. On Monday, the company said it would be acquired by communications network gear maker Riverbed Technology (NASDAQ:RVBD) for some $1 billion in cash and stock, or about $43 per share.
While OPNET soared on news of its acquisition, its buyer, Riverbed Technology, fared the opposite, sliding 19.32% to $18.25. The company was downgraded to Neutral from Outperform from Robert W. Baird today. Needham, however, pointed out that “Riverbed weakness [was] a buying opportunity.”

Red Robin Gourmet Burgers (NASDAQ:RRGB) also advanced 25.36% to $34.45. During the stock market blackout, the restaurant chain reported estimates-beating revenue ($213.3 million versus $211.7 million) and earnings per share ($0.24 compared to $0.16). Red Robin was upgraded to Buy from Hold by Miller Tabak earlier today.
GT Advanced Technologies (NASDAQ:GTAT) declined 15.38% to $4.33. Earlier today, the company lowered its third-quarter revenue guidance to the lower end of its forecasted range of $110 million to $140 million, which would represent a drop from second-quarter sales of $167.3 million. The supplier of manufacturing equipment for solar and energy efficient lighting products, which will report earnings November 6, also plans to lay off 25% of its staff due to likely poor demand in 2013.
Apple (NASDAQ:AAPL) also dipped 1.85% to $592.82 after the company announced the firing of high-profile executives Scott Forstall and John Browett, while Facebook (NASDAQ:FB) fell 3.52% to $21.17 after another lockup lift of some 230 million employee-held shares.

Twitter: @sterlingwong
No positions in stocks mentioned.

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