By Rex Crum
Several tech stocks posted big gains Thursday, but it was Palm
Inc. that highlighted the day's trading and led the sector higher
after Hewlett-Packard Co. said it would acquire the struggling
maker of smartphones such as the Pre and Pixi for $1.2 billion.
Palm (PALM) shares climbed $1.15, or almost 25%, to $5.78 after
H-P said late Wednesday it would acquire Palm for $1.2 billion. The
deal values Palm at $5.70 a share.
The acquisition brings an end to months of speculation that Palm
was exploring options such as putting itself up for sale. The
company had recently banked much of its future on the success of
its webOS smartphone operating system, but lackluster sales of its
newest phones hastened the company's decline.
H-P (HPQ) shares gave up 42 cents to slip to $52.85.
Motorola Inc. (MOT) put in a strong performance, rising 21 cents
a share, or 3%, to $7.12 after the company reported a first-quarter
profit before the market opened. Motorola said its results were
helped by shipping 8.5 million handsets, including more than 2
million smartphones such as the Droid.
Akamai Technologies Inc. (AKAM) climbed $5.55 a share, or more
than 16%, to $38.70 after the provider of content delivery services
over the Internet reported strong quarterly results late
Wednesday.
Chinese Internet giant Baidu Inc. (BIDU) saw its U.S.-traded
shares climb $82, or more than 13%, to $703.35 after reporting an
increase in its quarterly earnings before the market opened.
Other gains came from Apple Inc. (AAPL), IBM Corp. (IBM), Cisco
Systems Inc. (CSCO), Yahoo Inc. (YHOO) and Google Inc.
The Nasdaq Composite Index (RIXF) rose 28 points to 2,500, while
the Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia
Semiconductor Index (SOX) edged into positive territory.