Tech-stock movers: Zynga, LinkedIn, TiVo up; Oracle, HP down

• Color Zynga investors happy: The day after the San Francisco company announced its purchase of OMGPOP, maker of Draw Something — which by many accounts, including cold, hard numbers, is the hottest mobile/social game out there right now — its shares are popping. They’re up more than 1.5 percent to $13.95 as of this post.

While we mentioned earlier this week that rumors of the acquisition seemed to be driving down Zynga shares, the sentiment around the purchase has changed now that a clearer picture of the stats has emerged. The rumored purchase price is about $200 million. One analyst quoted by Business Insider said that with “Draw Something” phenomenal growth — it’s 6 weeks old and already has been downloaded more than 35 million times, among other things — OMGPOP left $800 million on the table.  And because of the game’s simplicity, writes Ryan Kim of GigaOm, it’s probably drawing new gamers. New gamers, of course, are valuable to Zynga.

• Another area company in the social-networking sector is seeing its shares pop today. LinkedIn, whose shares touched $100 Wednesday after Goldman Sachs reportedly raised its rating of the Mountain View company, is up more than 1.5 percent to $99.68 as of this post. LinkedIn, which went public last year, reached a closing high of $109.97 in July.

• TiVo shares are up more than 1 percent to $11.68 as of this post, after an announcement that the San Jose company and Microsoft have dropped their patent lawsuits against each other. According to the Wall Street Journal, Microsoft’s suit against the digital-video recording pioneer became moot after TiVo and AT&T reached a settlement in January in which AT&T must pay $218 million to TiVo. That settlement gave TiVo shares a huge boost. (See Screen/stock watch: TiVo, Netflix rising.) Microsoft provides technology for AT&T’s U-Verse, and an analyst cited by the WSJ says the Seattle company’s lawsuit against TiVo was simply a defense of AT&T.

• A couple of days after Oracle beat expectations with an 18 percent profit rise, briefly boosting its shares,  investors seem to be thinking about cloudy days ahead — which some see as a negative for the Redwood City giant but a positive for its rivals. Before the company reported results Tuesday, we mentioned the concern over competitors such as cloud-based software provider Salesforce.com, which has reportedly been stealing some business from Oracle. (See Oracle earnings: Will it bounce back from last quarter’s miss?) That concern persists even after Oracle reported that its profit was boosted by software sales, and even after it has started buying cloud software makers. “The hot SaaS companies are going after Oracle,” Cowen analyst Peter Goldmacher told MarketWatch in a report published Thursday.

Another worry is hardware, a market Oracle entered with its purchase of Sun Microsystems a couple of years ago. Its hardware sales reportedly fell 16 percent in the quarter, worse than expected.

• And investors still aren’t showing any love for HP‘s latest moves. The company’s shares continue to fall after a sharp drop Wednesday, when CEO Meg Whitman announced a major reorganization that includes combining the Palo Alto company’s printer and PC units. Hewlett-Packard shares are down more than 1.75 percent to $23.03 as of this post, after falling more than 2 percent yesterday.

 

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