Stock watch: Gilead’s HIV drug approved, plus Tesla’s Model S boost and Yahoo, Intel pre-earnings

We’re watching some Silicon Valley stocks in the context of news and earnings.

• Shares of Gilead Sciences are up 1.25 percent to about $51.80 as of this post. As the Mercury News’ Steve Johnson reports, the Foster City company today was given the green light by the FDA to sell its once-a-day pill Truvada, the world’s first approved drug to help fight the spread of HIV in uninfected adults.

• Also moving higher are shares of Tesla, the electric car company whose new vehicle, the Model S, is getting some initial positive reviews. Troy Wolverton of the Merc got his 15 minutes with the Model S last week, and was impressed by the car’s style and speed, saying it looks like “a cross between a Jaguar and a Maserati” and “has some serious pickup.” Bloomberg Businessweek’s Ashlee Vance, who notes that Tesla has so far delivered only 10 of the cars, says the Model S is “a total delight.” What’s more, the Palo Alto company already is working on its third car, which could roll out in 2015, Tesla chief designer Franz von Holzhausen told Autocar.

Tesla Motors shares are up more than 3 percent to $35.40 as of this post, amid a broader sell-off in tech stocks.

Yahoo and Intel are both scheduled to report earnings Tuesday. Yahoo is down less than 1 percent to $15.65 as of this post, while Intel is about flat at $25.27.

Yahoo, which last week attempted to soothe impatient shareholders at its annual meeting, will report whether it continued to improve net revenue (sales after ad commissions are paid) in the second quarter. Last quarter, Yahoo managed to eke out a 1 percent gain in net revenue after 13 straight quarters of declines. An analyst poll reportedly expects profit of 20 cents a share on net revenue of $1.09 billion.

Analysts also will be looking for a decision on the CEO position. A top Yahoo executive, Ross Levinsohn, is interim CEO, after Scott Thompson resigned in May.

Meanwhile, a couple of analysts reportedly cut their outlook for Intel today, based partly on competitor AMD’s slashing of its own outlook as well as other numbers that show a slowdown in demand for new PCs. As Brandon Bailey of the Mercury News reports, analysts and investors are pessimistic about the tech sector as earnings season kicks off. Analysts are using language such as “the perfect storm,” “headwinds” and “downturn,” Bailey writes.

 

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  • Bryan

    Having lived with AIDS for 30 years, I’m currently paying over $1,000 a bottle for Truvada.

    “Is there no balm in Gilead?” (Jer. 8:22) Sure there is, honey. For $1K a bottle.

    It’s so good to know their stock is doing well.

 
 
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