SunTrust upgrades Twitter (TWTR, $27.47) to ‘Buy’ with a price target of $38 based on a better risk/reward balance for the shares in the mid-$20s and positive catalysts on the horizon—including Project Lightning, lift from Google desktop/mobile search results and more business development deals.

On the monetization front, the firm sees upside opportunities via the Doubleclick partnership (starts in Q4), e-commerce ads (Buy button), video ads and better targeting.

Shares of chipmaker Avago Technologies (AVGO, $125.12) this morning were turned away on the first attempt to retake the 50-day moving average of $128.20, hitting resistance at $127.72.

After dipping to a low of $100 on Monday, the stock yesterday pushed back above the 200-day moving average, which is trending upward from $118.70.

JMP Securities upgrades Akamai Technologies (AKAM, $70.50) to ‘Outperform’ with a price target of $85 based on valuation. The firm believes the recent pullback presents a solid buying opportunity.

From the May high of $78.44 to Monday’s low of $63.14, Akamai shares dropped 19.5%.

On the 2016 consensus EPS estimate of $2.84, Akamai has a P/E of 24.8, 1.4x the expected growth rate.

In Q2, Fitbit (FIT, $36.82) led the wearables market (4.4 million units shipped), while Apple (AAPL, $113.04) wasn’t far behind (3.6 million units), according to IDC. 

The research firm puts Xiaomi in third place, with 3.1 million units. 

Total shipment volume in the quarter surged 223% to 18.1 million units.

Here are IDC’s Q2 market shares:

1-Fitbit—24.3%

2-Apple—19.9%

3-Xiaomi—17.1%

4-Garmin—3.9%

5-Samsung—3.3%

Others—31.5%

Nomura starts Qlik Technologies (QLIK, $37.28) at ‘Buy’ with a price target of $50 based on the company’s strong growth prospects in the data visualization analytics market.

Qlik is seeing higher win rates against traditional business intelligence (BI) vendors such as SAP and IBM, a major reason why the company is closing a greater number of larger deals.

After a few very rough sessions in a row, buyers returned today, with a hefty demand ramp in the final hour. 

The Nasdaq Composite closed up 191 points to finish at 4697, while the Dow added 619 and the S&P gained nearly 73 points.

For the week, the Nasdaq is still below Friday’s close of 4706.

Wunderlich upgrades Nimble Storage (NMB, $25.60) to ‘Buy’ with a price target of $33 based on improved visibility in the face of intense competitive pressure across the storage sector. 

The firm points to strong fiscal Q2 (July) gross margin (+40 basis points year over year) and deferred revenue (+94%).

Ranking the cloud-based HCM/HR players after the recent pullback:

(by RSI)

*Paycom (PAYC, $38.03)—55.1

*Ultimate Software (ULTI, $175.20)—42.1

*Cornerstone OnDemand (CSOD, $34.93)—38.8

*Paylocity (PCTY, $30.25)—33.3

With the exception of Paylocity, all of the stocks are currently above their 200-day moving averages.

At yesterday’s low of $59.47, shares of Electronic Arts (EA, $65.47) had pulled back 21.5% from the recent high of $75.76 (August 5). 

But the stock still held above its 200-day moving average, which continues to trend upward from $58.03. The 50-day moving average stands at $70.33.

For more on EA, see TechStock Radar—August 10, 2015.

DA Davidson upgrades Workday (WDAY, $72.57) to ‘Buy’ with a price target of $91, saying the recent pullback provides an attractive entry point for investors looking to own a major cloud-software player.

Workday reports fiscal Q2 (July) results after the close tomorrow. The consensus revenue estimate of $274 million represents growth of 46.7%.

Apple (AAPL, $107.35) shares recovered from an early low of $92 and are now up 1.5%.

At the low, the stock had corrected 31.6% from the all-time high of $134.54 reached on April 28.

Drexel Hamilton downgrades Avago Technologies (AVGO, $109.17) to ‘Sell’ and lowers its price target to $95 from $125 based on concerns about the large amount of debt that will be needed to finance the Broadcom (BRCM) acquisition.

On August 7, the firm cut its price target to $125 from $180 and reduced its rating to ‘Hold.’  And that was after starting coverage at ‘Buy’ in early June.

After dipping to $100 just after the open, Avago shares this morning are down 2%.

Following yesterday’s drop of 7.5%, shares of Mobileye (MBLY, $53.59) so far today are down 2.1%.

At this morning’s low of $50.92, the stock was off a quick 21% from the all-time high of $64.48 reached on Monday.

The shares have taken out the 50-day moving average at $57.32, but remain above the 200-day moving average of $46.35.

For 2015, the consensus revenue estimate of $237.6 million represents growth of 65.4%. For more on Mobileye, see TechStock Radar—August 17, 2015.

Pivotal Research upgrades Salesforce (CRM, $67.82) to ‘Buy’ and raises its price target to $82 from $79 following last night’s strong fiscal Q2 (July) results and upbeat guidance. 

Revenue in the latest quarter rose 24% (+28% in constant currency) to $1.63 billion, above the consensus estimate of $1.6 billion. 

For FY’16 (Jan.), revised revenue guidance of $6.6 billion to $6.625 billion came in above the consensus of $6.55 billion.

The firm says Salesforce is executing well over the short term and has ample long-term growth opportunities.

Susquehanna starts Marketo (MKTO, $28.94) at ‘Positive’ with a price target of $39 based on strong growth prospects for the provider of cloud-based marketing automation solutions. 

In Q2, revenue rose 41% and calculated billings advanced 48%. 

The company is growing its sales organization and winning more enterprise accounts.

The 2015 consensus revenue estimate of $210.4 million represents growth of 40.3%.

Shares of Oracle (ORCL, $39.53) so far this year are lagging those of key competitors:

*Salesforce (CRM) +21.4%

*Workday (WDAY) +0.9%

*SAP (SAP) +0.7%

*Oracle (ORCL) -12.1%

Shares of FireEye (FEYE, $43.30) are trying to stabilize in the low $40s following the sharp pullback from the June high of $55.33. The recent low of $41.77 was put in on August 12.

The stock is holding above its 200-day moving average of $40.57.

For more on FireEye, see TechStock Radar—August 18, 2015.

Shares of NXP Semiconductors (NXPI, $88.60) and Skyworks Solutions (SWKS, $87.82) today have once again dipped below their 200-day moving averages.

In July, Qorvo (QRVO, $56.43) shares took out the 200-day moving average of $70.14 to the downside, and now the 50-day moving average is declining from $72.88.

Avago Technologies (AVGO, $123.53) shares are holding above the 200-day moving average of $117.45.

Imperial Capital upgrades FireEye (FEYE, $43.65) to ‘Outperform’ and raises its price target to $55 from $45.50, saying the risk/reward balance is favorable at current levels. 

FireEye is becoming a top-tier security vendor, experiencing ramping global adoption of its platform, according to Imperial. FireEye is expected to continue to gain share from legacy players thanks to its broadening product portfolio.

The firm believes FireEye is making significant progress when it comes to driving higher sales productivity and margin expansion.

Shares of Paycom (PAYC, $40.98) today hit an all-time high of $41.36 on heavy volume. The stock is currently up more than 6%. 

In early August, the company—a provider of cloud-based HR/HCM solutions aimed at the SMB market—beat Q2 estimates and raised Q3 & 2015 revenue guidance.

Zillow (Z, $25.04) on Friday distributed two Class C shares for each Class A and Class B share held. 

The Class C shares (no voting rights) now trade under the Z symbol, while the Class A shares are using the ZG symbol. Class B shares (10x voting rights) are held only by insiders.

Zillow shares closed Friday at $73.21. The ZG shares today are trading at $25.

In Q2, Ameriprise Financial was one of the largest buyers of Facebook (FB, $93.86), adding 4.52 million shares. The money manager now owns 19.93 million shares. 

Citadel Advisors increased its stake 175%, adding 3.22 million shares. The firm now owns 5.06 million shares. Soros Fund Management bought 2.46 million shares and now holds 2.59 million shares.

Fidelity is the #1 holder, with 145.6 million shares.

Morgan Stanley lifts its Mobileye (MBLY, $59.63) price target to $80 from $71, saying the company has become the ADAS supplier of choice for OEMs, winning 22 of the top 25 deals. 

The firm believes it’s too late for competitors because Mobileye is already so entrenched in the vision space. The company dominates the market for camera-based advanced driver assistance systems and is well-positioned to lead the ADAS upgrade cycle to autonomous capabilities.

For more on Mobileye, see TechStock Radar--August 7, 2015.

In Q2, Columbus Circle Investors ($14.1 billion in long equity assets/19.8% technology weighting) significantly boosted its stake in chipmaker Avago Technologies (AVGO, $122.12), adding 412.4K shares. The money manager now owns 569K shares.

Avago stock is down from the all-time high of $150.50 reached in June.

Citi expects Salesforce (CRM, $72.10) to deliver solid fiscal Q2 (July) results and believes the set-up is favorable for FQ3 based on demand trends. 

For the July quarter, the consensus estimates: EPS of 18 cents on revenue of $1.6 billion (growth of 21.2%). Salesforce reports on August 20.

Looking ahead, the firm sees new product announcements and a refocus on profitable growth as potential positive catalysts.

Piper Jaffray attributes the recent correction across the security landscape to concerns about a potential moderation in spending, but its checks with resellers indicate demand should remain strong for the next 12 months.

The firm sees the pullback as an attractive buying opportunity, saying many companies delivered beat-and-raise results in Q2.

Piper Jaffray’s favorite names: Barracuda Networks (CUDA), CyberArk Software (CYBR), Fortinet (FTNT) and Palo Alto Networks (PANW).

Ultimate Software (ULTI, $188.86) shares today hit an all-time high at $193.36 before pulling back to close down 1.4%. Volume was active at 419K shares, 52% above average daily volume.

So far this year, shares of Ultimate, a provider of cloud-based HCM software, have gained 28%.

Cowen starts coverage of GoPro (GPRO, $59.69) at ‘Outperform’ with a price target of $76 based on an expected revenue CAGR of 21%+ over the next few years, driven by an expanding action camera market, growing “lifestyle capture” market and enhanced software to improve ease of use (video editing and sharing). 

The firm is upbeat on GoPro’s current portfolio of five cameras, distinguished by resolution and size. Looking ahead, Cowen sees strong growth potential in drones (device expected 1H’16) and virtual reality technology.

Bernstein upgrades Yahoo (YHOO, $34.49) to ‘Outperform’ with a price target of $52, saying the worst case scenario is now priced into the shares. The firm sees an attractive risk/reward balance, with limited downside.

Pulled down by Alibaba (BABA), Yahoo shares yesterday hit a new 52-week low of $33.85, down 35% from the 52-week high of $52.62 from last November.

Yahoo in Q4 plans a spin-off of its Alibaba stake.

Twitter (TWTR, $29.23) shares are trying to consolidate around current levels after bouncing off of last week’s low of $26.87. 

Buyers this morning stepped in around $28.50, near yesterday’s low. There is short-term resistance at yesterday’s high of $29.89. 

Both the 50-day and 200-day moving averages are trending downward.

Morgan Stanley upgrades Google (GOOGL, $687.14) to ‘Overweight’ with a price target of $820, saying improved overall disclosure could lead to multiple expansion. 

With Alphabet, investors will gain a clearer picture of the earnings power and operating leverage of Google’s core business. Plus, there will be increased transparency and accountability when it comes to the emerging business units, says the firm.

Bernstein values the Citrix Systems (CTXS, $75.20) GoTo unit at $3.3 billion and the NetScaler business at $2.4 billion to $2.5 billion. 

Placing a value of $74 a share on the core business, the firm estimates Citrix could be worth $99 a share in a scenario involving a spin-off of GoTo and divestiture of the networking business.

On the rebound from last week’s low of $112.10, Apple (AAPL, $114.07) shares yesterday failed at the 200-day moving average of $120.28, only making it up to $199.99. 

Today, the stock is off more than 4% on heavy volume.

The 50-day moving average is sloping downward from $124.51, setting up a potential cross below the 200-day moving average.

Following last week’s one-day pullback of 13.6%, shares of Fitbit (FIT, $43.85) have been trying to stabilize in the low $40s. 

Last week’s low was $41.50 represents a 20% retreat from the post-IPO high of $51.90 reached on August 5.

Symantec (SYMC, $22.91) will sell its Veritas data storage business to an investor group led by The Carlyle Group for $8 billion in cash. 

The deal is expected to provide net proceeds of $6.3 billion. Symantec paid $13.5 billion for Veritas in 2005.

Symantec also announces a $1.5-billion increase in its share buyback to $2.6 billion, with $2 billion planned to be returned to shareholders over the 18 months following the close of the transaction (expected by January 1, 2016).

Stifel ups its Netflix (NFLX, $123.13) price target to $143 from $128 based on an increased forecast for U.S. subscribers, saying the service is moving away from simply being “nice to have.”

The firm expects Netflix to add 5 million to 6 million U.S. subscribers annually through 2018 and reach 80 million subscribers by 2024, vs. the company’s long-term target range of 60 million to 90 million.

Piper Jaffray raises its Electronic Arts (EA, $74.53) price target to $85 from $79, saying it believes next-generation consoles (launched in November 2013) now have the footprint (~40 million units) large enough to drive sustainable videogame software growth.

The firm expects significant growth across the software segment through next year.

EA appears poised to benefit from continued growth of the hardware installed base, as the company has a strong pipeline of new games through the remainder of calendar 2015, with Star Wars: Battlefront leading the charge (November launch), says the firm.

For more on EA, see TechStock Radar—July 9, 2015.

Citi raises its Mobileye (MBLY, $59.11) price target to $77 from $70 following strong Q2 results. Revenue rose 57% to $52.8 million, easily beating the consensus estimate of $47.8 million. EPS of 10 cents topped the consensus by two cents. OEM revenue advanced 51% to $43.6 million.

For 2015, Mobileye now sees revenue of $235 million to $239 million, up from previous guidance of $217 million to $218 million. The consensus was $219 million.

The firm sees more upside catalysts for the company in the advanced driver assistance systems (ADAS) segment.

Fitbit (FIT, $46.35 after hours, -10.4%) in Q2 solid 4.5 million devices, a gain of 159% from the year-ago level. 

Revenue of $400.4 million jumped 253% and easily beat the consensus estimate of $319.4 million. Per-share earnings of 21 cents came in 13 cents above the consensus.

In 1H 2015, unit sales totaled 8.324 million, up 153% from the comparable period last year.

For Q3, Fitbit sees EPS of seven cents to 10 cents (the consensus is seven cents) on revenue of $335 million to $365 million, above the consensus of $261.9 million.

For 2015, revenue guidance of $1.6 billion to $1.7 billion is well above the consensus of $1.41 billion, with EPS expected to come in at 69 cents to 77 cents, vs. the consensus of 61 cents.

Despite the excellent Q2 results and strong guidance, expectations were quite elevated going into the report, as the stock during today's regular session hit a post-IPO high of $51.90, up 159% from the initial price of $20 in June. Fitbit shares are down more than 10% after hours.

For our complete analysis of Fitbit, see the July 2015 issue of Tech-Stock Prospector. Order the latest issue here for download to your Amazon Kindle or Kindle for iPad/iPhone reading app.

Shares of Facebook (FB, $96.85) have pushed above the minor downtrend channel that formed after the recent high was hit at $99.24. A close above $97.28 would be a positive sign. 

The RSI is on the rebound from 62.8. Both the 50-day and 200-day moving averages continue to trend upward.

Axiom Capital reduces its Yelp (YELP, $26.26) price target to $28 from $43, saying Google (GOOGL) and Facebook (FB) are now more likely to increase competition in the local review space. 

The firm believes Yelp’s recent stumbles have put longer-term revenue targets at risk. The 2016 consensus revenue estimate of $699.1 million now indicates a sharp deceleration in growth to 28% from 44.7% expected this year. The Street-low revenue estimate for next year of $640.4 million represents growth of just 17%.