Finisar Tumbles After Being Downgraded & Nikkei Slips From
Finisar Tumbles After Being Downgraded & Nikkei Slips From 32-Month High -- Finspreads
LONDON -- (Marketwire) -- 01/21/13 -- Finspreads: Shares in the optical module maker Finisar Corp tumbled at the close of trading on Friday (January 18th), after it was downgraded by investment bank Jefferies and Co, who said that demand for the company's optical communication components are set to suffer from the imminent release of products from Intel and Cisco. Intel announced that silicon-phonotics technology for data centres was to become available in the near future, a move which some analysts believe will have a negative impact on Finisar.
Intel's willingness to integrate silicon phonotics could prove popular with many businesses, as it will reportedly allow much higher data transfers between processors and devices than with traditional technology manufactured by Finisar, meaning less hardware would be required; reducing building and operation costs.
Jefferies and Co has subsequently downgraded Finisar's stock from 'hold' to 'underperform,' halving its price target to $7.50.
At the close of trading on the Nasdaq, Finisar saw its shares fall to $13.98, a drop of 10.27 per cent.
Nikkei slips from 32-month high
Shares in Japan fell at the close of trading today (January 21st), with the Nikkei 225 slipping from a 32-month high.
The drop comes after the yen climbed against the dollar after hitting its lowest level in two-and-a-half years, with a policy decision expected from the Bank of Japan tomorrow.
A rising yen has hit some of the country's biggest exporters. Nissan Motor Co, whose biggest market is North America, dropped 1.5 per cent. Fanuc Corp slipped 3.9 per cent after its rating was cut at Citigroup Inc.
The decision of Apple to reduce orders of screens for its iPad has dealt another blow to suppliers such as Sharp, who saw its shares fall by 3.8 per cent.
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