A Closer Look at Five Stocks Trending on Friday

Brocade in the Red After Reporting Fiscal Third Quarter Results

Brocade Communications Systems, Inc. (NASDAQ:BRCD) is another victim of high market expectations today as its stock is in the red despite the company reporting solid results for the fiscal third quarter. During the three months, Brocade earned $0.21 per share on revenue of $591 million, versus estimates of $0.16 per share and sales of $573.43 million. Overall sales went up by 7.1% year-over-year as the 36% jump in IP Networking sales more than offset the 9% decline in SAN Products revenue. For the full year, Brocade expects operating cash flow of $140 million to $160 million and operating margin to be between 19% and 20.5%. At the end of June, 28 funds from our database owned shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD), compared to 36 funds a quarter earlier. 

Musk’s Companies Closer to Combining

Tesla Motors Inc (NASDAQ:TSLA)‘s proposed merger with SolarCity Corp (NASDAQ:SCTY) just moved a little closer to the finish line after the FTC gave the regulatory antitrust thumbs up to the deal. To be fair, very few investors were expecting the FTC to cause any trouble given the lack of overlap between Tesla and SolarCity. The much harder part for Elon Musk and Co will be to persuade Tesla shareholders to approve the deal. The lack of synergies and SolarCity’s cash burn could cause Tesla to lose focus on its 500,000 vehicles per year production target by 2018. Among the investors we track, 36 funds were long Tesla Motors Inc (NASDAQ:TSLA) and 26 funds had a bullish position in SolarCity Corp (NASDAQ:SCTY) at the end of June.

Disclosure: None