The tech sector is losing momentum as results continue to paint a mixed picture.
Nasdaq 100 futures fell 0.2% early Wednesday after a market dominated by technology stocks.
Nasdaq Composite Index
The stock fell 0.1% on Tuesday, ending a three-day winning streak.
The so-called Magnificent 7 stocks didn’t do much to improve the mood, as Tesla and Nvidia fell in pre-market trading following losses in the previous session.Alphabet fell 0.6%, Amazon was flat, but Apple rose slightly.
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microsoft
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and meta platform
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Palantir Technologies
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Despite strong first-quarter earnings, the stock plunged 15% on Tuesday, but appeared to be tentatively recovering. Shares rose 0.8% before closing.
Investors were also reminded that tech companies’ earnings could also be positive. Arista Networks rose 7.5% after reporting better-than-expected earnings guidance. The cloud networking company also approved a $1.2 billion stock buyback.
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Reddit shares rose 14% in pre-market trading after the social media platform comfortably beat first-quarter revenue expectations and reported a 40% increase in weekly active users. The company posted a loss of $575.1 million in the quarter, reflecting IPO-related costs.
Toast shares rose 4.6% after the cloud-based platform for restaurants reported a 31% revenue increase in the first quarter.
However, despite strong initial financial results as a listed company, the post-acumulation stock price of cloud communications company Twilio fell 7.5%, database provider Zoom Info fell 23%, and semiconductor company Astera Labs fell 6%. There were many negative reactions.
Chip stocks struggled to find direction in premarket trading.Nvidia
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Intel and Advanced Micro Devices
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All edges are lowered.
The White House announced early Wednesday that President Joe Biden plans to announce a $3.3 billion investment by Microsoft to build a new artificial intelligence data center in Wisconsin. The project will be developed on the same property in Racine where Foxconn originally planned to invest $10 billion before the project stalled following a Trump administration-era announcement.
Big Tech’s global expansion continues as Amazon looks to enter Europe’s 5G market through a deal with Telefonica Germany. The German subsidiary of Spanish telecommunications company Telefonica will move 1 million customers to the Amazon Web Services cloud later this month, Reuters reported.
Email Callum Keown at callum.keown@barrons.com.
