Technology sector

Tech Sector Update 7/22/2022: STX,SNAP,NOVT,SIX,TWTR

JTech stocks pared some of their declines from Friday, with the SPDR Technology Select Sector ETF (XLK) falling 1.4% late in the session, although the Philadelphia semiconductor index was down another 2, 8% this afternoon.

In corporate news, Seagate Technology Holdings (STX) fell 8.1% after reporting lower fourth-quarter non-GAAP net income and revenue from l year and missing Wall Street expectations. Excluding one-time items, it earned $1.59 per share in the three months ended July 1, compared to $2.00 per share in the same quarter last year, while revenue fell 9.3 % year over year at $2.63 billion. Analysts on average had expected adjusted earnings of $1.89 per share on $2.79 billion in revenue in the fourth quarter.

Snap (SNAP) plunged on Friday, retesting a more than 39% drop in recent trade to its worst price since March 2020, after the camera app company reported a 13% increase in revenue in the second quarter from year-ago levels, hitting $1.11 billion, but still lagging Capital IQ’s consensus expectation of $1.13 billion for the three months ended June 30. It also declined to offer guidance for its third-quarter revenue and other metrics, citing “uncertainties related to the operating environment.”

On the upside, Twitter (TWTR) was up nearly 1%, reversing an early morning decline of more than 2%, after the social media company reported a surprise non-GAAP net loss of $0.08 per month. stock, reversing adjusted earnings of $0.20 per share for a year ago and missing Capital IQ’s consensus that expects it to earn $0.14 per share, excluding one-time items. Revenue fell 0.8% year-over-year to $1.18 billion, also lagging the analyst average of $1.34 billion.

Novanta (NOVT) climbed 9.6% after the S&P Dow Jones Indices announced late Thursday that the photonics company would join the S&P MidCap 400 Index with the start of regular trading on Tuesday. Novanta will replace theme park operator Six Flags Entertainment (SIX), which is moving to the S&P SmallCap 600 index. Six Flags shares were up 2.1% this afternoon.

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