Technology sector

Tech Sector Update 7/3/2022: UPWK,CIEN,PLTR,EVCM

JTech stocks were down sharply on Monday afternoon, with the SPDR Technology Select Sector ETF (XLK) dropping 3.2% and the Philadelphia Semiconductor Index down 4.4%.

In company news, Upwork (UPWK) fell nearly 12% after the online freelance platform warned on Monday that unforeseen expenses and reduced talent activity in Russia, Belarus and in Ukraine could reduce its first quarter and fiscal year 22 results, including revenue and adjusted earnings before interest, taxes, depreciation and amortization. The company also announced on Monday that it was suspending all business operations in Russia and Belarus in response to the Russian invasion of Ukraine, adding that the three countries were responsible for around 10% of its revenue in the fiscal year. 21.

Ciena (CIEN) fell more than 10% after the networking equipment company missed Wall Street expectations with its fiscal first quarter earnings, reporting an 11% increase over year-ago levels at $844.4 million, but still lagging the Capital IQ consensus looking for $845.1 million in revenue for the three months ended Jan. 29. Excluding one-time items, it earned $0.47 per share, down from $0.52 per share in the same quarter last year, although that topped Street Views by $0.02 per share.

On the upside, Palantir Technologies (PLTR) rose 2% after Morgan Stanley raised its investment recommendation for the counterterrorism software platform company to an equal weighting to underweight and rose its price target for Palantir shares of $8 to $24, explaining that the risks of “slower business growth and unsustainable operating margins appear to be largely priced” into its current stock price.

EverCommerce (EVCM) climbed 3% after the software-as-a-service company said Monday it expects non-GAAP revenue and earnings before interest, taxes, depreciation and amortization for its fourth quarter ended December 31 exceeded its previous guidance. In November, the company forecast fourth quarter revenue in the range of $129.5 million to $131 million and between $27 and $28 million in adjusted EBITDA, compared to $130.4 million and 27, $5 million, respectively.

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