Technology sector

Tech Sector Update for 1/21/2022: SHOP, SHOP.TO, ETWO, INTC, RBBN

JTech stocks fell on Friday, with the SPDR Technology Select Sector ETF (XLK) slipping 1.5%, returning its morning gain, while the Philadelphia semiconductor index fell 1.1% this afternoon. .

In corporate news, Shopify (SHOP) fell 14% following reports that it is preparing to halve the capacity of its fulfillment network from current levels. The e-commerce platform is canceling contracts or reducing their scope, executives of four processing companies told Business Insider, while Shopify told the news service it will provide details about its processing network when its regular earnings call next month.

Ribbon Communications (RBBN) fell more than 16% after the networking equipment and software company said on Thursday it expected to generate about $231 million in revenue in the fourth quarter, down from its October forecast that forecast $240 million to $260 million and also lagged Capital IQ consensus looking for $248.75 million in revenue for the three months ended Dec. 31.

Among the winners, Intel (INTC) was nearly flat after the chipmaker on Friday confirmed plans to spend more than $20 billion to build two new semiconductor foundries near Columbus, Ohio. It plans to begin initial construction later this year, with production at the new facilities expected to begin before the end of 2025.

E2open Parent Holdings (ETWO) climbed 1.3% after the supply chain management software company on Friday cleared a new $100 million share buyback program over the next 12 months.

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