Technology sector

Tech Sector Update for 9/2/2022: MITQ, GDS, SCSC, NEWR

JTech stocks extended their lead on Wednesday, with the SPDR Technology Select Sector ETF (XLK) on Wednesday up more than 2.1% and the Philadelphia semiconductor index adding 3.3% this afternoon.

In company news, Moving iMage Technologies (MITQ) gained nearly 37% after the digital cinema technology company raised its revenue forecast for FY22 following a 113% increase in revenue from year-over-year for its second fiscal quarter ended December 31. The company now expects revenue of between $14 million and $16 million, up from its earlier forecast of $12 million to $15 million in revenue for the 12 months ending June 30. Analyst estimates were not available.

GDS Holdings (GDS) rose more than 19% after Morgan Stanley on Wednesday raised its investment recommendation for the Chinese data center company to overweight from the previously equal weight and also set a price target of $60 for the action.

ScanSource (SCSC) gained 1.6% on Wednesday after the computer peripherals and cybersecurity products company promoted chief revenue officer John Eldh to president of the company after more than two years in his former role. He succeeds Mike Baur as Chairman, who will continue as Chairman of the Board and Chief Executive Officer.

Among decliners, New Relic (NEWR) slid nearly 29% after it announced a larger-than-expected net loss for its fiscal third quarter ended Dec. 31 overnight and forecast a loss for the current quarter, missing also Wall Street expectations. Excluding one-time items, the software-as-a-service company forecasts a net loss of between $0.22 and $0.19 for the three months ending March 31, while Capital IQ consensus forecasts an adjusted loss of 0, $04 per share.

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