JTech stocks fell sharply again, with the SPDR Technology Select Sector ETF (XLK) down 2.1% on Tuesday while the Philadelphia semiconductor index fell 3.6% this afternoon.
In company news, Plexus (PLXS) fell 8.3% after the electronics subcontractor said on Tuesday it would miss its first-quarter fiscal guidance due to concerns about supply chain which accelerated in the last weeks of the quarter. Plexus now expects net profit for the three months ended Dec. 31 to be in the range of $0.80 to $0.84 per share, down from its previous outlook which expected $1.01 to 1, $17 per share and lagging Capital IQ’s consensus call that expects first-quarter earnings of $1.07 per share. . It also forecast first-quarter revenue between $815 million and $820 million compared to its previous forecast of $825 million to $865 million. The street was at $845.2 million.
Microsoft (MSFT) fell 2.2% after the tech giant announced a $68.7 million cash buyout of interactive entertainment company Activision Blizzard (ATVI). The deal, which would make Microsoft the world’s third-largest games company, values Activision at $95 per share, more than 45% above its last closing price. Activision shares are up more than 25% this afternoon.
CyberArk Software (CYBR) fell 2.8% after Morgan Stanley cut its price target for the cybersecurity company by $24 to $186, but retained its overweight rating for the stock.
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