Market Overview

Tech Stocks Drop After Upbeat Tuesday Trading Session


Tech stocks rallied on Tuesday’s trading session, lifted by better-than-expected earnings, but dipped on Wednesday after a broad market sell-off, according to reports from Market Watch.

Intel (INTC) led tech stocks on Tuesday, with shares climbing to $32.14, up more than two percent from its previous close, and beating analyst expectations with earnings of 66 cents per share on $14.55 billion in revenue. Netflix Inc. (NFLX) also posted gains, rising 2.4 percent to $449.12.

Market Watchalso noted that Pandora Media Inc. (P), Oracle Corp. (ORCL), Inc. (AMZN), and online travel agency Orbitz Worldwide Inc. (OWW) were on the rise the same day.

A broad market sell-off on Wednesday, however, dampened tech stocks’ Tuesday gains due to investors’ fears over Europe’s sinking economy, corporate earnings and Ebola, USA Today reported.

High-definition camera manufacturer GoPro was the biggest loser that trading day, sinking six percent. Intel, meanwhile, dipped by 4 percent after reporting positive earnings the previous day and finishing as the biggest winner in terms of share price increase.

Microsoft (MSFT) declined by 2.04 percent; Apple was down by 1.91 percent; IBM by -1.74 percent; Cisco, -1.41 percent; and Google, -2.42 percent, according to Nasdaq’s round up.

Thanks to bottom-fishers, however, Wall Street was prevented from diving deeply and losing its 2014 gains, a separate USA Today report said.   

The American broad market suffered tremendously yesterday increasing selling pressure in the sector. But Time says there’s hope in other “corners” of the market—if you know where to look.

Timesuggests that historically, investors would turn to high-dividend or low-volatility stocks. It may take some time, however, for investors to find “attractively priced” stocks under these types.

Another option is to find “safe haven” tech stocks on other exchanges—maybe one from the other side of the Atlantic. Jonathan Yates, a staff writer on Benzinga, detailed attractively priced stocks that are on an upswing on the London Stock Exchange.

He especially notes tech stock Audioboom (LSE: BOOM.L) as one stock that “can be good in diversifying plays” in an article.

Globally recognized as the “YouTube of Audio,” Audioboom has more than doubled its share prices from 5 GBX to 15 GBX following a reverse merger with One Delta. Arden Partners, an equity research firm and stockbroker in London, gives the stock a “Buy” rating and forecasts the stock to reach 14 GBX by the end of the year. 

To buy into the British stock, Yates recommends opening an account with a brokerage firm like Charles Schwab or Etrade. “The commission can be higher but that is worth the cost due to the better execution on the local market for these stocks,” he said.

The company’s stocks continued to soar following the announcement of a recent partnership deal with India’s largest entertainment and media company, The Essel Group, and the rollout of its new app and advertising platform.

Tech stocks last suffered a massive sell-off starting in mid-March to early May. Conflicts in Iraq and weaker economic data also affected the stocks in June. 

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


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