Tech Flat Ahead of Earnings; Microsoft Rises After Hours — Tech Roundup
Shares of technology companies were flat ahead of earnings reports from Microsoft and others.
Microsoft shares rose after hours as sales of cloud-computing products in the fiscal second quarter eased fears about slowing growth in that key area. Recession fears weighed on Microsoft and other tech stocks throughout much of 2022.
“I doubt that people are betting on the earnings that are already rolling… the earnings are just starting to decline,” said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund. “The hope is that, as the Fed stops and tapers (as Fed Funds futures are pricing) the decline in earnings will be very mild.”
A recent bounce in technology stocks was likely a function of short sellers buying back bets against the sector, Mr Di Mattia said.
The Justice Department is seeking to crack down on Google’s business brokerage digital advertising across much of the internet, a major expansion of the legal challenges the company faces for its business in the United States and out.
Rockley Photonics Holdings, which makes microchips that can be used in wearable devices for health monitoring, has filed for bankruptcy with a creditor-backed plan that would hand over control of the business to bondholders.
Tesla shares continued a torrid rally in 2023 ahead of its earnings, and as CEO Elon Musk defended his tweets about a raised attempt to take the company private in 2018.
Grayscale Investments CEO Michael Sonnenshein told Barron’s that the firm would resist pressure to buy back shares of its Bitcoin Investment Trust in an effort to close the gap between its reduced share price and the underlying value of the de facto exchange traded fund’s bitcoin investments. .
Carvana has reached a settlement with Illinois over delays in transferring vehicle ownership to customers and its improper use of temporary license plates.
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(END) Dow Jones Newswires