Earnings, earnings, earnings.
It seemed like whatever area of technology was of interest to you, this was the week for earnings to take center stage, as more big-name sector leaders turned in a mixed bag of quarterly reports.
Two of the biggest names reporting results were Advanced Micro Devices (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM), and the chipmakers initially received opposite responses from investors on Wall Street.
AMD (AMD) had already lowered its third-quarter forecasts nearly a month before releasing its official results on November 1, and then proceeded to report earnings and sales that fell just shy of its already lowered estimates. Still, investors put more faith in AMD’s fourth-quarter outlook than its third-quarter report, and gave the chipmaker’s shares a slight boost in response.
Meanwhile, Qualcomm (QCOM) watched its shares take a hit after the communications chipmaker said its mobile handset business will decline at a greater-than-expected rate through the end of the year. The company has been moving to diversify its business beyond mobile phones, but the size of the negative reaction from investors suggested how much mobile phones still matter to Wall Street when it comes to Qualcomm (QCOM).
Other notable earnings reports came from streaming TV platform operator Roku (ROKU), which slumped due to a disappointing fourth-quarter outlook; Electronic Arts (EA), which slipped after cutting its bookings forecast; Warner Bros. Discovery (WBD), which gave some more details about its future streaming plans, but still didn’t immediately find favor with investors; Fortinet (FTNT) and Rapid7 (RPD), which both slumped after giving weaker-than-expected business outlooks, and led other security company shares into the red, and FuboTV (FUBO), which got a lift after beating earnings expectations and giving an upbeat business outlook.
ServiceNow (NOW) also got on Wall Street’s good side, as its shares climbed more than 14% in the immediate wake of its third-quarter earnings reports.
But, Twilio (TWLO) might have had the worst of any of the earnings-related decliners, as its shares fell more than 34% on Friday as Wall Street punished the communications software company for its third-quarter results and weaker-than-expected fourth-quarter outlook.
But, earnings reports weren’t the only happenings going on in the tech sector during the week.
Ride-sharing company Lyft (LYFT) confirmed in a regulatory filing that it will cut 13% of its workforce, or just under 700 jobs, in its second round of job cuts since July. Lyft’s (LYFT) job cut announcement came less than a week before the company is set to deliver its own third-quarter earnings report.
Chinese tech companies such as Alibaba (NYSE:BABA), JD.com (JD) and Baidu (BIDU) ended the week on an upbeat note due to reports that Beijing might be considering an easing of some of its Covid restrictions.
However, uncertainty about Beijing’s intentions remained, especially following reports of a widespread Covid-related lockdown in an area where Foxconn, which is one of Apple’s (NASDAQ:AAPL) largest producers of iPhones, is located.
And possibly in response to ongoing issues that keep affecting its product lines in China, Apple (AAPL) was reported to be adding new manufacturing facilities in India for the iPhone 14.
Image and article originally from seekingalpha.com. Read the original article here.