Technology Sector Update for 02/05/2018: QCOM,AVGO,NOK,CHU


Shutterstock photo

Top Tech Stocks

MSFT -0.19%

AAPL +0.51%

IBM -1.83%

CSCO -0.07%

GOOG -1.97%

Technology stocks were moderately lower Monday, with shares of tech companies in the S&P 500 losing less than 0.4% in value while the Philadelphia semiconductor index was posting a more than 0.9% decline.

In industry news:

The technology sector was under pressure Monday after analysts at Morgan Stanley lowered their call for the sector to Equal Weight from Overweight, citing weakening earnings revisions, according to multiple reports. The ratings shop noted the downward earnings revisions have been largely driven primarily by chipmakers, which have been underperforming since November, as the “poor sell thru” of Apple’s ( AAPL ) new iPhone X produced excess inventory.

Among technology stocks moving on news:

-Qualcomm ( QCOM ) declined Monday, sinking just over 3% to a session low of $63.79 a share, after rival chipmaker issued its “best and final” buyout offer of $82 per share, up from its prior bid offering $70 per share. The new offer consists of $60 in cash and the remaining $22 in Broadcom stock, adding another $12 in shares to Broadcom’s original offer, and is conditioned on either Qualcomm acquiring NXP Semiconductors N.V. ( NXPI ) for the current $110 per share or terminating that deal. Broadcom also said it still was “confident” the Qualcomm buyout can be completed within 12 months of the signing of a definitive agreement.

In other sector news:

+ Nokia ( NOK ) advanced Monday after analysts at Bank of America Merrill Lynch raised their call for the phone-maker’s stock to Buy from Neutral. The upgrade follows China Unicom ( CHU ) earlier Monday saying it will collaborate with the company to deploy Nokia’s AirGile-based network in seven Chinese provinces. Nokia on Friday also said it would begin testing 5G technology in an industrial setting through a separate collaboration with Deutsche Telekom and the Hamburg Port Authority.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


No Comments

Post A Comment