Sector Update: Tech Stocks Bruised Tuesday by Snap Warning

Last Updated: Tuesday, May 24, 2022 4:00 PM | MT Newswires

Technology stocks continue to sink late in Tuesday trading, with the shares of social media firms particularly hard hit after Snap (SNAP) overnight warned revenue for its current Q2 likely will trail the low end of its projected range due to a faster-than-expected deterioration of macroeconomic conditions.

At last look, the SPDR Technology Select Sector ETF (XLK) was dropping 1.0% and the Philadelphia Semiconductor Index was falling 1.9% this afternoon.

In company news, NetEase (NTES) was sinking 1.8% this afternoon, reversing a more than 2% advance soon after Tuesday's opening bell, after the Chinese online gaming platform company cut its quarterly dividend by over 20% compared with the previous quarter to $0.3220 per American depository share, upstaging better-than-expected results for its Q1 ended March 31.

Roblox (RBLX) declined 9.8% after an Atlantic Equities downgrade of the online entertainment platform company to neutral from overweight, coupled with a 50% reduction in its price target for the stock to $30 a share.

Quantum Computing (QUBT) rallied Tuesday, climbing more than 28% in late trading, after announcing its acquisition of quantum photonics company QPhoton for roughly $19 million in stock based on Quantum Computing's $1.56-per-share closing price Monday night. The deal also includes warrants to buy up to 7.03 million additional Quantum shares.

CynergisTek (CTEK) doubled in price on Tuesday after the cybersecurity company late Monday agreed to a $17.7 million buyout offer from Clearwater Compliance, with the Altaris Capital Partners portfolio company paying $1.25 in cash for each CynergisTek share, representing a 112% premium over its last closing price.

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