Sector Update: Tech Stocks Dropping Despite Tuesday Strength for Chipmakers

Tuesday, January 12, 2021 1:43 PM | MT Newswires

Technology stocks were considerably lower, with the SPDR Technology Select Sector ETF Tuesday slipping 0.7% although the Philadelphia Semiconductor Index was advancing 0.8% this afternoon.

In company news, DocuSign (DOCU) climbed 5.8% after Monday saying it has negotiated a new $500 million, five-year senior secured revolving credit facility with an accordion feature allowing for an additional $250 million of borrowing capacity. Separately, the electronic signatures company also announced plans for a $500 million private placement of convertible senior notes maturing in 2024.

Zoom Video Communications (ZM) rose 1.3% this afternoon after the video chat platform launched a $1.5 billion public offering of its class A common stock. Net proceeds will be used for general corporate purposes and increasing its capitalization and financial flexibility.

Cisco Systems (CSCO) also was narrowly higher after Acacia Communications (ACIA) late Monday filed a counterclaim against the networking equipment firm in response to a complaint filed by Cisco in Delaware Chancery Court following the termination of its proposed acquisition of the optical interconnect products company. Acacia contends it validly terminated the merger agreement after the deal failed to receive the required Chinese regulatory approval and did not close by the agreed-upon deadline. Acacia shares were 3.9% higher this afternoon.

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