Sector Update: Tech Stocks Extending Afternoon Slide

Last Updated: Friday, January 21, 2022 4:03 PM | MT Newswires

Technology stocks turned lower Friday, with the SPDR Technology Select Sector ETF (XLK) slipping 1.5%, giving back its morning gain, while the Philadelphia Semiconductor Index was falling 1.1% this afternoon.

In company news, Shopify (SHOP) dropped 14% following reports it is preparing to cut its fulfillment network capacity by as much as half from current levels. The e-commerce platform is canceling contracts or reducing their scope, executives at four fulfillment companies told Business Insider, while Shopify told the news service it would offer details about its fulfillment network during its regular earnings call next month.

Ribbon Communications (RBBN) tumbled over 16% after the networking equipment and software firm Thursday said it expects to report around $231 million in Q4 revenue, down from its October forecast expecting $240 million to $260 million and also lagging the Capital IQ consensus looking for $248.75 million in revenue for the three months ended Dec. 31.

Among gainers, Intel (INTC) was near flat after the chipmaker Friday confirmed plans to spend over $20 billion to build two new semiconductor foundries near Columbus, Ohio. It expects to begin initial construction later this year, with production at the new facilities slated to begin before the end of 2025.

E2open Parent Holdings (ETWO) climbed 1.3% after the supply-chain-management software company Friday authorized a new, $100 million stock buyback program running over the next 12 months.

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