Sector Update: Tech Stocks Rise Despite Chipmaker Weakness

Wednesday, November 25, 2020 3:55 PM | MT Newswires

Technology stocks advanced moderately on Wednesday, with the SPDR Technology Select Sector ETF climbing 0.4% although the Philadelphia Semiconductor Index was slipping 0.1% this afternoon.

In company news, Slack Technologies (WORK) rallied Wednesday, rising as much as 35% following reports the workplace communications platform recently received a buyout offer from cloud products company Salesforce.com (CRM), potentially creating an imposing competitor for Microsoft's (MSFT) Teams product line. Analysts said Slack could fetch over $20 billion in a deal. Salesforce shares fell over 5% this afternoon.

21Vianet Group (VNET) rose over 20% after the data-center services company late Tuesday reported a surprise Q3 profit of RMB0.48 per American depository share, reversing an RMB0.60 per ADS net loss during the same quarter last year and beating the Capital IQ mean looking for an RMB0.19 per ADS GAAP loss for the three months ended Sept. 30. Revenue grew 27% year-over-year to RMB1.25 billion, also topping the three-analyst consensus estimate expecting RMB1.24 billion.

HP (HPQ) climbed 2.3% after late Tuesday reporting better-than-expected financial results for its fiscal Q4 ended Oct. 31 and projected non-GAAP net income for the current quarter exceeding Wall Street estimates. The computer hardware company also increased its quarterly dividend by 10.1% over its most recent distribution to investors, declaring a $0.1938 per share payment due Jan. 6.

International Business Machines (IBM) declined fractionally following reports it will eliminate around 10,000 jobs in Europe in a bid to reduce costs ahead of the planned spinoff of its legacy managed-infrastructure unit next year. Divisions in the UK and Germany likely will experience the most cuts, people familiar with the matter told Bloomberg.

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