Sector Update: Tech Stocks Struggling for Traction in Afternoon Trading

Friday, October 23, 2020 3:52 PM | MT Newswires

Technology stocks were ending mostly lower, with the SPDR Technology Select Sector ETF sinking 0.4% while the Philadelphia Semiconductor Index was dropping 0.7% this afternoon.

In company news, Limelight Networks (LLNW) tumbled nearly 32% after late Thursday reporting a surprise Q3 net loss of $0.01 per share, excluding one-time items, reversing a $0.01 per share adjusted profit during the quarter last year and missing the Capital IQ consensus expecting the content delivery company to earn $0.02 per share. The stock also is being pressured by analyst downgrades Friday by Craig-Hallum and Northland Securities while Raymond James trimmed its price target for Limelight by 50 cents to $8 a share.

Intel (INTC) fell almost 11% after the chipmaker projected a 25% decline in data center revenue during the current quarter compared with year-ago levels, upstaging in-line Q3 financial results and the company also raising its Q4 earnings and revenue forecasts. During a conference call with analysts late Thursday, chief financial officer George Davis said the company expects Q4 to have many of the same dynamics as the September quarter, with strength in consumer notebook personal computers but demand weakness for its enterprise and government segments of its data center business.

To the upside, Socket Mobile (SCKT) was surging, at one point Friday rising over 208% to its highest share price since October 2008 at $4.50 each, after the data-capture products company reported Q3 net income of $0.06 per share, up from $0.01 per share during the year-ago period, despite an 18% year-over-year decline in revenue to $4.1 million. Analyst estimates were not available.

CLPS Inc (CLPS) climbed over 7% after late Thursday reporting improved FY20 financial results compared with the year-ago period and also projecting large year-over-year increases for its FY21 net income and sales. The IT consulting firm sees its non-GAAP 2021 earnings rising 32% to 37% over its $0.47 per share profit last year while sales are seen growing between 30% to 35% over the $89.4 million in sales reported for the 12 months ended June 30. Analyst estimates were not available.

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