Tech ETFs and Stocks Retreat in Tuesday’s Pre-bell Trading
Investing.com | Editor Venkatesh Jartarkar
Published Oct 17, 2023 02:26PM ET
In Tuesday's pre-bell trading, technology-focused exchange-traded funds (ETFs) XLK and XSD experienced a decline, dropping by 1% and 0.5%, respectively. This downtrend was mirrored in the shares of several technology companies, with NetScout Systems and Ericsson (BS:ERICAs) recording significant losses.
NetScout Systems, the network performance management and diagnostics company, saw its stock value plummet by over 22%. This steep drop came in the wake of the company's revised fiscal 2024 non-GAAP diluted earnings forecast. The new projection stands at $2-$2.20 per share, falling short of Capital IQ analysts' estimate of $2.27 per share. According to InvestingPro data, NetScout Systems has a market cap of 1660M USD and a P/E ratio of 26.35. The company's revenue for LTM2024.Q1 is 916.86M USD with a growth rate of 4.89%. Despite the revised earnings forecast, InvestingPro Tips reveals that the company has a perfect Piotroski Score of 9, high earnings quality with free cash flow exceeding net income, and holds more cash than debt on its balance sheet. This information can be found at InvestingPro.
Meanwhile, Ericsson, the Swedish multinational networking and telecommunications company, reported a Q3 loss of 9.21 Swedish kronor ($0.84) per diluted share. This result contrasts sharply with the earnings reported in the same period last year and has led to a more than 3% dip in the company's stock value. InvestingPro data shows that Ericsson has a market cap of 15.52B USD and a P/E ratio of 14.02. The company's revenue for LTM2023.Q2 is 26054.61M USD with a growth rate of 14.64%. Despite the Q3 loss, InvestingPro Tips indicates that Ericsson has raised its dividend for 4 consecutive years and pays a significant dividend to shareholders. More details can be found at InvestingPro.
Even companies announcing new partnerships were not immune to the broader market downturn. Thoughtworks, despite announcing a partnership with Hipages Group to create a comprehensive platform for tradespeople, saw its stock fall by over 2% in premarket activity. The impact of this partnership on Thoughtworks' long-term financial performance remains to be seen.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.