Tech Stocks Fly on Earnings - Tech Roundup
October 27 2017 - 4:46PM
Dow Jones News
Shares of tech companies rallied after strong earnings from four
of the largest companies quelled fears about valuations. Shares of
Amazon.com surged after the online retailer posted earnings ahead
of Wall Street expectations as its sales growth allowed it to
absorb aggressive investments in new business areas. Analysts at
brokerage Wells Fargo said Amazon's "adaptive" technology was
allowing it to rapidly grow in new directions, a trend that could
continue with its integration of grocery Whole Foods Market and
approval for pharmaceutical distribution licenses. Shares of Google
parent Alphabet rose sharply after its quarterly profit far
exceeded estimates from Wall Street analysts, helped by growth in
its core search-and-advertising business. Microsoft shares rallied
after its push into cloud computing and other areas helped bolster
profit growth. Intel rallied after the chip maker boosted its
outlook for profits this year. The robust growth rates seemed to
justify the lofty valuations that many of these companies are
assigned on the stock market. "In any case, just for the overall
tone of the market at these valuations you have to see dynamism in
earnings, you have to see growth on the top line and bottom line,"
said Quincy Krosby, chief market strategist at Prudential
Financial. "You have to see the macro and the micro [economics]
moving in a positive trajectory to maintain these valuations."
-Rob Curran, rob.curran@dowjones.com
(END) Dow Jones Newswires
October 27, 2017 16:31 ET (20:31 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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