The tech sector was losing momentum on Wednesday as Palantir fell further following Tuesday's selloff. Meta Platforms was the only Magnificent Seven stock to rise in early trading.
On Wednesday, the tech-heavy Nasdaq Composite Index fell 0.4%. It closed 0.1% lower on Tuesday, ending its winning streak at three.
Six of the Magnificent Seven stocks didn't do much to improve mood. Tesla and Nvidia both fell after losses in the previous session. Alphabet fell 1%, Amazon.com, Microsoft, and Apple all fell modestly.
Intel shares fell 2.4% after the chipmaker lowered its second-quarter earnings outlook following the Commerce Department's decision to cancel export licenses for Chinese customers. The customer is Huawei, Bloomberg reported on Tuesday.
The company maintained its sales forecast range of $12.5 billion to $13.5 billion, but said it expected results to be below the midpoint. Qualcomm stock also fell 2.1%, according to multiple reports.
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Palantir Technologies Inc. plunged 15% on Tuesday despite strong first-quarter profits, but it was falling after a brief rise. After opening higher, the stock fell 1.1%.
Investors were also reminded that tech companies' earnings could also be positive. Arista Networks rose 6.4% after reporting better-than-expected earnings guidance. The cloud networking company also approved a $1.2 billion stock buyback.
Reddit shares rose 2% after the social media platform comfortably beat revenue expectations in the first quarter and reported a 40% increase in weekly active users. The company posted a loss of $575.1 million in the quarter, reflecting IPO-related costs.
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Shares rose 10% after the cloud-based platform for restaurants reported a 31% revenue increase in the first quarter.
However, despite strong initial results as a listed company, stocks were negative after earnings, with cloud communications company Twilio falling 5.4%, database provider Zoom Info falling 26%, and semiconductor company Astera Labs falling 7.6%. There were many reactions.
The White House announced early Wednesday that President Joe Biden plans to announce a $3.3 billion investment by Microsoft to build a new artificial intelligence data center in Wisconsin. It will be developed on the same site in Racine where Foxconn originally planned to invest $10 billion. The project was announced during the Trump administration but died.
Big Tech's global expansion continues as Amazon looks to enter the European 5G market through a deal with Telefonica Germany.German subsidiary of Spanish telecommunications company Telefonica
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The company plans to move 1 million customers to the Amazon Web Services cloud later this month, according to Reuters.
Email Callum Keown at callum.keown@barrons.com.
