Key Updates from the Tech Sector Last Week
By Sanmit AminUpdated
Tech stocks outperformed the broader markets in the week ended July 7
Technology stocks (QQQ) rose 0.6% during the week ended July 7, 2017, compared to the 0.1% rise in the S&P 500 Index (SPY). There were no earnings releases of note in the tech sector during the week ended July 7, and there won’t be any of note in the coming week either.
Top movers in the sectors
Semiconductor stocks led the charge of tech companies in the last week. The top three tech gainers last week all belonged to the semiconductor sector. Advanced Micro Devices (AMD) was the top performer in the last week, gaining over 6.0%. Applied Materials (AMAT) climbed 5.1% while Lam Research (LRCX) rose 4.1% last week.
On the other end of the spectrum, Western Digital (WDC) was the biggest loser last week within the tech sector, falling 5.1%. Western Digital is facing a lawsuit from its partner, Toshiba (TOSBF). Teradata (TDC), a provider of database-related products, fell 5.0%. Meanwhile, Marvell Technologies (MRVL) fell 4.2%.
Microsoft is reorganizing its global sales force
The Washington-based company is planning a huge reshuffling of its sales force. The company wants to challenge Amazon (AMZN), the leader in the cloud computing space. This move may lead to thousands of layoffs.
Amazon is pumping more money into its India business
Amazon has increased its investment in India to build big warehouses, marketing, logistics units, and discounts. The e-commerce giant had invested $2 billion in India three years ago.
Qualcomm’s battle with Apple continues
The legal fight between Qualcomm (QCOM) and Apple (AAPL) continued on Thursday, July 6. According to the Wall Street Journal, Qualcomm has asked trade authorities to halt the imports of some Apple devices including iPads and iPhones.
Samsung is likely to report the highest ever operating profit
Samsung (SSNLF) projects fiscal 2Q17 operating profit of about $12.1 billion, a whopping 72% increase of $7.0 billion from the corresponding quarter last year. The company estimates that its revenue will be $51.9 billion in this quarter compared to 2Q16’s revenues of $44.0 billion.
