Tech giants report their third quarter earnings – HEWLETT-PACKARD COMPANY (NYSE:HPQ) and Intel Corporation (NASDAQ:INTC) in spotlight
Technology corporations are the foundation of stock market growth. Any turbulence in that sector causes a quake in the stock market. Let’s look at the tech stocks of some of the most prestigious and competent technology companies.
HEWLETT-PACKARD COMPANY (NYSE:HPQ), the tech giant, will start its share buyback program which they put on a halt a week ago. HP (NYSE:HPQ) is aiming to return 50 percent free cash flow to their shareholders. Last week HP (NYSE:HPQ) announced that it will split into two companies: one would sell hardware and services to large corporate customers, the other would deal with printer and personal computer operations after which its shares rose by almost 2 percent reaching 32.80 dollars on a day when other tech companies suffered losses.
Intel Corporation (NASDAQ:INTC) is mainly dependent on the waning sector of Personal computers. Computers are losing their wind when it comes to a show down against tablets and smartphones. Despite all odds, Intel Corporation (NASDAQ:INTC) gained 9.2 billion dollars from PC chips in the quarterly revenue. The tech company made 3.32 billion dollars in the third quarter, along with earnings per share of 66 cents.
Activision Blizzard, Inc (NASDAQ:ATVI) is riding high on the high subscriptions of the game World of Warcraft. The game’s subscribers have risen from 6.8 to 7.4 million in the third quarter results. Warlord of Draenors, the latest expansion pack for World of Warcraft will be released next month. World of Warcraft has changed the whole course of video gaming, creating almost a cult like following, both online and offline.
QUALCOMM, Inc (NASDAQ:QCOM) will be acquiring wireless tech company CSR for 2.5 billion dollars and is hoping this deal will be a knock out for them as CSR has been showing growth in areas like automotive and wearable devices. CSR rejected a previous offer made by Microchip Technology, on reasons of the sum offered being not enough. There was a rumor that alternative bidders might emerge but CSR ultimately accepted QUALCOMM (NASDAQ:QCOM)’s offer.
Netflix reported 1.7 million new subscribers in their third quarter report and has become the cornerstone for online television programs. It is appreciated for the quality of the video and its database that contains hundreds of TV shows- both contemporary and classic. However, shares of the company plunged despite gaining significant amount of new subscribers. They reported a profit of 59 million but forecast suggest that the profit will drop by 44 percent in the next quarter. Netflix management assured that in the longer run it will stay as a competing tech company.
Tech corporations haven’t really been having a great quarter, reporting losses after losses. Those who have reported profits are expecting a loss in the next quarter. A dip in the share price for a multitude of companies is a worrisome factor for the stock market altogether. The investors are already having second thoughts. Let’s hope that the forecast for the next quarter turns out wrong and profits starts to rise.