Tech stocks will look for a big rebound Wednesday following several days of disappointing performance. Snap shares are showing some premarket strength amid the launch of new original content, while Amazon has a fresh partnership with Travelers Companies. Here's what tech investors need to know to start the day.
Snap is renewing its bet on original, high-quality video content. The company announced on Wednesday that it would be rolling out a new slate of short original shows "created by some of the world's greatest storytellers." There will be new episodes of various Snap original shows on a daily basis.
The move comes as Snap shares continue their post-IPO slide. The stock closed Tuesday at $7, far below its $17 initial-public-offering price. Snap shares have tumbled in the past four trading sessions but will look to break that streak Wednesday. The stock is up 2% premarket.
There hasn't been much movement in the so-called FAANG stocks during premarket trading on Wednesday, though there have been a few pieces of news concerning the names. Travelers Companies announced a partnership with Amazon.com through which the insurance company will have a "storefront" on Amazon's site and offer various packages of discounted Amazon items that help with home security.
Meanwhile, Cowen & Co. analyst John Blackledge shares the results of his latest consumer survey, which found that Netflix is the top way U.S. respondents viewed video content on their televisions.
The FAANG stocks are little changed premarket. Netflix shares are down 0.2%, while Apple and Alphabet shares are each down 0.1%.
Micron shares are off 1.3% in premarket trading after Piper Jaffray analyst Harsh Kumar began coverage of the stock with a neutral rating and $48 target. "Given the cyclical nature of the memory market, we prefer to remain on the sidelines until we have a better grasp of the cycle," he writes.
In other chip news, Susquehanna analyst Chris Rolland weighs in on general industry trends, writing that semiconductor lead times diminished in September for the first time in two years.
One of the biggest bulls on Alibaba Group Holding shares got a bit less optimistic on Wednesday. Raymond James analyst Aaron Kessler lowered his target price to $260 from $280, writing that growth might not be quite as fast as he initially expected given macroeconomic conditions in China and his projected for "somewhat delayed monetization" of the company's new Taobao interface.
Kessler still has a Strong Buy rating on the stock and says its valuation remains attractive. Alibaba shares are down 0.6% in premarket trading. The stock dropped during the past four trading sessions.
Heading into the crucial holiday season, analysts are upbeat about various videogame publishers.
Bernstein analyst Todd Juenger initiated coverage of Take-Two Interactive Software with an outperform rating and $175 price target late Tuesday, writing that the company has big potential even though it has a concentrated portfolio. He thinks the company has all the keys to success for a publisher: a massive hit with huge network effects (Grand Theft Auto), a durable title that doesn't face much competition (NBA2K), and a franchise with a lot of upside (Red Dead Redemption 2).
Separately, KeyBanc Capital Markets analyst Evan Wingren weighed in on Activision Blizzard. Its Call of Duty: Black Ops 4 title comes out on Friday, and Wingren predicts that the first weekend of sales will be a "positive initial catalyst" for the stock.