Top Tech Stocks
Technology stocks were mostly underwater today, with shares of tech companies in the S&P 500 dropping more than 0.7% while the Philadelphia semiconductor index was down almost 1.0% in recent trade.
In industry news:
Apple ( AAPL ) was losing ground on Tuesday, at one point sinking over 3% to a session low of $169.68 a share and weighing on the major market indices following reports iPhone X sales are running well below expectations. Apple will likely slash its Q1 sales projections by as much as 40% to around 30 mln units, Taiwan's Economic Daily wrote, citing the "high price point and lack of interesting innovations" for the latest iPhone model. Wall Street analysts also were trimming their respective sales forecasts. Share prices of Apple suppliers - including Cirrus Logic ( CRUS ), Skyworks ( SWKS ) and Qorvo ( QRVO ) - similiarly were under pressure today and permeating the broader semiconductor sector.
Apple also has been grappling with several legal issues today, including litigation after it admitted to purposefully slowing down older iPhone models in order to prolong the life of the devices. The stock also has been under pressure after a federal judge in California late Friday ordered the company to pay $25,000 for each day it fails to produce documents from a Federal Trade Commission suit alleging Qualcomm ( QCOM ) forced Apple to use its chips exclusively. Apple is not a party in the suit but the judge said it has until Friday, Dec. 29, to produce those documents or face even steeper fines, according to a Bloomberg report citing court records.
Among technology stocks moving on news today:
LG Display's (LPL) tracked lower Tuesday, staying within a few pennies of today's session low of $12.56 a share, despite South Korean government officials signing off on plans by the company to build a new plant to produce organic light-emitting diode panel production plant in Guangzhou, China. The trade ministry's decision follows a a five-month-long review and was conditional on LG Display agreeing to increase its use of materials and equipment made by Korean firms as well as committing to make future investments in Korea and strengthening security to reduce the risk of technology and manpower leakage.
In other news:
- Intel (INTC) was fractionally lower today following the Nikkei Asian review reporting Intel sales this year will likely trail rival Samsung, marking the first time in 25 years it was not the global leader. Samsung moved into the top spot for 2017 with around $49.2 billion in revenue between January to September compared with $45.7 billion in sales at Intel. Also, Mizuho Securities today reiterated its Buy stock rating and a $47 price target for the chipmaker.
- Smart Global (SGH) fell today despite Needham & Co today increasing its price target for the company's stock by $3 to $46 a share, also reaffirming its Strong Buy rating.