Markets

Sector Update: Tech

Technology stocks slip Tuesday with shares of tech companies in the S&P 500 falling about 0.8% as a group.

In company news, ChannelAdvisor Corp. ( ECOM ) tumbled to a new 52-week low Tuesday after the cloud-based e-commerce platform saw its Q2 net loss nearly double from year-ago levels despite strong revenue growth.

Shares were down nearly 27% at $17.00 apiece in early afternoon action, earlier sliding to their lowest level since last June at $16.44 a share.

The company said GAAP net loss for the three months ended June 30 was $9.6 million, or $0.39 per share, compared with a $5.0 million net loss during the same quarter last year. Excluding stock-based compensation and other one-time items, the net loss narrowed to $7.5 million, or $0.30 per share, widening from a $4.5 million adjusted net loss last year but still topping the Capital IQ consensus by $0.01 per share.

Revenue rose 30% year over year to $20.8 million, topping estimates by around $800,000.

For the current quarter, the company is projecting revenue in a range of $20.5 million to $20.9 million, in-line with the $20.86 million consensus. The company also sees its FY14 revenue in a range of $86 million to $86.7 million, exceeding estimates by at least $240,000.

In other sector news,

(+) GTAT, (+5.3%) Forecasts better-than-expected FY14 earnings of $0.12 to $0.18 per share, topping analyst estimates by at least $0.09 per share. Guides revenue in-line with Street view. Q2 net loss of $0.16 per share was $0.01 wider than Street view.

(-) FIVN, (-14.0%) Projected Q3 revenue of $24 mln to $25 mln, lagging Street view by at least $1.2 mln. FY14 revenue guidance also trails Capital IQ consensus by at least $3.1 mln. Q2 net loss of $0.20 per share beats by $0.02.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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