Technology stocks were trending higher Tuesday with shares of technology companies in the S&P 500 gaining about 0.5%.
In company news, Cheetah Mobile Inc. ( CMCM ) was higher Tuesday, with American depository shares of the Chinese software firm climbing to a new all-time high after it reported a 10-fold jump in Q2 earnings over year-ago levels, beating analyst estimates.
ADS were up about 1% at $27.17 each this afternoon, earlier climbing nearly 13% to a fresh record high of $30.37 a share. Since pricing its initial public offering of stock at $14 per ADS in early May, the stock had risen over 92% through Monday's close.
Net income rose to $2.2 million (RMB 13.4 million), or $0.02 per ADS, during the three months ended June 30, from a $227,000 profit during the year-ago period. Excluding one-time items, the company earned $0.08 per share, topping the Capital IQ consensus by $0.05 per share.
Revenue rose 139.3% year over year to $61.3 million, exceeding Wall Street expectations by around $5.96 million.
For the current quarter, the company is projecting Q3 revenue in a range of $69.3 million to $70.9 million, representing as much as 137% growth over the same quarter last year. Analyst revenue estimates for the quarter were not available for comparison.
In other sector news,
(+) RAX, (+3.1%) Blue Harbour Group LP boosts stake to 9.098 mln shares, or about 6.4% of its stock, up from 2.5% in June. The hedge fund said it has talked with the company about strategic alternatives, adding it "may take other steps" to increase shareholder value.
(-) PWRD, (-9.3%) Q2 revenue rises 32.6% year over year to $149.6 mln (RMB928.4 mln), narrowly trailing Street view looking for $150 mln. Non-GAAP EPS of $0.55 beat Capital IQ consensus by $0.10 per share. Guides Q3 revenue in-line with $160.3 mln consensus.
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