Technology Sector Update for 09/05/2018: JNPR,ERIC,COUP,WDAY

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MSFT -2.96%

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IBM +0.66%

CSCO -0.78%

GOOG -1.02%

Technology stocks were sharply lower this afternoon, with the shares of tech stocks in the S&P 500 were losing almost 1.3% in value while the Philadelphia Semiconductor Index was slipping nearly 0.5%.

Among technology stocks moving on news:

(-) The9 ( NCTY ) plunged as much as 24% on Wednesday, sinking to a session low of $1.17 a share, after the Chinese internet company said it has signed an agreement to issue 21 million of its ordinary shares - equal to 7 million American Depositary Shares - to acquire a minority equity stake in the Plutux cryptocurrency exchange.

The agreement with Gibraltar-based Plutux Ltd values The9 ADS at $2.14 each, representing a 39.8% premium to Tuesday's closing price in U.S. trade. Completion of the proposed stock swap is subject to customary closing conditions.

In other sector news:

(+) Coupa Software ( COUP ) rose over 17% to an all-time high of $84.50 a share soon after Wednesday's opening bell, more recently hanging on to a more than 7% gain, after the maker of a cloud-based spending management platform reversed a Q2 net loss from the year-ago period and issued an outlook for the current quarter topping Wall Street expectations and prompting analysts at Needham & Co raising their price target for the company's stock by $20 to $83 a share.

(-) Juniper Networks ( JNPR ) was grinding lower on Wednesday, sinking slightly more than 1%, despite the networking equipment company expanding its 18-year partnership with Ericsson ( ERIC ) to develop an end-to-end 5G network leveraging each company's technology portfolios. The new network will combine Juniper's next-generation routing equipment as well as its cybersecurity tools with Ericsson's Router 6000 and MINI-LINK microwave portfolio for distributed, centralized and virtualized radio access.

(-) Workday ( WDAY ) dropped almost 10% on Wednesday despite reporting Q2 financial results exceeding analyst forecasts and raising its FY18 revenue forecast in addition to picking up an increase in its price target of $30 to $175 a share by analysts at Canaccord Genuity. Excluding one-time items, the company earned $0.31 per share, improving on a $0.24 per share non-GAAP profit last year and beating the Capital IQ consensus by $0.05 per share. Revenue grew 27.9% year-over-year to $671.7 million to also top the $663.4 million analyst mean.

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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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