Rising inflation, rate hikes and a tumultuous global economic scenario has affected technology stocks. Five of the leading tech companies lost 5% value on average during the week. Although inflation was relatively slower last month, it may be a temporary relief to several organizations across the United States.
International Business Machine (NYSE: IBM) lost nearly 6% over the week, closing at $129.43 on the weekend. The Wall Street Journal reported the company is acquiring Apptio, a Washington-based business software development company, in a $5 Billion deal. Previously, IBM acquired software companies Red Hat and Turbonic for a combined sum of $35.5 Billion. IBM stock has remained quite volatile since 2022 while maintaining a resistance near $155 and a support around $114. A major downfall came during the end of 2022 with company shares falling by 5% on December 15, 2022. The organization reported 6 consecutive positive earnings, revealing 7% EPS surprise in its Q1 2023 report.
Digital communication company Cisco Systems (NASDAQ: CSCO) stock was down by almost 4% in a week. Research shows the digital communications market may see a strong growth, considering communication technologies are evolving while also seeing large-scale adoption, with social media staying at the center of the stage. Like many other tech companies, Cisco is leveraging the power of artificial intelligence (AI) with its software application specific integrated circuit (ASIC) – G200, which can bring together over 30K graphic processing units (GPUs). It was developed under Silicon One, the company’s unified silicon architecture.
Cloudflare (NYSE: NET), a California-based cloud service provider, has consistently delivered positive earnings since last year. However, last week was indeed “weak” for the company. fell by over 10% in the period. The company shares closed at $63.41 yesterday. TechCrunch recently reported that the company launched their latest real time user monitoring data software, Observatory, replacing the old one dubbed Speed Tab. John Graham-Cumming told TechCrunch, “Website performance always has a major impact on user experience.”
Microsoft Corp (NYSE: MSFT), the American technology giant, too, felt the tech headwinds in the market. MSFT stock fell by over 2% over the week. However, the shares managed to recover a bit, unlike others. The company is still waiting for its $70 Billion Activision Blizzard acquisition deal. First half of the year has proven fruitful for the company as MSFT stock gained almost 60% during that period.
Tech market spending is expected to reach $4.4 Trillion in 2023 despite tight macroeconomic conditions according to Forrestor, a Cambridge-based research and advisory company.
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