Technology Stocks Extend Rally After Facebook's Revenue Blowout
(Bloomberg) -- Technology stocks extended their best rally in almost a month after Facebook Inc. reported fourth-quarter revenue that exceeded the most optimistic of analyst estimates.
Alphabet Inc., which like Facebook relies on web advertising for most of its sales, gained 1.7 percent in extended trading. An exchange-traded fund that tracks the tech-heavy Nasdaq 100 Index rose 0.5 percent. Facebook shares surged 9 percent, adding to its 4.3 percent gain in the regular session.
The post-market increase extended gains for technology stocks after the S&P 500 information technology group jumped 3 percent as investors cheered signs of stability from Apple Inc. It was the biggest one-day advance since Jan. 4.
Amazon.com Inc., which is the next technology heavyweight to report earnings on Thursday, rose 0.6 percent in extended trading after closing with a 4.8 percent gain. Alphabet reports earnings on Feb. 4.
Facebook’s positive report overshadowed a less enthusiastic response to Microsoft Corp.’s results. The Redmond, Washington-based company’s shares slipped 2.4 percent after slowing growth in its cloud business raised concerns.
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