Ugly Batch of Tech Earnings Sends Shares Tumbling After Hours
(Bloomberg) -- Box Inc. and Booking Holdings Inc. were among a handful of technology and internet companies whose disappointing earnings reports sent shares tumbling in post-market trading.
Cloud-storage provider Box lost as much as a quarter of its value after forecasting annual revenue that trailed the lowest analyst estimate. Booking Holdings sank 10 percent after the online travel agent projected lower-than-expected profit in the first quarter amid higher spending. Fitbit Inc., HP Inc. and Square Inc. also fell after financial reports.
The poor results came on the tail end of a fourth-quarter earnings season that has helped fuel a 23 percent rally since last year’s market rout bottomed out on Christmas Eve. Technology stocks have been the performers after industrials in the S&P 500 Index’s rebound.
Most technology companies have exceeded analysts’ profit estimates for the fourth quarter. With all but three of the 68 members of the S&P 500 Information Technology Index having reported, 84 percent have beaten earnings estimates, according to data compiled by Bloomberg.
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