Tech Five: Facebook shares down as investors waffle over earnings
Facebook reported second quarter earnings that surpassed Wall Street expectations, but the stock was tumbling more than 2% during Thursday morning trading. What gives?
Let's take a look at the tech stocks to watch Thursday:
Facebook (FB): Although Facebook reported a 39% jump in revenue Wednesday, the social media giant also posted a 82% increase in spending. The company warned shareholders earlier this year that expenses would significantly rise as it invests in long-term projects. However, investors still scrutinized the increase in spending and shares fell more than 5% in after-hours trading.
Yelp (YELP): Shares of the crowd-sourced reviews site were up more than 3% Thursday morning after they plummeted more than 28% during regular trading hours Wednesday. Yelp's stock took a major hit from shareholders after the company reported grim second quarter earnings and slashed their revenue guidance for the year Tuesday.
Twitter (TWTR): Twitter shares were slightly up nearly 1% Thursday, following a significant dip earlier this week. CEO Jack Dorsey spoke honestly to investors during the Tuesday earnings call, and said that a comeback from the company would take some time. The company fell to a 52-week low Wednesday after Dorsey's straight talk.
Alibaba (BABA): Months after Chinese e-commerce giant announced its push into the U.S. with the opening of a data center in Silicon Valley, Alibaba announced plans to invest $1 billion its it cloud computing business Wednesday. The company said a portion of the $1 billion will go toward growing its cloud service, Aliyun. Shares were slightly down Thursday morning.
Sony (SNE): Sony reported its highest first-quarter profits since 2006, according to Re/Code. The company beat estimates, and attributed the jump to strong sales of camera sensors and PlayStation 4 games. Shares were down more than 1% in morning trading.
Follow USA TODAY reporter Trisha Thadani on Twitter: @TrishaThadani