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Tech Five: Facebook shares down as investors waffle over earnings

Trisha Thadani
USA TODAY
Investors wary over Facebook earnings, stock tumbles

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

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