The S&P 500 Information Technology Sector Index wavered between gains and losses in intraday trading Wednesday, up just 0.1% as of 2 p.m. ET. The broader S&P 500 was 0.1% lower and the tech-heavy Nasdaq was down 0.3%.
Uber Technologies (UBER) shares tumbled as the ridesharing firm’s gross bookings fell short of forecasts, while Reddit (RDDT) shares rose after the social media platform posted strong revenue in its first earnings report since going public. Intel (INTC) shares dropped as the chipmaker changed its guidance when Washington revoked its license to sell to a Chinese company, believed to be Huawei.
Uber’s Bookings Miss the Mark, While Investment Charges Lead to Net Loss
Uber Technologies shares were down more than 8% at $64.32 as the rideshare company reported first-quarter gross bookings were $37.7 billion, up from $31.4 billion a year ago, but below analysts’ expectations of $38.02 billion, according to estimates compiled by Visible Alpha. Uber saw a slowdown in demand in Latin America, and was also impacted by earlier starts to the Easter and Ramadan holidays. Uber posted a net loss after reporting hundreds of millions in charges related to revaluations of its investments.
Reddit Gains on Better-Than-Expected Results in First Earnings Report Since IPO
Reddit shares added close to 3% after the social media company beat sales estimates, with revenue up 48% year-over-year to $243 million, while advertising revenue jumped 39% year-over-year to $222.7 million. Reddit also reported record user traffic and boosted its current-quarter outlook.
Intel Revises Guidance After US Ruling for Chip Sales to China
Intel shares dipped nearly 3% as the semiconductor maker said its current-quarter revenue will be below the midpoint of its original guidance of $12.5 billion to $13.5 billion. Intel blamed a Department of Commerce ruling that it had to stop selling chips to a Chinese customer immediately. Intel didn’t name the company, but the Financial Times reported that Intel and Qualcomm (QCOM) were told to stop sales to Chinese telecom giant Huawei.