This week, the spotlight was on information technology stocks as companies like Apple, Super Micro Computer, Advanced Micro Devices, and Qualcomm reported their results. Despite being down nearly 6% quarter-to-date compared to the overall market downturn, the information technology sector has seen a mixed performance this year.
Out of the 21 companies that reported earnings this week, 19 beat expectations while two missed. On the revenue side, 14 companies exceeded estimates while seven fell short. Companies like Apple and Super Micro Computer had different reactions to their earnings reports. While Apple’s shares rose after reporting better-than-expected second-quarter results despite concerns about iPhone sales in China, Super Micro Computer’s stock tumbled after a mixed third-quarter earnings report that fell short of market expectations despite a significant increase in revenue from a year ago.
So far this quarter, 42 out of 383 companies reporting results are part of the information technology sector. Various sub-industries within the sector such as professional services, software, semiconductors, and technology hardware have also reported earnings. A majority of companies in the sector have beaten expectations for both earnings per share and revenue.
Looking ahead, notable information technology companies like Palantir Technologies and Unity Software are scheduled to report results in the upcoming week. The Technology Select Sector SPDR ETF provides investors with a way to gain exposure to the performance of the information technology sector as a whole.