Huge surge in shares
21 July, 2015, 12:00 am
GOOGLE Inc’s strong quarterly results, which unleashed a massive surge in its shares on Friday, has investors feeling upbeat heading into this week’s tech-heavy slate of earnings reports.
Among the numerous tech companies releasing earnings next week are International Business Machines, Microsoft Corp and Apple, all of which are expected to show growth.
Wall Street analysts expect earnings of the S&P technology sector to grow by 2.7 per cent for the second quarter.
So far, big-name tech companies have provided the two biggest reactions from investors in this reporting season. After Netflix reported stronger-than-expected subscriber growth on Wednesday, its shares increased 18 per cent, while Google’s results triggered the biggest one-day move in the stock in more than seven years, as shares surpassed $US700 ($F1497) for the first time ever.
“Right now, investors are looking for growth and tech is one of the sectors where growth may not be as great as they want, but it’s there year-after-year,” said Dan Morgan, vice president at Synovius Trust Company in Atlanta.
Investors will be looking closely at each major tech company’s latest innovations to see if new platforms and tools have the potential to drive long-term growth.
IBM was expected open the week with its second-quarter earnings yesterday.
The company’s recent analytics tools and cloud platform will be under investors’ microscopes, to see if these segments can generate more revenue.