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.