It appears that the reports of tech stocks’ demise have been grossly exaggerated.
Shares in the biggest exchange-traded fund tracking the industry surged after hours following blowout earnings reports from heavyweights Amazon.com and Intel. The PowerShares QQQ Trust rose 1.4 percent post-market, following a 2.1 percent gain during the regular session fueled by Facebook and AMD results.
It’s the latest show of tech resilience after the reporting season started out on a sour note, with concerns over Google’s spending plans sparking a selloff Tuesday that erased $85 billion of market value from the FANG complex of stocks. That loss was completely reversed two days later after Facebook’s results showed no signs of damage from a data privacy controversy.
Now investors look to be in for another day of strong gains, with robust results from Amazon.com and Intel lifting their shares at least 6 percent after exchanges closed.
Amazon.com forecast second-quarter profit that topped analysts’ forecasts, buoyed by swelling ranks of Prime subscribers and a profitable cloud-computing division that’s winning more corporate customers. Its shares were trading above their record-high closing price during the post-market session.
Intel gave a better-than-projected second-quarter sales forecast, proving that for now the computer industry just can’t quit its products. It gained more than 8 percent post-market.
The FANG block of Facebook, Amazon, Netflix and Google’s parent Alphabet, added almost $87 billion in market capitalization during Thursday’s trading session. That total worth created was the third highest for the group since Facebook went public in May 2012.