Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Tech Winners and Losers Amid Today's Market Plunge

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Another day, another tale of European woes. At issue today were worries over the fate of the European Union itself, with reports out of Germany stating that a plan might be in the works for countries to leave the euro while maintaining EU membership.

Even after October's furious rally, the Nasdaq's loss of 3.9% today puts the index back in the red for the year. However, while broader macroeconomic pain led to a sea of red across the technology sector, there was plenty of news among today's carnage, and even a few winners.

Tech News No. 1: Earnings Season Marches On
There were a number of high-profile tech companies reporting earnings last night and after markets closed tonight.


  • Cisco (Nasdaq: CSCO  ) continued its comeback tour today. After the bell, it reported earnings that exceeded expectations. Revenues ticked up 4.7% over last year, which is a notable improvement from last quarter's 3.3% top-line jump. In after-hours trading, Cisco's up 4%.

    The hypergrowth days of Cisco might be over, but the company isn't priced for huge amounts of growth, either. This summer, Cisco scaled back its aggressive sales targets in favor of a more conservative 5% to 7% annual revenue growth plan. Expectations for Cisco are low enough that if it can just hit the upper range of that target in the coming years, it should continue smoking lowered expectations from the Street.


  • Activision Blizzard (Nasdaq: ATVI  ) delivered solid earnings last night and also successfully rolled out its latest edition of the blockbuster Call of Duty franchise. So why did investors send shares 6.5% lower this morning? One troubling metric in Activision's earnings was that subscribers to its valuable World of Warcraf, or WoW, role-playing game dropped by 800,000 from their July total. That's a 7% decline from last quarter alone.

    Investors are right to be fixated on WoW. While Call of Duty might get most the attention surrounding Activision Blizzard these days, the recurring monthly fees the game provides are a powerful source of continual cash flow for the company. It essentially buffers Activision from a hit-driven industry.

    However, it's worth noting that WoW sales dropped 6% versus last quarter on an adjusted basis (basically removing how companies account for sales over a long period), which is slightly lower than the subscriber loss. That's in large part because subscriber defections were skewed toward the Asian market, where WoW drives company results. Acitivision saw Asian sales off by an adjusted 26% from last quarter! The other company to watch following Activision's earnings release might be NetEase (Nasdaq: NTES  ) , which operates WoW in China. NetEase is much more than a one-trick pony, but WoW is still an important franchise for the company, and it appears to be struggling in China.
  • Computer Sciences Corp. (NYSE: CSC  ) dropped 15% today after it announced a drastic downward revision to its earnings guidance for the year. Trading at less than 7 times adjusted trailing earnings, CSC is a deep value that's hard to ignore. However, investors shouldn't take today's warning lightly. While investors might lick their chops at the company's backlog of $36 billion -- and the inherent stability that provides -- huge exposure to the public sector also means trailing results might not be the best indicator of its future.

Tech News No. 2: OK, Apple, You Win
(Nasdaq: ADBE  ) has pretty much thrown in the towel in its long-running mobile battle with Apple (Nasdaq: AAPL  ) by announcing that it will cease development on Flash for mobile devices. Flash is a minor revenue contributor for Adobe, but it's also a product that was previously envisioned as the next-generation mobile platform. Not only that, but Flash authoring tools are also a big part of other products Adobe sells.

At this point, the path is clear for HTML5 to dominate the next generation of multimedia on the Web. Adobe closed the day down nearly 8%.

Tech News No. 3: The Next Jump in Mobile Devices
The drumbeat of progress in mobile devices continues, with NVIDIA (Nasdaq: NVDA  ) officially launching its Tegra 3 processor. Tegra 3 presents huge performance gains compared with its predecessor, thanks to its quad-core architecture (Tegra 2 was dual-core). However, it's not all a performance game with mobile -- consumers also want devices that don't power down after a couple hours of use -- and Tegra delivers the goods in that department as well. The processor comes with a fifth core to handle more basic tasks that leaves its more power-hungry brethren idle. The end result? NVIDIA claims that power consumption is reduced 61% versus its last generation processor.

With Qualcomm (Nasdaq: QCOM  ) and Texas Instruments (NYSE: TXN  ) shortly behind in introducing their next-generation processors, it's important for NVIDIA to maintain a lead-in time to market in the mobile processor wars. Now, if tablets not branded with an Apple logo could just take off in the coming months, that'd be the perfect catalyst in getting NVIDIA to its lofty goal of $1 billion in Tegra sales next fiscal year.

That's it for our recap of tonight's late technology action. Looking for another trend technology investors can't ignore? The Motley Fool has compiled a new report called "The Only Stock You Need to Profit from the NEW Technology Revolution." The report highlights a company that has gained 235% since first recommended by Fool analysts but still has plenty of room left to run. Thousands have requested access to this special free report, and now you can access it today at no cost. To get instant access to the name of this company transforming the IT industry, click here -- it's free.

Eric Bleeker owns shares of NVIDIA and Cisco. You can follow him on Twitter to see all of his technology and market commentary. The Motley Fool owns shares of Texas Instruments, Apple, Cisco Systems, Qualcomm, and Activision Blizzard, has created a bull call spread position on Cisco Systems, and has written calls on Activision Blizzard. Motley Fool newsletter services have recommended buying shares of Apple, Adobe Systems,, NVIDIA, Activision Blizzard, and Cisco Systems, writing puts in NVIDIA, and creating a synthetic long position in Activision Blizzard, a bull call spread position in Apple, and a diagonal call position in Adobe Systems. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1587019, ~/Articles/ArticleHandler.aspx, 5/24/2016 11:43:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Eric Bleeker

Eric started at The Motley Fool in 2008 working in the Tech & Telecom sector. Today, he's the General Manager of You can follow him on Twitter to stay up to date with his tech industry analysis.

Today's Market

updated Moments ago Sponsored by:
DOW 17,703.10 210.17 1.20%
S&P 500 2,073.50 25.46 1.24%
NASD 4,846.49 80.71 1.69%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/24/2016 11:27 AM
AAPL $97.64 Up +1.21 +1.25%
Apple CAPS Rating: ****
ADBE $99.32 Up +2.70 +2.79%
Adobe Systems CAPS Rating: **
ATVI $38.78 Up +1.05 +2.77%
Activision Blizzar… CAPS Rating: *****
CSC $35.48 Up +0.48 +1.37%
Computer Sciences… CAPS Rating: **
CSCO $28.44 Up +0.50 +1.79%
Cisco Systems CAPS Rating: ****
NTES $171.09 Up +6.89 +4.20% CAPS Rating: ****
NVDA $44.99 Up +0.71 +1.59%
Nvidia CAPS Rating: *****