Microsoft, Zynga, and Logitech Lead Tech Lower as Dow Jones Falls

Shares of Microsoft, Zynga, and Logitech are falling on Thursday as the Dow Jones drops.

Jan 16, 2014 at 11:20AM

The Dow Jones Industrial Average (DJINDICES:^DJI) was dropping in morning trading Thursday, shedding more than 85 points as of 11:30 a.m. EST. Dow component Microsoft (NASDAQ:MSFT) was underperforming its index, and shares of fellow tech stocks Logitech (NASDAQ:LOGI) and Zynga (NASDAQ:ZNGA) were also posting notable declines.

Inflation in line with expectations
Inflation data released early on Thursday showed that prices in the U.S. were rising about as fast as economists expected. Core CPI, a measure of inflation that excludes the cost of food and energy, rose 0.1% on a month-to-month basis. On a year-over-year basis, it was up 1.7% -- also in line with what economists had anticipated.

With inflation in check, the Federal Reserve may be less likely to further reduce its asset purchase program in the months ahead. Still, investors seemed to be ignoring that possibility on Thursday as the Dow Jones fell.

A new candidate emerges for Microsoft CEO spot
The emergence of possible new candidate to replace outgoing Microsoft CEO Steve Ballmer failed to push the tech giant's stock up. Microsoft, down 1%, is said to be considering Ericsson CEO Hans Vestberg, according to Bloomberg. Vestberg's name comes as somewhat of a surprise, as the focus had centered around Microsoft insiders including Satya Nadella, Stephen Elop, and Tony Bates. 

Vestberg has an established track record in the wireless industry, and if named CEO might be able to help Microsoft's struggling handset business.

Logitech shares fall as Best Buy disappoints
Logitech shares were down nearly 6%. There wasn't much news to explain Logitech's decline, but Best Buy's poor holiday results may have had some effect. Best Buy shares were down as much as 30% early on Thursday after the electronics retailer released its holiday results. Best Buy's fall was mostly due to margin concerns, but management said the consumer electronics market has been weaker than expected.

Logitech is primarily a manufacturer of PC, mobile, and gaming accessories -- all products sold in Best Buy stores. If Best Buy had a difficult holiday season, it's possible that Logitech may have had one as well.

Zynga stumbles after shutting down game
Zynga shares were down more than 8% early on Thursday. The drop follows the online game company's decision to shut down its YoVille game, one of its oldest titles. 

Zynga shares may have also been hit by comments from Sterne Agee. The firm maintained its neutral rating on Zynga, but said it saw some poor traffic trends for Zynga's key titles. Sterne Agee warned that Zynga could miss consensus earnings estimates in the coming quarters. 

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Sam Mattera owns shares of Best Buy. The Motley Fool recommends Logitech International SA (USA). The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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.

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