These Two Tech Stocks are Tumbling

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) had shed 52 points as of 11:30 a.m. EDT. Dow Jones component AT&T (NYSE: T  ) was outperforming its index, but tech stocks Facebook (NASDAQ: FB  ) and Pandora (NYSE: P  ) were experiencing sharp sell-offs.

European data falls short of expectations
There were no major U.S. economic releases of note on Monday. In the absence of U.S. data, investors may have been turning their attention toward Europe, where a number of economic indicators suggested eurozone economic activity may be weaker than anticipated.

While the eurozone's manufacturing purchasing managers' index was reported in line with expectations, its services PMI reading of 52.4 missed the 52.6 estimate. European markets moved lower on the news, and some of that weakness may have carried over to the Dow Jones.

AT&T sees bullish bets
AT&T rose a little less than 1% early in the session. There wasn't any particular news that would affect AT&T's business, but Bloomberg noted a high degree of bullish bets on the stock.

Investors appear to be betting aggressively on AT&T's rise, as a recent multi-month sell-off sent shares of the Dow Jones telecom down nearly 10%.

Pandora hikes subscriber fees
While AT&T shares may have lost more than 9% in the last two months, Pandora shares fell more than that just on Monday. At one point, shares of the Internet radio giant were down more than 10%. The stock was still down nearly 9% as of 11:30 a.m.

Last week, Pandora announced that it would hike the subscription fee to its Pandora One ad-free service. Citing the rising costs of music, Pandora's rate hike could drive Internet radio fans to one of its many competitors.

Facebook shares stumble
Shares of Facebook were down 4.6% in early trading on Monday. There didn't appear to be any real news affecting Facebook's stock -- no major releases, analyst changes, or anything else of note.

However, shares of the social networking giant have risen more than 30% in just the last six months. Facebook investors may have simply been taking profits early on Monday, causing shares to stumble. 

Get our top stock pick for 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


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.

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: 2887386, ~/Articles/ArticleHandler.aspx, 12/18/2014 3:14:09 PM

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...


Advertisement