These Two Tech Stocks are Dropping While Intel Rallies

The Dow Jones Industrial Average (DJINDICES: ^DJI  )  was down 27 points as of 11:35 a.m. EST. Intel (NASDAQ: INTC  ) was rising, while shares of fellow tech companies BlackBerry (NASDAQ: BBRY  ) and Facebook (NASDAQ: FB  )  moved lower.

GDP disappoints
Perhaps weighing on the Dow Jones' was the Bureau of Economic Analysis' report this morning that U.S. GDP rose 2.6% last quarter, a bit less than the 2.7% gain that economists surveyed by Bloomberg had anticipated.

As the broadest measure of economic activity, GDP is considered a notable indicator of the relative strength of the U.S. economy. While the miss wasn't particularly large, it still suggests the nation's economy may not be growing as fast as economists have figured.

Intel leading the Dow Jones higher
Intel shares jumped up nearly 0.4% in late morning, though there wasn't any particularly notable news on Thursday to explain the surge.

On Wednesday, Intel announced that it had expanded its manufacturing agreement with Altera in order for the companies to work jointly on "multi-die" chips. Intel also completed its acquisition of Basis Science, a small company that will help the chipmaker expand into the wearable devices space.

Facebook shares continue slump
Facebook shares, meanwhile, dropped another 1.4%. The sell-off is exacerbating what has already been a terrible run for Facebook shareholders: In just the last five trading sessions, the social media giant's shares are down more than 11%.

Earlier this week, Facebook announced that it had purchased Oculus, a company known for its Rift virtual reality headset. The deal, totaling $2 billion, was mostly comprised of Facebook shares.

BlackBerry drops on downgrade
BlackBerry shares were down more than 3% in early trading after Societe Generale downgraded the company's shares to sell from hold on Thursday.

BlackBerry is set to report earnings on Friday, and Soc Gen is urging investors to be cautious. Although new BlackBerry CEO John Chen has been working to turn around the struggling handset maker, Soc Gen doesn't expect an improvement anytime soon. With a $6 price target, Societe Generale believes BlackBerry shares have a downside risk of more than 30%.

The best investment 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: 2892880, ~/Articles/ArticleHandler.aspx, 8/30/2014 4:23:45 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