Why Weibo and Logitech Shares are Falling

The Dow Jones Industrial Average (DJINDICES: ^DJI  )  was up more than 20 points as of 11:30 a.m. EDT. Microsoft (NASDAQ: MSFT  ) was the index's worst-performing stock, while fellow technology companies Weibo (NASDAQ: WB  ) and Logitech (NASDAQ: LOGI  ) posted more notable declines outside the Dow.

Existing home sales miss
Data on sales of existing homes may have limited the Dow Jones' gain. The National Association of Realtors said 4.65 million used homes were sold last month (a 1.3% bump), less than the 4.68 million that economists had anticipated.

The miss isn't particularly large, but fewer existing homes sold suggests some weakness in the U.S. housing market. A weaker housing market may portend a weaker labor market, as fewer workers move jobs and upgrade to nicer homes.

Source: Wikimedia Commons.

Microsoft's Windows 9
Microsoft shares were down 0.8% on Thursday. Although there wasn't any major news affecting the stock, tech blog Myce claimed to have obtained a document revealing some details concerning Microsoft's upcoming operating system, Windows 9.

According to Myce, Windows 9 will launch in the second or third quarter of 2015. It will bring several improvements, possibly including the inclusion of Cortana, Microsoft's digital personal assistant. While the leak is unverified and may be fake, the details are not altogether surprising.

Weibo falls on earnings
Shares of Chinese social media website Weibo plunged nearly 10% early in Thursday trading. Weibo's sell-off was likely prompted by its earnings report, which did not meet analysts' expectations.

Although Weibo's results for the current quarter exceeded analysts' estimates, its guidance for future revenue was light. Next quarter, Weibo expects to generate revenue of between $74 million and $76 million -- analysts had expected something closer to $78 million. That might not appear to be too significant a miss, but Weibo has been a volatile stock since its IPO back in April, making its sharp decline hardly surprising.

Logitech drops on delayed financials
Shares of Logitech were down nearly 4% early in the session after the maker of PC peripherals warned that its financial results would be delayed. Logitech is being investigated by the SEC over some its previously reported financials, and is conducting an independent probe into its results.

While this shouldn't affect Logitech's business, in terms of its product portfolio and market's demand, the company could be forced to release new financial statements from previous quarters, and could face regulatory fines. Those updated results could show a weaker business than what the company had previously reported, though it's also possible that nothing could come of it. The situation is highly uncertain.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recent recruited a secret-development Dream Team to guarantee their newest smart device was kept hidden from the public for as long as possible. But the secret is out...and some early viewers are even claiming its everyday impact could trump the iPod, iPhone, AND the iPad. In fact, ABI Research predicts 485 million of these type of devices will be sold per year. But one small company makes this gadget possible. And their stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (0) | Recommend This Article (1)

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.

DocumentId: 2968469, ~/Articles/ArticleHandler.aspx, 7/28/2014 12:26:03 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