The Dow Jones Industrial Average (DJINDICES:^DJI) had risen more than 21 points as of 11:30 a.m. EDT. A few tech stocks were strongly outperforming the market, including Facebook (NASDAQ:FB), Nokia (NYSE:NOK), and Logitech International (NASDAQ:LOGI).
Facebook hits all-time high
Shares of Facebook rallied more than 6.7% on Thursday, at one point hitting a new all-time high, following a stronger than expected earnings report. Facebook's second-quarter revenue of $2.91 billion was a bit better than the $2.81 billion that analysts had anticipated, while its earnings per share of $0.42 was far better than the $0.32 estimate.
Facebook continues to experience user growth: In total, the social medial giant added 41 million users last quarter. At the same time, Facebook's existing users appear to be more engaged, with the monthly active user base rising 14% to encompass 63% of Facebook's total user base.
The company continues to capitalize on the shift to mobile computing. Facebook's mobile ad revenue grew 151% on an annual basis, and mobile accounted for 62% of ad revenue in the quarter.
Facebook appears to be firing on all cylinders, continuing to add and monetize users even as they move away from the desktop. With a price-to-earnings ratio near 100, Facebook is aggressively valued, but the problems many believed would plague the company have not materialized.
Nokia rallies after earnings report
After selling its handset business to Microsoft, Nokia is no longer a phone company. Today it's a supplier of mobile network components -- and one that appears to be doing quite well.
Nokia shares rose more than 7% early on Thursday after the company reported second-quarter earnings. Nokia reported diluted earnings per share of $0.08 on sales of $4 billion -- both figures stronger than consensus estimates.
Nokia's handset business had been losing the company money for years, so it clearly benefited from selling the operation to Microsoft. In addition to returning Nokia to profitability, it's added billions to the company's coffers.
Logitech earnings come in better than anticipated
Logitech shares were also up more than 15% on Thursday after a strong earnings report. In the first quarter, the PC and mobile accessory supplier's earnings per share came in at $0.13, much better than $0.04 estimate. Likewise, revenue of $483.2 million exceeded the $476.9 million estimate.
Logitech's results appear to have been influenced by the ongoing corporate PC refresh cycle: the company's popular PC mice and keyboards saw 8% revenue growth in the first quarter. The growth of PC gaming also gave Logitech a boost, with its gamer-focused mice, keyboards, headsets, and controllers experiencing a 17% sales gain. Interestingly, Logitech's mobile accessories division, which had been a strongly growing part of the business, posted a fairly significant decline, with sales of tablet keyboards dropping 15%.
Nevertheless, Logitech appears to be managing its business appropriately. So long as demand remains strong for traditional PCs, Logitech should benefit.