Tech Stocks Drop As Valuation Concerns Persist - Tech Roundup

Features Dow Jones Newswires

Shares of tech companies ticked down as a bold acquisition by Amazon.com was offset by continued fears about inflated valuations. Amazon shares rose after the online megastore agreed to buy organic-food supermarket chain Whole Foods Market for $13.7 billion, in what analysts said was likely a plan to use bricks-and-mortar storefronts as a place not just to shop, but to pick up online orders. An analyst at research firm Forrester said Amazon could win business from Wal-Mart and others on all kinds of "frequent" purchases -- from lamps to blenders -- if it becomes known as a grocer. Amazon.com and some of the other mega cap tech companies have lost ground recently after analysts at brokerage Goldman Sachs warned that their valuations were becoming stretched. Shares of fiber-optic component maker Finisar rallied as investors construed the likelihood that the company will supply Apple with 3-D sensors from executives' comments.

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-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

June 16, 2017 16:52 ET (20:52 GMT)