Tech Lower on Valuation Concerns -- Tech Roundup

Features Dow Jones Newswires

Shares of tech companies fell as jitters about valuations in the sector returned in the wake of key earnings reports.

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Facebook shares initially rose by more than 5% after the social network company said its quarterly profit increased 71% but later pared their gains.

Shares of chipmakers were particularly weak as, again, Advanced Micro Devices rose in the immediate wake of earnings only to tumble later as brokerages raised valuation concerns. Rival chip maker Nvidia, which has also received attention because of its lofty valuation, also saw sharp declines.

The PHLX Semiconductor Sector index fell sharply.

Richly valued and chip giant Intel, both slated to report earnings after the market closed, were also among the decliners.

Samsung Electronics posted a quarterly profit of about $9.9 billion for the three months ended June 30, an 89% rise from the same period a year earlier and a tally that made it one of the most profitable companies in history. The profit came after a tough year, as officials were drawn into a corruption investigation and as the company tried to move on from a battery-fire controversy.

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Shares of Twitter slid after its user growth stalled, breaking a streak of growth associated with the presidential election.

Rob Curran,

(END) Dow Jones Newswires

July 27, 2017 18:17 ET (22:17 GMT)