Exchange traded funds following the tech sector could see traffic on Friday after Microsoft (NasdaqGS: MSFT) reported quarterly results. The stock dropped 2% in after-hours trade Thursday immediately following the earnings announcement.
The Redmond, Wash.-based tech giant said third-quarter revenue rose 13% in the latest quarter to $16.4 billion.
“We expect the quarter to showcase an increasingly diverse revenue stream of the firm, and traction in its newer business lines,” said analysts at BGC Partners in an earnigns preview. “We recommend Microsoft as the best name for investors who are seeking large-cap value technology stocks.”
Microsoft is the third-largest stock in $7.6 billion Technology Select Sector SPDR Fund (NYSEArca: XLK) at 7.4% of the ETF’s assets.
Technology Select Sector SPDR Fund
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.