Shares of several companies in the broader technology sector are trading lower amid a rise in Treasury yields.
Portfolio Pulse from Benzinga Newsdesk
Shares of tech companies including ARBB, DATS, FLEX, HLIT, MINM, MLGO, MOBBW, NET, NXPI, PRSO, QIWI, SHOP, SNOW, TAOP, WOLF, XRX, and ZBRA are trading lower due to a rise in Treasury yields, which can increase borrowing costs and reduce the present value of future earnings.
January 03, 2024 | 5:29 pm
News sentiment analysis
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NEGATIVE IMPACT
ARBB's stock is trading lower as rising Treasury yields could negatively impact the valuation of future earnings.
As a tech company, ARBB's stock price is sensitive to interest rate changes, which affect borrowing costs and discount rates applied to future earnings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
DATS shares are down in response to the increase in Treasury yields, which can lead to higher discount rates for the company's future cash flows.
DATS, being part of the tech sector, is likely to see its stock price affected by the rising cost of capital and a higher discount rate on future earnings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
FLEX's stock is experiencing a decline as the tech sector reacts to the uptick in Treasury yields, potentially increasing the company's financing costs.
FLEX is affected by the broader market trend where rising yields make the financing environment more challenging for tech companies.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
HLIT shares are trading lower as the rise in Treasury yields may negatively impact the present value of the company's future earnings.
The increase in Treasury yields typically leads to a reevaluation of tech stocks like HLIT, as investors adjust the discount rates for future earnings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
MINM's stock price is down, likely due to the negative effect of rising Treasury yields on the valuation of the company's future cash flows.
As Treasury yields rise, the cost of capital increases, which can lead to a lower valuation of tech stocks like MINM.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
MLGO's share price is declining in the wake of higher Treasury yields, which could lead to increased borrowing costs and lower valuations.
The tech sector, including MLGO, is sensitive to interest rate changes, which can affect the present value of future earnings and the attractiveness of growth stocks.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
MOBBW's stock is trading lower amid a broader tech sector sell-off due to the rise in Treasury yields, which affects the cost of capital.
MOBBW, as a tech company, may see its future cash flows discounted more heavily due to the rise in Treasury yields, leading to a lower stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
NET's shares are down, potentially due to investor concerns over the impact of rising Treasury yields on the company's future growth and earnings.
NET, being in the tech sector, faces a potential reevaluation of its growth prospects as higher yields could lead to increased borrowing costs and lower future earnings valuations.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
NXPI stock is trading lower in line with the broader tech sector's response to the increase in Treasury yields, which can affect the company's cost of debt and equity.
NXPI, as a semiconductor company, may be impacted by the rising yields as it could increase the cost of capital and affect the valuation of its future earnings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
PRSO's share price is declining amid a tech sector pullback due to the rise in Treasury yields, which can lead to a less favorable valuation of growth stocks.
PRSO's stock price is likely to be affected by the increase in Treasury yields, which can result in higher discount rates for the company's future cash flows.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
QIWI's stock is trading lower as the broader tech sector faces downward pressure from the rise in Treasury yields, which can affect global tech valuations.
QIWI, as part of the global tech market, is susceptible to the effects of rising Treasury yields, which can lead to higher borrowing costs and affect stock valuations.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
SHOP's shares are trading lower in response to the broader tech sector's negative reaction to the rise in Treasury yields, which can impact the company's valuation and cost of capital.
SHOP, as a major player in e-commerce, may see its stock price affected by the rising Treasury yields, which can lead to a reassessment of the company's future earnings and growth potential.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
SNOW's stock is down, likely due to the negative sentiment in the tech sector caused by the rise in Treasury yields, which can increase the discount rate for future earnings.
SNOW, as a cloud computing company, is impacted by the broader tech sector's sensitivity to interest rate changes, which can affect the valuation of its future cash flows.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
TAOP's shares are trading lower as the tech sector adjusts to the rise in Treasury yields, which can lead to higher borrowing costs and affect the valuation of tech companies.
TAOP, as part of the tech industry, may see its stock price decline due to the increase in Treasury yields, which can result in higher discount rates for future earnings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
WOLF's stock is experiencing a downturn as the tech sector reacts to the increase in Treasury yields, which can lead to a reevaluation of growth stock valuations.
WOLF's stock price is likely to be negatively impacted by the rise in Treasury yields, as it can increase the cost of capital and affect the valuation of the company's future earnings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
XRX shares are trading lower in line with the broader tech sector's negative reaction to the rise in Treasury yields, which can affect the company's cost of capital and stock valuation.
XRX, as a tech company, may see its stock price affected by the rising Treasury yields, which can lead to a higher cost of capital and a decrease in the present value of future earnings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
ZBRA's stock is down, reflecting the broader tech sector's downturn due to the rise in Treasury yields, which can lead to higher discount rates and lower valuations for tech stocks.
ZBRA's stock price is likely to be negatively impacted by the rise in Treasury yields, as it can lead to a reevaluation of the company's future earnings and growth prospects.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80