Stocks rose on Tuesday as investors embraced news of a possible COVID-19 vaccine and declining hospitalization rates in U.S. states. Here are some of the top tech movers on Tuesday, Aug. 11.
Shares of Qualcomm (QCOM) – Get Report surged 4.2% to $110.86 on Tuesday after it received a favorable ruling in a long-running battle with the FTC. The FTC had accused Qualcomm of abusing its dominant position by overcharging smartphone makers for access to patented technology. A lower court judge ruled in the FTC’s favor last year, but on Tuesday, the Ninth Circuit Court of Appeals overturned that decision.
Travel-related tech stocks surged on Tuesday following reports of declining COVID-19 hospitalizations in the most populous U.S. states, as well as news that a vaccine had gained regulatory approval in Russia. TripAdvisor (TRIP) – Get Report shares surged 7% to $22.64 on Tuesday. TripAdvisor’s June quarter revenue fell 80% amid a steep plunge in travel.
Likewise, travel and fare aggregator Expedia (EXPE) – Get Report rose 6.2% to $90.28 on Tuesday. In its most recent earnings report, Expedia CEO Peter Kern called the second quarter the “worst quarter the travel industry has seen in modern history,” reporting an 82% drop in revenue for the period.
Gaming stocks took a hit following the encouraging reports on COVID-19 hospitalization rates and the potential vaccine. Take-Two Interactive (TTWO) – Get Report shares fell 3.8% to $168.06 on Tuesday. The company reported a blowout second quarter last week, with net bookings up 136% year-over-year and net income up 91% amid a surge in gaming hours. Its shares are up 38% year to date.
Shares of Activision-Blizzard (ATVI) – Get Report, maker of Call of Duty and World of Warcraft, fell 2.7% to $80.07 on Tuesday. The company reported a record June quarter, with earnings of 81 cents per share on revenue of $1.93 billion, amid an increase in in-game purchases as consumers sheltered at home.