In this article, we’ll look at the market movers in the technology sector on August 27. The Dow Jones Industrial Average Index fell 0.5% (121 points) while the S&P 500 ETF was down 0.5%. The Technology Select Sector SPDR ETF (XLK) and the VanEck Vectors Semiconductor ETF (SMH) fell 0.2% and 0.3%, respectively.
ATVI stock up close to 5% today
Shares of gaming heavyweight Activision Blizzard (ATVI) rose 5% today. ATVI stock was up after the company “re-released its classic World of Warcraft game to subscribers at no additional cost,” according to today’s MarketWatch report.
ATVI shares have made a stellar comeback since June, as the stock is up close to 21% since then. Despite the recent rally, ATVI stock has returned 10.5% year-to-date and -30.5% in the last 12 months.
Gaming companies such as ATVI, Electronic Arts, and Take-Two Interactive should be banking on the upcoming holiday quarter for revenue growth after experiencing a downturn in the last 12 months.
Tencent Music Entertainment
Shares of China’s leading music streaming platform, Tencent Music Entertainment (TME), fell close to 7% today. According to Bloomberg, “Tencent Music Entertainment Group is under investigation by China’s antitrust authority in a review that could end exclusive licensing deals it forged with the world’s biggest record labels, people familiar with the matter said.”
The Bloomberg report added that Tencent Music has an extensive database of songs on its platform, which it sublicenses to various other players at a substantial cost. These sublicensees argue that it costs almost twice the amount to sublicense songs from TME compared to directly approaching music and record labels.
TME shares are now down close to 15% since August 8. Its shares fell after investors were unimpressed by the company’s slowing growth in the second quarter.
DXC among today’s market movers
DXC Technology (DXC) is among the market movers in the tech segment. The stock fell 4.5% today to close trading at $31.76 per share. The stock has lost over 43% in market value in August and has burned through significant investor wealth. DXC is currently trading at $31.76, which is 67% below its 52-week high.
DXC shares fell over 30% on August 9 after reducing its financial outlook for fiscal 2020.
CrowdStrike fell 5.4% today
Shares of cyber-security company CrowdStrike (CRWD) fell 5.4% today to close trading at $84.08. The stock has fallen over 15% since August 13, following its blockbuster IPO in June.
It looked like a case of profit-taking as CRWD shares rose from $58 in June to $101.88 in August. Similar to other IPO stocks, investors should expect CRWD shares to remain volatile going forward.