TSLA, BABA & More: What’s New With These Top Tech Stocks

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Tech stocks (well, stocks in general) had a rough week last week, with some big names taking some big tumbles.

tech-stocks-tsla-babaLet’s take a look at four top tech stocks and how they fared during that time.

Alibaba IPO (BABA)

Perhaps the biggest headline for tech stocks last week came, unsurprisingly, thanks to the highly anticipated Alibaba (BABA) IPO. The Chinese e-commerce giant hit the public markets on Friday, with shares opening at $92.70 — well above the $68 IPO pricing. But what was good new for Alibaba IPO investors was bad news for investors in a handful of other tech stocks. As USA Today reported, the Alibaba IPO has “steamrolled” other tech stocks. In fact, they point out, “Nearly half, 21, of the 51 Chinese tech stocks that trade on major U.S. exchanges have lost value since Alibaba filed its initial public offering plan on May 6.” And on actual IPO day, Chinese tech stocks Baidu (BIDU), JD.com (JD) and others all sank lower.

Tesla Stock (TSLA)

Speaking of a rough patch for tech stocks, let’s talk about Tesla (TSLA). The latest news? Morgan Stanley cautioned investors about the run-up in Tesla stock last Monday — a warning that investors heeded to the tune of a 9% one-day decline. For the cherry on top of a painful week, Goldman Sachs also expressed some skepticism about the future of TSLA, saying that “the company will need at least $6 billion over the next 11 years to make its vehicles go mainstream,” as Alexander C. Kaufman of The Huffington Post summed it up. Despite the sell-off, though, Tesla stock is still up 72% year-to-date.

Oracle Stock (ORCL)

Oracle (ORCL) added to the general downward trend for tech stocks thanks to some significant moves made in the C-suite. Larry Ellison, the company’s founder, stepped down as CEO. Quentin Hardy at The New York Times summed the news up nicely, writing: “Lawrence J. Ellison on Thursday announced his retirement as chief executive of Oracle, a company he founded in 1977 that has transformed the way businesses use technology and made him one of the world’s richest people.” If you thought Ellison was looking to get away and spend some more time on his yacht, though, think again. Instead, Larry will continue as CTO of the company and will remain on the executive board. However, that wasn’t satisfactory for Oracle stock investors, as shares dipped more than 4% on Friday after the news broke.

IBM Stock (IBM)

One name that was able to buck the general weakness for tech stocks last week may surprise you: IBM (IBM). In a week filled with sinking tech stocks, big blue actually ended in the black for the week. What big news had IBM stock investors excited? Well, IBM did announce a freemium version of IBM Watson, a move meant to bring big data and analytics to the masses. At the same time, IBM also announced plans to cut the pay of some employees in the services business segment while they get additional training.

As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2014/09/tech-stocks-tsla-baba/.

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