SAN FRANCISCO (MarketWatch) — Big losses from Amazon.com Inc. and Pandora Media Inc. stole the tech-sector spotlight Friday as negative reactions to those companies' business outlooks led a broad slate of losses on Friday.
Amazon (AMZN) fell nearly 10% to close at $308.83 a share after the online retailer and video-streaming company reported strong first-quarter results late Thursday, but forecast a second-quarter operating loss as it invests more money into projects like delivery services and its new Amazon Fire TV set-top box.
Pandora (P) plunged more than 16% to end the week at $23.51 a share. On Thursday, Pandora reported better-than-expected sales and narrowed its first-quarter loss from a year ago. But investors focused on a second-quarter forecast that it would break even or earn up to 3 cents a share on revenue between $213 million and $218 million. Analysts had been forecasting earnings of 5 cents a share on $218 million in sales.
Nearly every other notable tech stock lost ground Friday, with Facebook Inc. (FB) falling more than 5%, Yahoo Inc. (YHOO) giving up 2% and Netflix Inc. (NFLX) shedding more than 6% by the time the market closed.
The Nasdaq Composite Index (COMP) , which includes many leading tech stocks, fell almost 73 points, or 1.8%, to finish at 4,075 and the Philadelphia Semiconductor Index (SOX) giving up more than 3%.
Part of the broader market's decline was blamed on growing concerns about the crisis between Russia and Ukraine.
One of the few tech stocks to rise Friday was Microsoft Corp. (MSFT) , and it only gained 5 cents a share to close at $39.91 following what was seen as a set of solid fiscal third-quarter results.
Late Thursday, Microsoft reported a quarterly profit of 68 cents a share on $20.4 billion in revenue, while analysts had forecast the company to earn 63 cents a share on sales of $20.39 billion. Daniel Ives, an analyst with FBR & Co., said the first results under Chief Executive Satya Nadella suggest Microsoft is trying to make the right moves to keep itself and its Windows franchise relevant.
"A stronger cloud [computing] contribution and a slightly improving Windows franchise is giving Mr. Nadella and Microsoft some healthy momentum for the coming quarters," Ives said. "So far, the Nadella era is off to a golden start, and now it comes down to execution on the cloud-mobile vision and trying to successfully integrate the Nokia acquisition," which closed Friday.More tech news from MarketWatch:
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