Twitter Tumbles as Dow Bounces Back
The has surged Friday morning, up about 77 points as of 11:15 a.m. EST. Although the University of Michigan's Consumer Sentiment Index came in worse than expected, the October jobs report blew away expectations.
According to the Bureau of Labor Statistics, the U.S. added 204,000 jobs in October, far better than the 125,000 jobs economists had anticipated. The unemployment rate stayed steady at 7.3%, in line with expectations.
Tech giant Microsoft contributed to the Dow's gain, while other tech stocks, including Groupon , moved higher. Twitter , however, tumbled, shedding about 5% following an impressive trading debut.
Microsoft details Xbox One ahead of launch
Microsoft shares added a few cents early Friday, capping off a bullish week in which shares of the tech giant rallied more than 5.6%. In two weeks, Microsoft will release its next video game console, the Xbox One. Ahead of the launch, Microsoft released a video on Friday showing off more of the console's features, emphasizing its general entertainment capabilities in addition to its gaming prowess.
But the Xbox One might not matter to Microsoft shareholders for very much longer. Talk of a potential Xbox spin-off has been floating around for weeks, and on Friday, Bloomberg reported that if Stephen Elop were to be named Microsoft's next CEO, he would strongly consider selling the division.
Groupon posts huge gain after posting earnings
Microsoft's rally is nothing compared to Groupon's: Groupon shares surged 7% following Thursday afternoon's earnings report. For the third quarter, Groupon posted earnings of $0.02 per share on sales of $595.1 million. Along with earnings, Groupon announced that it would be buying Ticket Monster, a South Korea-based mobile commerce site.
By acquiring Ticket Monster, Groupon is showing signs of further international expansion: Groupon's management said Ticket Monster will serve as the cornerstone of its push into Asia. It also serves to highlight Groupon's dominance of the space -- Ticket Monster had once been owned by Groupon competitor Living Social.
Twitter gives back some gains after incredible debut
In contrast to Groupon's incredible gain, Twitter's loss was nearly as severe. Shares of Twitter fell more than 5% early on Friday, down below $43 per share. There wasn't much news to account for the gain; investors may simply be taking profits after an incredible rally.
Shares of Twitter were up more than 80% at one point on Thursday, its first day of trading. After pricing its IPO at $26 per share, Twitter closed Thursday's trading session at $44.90. Analysts at Pivotal Research warned that Twitter's strong debut had pushed the stock into overvalued territory; Pivotal believes Twitter is currently worth about $30 per share.
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The article Twitter Tumbles as Dow Bounces Back originally appeared on Fool.com.Sam Mattera has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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