Why Weibo and Logitech Shares are Falling
The Dow Jones Industrial Average was up more than 20 points as of 11:30 a.m. EDT. Microsoft was the index's worst-performing stock, while fellow technology companies Weibo and Logitech posted more notable declines outside the Dow.
Existing home sales miss
Data on sales of existing homes may have limited the Dow Jones' gain. The National Association of Realtors said 4.65 million used homes were sold last month (a 1.3% bump), less than the 4.68 million that economists had anticipated.
The miss isn't particularly large, but fewer existing homes sold suggests some weakness in the U.S. housing market. A weaker housing market may portend a weaker labor market, as fewer workers move jobs and upgrade to nicer homes.
Microsoft's Windows 9
Microsoft shares were down 0.8% on Thursday. Although there wasn't any major news affecting the stock, tech blog Myce claimed to have obtained a document revealing some details concerning Microsoft's upcoming operating system, Windows 9.
According to Myce, Windows 9 will launch in the second or third quarter of 2015. It will bring several improvements, possibly including the inclusion of Cortana, Microsoft's digital personal assistant. While the leak is unverified and may be fake, the details are not altogether surprising.
Weibo falls on earnings
Shares of Chinese social media website Weibo plunged nearly 10% early in Thursday trading. Weibo's sell-off was likely prompted by its earnings report, which did not meet analysts' expectations.
Although Weibo's results for the current quarter exceeded analysts' estimates, its guidance for future revenue was light. Next quarter, Weibo expects to generate revenue of between $74 million and $76 million -- analysts had expected something closer to $78 million. That might not appear to be too significant a miss, but Weibo has been a volatile stock since its IPO back in April, making its sharp decline hardly surprising.
Shares of Logitech were down nearly 4% early in the session after the maker of PC peripherals warned that its financial results would be delayed. Logitech is being investigated by the SEC over some its previously reported financials, and is conducting an independent probe into its results.
While this shouldn't affect Logitech's business, in terms of its product portfolio and market's demand, the company could be forced to release new financial statements from previous quarters, and could face regulatory fines. Those updated results could show a weaker business than what the company had previously reported, though it's also possible that nothing could come of it. The situation is highly uncertain.
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The article Why Weibo and Logitech Shares are Falling originally appeared on Fool.com.Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Logitech International SA (USA). 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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