Welcome to the MarketReader Minute.

Below are AI-generated insights on moves in the information technology sector, powered by MarketReader technology.

Thursday, July 25

VGT [+0.4%]
Vanguard Information Technology ETF (VGT) has increased by 0.3% since Wednesday's close, aligning with the Dow Jones Index (US) rise of 0.70%. Top contributors to VGT's performance include NOW, AAPL, IBM, CRM, and CSCO. NOW surged due to strong Q2 earnings and raised price targets, AAPL maintained gains despite market share decline in China, IBM excelled with Q2 earnings surpassing estimates, CRM rose post Return To Office policy implementation, and CSCO's movement reflected mixed growth indicators compared to industry peers.

MSFT | $422.79 | -1.4% | -45.2B

TSM | $161.30 | +1.0% | +40.9B

NOW | $838.79 | +14.8% | +25.4B

NOW | +14.8% | +25.4B
ServiceNow Inc's stock price surged following UBS and Morgan Stanley analysts raising the price target to $900.00 post strong Q2 results, with earnings per share beating estimates by over 10% at $3.13. Revenue also surpassed expectations at $2.63 billion, reflecting a 22% increase year-over-year. The company saw leadership changes with CJ Desai departing as President and COO, and Chris Bedi stepping in as interim Chief Product Officer. Additionally, ServiceNow raised its subscription revenue guidance for Q3 and FY24, reinforcing the positive market response. ServiceNow reported Q2 earnings exceeding expectations, with EPS at $3.13 versus $2.84 expected and revenues at $2.6 billion versus $2.6 billion expected.

IBM | +5.3% | +9.4B
International Business Machines Corp (IBM) stock surged by 5.3% following the release of robust Q2 earnings, with adjusted EPS exceeding estimates and revenue beating expectations. IBM's positive performance resulted in multiple price target raises by analysts, reflecting confidence in the company's outlook. The upbeat market response was driven by strong software and AI demand, leading to increased free cash flow projections and consistent full-year revenue growth expectations. Despite a slight decline in consulting revenues, IBM showcased significant top-line and bottom-line beats across various business segments, propelling its stock over 4% higher after hours.

CRM | +3.5% | +8.7B
Salesforce Inc (CRM) experienced a 2.1% price increase today, coinciding with ServiceNow Inc's (NOW) 13.13% rise and the positive movement in its sector. The surge is likely linked to Salesforce's decision to mandate certain employees back to the office from October onwards. The company, headquartered in San Francisco, will require specific departments to be present four to five days a week, aligning with a broader industry trend of returning to in-person work post-pandemic. This move also involves implementing a badge-scanning system to track employee attendance against quarterly objectives.

CSCO | +2.4% | +4.6B
Cisco Systems Inc's price increased by 2.4% today, potentially influenced by a detailed performance comparison with industry peers. The analysis revealed a lower Price to Earnings ratio, indicating growth potential, and undervaluation based on the Price to Book ratio. However, a higher Price to Sales ratio may suggest overvaluation. Despite lower Return on Equity than industry average, Cisco demonstrated stronger profitability in terms of EBITDA and gross profit. A significant revenue growth gap compared to peers may impact sales volume generation, affecting the stock positively or negatively. Additionally, US Initial Jobless Claims dropped more than expected, historically causing volatility in the Information Technology sector, where Cisco operates.

PEGA | +12.3% | +720.2M
Pegasystems Inc's stock price surged by +12.3% post their Q2 2024 financial results release, with an adjusted EPS of $0.52 surpassing estimates by $0.26 and sales of $351.15 million outperforming the anticipated $321.94 million. The company also achieved In Process status for FedRAMP High Ready compliance and with the Department of Veterans Affairs, enhancing its federal agency capabilities, positioning its Pega Cloud for Government solution for high-impact federal data projects, showcasing commitment to stringent security standards essential for government cloud services. This positive performance led to a price change uptick of +4.91%, reflecting investor optimism in the company's financial results for the quarter ended June.

MSFT | -1.4% | -45.2B
Microsoft's stock price dropped -1.5% following a software outage related to a Microsoft Windows update linked to CrowdStrike, alongside World of Warcraft employees voting to unionize under the Communications Workers of America. Microsoft is expected to announce Q4 FY2024 earnings with an EPS estimate of $2.93 and revenue estimate of $64.3B on July 30, 2024, after market close. US Initial Jobless Claims fell more than expected to 235,000 on July 20th, potentially impacting Microsoft's stock price given historical volatility in response to such releases.

Open MarketReader to see more.

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: