Good Evening. As investors evaluated profits and got ready for crucial inflation data that was due out on Wednesday, U.S. stocks continued to decline on Tuesday.
The Dow Jones decreased by 0.18% and the S&P 500 dropped by 0.42%. The Nasdaq fell 1.19% as chip and technology stocks were affected by Micron Technology’s (MU) warning.
ROBLOX SUFFERS DURING AFTER HOURS
Roblox Corp missed projections for quarterly bookings on Tuesday. The gaming platform suffered a halt in the pandemic-driven rise in spending for its games. In extended trading, shares of the California company’s San Mateo sank 11%.
- Earnings Per Share: ($0.30) vs ($0.22) expected
One of the greatest sub-segments of the larger video gaming industry, mobile gaming, saw growth as more individuals turned to gaming as an alternative form of entertainment during the epidemic. And Roblox took advantage of this by standing apart from other online gaming platforms because it allows users to design their own games. 30% of a game’s revenue, such as the price of avatars and virtual clothing, goes to the developer.
However, when more entertainment options became available after a subsequent reopening, interest in gaming gradually decreased. Data from analytics company SensorTower shows that during the first half of this year, overall mobile game revenue in the United States decreased by 2.5% while downloads fell by 9.6% to reach $11.4 billion.
CHIP FORMS ARE SUFFERING
Micron Technology Inc. (MU) became the third chipmaker this week to raise the alarm over a slowdown in demand, and semiconductor stocks fell.
The Nasdaq 100 Stock Index has been significantly impacted by semiconductor stocks as a result of a run of underwhelming financial statements and projections from chipmakers including Nvidia Corp. and Advanced Micro Devices Inc. Chip equipment manufacturers were among the biggest losers on Tuesday after Micron announced it would cut spending on new facilities and equipment in response to a downturn in orders.
On top of that, seven of the Nasdaq 100’s 10 worst-performing equities this month are chip firms. Following in decline are Lam Research and NXP Semiconductors. The Nasdaq 100 has been down 20% this year, while the S&P 500 has dropped 14%. In contrast, the semiconductor index has dropped 27% this year.