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Tech Stocks Show Mixed Trends, Parsons Corp Gains on Defense Order

Published 10/09/2023, 10:20 PM
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In Monday's premarket activity, technology shares showed a mixed performance. The Technology Select Sector SPDR Fund (NYSEARCA:XLK) decreased by 0.7%, while the SPDR S&P Semiconductor ETF (NYSEARCA:XSD) noted a slight increase of 0.1%.

Parsons Corporation (NYSE:PSN), a technology-focused defense, intelligence, security, and infrastructure engineering firm, saw its shares rise by more than 1%. This came following the announcement of a $53 million task order from the Defense Threat Reduction Agency. The order is part of international counterproliferation initiatives aimed at preventing the spread of weapons of mass destruction.

Parsons Corporation has been showing strong financial performance, as per InvestingPro data. The company has a market cap of 5880M USD and a P/E Ratio of 45.44, indicating a high earnings multiple. The company's revenue growth has been accelerating, with a quarterly growth of 34.48% for FY2023.Q2. Furthermore, the company's gross profit margin stands at 22.01%, and it has seen a strong return over the last three months, with a 3 Month Price Total Return of 16.02%.

According to InvestingPro Tips, Parsons Corporation operates with a moderate level of debt and its liquid assets exceed short term obligations. The company also has high earnings quality, with free cash flow exceeding net income. It's worth noting that the company is trading near its 52-week high and analysts predict the company will be profitable this year. For more insights like these, consider subscribing to InvestingPro, which offers additional tips and real-time metrics. InvestingPro currently lists 11 more tips for Parsons Corporation.

Meanwhile, Borqs Technologies Inc. (NASDAQ:BRQS), a global leader in software services and products, experienced a drop in its shares by over 1%. The decline followed the company's board approval for a 1-for-12 reverse stock split of its common stock. Reverse stock splits are typically used by companies to increase their share price and attract investors.

In international news, South Korea's telecommunications regulator has proposed significant fines for tech giants Apple Inc. (NASDAQ:NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) Inc.'s Google (NASDAQ:GOOGL). The regulator cited unfair practices inflicted on app market operators as the reason for the fines. If approved, Apple could face a fine of $15.2 million, while Google could be looking at a much larger penalty of $47.5 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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