Sector Update: Tech Stocks Decline Premarket Thursday

Technology stocks were declining premarket Thursday, with the Technology Select Sector SPDR Fund (XLK) down 0.6% and the SPDR S&P Semiconductor ETF (XSD) 0.4% lower. Cisco Systems (CSCO) stock was up more than 5% after reporting higher fiscal Q1 adjusted earnings and revenue. Bilibili (BILI) shares were down more than 3% despite higher Q3 adjusted net profit and revenue. Cellebrite DI (CLBT) stock surged over 19% after reporting Q3 non-GAAP earnings and revenue that beat market expectations.

Cellebrite DI (CLBT) Gets a Buy from J.P. Morgan

J.P. Morgan analyst Brian Essex maintained a Buy rating on Cellebrite DI with a $24.00 price target. Essex, a 5-star analyst, has an average return of 11.3% and a 57.14% success rate. Needham's Mike Cikos also issued a Buy rating, while TR reiterated a Hold rating on November 7.

Pre-market news | Several internet giants have released earnings reports that exceeded expectations, Tencent and Apple have reached an agreement

On November 13th (Thursday), in the pre-market session of U.S. stocks, Canadian Solar surged 12%, with third-quarter revenue reaching $1.5 billion, exceeding the market's general expectation of $1.37 billion. Cellebrite rose nearly 17%, with third-quarter performance surpassing expectations and subscription revenue increasing by 21% year-on-year. Firefly Aerospace skyrocketed over 25%, with third-quarter results better than expected and an upward revision of the full-year outlook. Alibaba rose over 4%. Alibaba plans to update its existing "Tongyi" iOS and Android applications in the coming months and rename it "Qwen," aiming to make its functions closer to OpenAI's ChatGPT. JD.com briefly rose over 4%, now up over 1%, with third-quarter revenue increasing by 15% year-on-year, adjusted EBITDA down 83%, and new business revenue growing more than twice, with marketing expenses up 110%. Tencent's third-quarter revenue reached 192.87 billion yuan, exceeding the market estimate of 188.8 billion yuan. Net profit was 63.13 billion yuan, significantly surpassing the estimate of 55.88 billion yuan, with a quarter-on-quarter increase of 13% and a year-on-year increase of 19%. Bilibili rose over 1%, with third-quarter revenue increasing by 5.2% year-on-year, and adjusted net profit soaring by 233%. Apple saw a slight increase; according to reports, Tencent and Apple reached an agreement where Apple will be responsible for payments in WeChat mini-games and apps, taking a 15% cut from purchases

Cellebrite DI Positioned for Growth: Buy Rating Affirmed Amid Federal Demand Recovery and Strategic Alignments

Cellebrite DI has received a Buy rating from Bank of America Securities, with a price target of $25.00, due to its growth potential and recovery in Federal demand. Analyst Tomer Zilberman highlighted the company's progress in the Federal segment and alignment with US administration priorities. Recent revenue growth has exceeded expectations, and the outlook for the fourth quarter remains strong. Additionally, the company's Cloud and SaaS solutions are thriving, and plans to reduce stock ownership from Sun Corp are seen positively. Needham also affirmed a Buy rating with a $24.00 price target.

Cellebrite DI shares are trading higher after the company reported better-than-expected Q3 financial results and raised its FY25 sales guidance above estimates.