Silicon Valley tech stocks fall amid sour day on Wall Street

The Silicon Valley 150 Index slumped on Monday, in tandem with an overall down day on Wall Street.

The index of 150 technology, biotech and other advanced tech companies from the Bay Area fell 0.9 percent on Monday. The blue chip Dow Jones Industrial Average fell 0.7 percent, the broad-based S&P 500 Index slipped 0.8 percent and the tech-focused Nasdaq plunged 1.1 percent.

However, favorable comments from an analyst about Twitter, a social media darling that’s fallen on hard times lately, lifted the micro-blogging company’s shares 3.5 percent to a close of $27.79. Twitter went public in 2013 at an IPO price of $26.

San Francisco-based Twitter jumped after analyst Bob Peck of investment firm SunTrust Robinson Humphrey upgraded the micro-blogging service to “buy” from “neutral” on Monday.

“Cautiously optimistic” is the assessment that the analyst has about Twitter, according to a new analysis released Monday. The analyst added that some “positive catalysts” are in the wind for the social network.

The catalysts include a partnership with Google for tweets and Twitter handles to appear in Google search results, and an array of revenue-producing plans, as well as efforts to mine its inactive users.

Twitter’s active user base should grow 22 percent, and revenue in 2017 should rise 15 percent from the current levels, the analyst estimated.

Revenue should hit $3.3 billion in 2016 and $7 billion in 2019, the analyst predicted. Over the most recent 12 months of reported financials ending in June, Twitter’s revenues totaled $1.78 billion with a loss of nearly $600 million.

The Silicon Valley 150 Index was down slightly just before 11 a.m. on Monday.

San Jose-based Extreme Networks, a network equipment maker, was the best-performing stock in the index, up 7 percent for a close at $3. Redwood Shores-based , while Redwood Shores-based Imperva, a software company, fell 6.2 percent to finish at $59.58.

Among the largest companies in the SV 150 index, Apple fell 0.5 percent, Oracle slipped 1 percent, Facebook tumbled 1.7 percent, Google slumped 1.9 percent, was rising slightly, while Facebook, Google, Oracle, and Gilead Sciences plunged 2.7 percent.

 

Photo from AFP/Getty Images

 

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