🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Scottish Mortgage Inv Trust falls as tech earnings season gets off to disappointing start

Published 20/07/2023, 11:53
Scottish Mortgage Inv Trust falls as tech earnings season gets off to disappointing start
NDX
-
UK100
-
NVDA
-
IBM
-
NFLX
-

Proactive Investors - Scottish Mortgage Investment Trust PLC (LSE:SMT), the retail investor favourite, was one of the biggest fallers on the FTSE 100 on Thursday morning, reflecting its status as a tech bellwether.

The shares declined 1.4% to 701.5p, down 16% over the past 12 months but up 14% since the start of May.

SMT's shares are currently trading at a discount of 18.85% to the last published net asset value, with the large discount having appeared this year amid worries about the large proportion of unlisted investments in the portfolio.

Today's drop is likely to reflect a downbeat start to the US tech earnings season, with numbers from Tesla, IMB and Netflix (NASDAQ:NFLX) providing various factors for the market to worry about, with numbers from chip giant Taiwan Semiconductor (TSMC) and Swiss automation specialist ABB adding to the unsure footing for US markets.

Futures for the tech-heavy Nasdaq were pointing to a 0.7% decline for today.

Shares in Tesla, which is SMT's third-largest holding at 5.4%, are heading for a 4% slide today as the earnings report after last night's US close showed record quarterly revenue but thinner margins.

Elsewhere, TSMC reported its first decline in profit in four years as demand for consumer electronics weakened, while ABB also warned of slowing Chinese demand.

Netflix is also seen heading lower in pre-market trading, following disappointment on revenues that a boost to subscriber numbers from the password-sharing crackdown failed to offset.

IBM (NYSE:IBM) also reported mixed results, with software and services slowdown.

SMT's largest holding, ASML, is heading for a 1.7% drop today, and NVIDIA (NASDAQ:NVDA), it's fourth largest investment, set for a fall of 1.25%.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.