Shares of technology companies fell amid concerns about chip shortages and valuations.
Shares of electric-car maker Tesla tumbled after Bloomberg News reported that it halted production on Model 3 production lines at its Fremont, Calif., factory in light of chip shortages. Chip industry executives welcomed efforts from the Biden administration to unclog bottlenecks in the semiconductor supply chain.
Shares of Nvidia, the largest U.S. chip maker by market value, fell sharply despite posting brisk quarterly revenue growth after executives warned that overcoming the bottleneck will not be a quick fix.
Shopify shares fell sharply after the supplier of online retail technology sold 1.18 million Class A shares at $1,315 apiece.
Business software maker Salesforce.com fell despite reporting higher-than-forecast quarterly earnings growth as its target for 2021 profit lagged some Wall Street pegs.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-25-21 1740ET
