Global tech stocks have shown signs of a rebound following a sharp sell-off in recent days sparked by rising concerns over inflation.
Shares in cybersecurity giant Darktrace led the rebound in the UK, jumping 20.8 per cent in early trading after the firm raised its earning guidance for the full year following a period of customer growth.
The firm said it had seen a 39.6 per cent growth in its number of customers, with up to 6,531 customers, and at least a 45 per cent boost in constant currency annual recurring revenue (ARR) of at least $426m (£314m).
Russ Mould, investment director at AJ Bell, said: “The company has attracted its fair share of critics in recent years, but this cyber security juggernaut keeps on trucking with significant customer and revenue growth.
“It has been focused on cross-selling services to existing clients, thus making them more reliant on Darktrace’s ecosystem which in turn could be a key reason why churn rates are easing. It has also been successful at signing up lots of new customers.”
Darktrace led a wider rebound in UK listed technology stocks this morning, with Scottish Mortgage Investment Trust among the other UK-listed technology-related stocks trying to push ahead on the markets.
The firm’s shares jumped 3 per cent after some recent nervousness over how rising interest rates would affect the valuations of the fast-growth stocks which populate Scottish Mortgage’s portfolio.
The rebound in the UK follows signs of slight recovery in US tech stocks yesterday.
The tech-heavy Nasdaq index is down nearly 6 per cent year to date, but yesterday’s session saw investors start to buy on the dip meaning that losses earlier in the day were clawed back by the market close.
Mould said: “It might be too early to call the start of a proper recovery for tech as pre-market indicative prices show minimal gains in the Nasdaq on Tuesday.
“Investors are likely to be waiting for US inflation figures tomorrow before committing to any big trades on the market.”