European stocks led lower by techs, on rate concerns and Atos warning

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European stocks dropped on Monday, with tech companies leading a downward slide on worries about rising interest rates.

The Stoxx Europe 600 SXXP, -0.77% dropped 0.7%, weakening as U.S. stock futures ES00, -0.72% headed lower ahead of the market open. Markets are girding for aggressive action this year from the Federal Reserve to cool off the world’s largest economy.

Technology companies SX8P, -2.36% including ASML ASML, -4.54%, the big microchip equipment maker, were the worst performing sector. Atos ATO, -17.26% shares skidded 17% as the French IT services firm warned of worse margins than it previously forecast. Free cash flow is expected to be €-420 million, ahead of a previous estimate it would be positive. CEO Rodolphe Belmer, who only started last week, said the factors that weighed on its performance were “non-recurring.”

Molecular Partners MOLN, +25.39% jumped 27% in Switzerland after a Phase 2 trial showed its COVID-19 treatment reduced hospitalization, as Novartis NOVN, +0.51% exercised a right to commercialize the drug. Novartis will pay 150 million francs to Molecular Partners for the licensing, as well as “significant” royalties on any sales.

 

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NVDA's financial metrics are very poor. The company may be overvalued has relatively low revenue per share. The factor rank is based on the stock having high price to book value high price to sales ratio, and relatively low cash flow, but low long term debt to equity ratio

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