A surprise tech selloff, led by Twitter Inc. (TWTR) , shook markets mid-afternoon Thursday, July 27. The sudden turn lower dragged the Nasdaq from record highs and soured an overall upbeat mood in the morning session. 

The S&P 500 was down 0.10%, and the Nasdaq slid 0.63%. The Dow Jones Industrial Average added 0.40%, clinching a new record close of 21,797.  

The major stock indexes closed at records on Wednesday, July 26. The S&P 500 added 0.03% to 2,477, the Dow Jones Industrial Average rose 0.45% to 21,711, and the Nasdaq climbed 0.16% to 6,422. The S&P 500 and Nasdaq traded at records on Wednesday for their second day in a row.

Twitter Inc. fell 13% on worrying signs of slowing user growth over its second quarter. Twitter reported 328 million month active users, a flat reading from the first quarter, though 5% higher than the same quarter a year earlier. The social network reported a net loss of $116.5 million, wider than $107 million a year earlier. Adjusted earnings of 8 cents a share topped estimates by 3 cents. Revenue of $573.9 million fell nearly 5%, though came in higher than $537.5 million consensus.

Watch: Jim Cramer Reveals When to Buy Twitter Shares

Large-cap tech stocks were largely in the red by mid-afternoon. Apple Inc. (AAPL) , Alphabet Inc. (GOOGL) , Nvidia Corp. (NVDA) and Netflix Inc. (NFLX) were lower, while the Technology Select Sector SPDR ETF (XLK) fell 0.4%. Tech companies have been under pressure since June 9 when a sudden selloff pulled the sector from its lofty heights. Tech, primarily the FAANG stocks (Facebook, Amazon.com Inc. (AMZN) , Apple, Netflix, and Alphabet), has been a major contributor the market gains in the year to date.

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Facebook Inc. (FB)  failed to inspire broad gains in tech. Facebook Inc. was nearly 3% higher on Thursday after the social media giant reported second-quarter earnings and sales that topped Wall Street expectations. Facebook earned $1.32 a share in the quarter, surpassing estimates of $1.12. Revenue was $9.32 billion, which exceeded Wall Street estimates of $9.2 billion.

Jim Cramer: Facebook Has More Advertisers Than They Can Handle

Advertising revenue jumped 47% from a year earlier to $9.16 billion, easily beating projections of $9.02 billion. Mobile ad revenue made up 87% of Facebook's total ad revenue during the second quarter, up from 84% a year earlier. The company reported 1.32 billion daily active users during the quarter and said it had just more than 2 billion monthly active users for the first time ever, which was more than analysts expected.

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"Overall, we view this as a great quarter for Facebook," said Cramer and the AAP team. "The company continues to over-deliver on the lofty expectations set by investors, even with the company continuing to spend to grow in scale."

James "Rev Shark" Deporre isn't as optimistic, though. Facebook's recent run is already stretching the Nasdaq, he wrote in his column for our premium site for investors, Real Money. Get his insights with a free trial subscription.

Verizon Communications Inc. (VZ) rose 7% after reporting a revenue beat in the second quarter on customer gains. Adjusted earnings of 96 cents a share were in-line with estimates, while revenue of $30.5 billion exceeded estimates of $29.81 billion.

Verizon reported a net increase of 614,000 retail postpaid connections in the second quarter. Net phone additions of 358,000 included 590,000 smartphones in the quarter, compared with 86,000 net phone additions, including 336,000 smartphones, in the second quarter of 2016. Analysts polled by FactSet expected Verizon to add 86,100 wireless subscribers in the quarter, after losing more than 300,000 in the first quarter.

Other telecom shares on the rise besides Verizon included AT&T Inc. (T) , Frontier Communications (FTR) , Telefonica S.A. (TEF) , Vodafone Group PLC (VOD) and BT Group PLC (BT) . The ProShares Ultra Telecommunications ETF (LTL) increased 1.1%.

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