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Stocks are buzzing
Stock market action is buzzing with movement from some of the biggest names in tech, retail, and beyond. With mixed earnings results, cautious forecasts, and investor reactions, here’s a quick look at the top stocks making waves.
Microsoft’s Mixed Results: Strong Earnings but Soft Guidance
Microsoft ($MSFT) managed to exceed Wall Street’s expectations on both earnings and revenue, posting $3.30 per share against estimates of $3.10, and revenue of $65.6 billion, surpassing the forecasted $64.6 billion. Despite the positive numbers, the stock dropped 3.6% due to disappointing guidance for the next quarter. The tech giant warned of rising expenses, particularly in artificial intelligence, which weighed on investor sentiment.
Meta’s Higher Expenses Drag Down Shares
Meta Platforms ($META), the parent company of Facebook and Instagram, delivered solid third-quarter earnings, but the stock slipped 1.2%. The company highlighted upcoming increases in infrastructure spending, projecting substantial growth in expenses next year and into 2025. Investors seem wary of these rising costs, which could impact profitability.
Super Micro Faces Accounting Turmoil
Super Micro Computer ($SMCI) saw a significant drop, down 4.2% today and a massive 33% yesterday. The server manufacturer disclosed that Ernst & Young, its auditor, had resigned after concerns were raised about certain internal representations. The market reacted swiftly, and confidence in the company has taken a hit.
Uber Falls on Slightly Lower Bookings
Uber Technologies ($UBER) reported Q3 earnings and revenue that surpassed Wall Street’s estimates. However, gross bookings of $40.97 billion came in just shy of expectations, and the stock declined by 9.2%. Even though Uber’s core metrics are strong, investors may be concerned about the slower-than-expected growth in bookings.
Booking Holdings Sees Gains on Solid Travel Demand
Booking Holdings ($BKNG) enjoyed a 7% boost in its stock price after reporting robust Q3 earnings. Gross travel bookings increased by 9% compared to the previous year, and room nights booked rose by 8%. The travel industry’s resurgence has benefited the online-travel company, keeping its revenue strong and its stock climbing.
Comcast Gets an Olympic Lift
Comcast ($CMCSA) saw its stock jump 8.9%, boosted by Q3 earnings that beat expectations. The company attributed part of its growth to its media division, which received a lift from the upcoming 2024 Paris Olympic Games. It appears investors are optimistic about Comcast’s future performance, particularly with its media assets.
Robinhood Drops on Missed Expectations
Robinhood Markets ($HOOD) dropped 9.2% as its Q3 earnings and revenue fell short of analysts’ expectations. Despite a revenue increase of 36% year-over-year, the numbers didn’t meet Wall Street’s targets, leading to investor disappointment.
Carvana Soars with Surprising Profits
Carvana ($CVNA) shot up 19% after it announced impressive Q3 earnings, with EBITDA reaching $429 million, well above the expected $330 million. Revenue also beat forecasts, hitting $3.7 billion. The results were a pleasant surprise for the market, pushing the used-car seller’s shares significantly higher.
Estee Lauder Slumps on Withdrawn Guidance
Estee Lauder ($EL) plummeted 24% after the cosmetics giant withdrew its annual guidance, citing uncertainty in the Asian markets, particularly around China and travel retail. The company’s decision to replace its CEO has also added to the uncertainty, causing the stock to drop sharply.
Peloton Gains with New Leadership
Peloton Interactive ($PTON) surged 19% as the company announced a new CEO and reported better-than-expected first-quarter earnings. The fitness equipment brand appears to be turning a corner, and investors reacted positively to the leadership change and promising financial results.
Root Soars with Profitability and Loan Refinancing
Root Inc. ($ROOT), parent of Root Insurance, saw its stock skyrocket by 92% following its announcement of a profitable third quarter and revenue growth of 165%. Additionally, the company successfully refinanced its loan with BlackRock, which should significantly reduce its interest expenses, improving its financial outlook.
eBay Falls on Weak Guidance
eBay ($EBAY) dropped 6.2% after issuing a weaker-than-expected revenue forecast for both Q4 and the full year. The online marketplace’s estimated revenue of $10.23 billion to $10.29 billion came below analysts’ predictions, signaling potential challenges ahead.
FAQs
Why did Microsoft’s stock fall despite beating earnings estimates? Microsoft’s stock fell due to lower-than-expected guidance for the upcoming quarter, coupled with a warning of rising AI-related expenses, which concerned investors about profitability.
What caused Super Micro’s sharp drop? Super Micro’s stock fell sharply after its auditor, Ernst & Young, resigned, citing issues with management’s internal representations, which raised red flags for investors.
Why is Carvana’s stock up so much today? Carvana reported surprisingly strong third-quarter results, with EBITDA and revenue both surpassing expectations, which lifted investor confidence in the used-car retailer.
What’s behind Estee Lauder’s significant drop? Estee Lauder withdrew its full-year guidance, citing unpredictability in the Asian markets, particularly around China, which disappointed investors.