Market Today: Tech Stocks Under Pressure Amid Mixed Earnings and Fed Remarks
Tech stocks faced a challenging day as the market digested a mix of earnings reports and comments from Federal Reserve Chair Jerome Powell. The Trade Desk (NASDAQ:TTD) saw its shares plummet by 15% despite beating Q3 Non-GAAP EPS estimates and posting a revenue increase of 24.9% year-over-year. The company's outlook for Q4 2023, however, fell short of consensus, with a revenue forecast of at least $580 million against a $611.07 million consensus and an Adjusted EBITDA of approximately $270 million.
NextEra Energy Partners (NYSE:NEP) experienced a significant drop of 11.3% after a downgrade from Seaport Global to Sell from Neutral. The analyst pointed to concerns over the company's growth prospects and an anticipated dividend cut in Q1 2024 due to debt refinancing at higher interest rates.
Warner Bros. Discovery (NASDAQ:WBD) enjoyed a 3% lift following news of a bundled streaming offer with Verizon (NYSE:VZ), which is expected to reduce churn and attract new customers. The bundle will include ad-supported versions of WBD's Max service and Netflix (NASDAQ:NFLX) at a competitive price point.
Google (NASDAQ:GOOG) (NASDAQ:GOOGL) is reportedly losing a slight edge in the search market, with a marginal decline in market share, while Microsoft's (NASDAQ:MSFT) Bing and Russia's Yandex (NASDAQ:YNDX) saw changes in their respective shares. This comes as new AI-driven search technologies like ChatGPT gain traction.
Veeva Systems (NYSE:VEEV) adjusted its full-year guidance downward, citing macroeconomic challenges. The company's shares dipped by approximately 7% in pre-market trading on Thursday.
Semiconductor stocks showed a mixed response following Arm Holdings' (NASDAQ:ARM) weak outlook in its first quarterly report since its public market return. Arm's shares declined over 6% as the company's forecast for Q3 revenue and adjusted earnings per share fell short of expectations.
Intellia Therapeutics (NASDAQ:NTLA) saw its shares drop by around 11% after announcing the deprioritization of several early-stage programs. The company remains focused on advancing its in-vivo CRISPR-based therapy NTLA-3001 and a pivotal Phase 3 trial for another candidate.
Eli Lilly (NYSE:LLY) faced a 4% decline in shares as analysts weighed in on the company's new weight loss therapy Zepbound. Despite the drug's approval, some analysts remain cautious about the company's valuation and market potential.
Amgen (NASDAQ:AMGN) remains under scrutiny from Sen. Elizabeth Warren regarding its acquisition of Horizon Therapeutics, with concerns about the deal's impact on drug pricing and availability.
President Joe Biden expressed support for unionization efforts at major automakers, including Tesla (NASDAQ:TSLA), Toyota Motor (NYSE:TM), and Honda Motor (NYSE:HMC), which could have implications for the industry's labor dynamics.
Adyen NV (ADYEY, ADYYF) ADRs surged following a strong Q3 report and optimistic financial targets, prompting a double-upgrade from one Wall Street analyst.
Carriage Services (NYSE:CSV) adjusted its full-year revenue and earnings guidance due to macroeconomic factors, including inflation and a normalization of death rates post-COVID, leading to a 7% decline in its stock.
AMC Entertainment (NYSE:AMC) announced a stock offering of up to $350M, causing its shares to tumble more than 20% premarket. This move comes after the company's recent earnings report showed revenue growth and narrowed losses.
The Industrial and Commercial Bank of China (ICBC) reportedly suffered a ransomware attack, potentially disrupting the U.S. Treasury market and contributing to a rise in Treasury yields.
Investment ideas for the end of the year were shared by DCLA portfolio manager Sarat Sethi, highlighting stocks such as Morgan Stanley (MS), Uber (UBER), Disney (DIS), and Charter Communications (CHTR).
U.S. big tech stocks, including Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon (AMZN), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG), Meta (NASDAQ:META), and Tesla (NASDAQ:TSLA), are outperforming the broader market, with expectations for continued earnings growth.
The earnings season has brought some notable positive surprises, with companies like Krystal Biotech (KRYS), Apartment Income REIT Corp. (AIRC), and Booking Holdings Inc. (BKNG) delivering significant EPS beats.
This article first appeared on GuruFocus.
