Market Flips and Falls as Meta and MSTR Fall After Earnings
The market played a trick on mischief night, otherwise known in the U.S. as the night before Halloween. Starting out in a climb, the market closed in the red, and earnings inspired some scary price changes.
After 4 pm ET, $S&P 500(.SPX)$
Internet stocks flew on earnings results. By the end of the day the sector war lower, but still $Reddit (RDDT.US)$ jumped 41% after announcing a surprise profit for the past quarter, after the firm said it might never turn a profit in its recent public listing. $NerdWallet (NRDS.US)$ jumped 31% following the release of third-quarterfinancial results that beat estimates. $Alphabet(GOOG)$
$Crude Oil Futures(DEC4) (CLmain.US)$ climbed a bit after starting the week with a major fall Monday following muted clapback attacks from Israel on Iran. $Bitcoin (BTC.CC)$ hovered close to all-time highs at $72k, Gold traded at an all-time high. The $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ climbed to levels not seen since July and August.
$Super Micro Computer (SMCI.US)$ fell 30% after the firm said Wednesday that its accounting contractor - Earnest and Young - resigned with fears that SMCI was not upholding ethical accounting and reporting practices, about a week before the next expected earnings date. The firm delayed its reporting in August and has still not reported its full-year results for a fiscal year that ended in June after running into accounting issues. It was the largest decliner on the S&P 500.
$Meta Platforms (META.US)$ shares slipped 3.2% in extended trading after the company raised the low end of its capital expenditures outlook, overshadowing the earnings and revenue beat for the third quarter.
$Advanced Micro Devices (AMD.US)$ fell 9% Wednesday, the lowest on the Nasdaq 100 hind SMCI after the chipmaker's Tuesday release of fourth-quarter revenue outlook missed analysts' estimates. Its Q3 results, otherwise mostly met or beat analyst estimates, were the forward-looking statements that hurt.
$MicroStrategy (MSTR.US)$ shares fell 8% after reporting a Q3 adjusted loss of $1.56/share, worse than estimated. The firm also missed revenue estimates, coming in 10% lower year over year at $116.07M.
$Coinbase (COIN.US)$ also joined MSTR in falling 6% after its earnings after the bell came in at a miss, showing earnings of $0.28/share, below estimates of $0.42. The crypto trading firm showed sales came in lower at $1.21B than estimates of $1.26B. Both numbers were dramatically higher than a year ago period- sales grew bu 78%.
$Microsoft (MSFT.US)$ reported Q1 fiscal 2025 adjusted earnings of $3.30/share, vs estimates of $3.11/share, on revenue of $65.59B vs estimates of $64.51B.
Revenue came in 1.67% above estimates. All eyes were on AI capital expenditures Wednesday, showing the firm spent $14.92B on investments like AI datacenters after the firm spent $9.92 billion last quarter.
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