The stock market is trading lower at midday as Wall Street reacted to disappointing reports from major tech companies.
The S&P 500 fell 1.6% and the Nasdaq Composite fell 2.5%. The Dow Jones Industrial Average fell 0.64% and the Russell 2000 index fell 0.82%.
Microsoft shares fell 5.5% after weak revenue guidance, while Meta fell 4% on unmet expectations for user growth and higher estimated capital spending in 2025, even as it beat estimates. earnings.
The biggest stocks in the S&P 500 today
Five S&P 500 stocks making big midday moves are:
- Payment software (PAY) +24.7%
- entergia (ETR) +14.6%
- International role (IP) +13.2%
- Digital Generation +9.5%
- ametek (A.M.E.) +8.2%
The five S&P 500 stocks with the worst performance and the biggest drop at midday are:
- Huntington Ingalls (THIS) -23.2%
- Estee Lauder (HE) -20.7%
- Monolithic power systems (MPWR) -18.5%
- Suitable (APTV) -17.6%
- Teleflex (TFX) -14.4%
Actions also worth highlighting include:
- NVIDIA (NVDA) -4.7%
- microsoft (MSFT) -5.5%
- Metaplatforms (GOAL) -4.5%
- Caravan (CVNA) +24.3%
- Coinbase (COIN) -10.9%
Carvana Soars After Beating Earnings
Carvana was up 24% at midday after the used car retailer posted better third-quarter earnings and raised its 2024 profit forecast.
For the third quarter, Carvana reported earnings per share of 64 cents, more than double the consensus estimate of 25 cents. Revenue reached $3.65 billion, above the expected $3.45 billion.
Related: Analysts change course on Carvana stock price targets based on growth prospects
Carvana now projects that adjusted earnings before interest, taxes, depreciation and amortization will be “significantly above the high end of its previously reported range of $1 billion to $1.2 billion for the full year 2024,” the company said in a statement. a statement.
The company also expects higher retail vehicle sales in the fourth quarter compared to the third, during which it sold 108,651 vehicles, a 34% year-over-year increase.
Meta Platforms falls despite rising profits
Meta Platforms lost 4.5% by midday, even as the social media stalwart reported third-quarter earnings that beat Wall Street expectations.
Earnings per share were $6.03, above analyst projections of $5.25, and revenue hit $40.59 billion, up 19% year-over-year, beating forecasts of $40.29 billion. .
Related: Analyst reset Meta stock price target ahead of Q3 earnings
Daily active users rose to 3.29 billion, up 5% year over year, although this figure was just shy of the 3.31 billion analysts had anticipated.
“Our investments in ai continue to require significant infrastructure and I expect to continue to invest significantly there as well,” CEO Mark Zuckerberg said during the earnings call.
For the fourth quarter, Meta projects revenue between $45 billion and $48 billion, with the midpoint above Wall Street's estimate of $46.3 billion.
Coinbase Trades Down After No Earnings Reported
Coinbase lost 11% following disappointing third quarter results. The company reported earnings per share of 28 cents, missing analyst expectations of 41 cents, and revenue of $1.21 billion, missing the $1.26 billion forecast.
“We had some weaker market conditions in the third quarter, but overall, it was a really strong quarter for Coinbase. It was our seventh consecutive quarter of positive adjusted Ebitda. It was our fourth consecutive quarter of positive net income,” CEO Brian Armstrong said during the earnings call.
- Analysts Update Meta Stock Price Target Focusing on Q3 Earnings
- Analyst Updates Tesla Stock Price Target Ahead of Key Robotaxi Event
- Analysts update outlook for Nvidia's Blackwell chips amid ai boom
Retail trading revenue increased 98% year over year to $483.3 million, while institutional revenue nearly quadrupled to $55.3 million. Transaction revenue totaled $572.5 million, an increase of 98%, supported by growth in Coinbase's core trading business.
Revenue from subscriptions and services, driven by stablecoins, staking and Prime Trader products, increased 66% to $556.1 million.
Coinbase warned, however, of flat growth in the current quarter, citing a 10% drop in ether prices in October and other market pressures.
Related: Veteran Fund Manager Sees a World of Hurt for stocks
