Photo by Silas Stein / Picture Alliance via Getty Images

' title='The Snapchat logo on a smartphone in April. '>

Photo by Silas Stein / Picture Alliance via Getty Images

Key Takeaways

• Snap beats profit and sales estimates as users embrace its artificial intelligence and augmented reality technology.
• Average daily active users, average revenue per user, and ad revenue all exceeded forecasts.
• Snap announced a $500 million share buyback.

Shares of Snap (SNAP) jumped Wednesday after the social media company posted better-than-anticipated results and announced a stock buyback.

The owner of the Snapchat photo and video sharing app reported third quarter non-GAAP earnings per share of $0.08, with revenue advancing more than 15% to $1.37 billion. Both exceeded estimates. (On a GAAP basis, the company reported a loss.) The stock was recently up about 13%.

Average daily active users increased by 1 million from last year to 11 million, while average revenue per user was up $0.24 to $3.10. Advertising revenue climbed 9.3% to $1.25 billion. All those figures were also more than expected.

CEO Evan Speigel said that Snap’s investments in AI and AR “are powering new creative experiences for our community and driving innovation across our advertising platform, underpinning our longterm growth opportunity.”

The company said the board has approved an up to $500 million share repurchase plan set to run for 12 months.

Despite today’s gains, shares of Snap have lost roughly a quarter of their value this year.

Among other social stocks, Reddit (RDDT) also reported results last night, while Meta Platforms' (META) numbers are due after today's closing ball.

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Meta Platforms CEO Mark Zuckerberg at a company event in September. ' title='Meta Platforms CEO Mark Zuckerberg at a company event in September'>

David Paul Morris / Bloomberg via Getty Images

Meta Platforms CEO Mark Zuckerberg at a company event in September.
Key Takeaways

• Meta's latest results are set to arrive this afternoon with the company's shares up nearly 70% this year.
• Wall Street analysts are overwhelmingly bullish on the shares, though at present calling for comparatively little further update.
• Of the 30 analysts tracking shares of the Facebook and Instagram parent company as of Wednesday morning, 28 had "buy" or equivalent ratings and two had "hold," according to Visible Alpha data.
  

Shares of Meta Platforms (META) ticked higher in early Wednesday trading ahead of the company's next round of financial results, due after the bell. 

The results are set to arrive with the company's shares up nearly 70% this year—and Wall Street analysts overwhelmingly bullish on the shares, though at present calling for comparatively little further update.

Of the 30 analysts tracking shares of the Facebook and Instagram parent company as of Wednesday morning, 28 had "buy" or equivalent ratings on the stock and two had "hold," according to Visible Alpha data. 

Analysts' price targets, meanwhile, ranged from around $500 to $675. The median target, $613.72, represents a premium to Tuesday's close of a bit more than 3%. Meta stock was recently up about 0.3% to just over $595.

Meta's results are due on the heels of a report last night from Snapchat parent Snap (SNAP), whose shares recently were up about 16% after the company turned in 15% year-over-year revenue growth in the latest quarter and a smaller loss.

Here's what you need to know about Meta's coming earnings report. 

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' title='Facade of Charles Schwab office.'>

Smith Collection / Gado / Getty Images

Key Takeaways

• Charles Schwab plans to expand its 24-hour trading, becoming the latest brokerage to embrace round-the-clock markets.
• Select Schwab clients will be able to trade all S&P 500 and Nasdaq-100 stocks, as well as hundreds of exchange-traded funds, at any time Monday through Friday.
• The capability will gradually be extended to all clients in 2025.

Charles Schwab (SCHW) on Wednesday announced that it plans to expand its 24-hour trading, becoming the latest brokerage to embrace round-the-clock markets.

Select Schwab clients will be able to trade all S&P 500 and Nasdaq-100 stocks, as well as hundreds of exchange-traded funds (ETFs), at any time Monday through Friday. The firm will gradually extend the capability to all clients in 2025. Schwab clients currently can trade about two dozen ETFs in the overnight session.

“Our goal has always been to offer and expand access to 24/5 trading in a responsible way that takes into account client demand, the evolving dynamics of the overnight trading market, and – importantly – providing clients with the full library of Schwab’s educational content and 24-hour support to help them balance the opportunities and risks, as well as the unique considerations of overnight trading,” said James Kostulias, the firm's managing director and head of trading services, in a statement. 

Brokerages and exchanges alike have sought in recent years to capitalize on the U.S. stock market's exceptional performance by pushing to extend the trading day. Robinhood (HOOD) launched its 24 Hour Market last year, and has since expanded the list of stocks and ETFs that investors can trade in the middle of the night. 

Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, said last week that it planned to extend trading on its digital platform to 22 hours a day, a decision that executives say “underscores the strength of our U.S. capital markets and growing demand for our listed securities around the world.”

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' title='Charles Liang, chief executive officer of Super Micro Computer, speaking at an artificial intelligence event in December 2023'>

David Paul Morris / Bloomberg via Getty Images

Key Takeaways

• Super Micro Computer shares plunged Wednesday after accounting giant EY resigned as the company's auditor.
• The accounting firm said it is "unwilling to be associated with the financial statements prepared by management."
• The resignation comes after months of speculation about Super Micro Computer's accounting practices following a report from short seller Hindenburg research accusing it of "manipulation."

Super Micro Computer (SMCI) shares plunged Wednesday after accounting firm EY resigned as the company's auditor following months of speculation about the company's accounting practices.

EY, one of the country's "Big Four" accounting firms, told Super Micro Computer's board the decision comes "due to information that has recently come to our attention which has led us to no longer be able to rely on management's and the Audit Committee’s representations." EY added it is "unwilling to be associated with the financial statements prepared by management."

Super Micro Computer said it disagreed with EY's decision, as the audit it hired EY last year to complete isn't done yet, and that it takes the concerns the accounting firm raised about "whether the Company demonstrates a commitment to integrity" seriously.

EY Resignation Follows Months of Speculation on Super Micro Computer's Accounting

The resignation comes as Super Micro Computer's stock has tumbled in recent months amid speculation about its accounting practices after it delayed the filing of its annual 10-K and a report from short seller Hindenburg Research alleging "accounting manipulation" and other issues.

Last month, reports emerged that the Department of Justice had opened an investigation into Super Micro Computer's accounting practices following the Hindenburg report.

Following EY's resignation, Hindenburg founder Nate Anderson said the firm's letter of resignation is "about as strongly worded as I have seen," and suggested EY's decision could make partners like Nvidia (NVDA) question doing business with Super Micro Computer going forward.

Super Micro Computer shares were down nearly 30% in early trading Wednesday at $35.71, though even with Wednesday's losses, they've gained about one-quarter of their value since the start of the year.

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' title='A Chewy website is displayed on a screen '>

Joe Raedle / Getty Images

Key Takeaways

• Meme stock hero "Roaring Kitty" has sold his entire stake in pet supplies retailer Chewy.
• The investor, whose real name is Keith Gill, shook up the market in the summer when he posted a comic picture of a dog on his X account, followed by news he bought 9 million shares of Chewy.
• The news led Chewy shares to bounce around in Wednesday morning trading.

"Roaring Kitty" is roiling the markets once again, this time sending shares of Chewy (CHWY) yo-yoing.

A regulatory filing showed the meme stock hero, whose real name is Keith Gill, has sold off his entire stake in the pet supplies retailer.

Gill caused a spike in Chewy's stock price, along with that of rival Petco Health and Wellness (WOOF), in June when he posted a comic picture of a dog on his X site. They rose again in July when it was revealed Gill held a 6.6% position in Chewy, owning 9 million shares worth about $245 million at the time. 

Gill did not explain in the filing or on his X account the reason for his selloff.

Chewy shares have moved up and down Wednesday morning, recently trading slightly lower. Overall, they're up about 12% year-to-date.

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' title='Commuters boarding a train at the Jamaica station of the Long Island Rail Road in Jamaica, New York, on August 22, 2024.Commuters boarding a train at the Jamaica station of the Long Island Rail Road in Jamaica, New York, on August 22, 2024.Commuters boarding a train at the Jamaica station of the Long Island Rail Road in Jamaica, New York, on August 22, 2024.Commuters boarding a train at the Jamaica station of the Long Island Rail Road in Jamaica, New York, on August 22, 2024.Commuters boarding a train at the Jamaica station of the Long Island Rail Road in Jamaica, New York, on August 22, 2024.Commuters boarding a train at the Jamaica station of the Long Island Rail Road in Jamaica, New York, on August 22, 2024.Commuters boarding a train at the Jamaica station of the Long Island Rail Road in Jamaica, New York, on August 22, 2024.'>

Photo by J. Conrad Williams Jr./Newsday RM via Getty Images

Key Takeaways

• The GDP grew at an annual rate of 2.8% in the third quarter, a slowdown from the prior quarter.
  
• The deceleration was due to a drop in housing investment, which outweighed an acceleration of consumer spending.
  
• Overall, the economy was running smoothly and consumer price increases were relatively small.
  

The U.S. economy grew in the third quarter, although slower than expected, as the stagnant housing market dragged down the country's overall output.

The inflation-adjusted Gross Domestic Product grew at an annual rate of 2.8% in the third quarter, decelerating from 3% growth in the second quarter, the Bureau of Economic Analysis said Wednesday. That was less than the 3.1% forecasters had expected, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.

A 5.1% drop in residential investment dragged growth down. However, consumer spending rose 3.7%, the fastest growth since the first quarter of 2023.

In a good sign for consumers' buying power, the economy grew faster than price tags did. Purchases grew at a 1.8% annual rate in the third quarter, down from 2.4% in the second.

Despite Slower Growth, This Could Be Good News For The Fed

The continued growth, especially the uptick in consumer spending and tame inflation, suggests the economy is running smoothly for the time being and that the Federal Reserve's efforts to subdue inflation while preserving the job market are going well.

"Though GDP is backward-looking, it sends a clear message that the economy is doing well, and inflation is moderating, good news for the Federal Reserve," Ryan Sweet, chief economist at Oxford Economics, wrote in a commentary.

The GDP report is one of the last pieces of data the Fed will digest before deciding whether to cut interest rates at its next meeting in November. Financial market participants widely expect the Fed to cut its benchmark rate by 0.25 percentage points, putting downward pressure on borrowing costs for all kinds of loans. The GDP report left those expectations largely unchanged, according to the CME Group's FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

The Fed, which had hiked its interest rate sharply in 2022 to combat high inflation, started rolling it back from its two-decade high in September, seeking to boost the economy and prevent a spike in unemployment.

Housing Market is a Drag on the Economy

The GDP report also highlighted the drag the housing market is having on the overall economy.

Soaring prices and high mortgage rates have made houses unaffordable to buyers with typical incomes, quashing homebuilding and worsening a longstanding housing shortage. It was the second quarter in a row that housing market activity fell and at a sharper rate than the 2.8% drop in the second quarter.

Wednesday's report was an advance estimate of GDP, and the bureau will revise it twice more before arriving at a final figure for the third quarter in December.

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' title='GE Healthcare Technologies Inc. logo on a building'>

Alexander Pohl / NurPhoto / Getty Images

Key Takeaways

• GE HealthCare shares rose Wednesday morning after the former General Electric Segment posted a third-quarter earnings beat.
• Revenue was roughly in line with estimates, nearly flat year-over-year as the company said sales weakness in China has continued.
• Profits grew 25% from last year, as CEO Peter Arduini said the company's "ongoing lean initiatives" are boosting profit margins.

GE HealthCare (GEHC) reported better profits than expected for the third quarter as its sales were roughly in line with estimates.

The medical technology manufacturer said Wednesday it generated $4.86 billion in revenue in the quarter, up slightly from $4.82 billion a year ago and roughly in line with the $4.87 billion analysts were expecting.

GE HealthCare also reported $470 million in net income, up 25% year-over-year and above the $441.8 million analysts had projected, according to estimates compiled by Visible Alpha.

The company's results are similar to last quarter, when profits also beat estimates but revenue was nearly flat. GE HealthCare said at the time that macroeconomic weakness in China was negatively impacting sales.

In the third quarter, the company said strong sales in the U.S. and its pharmaceutical diagnostics segment, where sales grew 6% year-over-year, were offset by "continued market softness" in China.

Headwinds in China led the company to say it is trending toward the lower end of its 1% to 2% full-year revenue growth projection. GE HealthCare also lifted the floor of ranges for its profit projections as CEO Peter Arduini said the company's "ongoing lean initiatives" are improving profit margins.

GE HealthCare shares were up 1.1% Wednesday morning to $86.20.

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' title='Signage for GSK Plc displayed at the company's headquarters in the Brentford suburb of London, UK, on April 30, 2024'>

Vivian Wan / Bloomberg via Getty Images

KEY TAKEAWAYS

• GSK's shares are falling 4% in premarket trading Wednesday after the British pharma giant posted lower-than-estimated quarterly sales and lowered its projection for vaccine sales.
• The company reported third-quarter sales of 8.01 billion pounds ($9.59 billion), down 2% year-over-year on lower vaccine sales and below consensus estimates of analysts polled by Visible Alpha of 8.09 billion pounds.
• The U.K. firm, whose vaccines include Arexvy and Shingrix, now expects 2024 vaccine sales to decrease by a low-single digit percentage.
  

GSK's (GSK) shares are falling 4% in premarket trading Wednesday after the British pharma giant posted lower-than-estimated quarterly sales and lowered its projection for vaccine sales.

The company reported third-quarter sales of 8.01 billion pounds ($9.59 billion), down 2% year-over-year on lower vaccine sales and below consensus estimates of analysts polled by Visible Alpha of 8.09 billion pounds.

“Strong growth in specialty medicines helped to offset lower vaccine sales and reflected successful new product launches in oncology and HIV, as well as the resilience we have now built into GSK’s portfolio and performance,” Chief Executive Officer (CEO) Emma Walmsley said.

Its 49.7 pence core earnings per share (EPS) for the quarter beat estimates of 30.97 pence, however.

GSK Drops Vaccine Sales Outlook for 2024

The U.K. firm now expects 2024 vaccine sales to decrease by a low-single digit percentage versus a low- to mid-single digit percentage growth previously. GSK's vaccines include Arexvy, a medicine that treats respiratory syncytial virus and shingles medicine Shingrix.

GSK reiterated that it expects full-year sales growth of 7% to 9%.

GSK's shares are up 3% this year.

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News of the day for October 30, 2024

David L. Ryan / The Boston Globe via Getty Images

' title='Eli Lilly building in Boston'>

David L. Ryan / The Boston Globe via Getty Images

Google parent Alphabet (GOOGL) shares are jumping in premarket trading after the tech giant beat earnings estimates on surging cloud revenues; Eli Lilly (LLY) shares are tumbling after its results missed the mark; Advanced Micro Devices (AMD) stock is sinking after its net income and sales guidance disappointed investors; shares of Chipotle Mexican Grill (CMG) are dropping after its same-store sales outlook came in below expectations; and Microsoft (MSFT) and Meta (META) shares are rising ahead of their earnings reports after the close. Here's what investors need to know today.

1. Google Stock Rises on Strong Earnings, Cloud Revenue Growth

Shares of Google parent Alphabet (GOOGL) are up 6% in premarket trading after the tech giant reported better-than-expected third-quarter earnings. Alphabet's revenue climbed 15% year-over-year to $88.27 billion and net income came in at $26.3 billion, or $2.12 per share, beating consensus expectations of analysts polled by Visible Alpha. Google Cloud delivered revenue of $11.4 billion, exceeding projections and representing 35% growth from the year-ago period as demand for artificial intelligence (AI) surged.

2. Eli Lilly Stock Tumbles as Results Fall Well Short of Estimates

Shares of Eli Lilly (LLY) are sinking 10% in premarket trading after it reported third-quarter revenue and net income that were well short of analysts' estimates. Lilly reported a profit of $970.3 million, or $1.07 per share, well below the $1.69 billion and $1.87 per share analysts were projecting. Adjusted earnings per share (EPS) of $1.18 was barely half of the expected $2.18. Weight-loss drugs Mounjaro and Zepbound continue to boost Eli Lilly's sales, with its revenue of $11.44 billion coming in above last year's $9.50 billion, although below the $12.18 billion consensus.

3. AMD Stock Plummets After Earnings Miss, Soft Guidance

Advanced Micro Devices (AMD) shares are falling 8% in premarket trading after the chipmaker reported weaker-than-expected net income and guidance for the fourth quarter. While the company's third-quarter revenue grew 18% year-over-year to $6.82 billion, ahead of expectations, its net income of $771 million, or 47 cents per share, was below projections. AMD said it expects fourth-quarter revenue of between $7.2 billion and $7.8 billion, with the midpoint below analysts' consensus of $7.6 billion.

4. Chipotle Stock Sinks as Sales Outlook Disappoints Investors

Chipotle Mexican Grill (CMG) shares are falling 6% in premarket trading after the restaurant chain reported a weaker-than-expected sales forecast. Chipotle said it expects to see 2024 same-store sales increase in the mid- to high-single-digit range, while analysts were anticipating a 7.5% growth rate, according to Visible Alpha. The chain's revenue of $2.79 billion met expectations, while its net income of $387.4 million beat estimates. 

5. Investors Await Microsoft, Meta Earnings

Shares of Magnificent Seven firms Microsoft (MSFT) and Meta Platforms (META) are trading higher in premarket trading ahead of their scheduled earnings releases after markets close today. Microsoft stock is up by 2% ahead of its earnings report, which is expected to show the tech giant deliver a 14% jump in quarterly revenue. Facebook parent Meta, whose shares are also higher by 2%, is expected to register revenue growth of 18%. Earnings from Apple, Amazon, and Intel are scheduled for Thursday. 

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Source: TradingView.com
Key Takeaways

• Reddit shares surged in premarket trading on Wednesday after the company reported earnings that topped estimates and provided a strong outlook, as the social media platform benefits from robust digital advertising spending and lucrative AI content licensing deals.
• Since going public in March, Reddit shares oscillated within an ascending triangle before breaking out above the pattern’s top trendline earlier this month.
• The measuring principle, which calculates the distance between the ascending triangle’s two trendlines and adds that amount to the breakout point, projects an upside target in the stock of $115.
• During retracements, investors should monitor important support levels on Reddit's chart around $75 and $65.

Reddit (RDDT) shares surged in premarket trading on Wednesday after the company reported earnings that topped estimates and provided a better-than-expected outlook amid robust digital advertising spending and lucrative artificial intelligence (AI) content licensing deals.

The company guided fourth-quarter revenue of between $385 and $400 million, handily surpassing the $357.9 million consensus view. While advertising sales generate the majority of Reddit’s revenue, AI licensing deals with Google’s Gemini and Open AI’s ChatGPT add a valuable boost to the social media platform's top line.

The stock was up more than 22% to around $100 in recent premarket trading. Through Tuesday's close, Reddit shares had more than doubled since going public in late March and were up 24% over the past month.

Below, we break down the technicals on Reddit’s chart and point out important post-earnings price levels to watch out for.

Ascending Triangle Breakout

Since its March listing, Reddit shares oscillated within an ascending triangle before breaking out above the pattern’s top trendline earlier this month.

Moreover, the relative strength index (RSI) confirms bullish price momentum in the stock with a reading nearing the closely watched 70 level, but also cautions looming overbought conditions. It’s also worth pointing out the stock registered its largest daily trading volume since early August on Tuesday, as investors placed bets ahead of the earnings report.

Let’s use technical analysis to project a possible price target and also identify several key support levels where the stock may find buying interest during pullbacks.

Key Upside Price Target to Watch

To project an upside price target, we can use the measuring principle, also known as a measured move. 

This technique works be calculating the distance between the ascending triangle’s two trendlines and adding that amount to the breakout point. For example, we add $40 to $75, which forecasts a target of $115, around 41% above Tuesday’s closing price. 

Investors who have purchased the stock a pre-breakout levels may decide to lock in profits around this area, especially if other indicators are pointing to overbought conditions.

Important Support Levels to Monitor

On an initial retracement, investors should keep a close eye on the $75 level. This area on the chart could attract buying interest near the ascending triangle’s top trendline, which may have flipped from a location of prior resistance into future support.

Selling below this level could see the shares revisit $65, a region just below the ascending triangle’s lower trendline where the price may encounter support near a horizontal line connecting a range of similar trading levels on the chart between mid-May and early October.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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AJ Mast / Bloomberg via Getty Images

' title='A sign for the Eli Lilly Corporate Center is seen outside a brown office building.'>

AJ Mast / Bloomberg via Getty Images

Eli Lilly (LLY) shares tumbled 10% after its third-quarter results fell well short of analysts' estimates before the bell Wednesday.

The pharmaceutical giant registered $11.44 billion in revenue—above last year's $9.50 billion but below the $12.18 billion consensus estimate of analysts polled by Visible Alpha—as weight-loss drugs Mounjaro and Zepbound continue to boost Eli Lilly's sales.

Lilly swung to a profit of $970.3 million, or $1.07 per share, but still well below the $1.69 billion and $1.87 per share analysts were looking for. Adjusted EPS of $1.18 was barely half of the $2.18 expected.

In the third quarter last year, Lilly reported a $57.4 million net loss as it recorded a nearly $3 billion charge for "in-progress research and development" (IPR&D), as it closed a number of acquisitions in the quarter. Ahead of Wednesday's earnings, the company said it expected to post a $2.83 billion charge, or about $3.08 per share, for IPR&D in Q3.

Lilly and Danish rival Novo Nordisk (NVO)—which has its own blockbuster drugs in Ozempic and Wegovy—have spent billions on a variety of acquisitions to help ramp up production of their weight-loss medications.

Weight-Loss Drugs Have Powered Lilly, Novo Nordisk Results

Surging sales for the weight-loss drugs have boosted Eli Lilly and Novo Nordisk's results over the last several quarters. Eli Lilly said sales of Mounjaro more than doubled year-over-year to $3.11 billion, while Zepbound produced $1.26 billion in quarterly sales as it approaches its one-year anniversary of Food and Drug Administration (FDA) approval.

Eli Lilly shares fell 10% to $814.11 after the results were released. They were up more than 50% since the start of the year entering Wednesday.

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Jakub Porzycki / NurPhoto via Getty Images

' title='The App Store listing for Reddit is seen on an iPhone.'>

Jakub Porzycki / NurPhoto via Getty Images

KEY TAKEAWAYS

• Reddit shares are surging 24% in premarket trading Wednesday after the social media firm posted its first quarterly profit as a public company with higher-than-estimated results and a rosy fourth-quarter outlook.
• Reddit posted third-quarter revenue of $348.4 million, up 68% from the same period last year and beating Visible Alpha estimates.
• It reported a third-quarter net profit of $29.9 million, or 16 cents per share, versus estimates of a net loss of $17.7 million, or 10 cents per share.
• For the fourth quarter, Reddit is forecasting revenue in the range of $385 million to $400 million.

Reddit (RDDT) shares are surging 24% in premarket trading Wednesday after the social media firm posted its first quarterly profit as a public company with higher-than-estimated results and a rosy fourth-quarter outlook.

Reddit, which went public on the New York Stock Exchange (NYSE) in March, posted third-quarter revenue of $348.4 million, up 68% from a year ago and surpassing the $312.2 million expected by analysts polled by Visible Alpha. It reported a third-quarter net profit of $29.9 million, or 16 cents per share, versus estimates of a net loss of $17.7 million, or 10 cents per share.

For the fourth quarter, Reddit is forecasting revenue in the range of $385 million to $400 million and adjusted EBITDA of $110 million to $125 million.

"It was another strong quarter for Reddit and our communities as we achieved important milestones, including new levels of user traffic, revenue growth, and profitability," Chief Executive Officer (CEO) Steve Huffman said.

Citi Notes Revenue Surge Due To Ad Growth

Citigroup analysts, who have a "buy" rating on the stock, noted that advertising revenue growth of 56% drove the higher-than-estimated sales jump.

"Advertising revenue was driven by growth in impressions delivered from higher growth users, more efficient ad load, and expansion of conversation placement ads," Citi said.

JPMorgan analysts raised their price target on the stock to $110 from $77, although they maintained a "neutral" rating.

Reddit's shares are trading above $101 each in premarket trading, about three times the $34 level at which its IPO priced.

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Source: TradingView.com
Key Takeaways

• Advanced Micro Devices shares moved sharply lower in extended trading on Tuesday after the chipmaker reported third-quarter earnings that came in below expectations and issued a light revenue outlook.
• The stock has rallied into the upper trendline of a descending channel, though lower volumes suggest that larger market participants remained on the sidelines ahead of the company's quarterly results.
• Investors should watch key support levels on AMD's chart around $162, $132, and $112.
• If the stock resumes its longer-term uptrend, investors should monitor a bars pattern bullish price target around $275.
  

Advanced Micro Devices (AMD) shares moved sharply lower in extended trading on Tuesday after the chipmaker reported third-quarter earnings that came in below expectations and issued a light current quarter revenue outlook, despite record data center revenue.

During the company’s conference call, CEO Lisa Su told analysts that the chipmaker now anticipates data center revenue to exceed $5 billion in 2024, up from her July forecast of $4.5 billion, However, the stock’s afterhours decline indicates investors could have been looking for more amid insatiable artificial intelligence (AI) infrastructure demand. 

AMD shares have gained around 13% year to date as of Tuesday’s close, underperforming the tech-heavy Nasdaq index’s return by about half over the same period. The stock fell 7.6% to $153.57 in after-hours trading Tuesday.

Below, we analyze the technicals on AMD’s weekly chart and point out important post-earnings price levels that other investors may be watching.

Descending Channel

After an inverted hammer marked AMD’s all-time high (ATH) in early March, the stock has traded within a textbook descending channel.

More recently, the price has rallied into the pattern’s upper trendline, though lower volumes suggest that larger market participants remained on the sidelines ahead of the company's quarterly results.

Amid the stock’s projected post-earnings sell-off, let’s look at key support levels that may come into play and also forecast a chart-based price target to watch if the shares resume their longer-term uptrend.

Key Support Levels to Watch

The first important support level to monitor sits around $162. Although the stock sits poised to open below this area on Wednesday, it’s worth watching if bulls make an attempt to defend a trendline linking the prominent November 2021 peak and a range of comparable trading levels within the descending channel.

A decisive breakdown below this level could see the shares decline to the $132 area, a location where investors may look for buying opportunities around a series of prices situated near the June swing high and August swing low.

Further selling in the stock opens the door for a fall to around $112, around 33% below Tuesday’s closing price, where the shares find a confluence of support from the 200-week moving average and a horizontal line stretching back to August 2021.

Longer-Term Bullish Price Target

If AMD shares resume their longer-term uptrend, we can forecast a bullish price target using a bars pattern, a technique that uses historical trends on the chart to predict future price moves.

In this case, we take the stock’s trend higher from October 2023 to March this year and reposition it from the early August low, which projects a price target of around $275.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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GLENN CHAPMAN / Contributor / Getty Images

Google and Alphabet CEO Sundar Pichai at the tech titan's annual I/O developers conference on May 14, 2024, in Mountain View, California' title='Google and Alphabet CEO Sundar Pichai at the tech titan's annual I/O developers conference on May 14, 2024, in Mountain View, California'>

GLENN CHAPMAN / Contributor / Getty Images

Google and Alphabet CEO Sundar Pichai at the tech titan's annual I/O developers conference on May 14, 2024, in Mountain View, California

After Google parent Alphabet (GOOGL) reported third-quarter earnings that topped analysts' expectations, CEO Sundar Pichai and other executives told investors the tech giant is seeing strong gains from demand for artificial intelligence (AI), sending shares up over 5% in extended trading Tuesday.

Investments in AI 'Are Paying Off and Driving Success'

Pichai told investors the tech giant's investments in AI "are paying off and driving success," with strong performance in Google's search and cloud divisions driven by AI demand.

Google Cloud's third-quarter revenue surged a whopping 35% year-over-year to $11.4 billion, led by growth in its AI infrastructure and generative AI solutions, along with other core cloud products.

'For All These AI Features, It's Just the Beginning'

Pichai added he believes the company could be "uniquely positioned to lead in the era of AI," with its focus on the emerging tech. "For all these AI features, it's just the beginning. You'll see a rapid pace of innovation and progress here," he said.

Pichai noted the company has seen use of Google Search rise among people who use its AI overviews and that Google Lens is drawing 20 billion visual searches each month.

Chief Business Officer Philipp Schindler said the company's new AI-powered features "make searches more helpful, and we continue to see great feedback, particularly from younger users."

AI Developments Expected to 'Translate to Revenue in the Fairly Short Term'

CFO Anat Ashkenazi, who took over the role in July, suggested the company expects its advances with AI could "translate to revenue in the fairly short term."

Alphabet invested $13 billion in capital expenditures during the quarter, and Ashkenazi said investors could expect a similar figure in the fourth quarter, with an increase in 2025 as the company ramps up spending on AI. 

“This is an area that requires investment,” Ashkenazi said, adding the company's moves are "based on demand we’re seeing from customers.”

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Key Takeaways

• Shares of electronic design automation firm Cadence Design Systems led the S&P 500 Tuesday following a strong earnings report.
• The company cited demand for AI-related products, with revenue from its Cadence.AI portfolio tripling year-over-year.
• Cadence sales skyrocketed in its intellectual property and system design and analysis businesses.

Shares of Cadence Design Systems (CDNS) shares climbed more than 12% on Tuesday to notch the top daily performance of any S&P 500 stock after the electronic design automation firm posted strong quarterly results and boosted its full-year guidance.

The provider of design software, hardware, intellectual property (IP) and other solutions posted revenue of $1.215 billion for the third quarter of 2024, up around 19% year-over-year. Non-GAAP earnings per share (EPS), at $1.64, was up more than 30% from the year-ago period. Both figures came in ahead of consensus forecasts.

Cadence also lifted its revenue and non-GAAP earnings forecasts for the full year.

Q3 Highlights

Cadence specializes in integrated circuits and electronic systems to aid in design processes across industries including communications, automotive, defense, and industrial markets.

Robust demand for artificial intelligence (AI) design products underpinned Cadence's strong quarterly performance. In the earnings report, the company touted the productivity benefits of its Cadence.AI portfolio, which incorporates generative AI technology along with AI-driven big data analytics. Revenue from Cadence.AI nearly tripled year-over-year.

"Customers are achieving outstanding results with Cadence.AI, and I’m excited by its accelerating proliferation as AI rapidly becomes an integral part of the design workflow," said CEO Anirudh Devgan.

Analyst Reaction and Stock Performance

Following the strong financial results, analysts at Baird lifted their price target on Cadence Design stock to $340 from $332. Needham analysts, meanwhile, trimmed their price target to $315 from $320 but maintained their buy rating.

Cadence Design shares have been volatile so far in 2024. Tuesday's gains returned the stock to positive territory for the year.

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' title='Ford vehicles'>

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Key Takeaways

• The S&P 500 added 0.2% on Tuesday, Oct. 29, as tech and communication stocks outperformed ahead of quarterly updates from some big names.
• Shares of Cadence Design Systems surged after the electronic design automation provider topped estimates, citing strong revenue from its AI portfolio.
• Stanley Black & Decker shares plunged as soft consumer and automotive demand weighed on the toolmaker's results.
  

Major U.S. equities indexes were mixed on Tuesday. The technology and communication sectors outperformed ahead of a wave of marquee earnings reports, but other sectors including energy and utilities lost ground.

The S&P 500 closed the session 0.2% higher. Tech sector strength helped the Nasdaq gain 0.8%, lifting the index to an all-time closing high. The Dow did not fare as well, slipping 0.4%.

Shares of Cadence Design Systems (CDNS) surged 12.5% on Tuesday to notch the top daily performance of any S&P 500 stock after the electronic design automation firm posted better-than-expected quarterly results and boosted its full-year guidance. Revenue from the company's Cadence.AI portfolio, which builds generative AI and big data analysis into design processes, more than tripled year-over-year.

Although Incyte (INCY) reported third-quarter profits that fell short of analysts' forecasts, the pharma company's revenue for the period exceeded expectations, and its shares jumped 12.0%. Incyte said both of its key products—cancer drug Jakafi and topical eczema treatment Opzelura—enjoyed strong demand and sales trends during the period.

Application delivery company F5 (FFIV) delivered a quarterly sales and profit beat for its fiscal fourth quarter, and its shares jumped 10.1%. F5's CEO touted the company's transformation from its focus on hardware into a provider of security and software solutions better geared toward the current hybrid and cloud-based technological environment.

Leidos Holdings (LDOS) shares added 9.5% after the IT services provider beat consensus estimates with its third-quarter sales and profit results. Strong bookings figures for the quarter also suggest that Leidos is poised for additional growth, and the company lifted its full-year outlook. Major U.S. defense contract wins contributed to the solid performance and upbeat forecast.

Shares of tool manufacturer Stanley Black & Decker (SWK) tumbled 8.8%, the biggest drop in the S&P 500, in the wake of an underwhelming quarterly update. The company said weak demand from consumers and the auto industry pressured its performance, contributing to a quarterly sales and profit miss. Tuesday's decline sank Stanley Black & Decker into negative for 2024.

Ford Motor (F) shares skidded on Tuesday, dropping 8.4% after the carmaker reported lower-than-expected third-quarter profits. Following the earnings miss, JPMorgan and Bank of America trimmed their price targets on Ford stock. However, analysts pointed to some reasons for optimism, noting that high warranty expenses contributed to the profit shortfall and highlighting the potential of the Ford Pro division.

Homebuilder D.R. Horton (DHI) reported year-over-year declines in revenue and net income, falling short of estimates on the top and bottom lines. The company also issued lower-than-expected full-year sales guidance, indicating that it sees pressure from potential homebuyers holding out for lower mortgage rates. D.R. Horton shares fell 7.2%.

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AMD CEO Lisa Su at Computex 2024 in Taipei on June 3, 2024' title='AMD CEO Lisa Su at Computex 2024 in Taipei on June 3, 2024'>

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AMD CEO Lisa Su at Computex 2024 in Taipei on June 3, 2024

Advanced Micro Devices (AMD) reported third-quarter earnings that missed expectations, sending shares lower after the closing bell Tuesday.

The chipmaker’s third-quarter revenue grew 18% year-over-year to $6.82 billion, ahead of the Visible Alpha analyst consensus. Net income at $771 million or 47 cents per share was up from $299 million or 18 cents per share a year earlier, but below Street estimates as costs rose.

AMD's Outlook Disappoints Despite Record Data Center Revenue

AMD's revenue gains came as data center sales more than doubled to a fresh high of $3.5 billion, driven by demand for the company’s artificial intelligence (AI) chips.

The results come after AMD launched its next generation of AI chips at its Advancing AI event earlier this month, but did not raise its AI sales outlook or announce new customers as many investors had hoped, weighing on its stock price.

AMD said Tuesday it expects fourth-quarter revenue to land between $7.2 billion and $7.8 billion, up from $6.2 billion in the prior-year quarter. The analyst consensus was at the higher end of that range at $7.6 billion, according to Visible Alpha.

Shares of AMD fell over 7% in extended trading Tuesday following the release.

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' title='A hiring sign outside a Chipotle restaurant in August. '>

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Key Takeaways

• Chipotle said full-year same-store sales could come in below analysts' expectations of 7.5%.
• The fast-casual chain anticipates same-store sales increases in the mid-to- high-single digit range.
• Share prices fell in after-hours trading.

Chipotle Mexican Grill (CMG) shares fell in late trading after the company indicated that same-store sales growth may be lower than anticipated.

Chipotle late Tuesday said it expects to see same-store sales increase in the mid- to high-single digit range for 2024. Analysts were anticipating a 7.5% same-store growth rate, according to estimates compiled by Visible Alpha. The fast-casual chain reported that comparable restaurant sales grew 6% in the third quarter, while revenue increased 13% to $2.8 billion.

Chipotle shares, which closed Tuesday's session at $60.49, were recently down more than 4% in late trading.

Chipotle didn’t say whether it would formally appoint interim CEO Scott Boatwright to the top post. Boatwright has been in the position since former CEO Brian Niccol left in late August to lead Starbucks (SBUX). (Starbucks is set to report its own results tomorrow afternoon.) Chipotle is also slated to lose longtime CFO Jack Hartung in 2025.

Chipotle performed in line with analysts’ third-quarter revenue expectations and generated $387.4 million in net income, beating the consensus estimate of $346, as compiled by Visible Alpha.

The stock is up about 30% this year so far.

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' title='Intel sign outside the company's headquarters in Santa Clara, California'>

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Key Takeaways

• Intel is set to report earnings after the market closes on Thursday.
• Analysts expect the chipmaker to swing to a loss and for Intel's revenue to decline year-over-year.
• Analysts expect revenue to decline 8% year-over-year to about $13 billion, along with a net loss of $955 million, or 23 cents a share,

Intel's (INTC) third-quarter results are due after the closing bell on Thursday. Analysts aren’t bullish on the struggling chipmaker, with Wall Street generally calling for a loss and expecting comparatively little upside for the shares.

Of the 17 brokers focused on Intel who are tracked by Visible Alpha, 13 have "hold" ratings, compared to three "sell" ratings and just one "buy." Intel stock has lost more than half its value this year, finishing Tuesday at $22.90. The consensus price target is $25.87, about a 13% premium to today's close.

Wedbush analysts said they “anticipate an unhappy Halloween” for Intel. The PC market has slowed, the firm said, and Intel is disadvantaged against rival Advanced Micro Devices (AMD) when it comes to the server market. 

Intel Revenue Decline, Net Loss Seen by Analysts

Analysts expect revenue to decline 8% year-over-year to $13.03 billion, along with a net loss of $955 million, or 23 cents a share, according to Visible Alpha. Analysts expect revenue to decline 8% year-over-year to $13.03 billion, along with a net loss of $955 million, or 23 cents a share,

Wedbush is so skeptical that Intel will meet or beat those expectations that the firm said the company’s only hope for third-quarter results is that it was “so conservative with its [most recent] outlook, that even adverse conditions for multiple business aren’t enough to create a miss.”

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Google parent Alphabet (GOOGL) reported third-quarter results that topped analysts' estimates, sending shares higher after the bell Tuesday.

Alphabet’s third-quarter revenue climbed 15% year-over-year to $88.27 billion, above the analyst consensus from Visible Alpha. Net income came in at $26.3 billion or $2.12 per share, up from $19.69 billion or $1.55 per share a year earlier, beating Street estimates.

Google Cloud delivered revenue of $11.4 billion billion, exceeding analysts' expectations and representing 35% growth from the year-ago period as demand for artificial intelligence (AI) surged. Google Cloud's AI infrastructure and generative AI solutions led growth, along with other core cloud products.

The quarter was also Alphabet’s first since former Eli Lilly (LLY) executive Anat Ashkenazi took over as the company’s chief financial officer on July 31.

Shares of Alphabet surged 4% in extended trading following the release. They were up nearly 22% for the year through Tuesday's close.

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