Biggest S&P 500 Movers on Wednesday
9 hr 24 min ago
Advancers
- Shares of industrial manufacturer Johnson Controls International (JCI) logged the S&P 500’s top performance on Wednesday, surging 11.3%. The manufacturer of ventilation, refrigeration, and security equipment posted better-than-expected sales and profits for its fiscal first quarter and its guidance for current-quarter and full-year earnings topped expectations. The company also announced a leadership change, with longtime Danaher (DHR) executive Joakim Weidemanis set to become the new CEO of Johnson Controls starting next month.
- Super Micro Computer (SMCI) shares soared for the second straight session, jumping 8.0% on Wednesday after the company announced “full production availability” of its newest artificial intelligence (AI) data center server solution.
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- Electronic Arts (EA) shares gained 7.6% following the video game maker’s quarterly earnings release. Although slumping sales of its soccer and Dragon Age titles contributed to a year-over-year downtick in sales, earnings per share (EPS) topped estimates, and EA’s sales and profit guidance for the current quarter came ahead of consensus forecasts.
Decliners
- Agricultural sciences company FMC Corp. (FMC) shares tumbled 33.5% on Wednesday, suffering the steepest drop of any S&P 500 constituent. The maker of herbicides and other pest control products said in its earnings call that customers in various countries opted to lower inventory levels compared with historical trends.
- Shares of IDEX Corp. (IEX) sank 9.6% after the provider of metering systems, fire safety equipment, and other industrial machinery missed fourth-quarter sales estimates and provided a soft outlook for the first quarter. While IDEX benefitted from its acquisition of metal filtration specialist Mott Corp., higher employee-related costs contributed to a downtick in gross margins.
- Match Group (MTCH) shares dropped 7.9% after the operator of online dating platforms named a new CEO. Former Zillow CEO Spencer Rascoff has been tapped to take over as Match CEO following Bernard Kim’s departure.
Alphabet Levels to Watch After Post-Earnings Slide
10 hr 14 min ago
Alphabet (GOOGL) shares fell sharply Wednesday as weaker-than-expected cloud revenue overshadowed fourth-quarter earnings that came in ahead of analysts’ estimates.
The Google parent, in reporting its quarterly results late yesterday, also said it anticipates investing about $75 billion in capital expenditures in 2025, with the lion’s share directed at expanding artificial intelligence infrastructure. That number was higher than analysts expected, highlighting investor concerns about when the spending will pay off.
The stock broke out from an ascending channel late last month and picked up momentum ahead of the earnings report before today’s abrupt reversal.
Investors should watch key support levels on Alphabet’s chart around $190, $180, $168, and $160, while also monitoring a key overhead area near $201.
The stock fell 7.3% on Wednesday to close at $191.33.
Read the full technical analysis piece here.
Nvidia, Broadcom Jump on Optimism About AI Demand
11 hr 5 min ago
Nvidia (NVDA) shares surged Wednesday, after Google parent Alphabet (GOOGL), a buyer of Nvidia’s chips, said it plans to ramp up spending on artificial intelligence.
Alphabet said Tuesday that it plans to spend as much as $75 billion in capital expenditures this year, with most of the funds set to go toward expanding its AI infrastructure, including servers and data centers, to meet demand for AI.
Julia Demaree Nikhinson / Pool / AFP / Getty Images
That could benefit Nvidia, with Alphabet Chief Executive Officer Sundar Pichai telling investors on the company’s earnings call that the tech giant intends to continue its “strong relationship” with the chipmaker, after announcing its first customer running on Nvidia’s Blackwell platform last week.
The announcement also comes just days after Meta Platforms (META) said it plans to spend $60 billion to $65 billion this year, and Microsoft (MSFT) said it expects to spend $80 billion on infrastructure in fiscal 2025
Broadcom (AVGO), which designs custom AI chips for several large U.S. tech firms including Alphabet and Meta, also experienced a share-price jump Wednesday following the news.
Shares of Broadcom and Nvidia each gained more than 4% on Wednesday. Several other chip stocks and shares of Nvidia partners, including chip designer Arm Holdings (ARM) and manufacturer TSMC (TSM), were higher as well.
Johnson Controls Jumps After Strong Earnings, Naming of CEO
12 hr 52 min ago
Shares of Johnson Controls International (JCI) surged Wednesday after the company’s fiscal first-quarter results topped Wall Street estimates and it announced a new CEO.
The HVAC, refrigeration, and security equipment manufacturer said Wednesday that it earned $419 million, or 63 cents per share, in net income on $5.43 billion in revenue for the quarter, each up from the same time last year. Analysts had expected profits of $397.65 million, or 60 cents per share, on $5.28 billion in sales, according to estimates compiled by Visible Alpha.
Johnson Controls’ outlook also topped estimates. The company expects adjusted EPS from 77 cents to 79 cents in the second quarter, along with $3.50 to $3.60 for the full year. The analyst consensus entering Wednesday was 72 cents for the second quarter, and $3.47 for the fiscal year.
In a separate release Wednesday, Johnson Controls announced its next CEO, Joakim Weidemanis, who will take over the top job on March 12. Weidemanis joins the company from industrial conglomerate Danaher Corp. (DHR), where he held several executive positions over the last 13 years.
The company’s outgoing CEO, George Oliver, will stay with the company in an advisory role through the end of the year. Oliver announced plans to retire last July following talks with activist investor Elliott Investment Management, which built a stake in Johnson Controls last year.
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Shares of Johnson Controls were up 12% in recent trading, leading S&P 500 gainers and trading near their all-time high set in November.
Alphabet Tumbles Amid Worries About AI Spending
13 hr 16 min ago
Shares of Google parent Alphabet (GOOGL) tumbled Wednesday as several analysts lowered their price targets for the stock, citing concerns about the tech giant’s weaker-than-expected cloud growth and plans to ramp up spending on AI.
Alphabet said it plans to invest as much as $75 billion in capital expenditures this year, much of which is expected to go toward expanding its artificial intelligence infrastructure to meet demand.
That figure is about $15 billion more than Wall Street expected, UBS analysts said, which suggests new Google products will need to emerge in order to “warrant the higher level of investment.” The bank dropped its price target to $191 from $211, saying “investors will need to wait” for Alphabet’s AI investments to pay off.
JPMorgan analysts took their price target down to $220 from $232, expressing similar concerns. By contrast, Meta (META), which said it plans to invest $60 billion to $65 billion this year, offered a “more apparent” path to a return on that investment through its advertising business, the analysts said.
The lower price targets also come after Chinese AI startup DeepSeek claimed to develop an AI model rivaling American ones for a fraction of the cost, raising concerns about American firms’ AI spending.
However, several analysts including JPMorgan and Wedbush also suggested the investment could help boost growth as Alphabet raises its cloud capacity to meet demand.
Analysts at Bank of America said that Wall Street may be “underestimating Al Overview benefits for [Google] Search monetization in 2025.” The bank maintained a “buy” rating and $225 price target.
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Alphabet shares were down 8% at around $190 in mid-afternoon trading. Still, the stock has gained 33% over the past 12 months, outpacing the S&P 500 over that period.
Supermicro Soars Ahead of Business Update
15 hr 12 min ago
Shares of Super Micro Computer (SMCI) surged Wednesday for a second straight session after the troubled server maker said it would give a second-quarter business update next week.
Supermicro, as the company is known, said Monday it would be giving its update after markets close on Feb. 11. That sent shares nearly 9% higher yesterday, as investors watch whether the company will be able to submit all its delayed regulatory filings with the Securities and Exchange Commission (SEC) by Feb. 25 in order to preserve its public listing on the Nasdaq.
The stock was up another 9% in midday trading Wednesday as the company announced it was ramping “full production availability of its end-to-end AI data center Building Block Solutions accelerated by the NVIDIA Blackwell platform.”
“In this transformative moment of AI, where scaling laws are pushing the limits of data center capabilities, our latest NVIDIA Blackwell-powered solutions, developed through close collaboration with NVIDIA, deliver outstanding computational power,” Supermicro CEO Charles Liang said in a press release.
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Despite their two-day surge, Supermicro shares have lost more than half their value over the past year and are down about 75% from their record high set in March.
The stock has suffered amid concerns about the company’s accounting practices. Last August, short seller Hindenburg Research accused the firm of “accounting manipulation,” and two months later, EY resigned as its auditor, saying it was “unwilling to be associated with the financial statements prepared by management.”
Uber Sinks as Bookings Forecast Disappoints
15 hr 57 min ago
Uber Technologies (UBER) shares plunged Wednesday after the rideshare giant’s gross bookings outlook came in light.
Uber registered fourth-quarter net income of $6.88 billion, or $3.21 per share, on revenue of $11.96 billion. Analysts had expected profit of $1.04 billion, or $0.48 per share, on revenue of $11.76 billion, according to Visible Alpha. Its profits were boosted by more than $6 billion from a “benefit from a tax valuation release,” and another $556 million from a revaluation of the company’s investments.
Uber’s Q4 operating income of $770 million missed estimates of $1.21 billion. Its adjusted EBITDA of $1.84 billion came in a tick below expectations.
For the first quarter, Uber projects gross bookings from $42 billion to $43.5 billion, compared with the $43.48 billion consensus, as it expects a 5.5% currency headwind.
Uber shares were down 7% in recent trading, pushing the stock into negative territory for the past year.
Chipotle Slips on Soft Sales, Potential Impact of Tariffs
16 hr 31 min ago
Shares of Chipotle Mexican Grill (CMG) slipped Wednesday, a day after the Mexican fast-casual restaurant chain reported revenue that came in short of analysts’ expectations.
Chipotle reported fourth-quarter revenue rose 13% to $2.85 billion, a tick below Visible Alpha estimates. Comparable restaurant sales growth of 5.4% was also less than expected. Adjusted earnings per share (EPS) came in at $0.25, in line with forecasts.
The company said that the revenue gains came through the addition of 119 new restaurants, helping increase transactions by 4.0%. Chipotle also had a 1.4% rise in average check.
Chipotle projects full-year comparable restaurant sales to be in the low- to mid-single-digit range, while the Visible Alpha estimate was for 3.76%.
CFO Adam Rymer said on the earnings call that the company anticipates 2025 cost of sales “to be in the high 29% range” because of higher prices for food, especially avocados and chicken, according to a transcript provided by AlphaSense.
Rymer added that if the Trump administration’s proposed tariffs on goods from Mexico, Canada and China all go into effect, “it would have an ongoing impact of about 60 basis points on our cost of sales.”
Rymer said the outlook doesn’t take into account the potential tariffs. However, he noted that Chipotle only “sourced about 2% of our sales from Mexico, which includes avocados, tomatoes, limes and peppers. And less than 0.5% of our sales from Canada and China.”
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Chipotle shares were down about 2% in recent trading. The stock is up about 20% over the past 12 months, lagging the performance of the S&P 500 during the period.
AMD Levels to Watch Amid Post-Earnings Plunge
17 hr 53 min ago
Advanced Micro Devices (AMD) shares tumbled in early trading Wednesday after the chipmaker reported data center sales figures that came in below Wall Street estimates.
Since falling below the 200-day moving average in October last year, AMD shares have trended sharply lower within a narrow descending channel.
More recently, the price has rallied into the pattern’s upper trendline ahead of the company’s earnings report, though the relative strength index (RSI) has failed to climb above the 50 threshold, signaling the stock’s inability to regain momentum.
Investors should watch major support levels on AMD’s chart around $110, $95, and $81, while also monitoring a key overhead area near $130.
AMD shares were down 10% at around $107 in recent trading, at their lowest levels since October 2023. The stock has lost nearly 40% of its value over the past 12 months.
Read the full technical analysis piece here.
Major Index Stock Futures Lower
19 hr 14 min ago
Futures tied to the Dow Jones Industrial Average were down 0.2%.
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S&P 500 futures were off 0.5%.
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Nasdaq 100 futures fell 0.8%.
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