All articles tagged with #stock drop
Oracle began global layoffs as it tightens costs to back its AI-focused data-center expansion, including the Stargate project with OpenAI; the moves come as Oracle’s stock has fallen about 30% this year amid AI fears, with the company raising debt to fund the infrastructure push.
U.S. authorities charged the co-founder of Super Micro Computer and two associates with smuggling AI chips to China, triggering a nearly 28% drop in SMCI shares as investors reassess the company’s exposure to export controls and potential penalties.
Pearl Abyss’s stock plunged about 29.8% in a day, from ₩65,600 to ₩46,000, after Crimson Desert’s first reviews landed. Metacritic sits at 78 (generally favorable), suggesting investors expected a stronger reception despite the hype. The game remains a top seller on Steam and is performing well in early US PlayStation sales, while Sony confirmed Crimson Desert will support the new PS5 Pro PSSR (FSR4) this month.
Pearl Abyss’s stock tumbled nearly 30% after Crimson Desert’s reviews arrived and fell short of market expectations (Metacritic 78, OpenCritic 80 vs forecasts in the mid-to-high 80s). While the game drew praise for visuals and combat, critics cited a weak story, unresponsive controls, and a clunky interface, triggering investor disappointment despite early hype and strong Steam wishlist momentum.
Blue Owl Capital said it would stop offering a fixed quarterly redemption amount for one fund and instead determine payouts, accelerating returns; it also disclosed a $1.4 billion loan sale with about $600 million to be returned to investors, a move that triggered a stock slide and raised concerns about liquidity and risk in the private-credit industry as peers slipped and analysts warned of potential hidden vulnerabilities outside traditional banking.
Kyndryl stock fell about 55% after the CFO and general counsel left abruptly amid an accounting review. The company also flagged cash-management scrutiny and potential material weaknesses in internal controls for fiscal 2025–2026, while reporting an adjusted profit of $0.52 per share on $3.86 billion in revenue, missing analyst expectations of $0.60 and $3.89 billion.
Apple's stock plummeted over 2.5% shortly after its WWDC keynote, primarily due to investor disappointment over the company's slow progress in AI development, particularly with Siri, which remains unrefined compared to competitors like Google and Microsoft. The delay in AI enhancements has caused concern about Apple's ability to compete in the rapidly advancing generative AI industry.
UiPath reported Q1 CY2024 revenue of $335.1 million, slightly beating analyst expectations, and a non-GAAP profit of $0.13 per share. However, the company's stock dropped 29.9% due to disappointing revenue guidance for the next quarter and the full year, as well as the unexpected resignation of CEO Rob Enslin.
Verastem (VSTM) stock plummeted by 62% following the release of clinical trial data for its metastatic pancreatic cancer treatment, which revealed serious adverse events in 12 patients, including 11 with grade ≥3 events. Despite initial positive results, the safety concerns led to heavy trading and a significant drop in stock value.
Adobe Inc. saw its stock drop by as much as 12% in premarket trading after issuing a weak sales outlook for the current quarter, citing concerns about competition from new AI startups. The company's revenue forecast of $5.25 billion to $5.3 billion fell short of analysts' average estimate of $5.31 billion, leading to investor disappointment. Adobe has been integrating its proprietary AI model, Firefly, into products like Photoshop and Illustrator to address competition, but concerns about new generative AI-based startups like OpenAI have reignited fears. The company is aiming to monetize its new AI features and plans to increase these efforts in the second half of the year, while also announcing a new $25 billion share buyback program.
Adobe Inc. dropped about 10% in extended trading after giving a weak outlook for sales in the current quarter, citing concerns about competition from new AI-focused startups. The company's revenue forecast of $5.25 billion to $5.3 billion fell short of analysts' average estimate of $5.31 billion, and its profit outlook also missed expectations. Adobe has been facing anxieties about new generative AI-based startups cutting into its market, and its response has been to integrate its proprietary AI model, Firefly, into its top products. The company is optimistic about its AI initiatives but disappointed investors with lower-than-expected recurring creative business and underperformance in stock value.
Snowflake's shares plummeted 20% following the announcement of CEO Frank Slootman's retirement and the release of weaker-than-expected earnings and first-quarter guidance. The company's fourth-quarter results and lower-than-anticipated first-quarter outlook led to Morgan Stanley downgrading its stock rating, while analysts at Macquarie Equity Research upgraded the stock, citing confidence in the new CEO, Sridhar Ramaswamy, and the company's emphasis on AI/ML. Ramaswamy, a former Google executive, will replace Slootman, who will remain chairman of the board.
Snowflake's CEO Frank Slootman has announced his immediate retirement, contradicting previous denials of impending departure. The company's stock plummeted by over 20% following the news. Slootman's replacement is Sridhar Ramaswamy, a former Google ad exec.
Archer-Daniels-Midland (ADM) shares plummeted 22% as the company launched an accounting probe into its Nutrition segment, leading to the CFO being placed on leave and a cut in its 2023 profit forecast. The investigation, prompted by a voluntary document request from the SEC, has raised concerns about the segment's performance amid weak demand for meat alternatives and other products. The company's stock hit its lowest level since February 2021, and at least four brokerages downgraded ADM's stock following the news.
Pfizer's 2024 revenue outlook has disappointed Wall Street, with the company projecting a potential decline or flat revenue compared to 2023. To address financial pressures, Pfizer plans to implement an additional $500 million in cost cuts. The stock dropped around 7% in response to the news. The company expects revenues of $58.5 billion to $61.5 billion in 2024, falling short of analysts' average guidance of $63.2 billion. Sales of COVID-19 products and the Seagen acquisition are expected to contribute to revenue, but excluding these, Pfizer anticipates 3% to 5% operational revenue growth in 2024.