All articles tagged with #stock drop
Boston Scientific disclosed a cyberattack that disrupted access to its information systems and shipment services, delaying orders and leaving restoration timelines unclear; the news pushed the stock down about 4.5% as analysts warned that it could take weeks to resume normal operations and protect near-term sales.
Walmart beat Q2 estimates and raised full-year guidance, but signaled a cooling U.S. consumer with comp sales up 2.6% ex-fuel (below 3.7% forecast). Per-transaction spend rose 1.1%, while price pressures, tariff-related costs, and about $2 billion in extra fuel costs weighed on margins, helping drive the stock lower as July retail data suggested weaker spending ahead.
Meta Platforms stock fell about 3.5% as a 29-state child-safety lawsuit heads to California after a recent New Mexico loss, signaling potential damages and broader regulatory risks for big tech that are contributing to a market-wide dip.
L3Harris Technologies ousted CEO Chris Kubasik after an independent probe found conduct not aligned with the company’s values and appointed Sam Mehta as President and CEO; shares fell more than 4%. The company said the departure was not tied to financials or operations, and Kubasik will forgo a 2026 bonus but keep about 384,000 stock options under a separation agreement. Semafor reported the investigation cited an inappropriate relationship with an employee. The move comes as a DoD investment in L3Harris’s missile business progresses and the related IPO is delayed; Kubasik previously faced ethics scrutiny at Lockheed Martin in 2012. Independent director Lewis Hay III was named independent chairman.
Applovin posted a Q2 revenue miss with EPS of $3.76 (in line) and revenue of $1.92B vs $1.94B expected, sending the stock down about 17%. CEO Adam Foroughi attributed the miss to timing of AI-powered adtech model improvements as the company expands into e-commerce; revenue rose 53% year over year. Piper Sandler downgraded the stock to neutral and cut its price target from $665 to $385, noting uncertainty about the cadence of future beat/raise moves as management advances its AI-adtech strategy.
Reddit's stock fell more than 20% after earnings as CEO Steve Huffman criticized Google's AI Overviews and signaled a possible end to Reddit's roughly $60 million licensing deal with Google, arguing that Reddit's value lies in deep discussions rather than automated summaries. He noted AI tools are disrupting search referrals and cited a Pew Research study linking AI Overviews to fewer site referrals (which Google disputes). Reddit also has a deal with OpenAI, and investors worry about the company's dependence on Google referrals as the open web navigates AI disruptions.
Meta’s enormous AI push — including capex rising to at least $130B — has yet to yield a breakthrough product or profits, sending shares down about 11% as Muse Spark stalls and Muse Image underperforms against OpenAI, Anthropic, and Google; critics warn the company is spending ahead of demand, echoing past metaverse missteps and leaving investors skeptical about Meta’s AI-driven future.
Meta Platforms posted Q2 revenue of $60.8B, beating estimates, but EPS of $6.18 missed consensus $7.22 as costs jumped 55% to $42.03B and free cash flow collapsed 91% to $784M. The company raised full-year capex guidance to $130-145B to fund AI infrastructure, lifting total expenses to $165-169B and fueling investor skepticism about the AI gamble. Shares slid in after-hours trading, wiping about $15B off Mark Zuckerberg's stake given his roughly 13% ownership, even as advertising revenue rose 27% and the core business remained healthy.
Albertsons' shares slid about 15% after the retailer cut its fiscal 2026 guidance due to softer demand and cautious consumers, lowering net income to $1.75–$1.85 per share and reducing EBITDA and identical-sales forecasts while signaling a push to invest in the customer experience to drive long‑term growth.
Netflix posted Q2 revenue of $12.56 billion and earnings of $0.80 per share, roughly in line with expectations, with a 33.4% operating margin. For Q3, it guided revenue growth of about 11.7% to around $12.86 billion and a 33.2% margin, below some analyst estimates, sending the stock lower in after-hours trading (as much as ~9%). The company cited healthy engagement and a planned annual viewership report starting 2027, reiterated a $3 billion ad-revenue target for 2026, and disclosed a $25 billion stock-buyback authorization with about $4.7 billion bought back in the quarter. It also narrowed full-year 2026 revenue guidance to $51.0–$51.4 billion and kept operating margin guidance around 31.5%.
Netflix shares fell 9% after-hours following a mixed Q2 report: revenue of $12.56 billion versus a $12.58 billion consensus and earnings of $0.80 per share, a penny above estimates. The company logged 97 billion hours watched in the first half of 2026, up 2% year over year, but engagement remains a concern as competition from YouTube and TikTok intensifies. Netflix forecast about 12% revenue growth for Q3 and reiterated a 2026 ad-revenue goal of roughly $3 billion, even as its stock sits near an 18‑month low amid investor scrutiny of growth and recent M&A moves like the Warner Bros. Discovery bid.
IBM’s stock tumbled more than 25% after preannouncing weaker-than-expected Q2 results, with adjusted EPS of $2.93 on revenue of $17.2 billion versus consensus of $3.02 and $17.86 billion. IBM cited a global memory shortage that pressured its z17 mainframe-related demand and noted clients redirected capital expenditure toward servers, storage and memory to hedge supply constraints. The sharp drop is described as one of the steepest in decades, and IBM is set to discuss results on its July 22 earnings call.
IBM reported Q2 adjusted earnings of $2.93 per share on $17.2 billion in revenue, missing estimates of $3.01 and $17.86 billion, and its shares fell more than 17% in premarket trading. CEO Arvind Krishna blamed weakness in software and infrastructure as clients shifted capex toward hardware (servers, storage, memory) to secure supply-constrained infrastructure, noting several large deals failed to close on time.
Trump praised Micron on Truth Social, but MU slid about 10% on the day amid sector-wide profit-taking after a massive run, as investors reset positions rather than chase headlines. Micron beat Q3 results (revenue about $41.46B, non-GAAP EPS $25.11, gross margin 84.6%) and guided Q4 to roughly $50B revenue and $31 EPS, supported by 16 Strategic Customer Agreements targeting ~$100B in floor-price revenue and about $22B in deposits. Insider selling of $32.7M added to the pullback, underscoring that endorsements rarely move stocks when demand has already priced in perfection and memory names remain under pressure alongside broader AI memory demand themes.
ON Semiconductor’s stock dropped about 24% after announcing its largest acquisition ever: an all-stock deal to buy Synaptics to expand into edge and physical AI with Synaptics’ Astra platform. The move would broaden its addressable market by roughly $30 billion to about $243 billion by 2030 and establish a new AI compute platform for edge devices and autonomous systems. Management says there is no product overlap and the core business remains strong; the deal is expected to close in mid-2027 with around $200 million in annual synergies within 18 months of close. The company also noted its data center business is performing well.