After-Hours Snapshot Buzz and Review

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•  22 Nov 2024
 

Even though the market is closed, the after-hours activity gives us plenty to reflect on from the trading week. With a mix of strong earnings, disappointing guidance, insider transactions, and analyst upgrades, it’s clear that the market is a blend of optimism and caution heading into the next week. Here's a look at some key players from Friday's after-hours buzz and their implications for the broader market sentiment.

Intuit $INTU led the headlines with a flurry of updates following its Q1 fiscal results. While the company exceeded earnings expectations, its weaker guidance disappointed investors, causing the stock to take a sharp dive. Analysts pointed to mixed trends beneath the surface, with challenges in valuation sustainability and headwinds across its segments. The CEO’s reassurance about navigating uncertainties, including concerns over a potential free tax app, did little to alleviate concerns. Yet, the company's strengths in its online ecosystem and Credit Karma segments provided some glimmers of optimism for the long haul.

Zoom $ZM continued to stir speculation ahead of its Q3 earnings on Monday. With analysts closely watching its enterprise growth and options activity spiking, the stock remains a battleground between bulls and bears. Traders are keenly eyeing whether Zoom can regain the spark it had during its pandemic heyday, as recent chart patterns suggest a cautious recovery trend.

Roblox $RBLX saw a flurry of insider selling this week, with key executives, including the CEO, offloading millions in shares. Despite this, the stock found favor with analysts, landing on Raymond James’ current favorites list. Opinions on Roblox remain divided, as its innovative gaming platform battles skepticism over growth sustainability amidst changing user trends.

Reddit $RDDT faced turbulence after news broke that Advance planned to borrow against its stake in the company. The social media giant’s stock slid, reflecting investor jitters about the financing move. Technical analysts noted that while Reddit's charts show strong support levels, persistent selling pressure keeps the stock under scrutiny.

On the pharmaceutical front, AbbVie $ABBV rebounded impressively after a sell-off earlier in the week. An upgrade from Leerink cited a brighter outlook for the company following its Cerevel takeover, even as questions linger about its competitive edge. Analysts increasingly favor AbbVie over peers like Johnson & Johnson, underscoring its resilience in navigating industry challenges.

Retail stocks were not left out, with Abercrombie & Fitch $ANF gaining traction ahead of its Q3 earnings. Investors are optimistic about continued strength in the company’s brand and improved margins, despite broader challenges in the retail sector. Meanwhile, Best Buy BBY saw heightened options activity as it approaches its own earnings report. While Wall Street analysts remain cautiously optimistic, some predict that this holiday season might not be the boon for retail giants it traditionally has been.

Best Buy $BBY also gears up for earnings next week, with analysts debating its growth prospects in computing and services. Despite underperformance relative to the broader market, its fiscal Q3 report could offer insights into consumer spending trends heading into the holiday season.

Analog Devices $ADI enters the spotlight with cautious optimism. While recent analyst initiation at Equal Weight points to concerns over weak industrial demand, its participation in the UBS Global Technology Conference next week could offer clarity on growth avenues. Investors seeking stability in the volatile semiconductor space should keep a close eye on this one.

Lastly, Merck $MRK grabbed headlines with its approval for Welireg in China, marking a significant milestone for the company’s oncology portfolio. Despite this positive news, Merck’s rejection of TRC Capital’s mini-tender offer signaled a conservative approach to shareholder interests.