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Midterms Spark Rally, But Earnings Send Trendy Stocks Whipsawing
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On today’s episode of Free Lunch, Ryan McQueeney discusses the results of the midterm elections and explains why earnings results have sent several trendy stocks—including Turtle Beach, Match Group, and Twilio—flying in different directions. He also provides a brief preview of upcoming earnings from Wynn Resorts and Qualcomm.
Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.
U.S. stocks moved sharply higher in morning trading Wednesday, as Wall Street saw what it expected from the midterms and investors could collectively move past the uncertainty of the election cycle.
This broad rally did not guarantee gains for those on the earnings front, however. A number of notable companies that reported either Tuesday afternoon or Wednesday morning were plummeting in morning trading, with investors apparently only willing to reward the strongest beat-and-raise quarters.
For instance, video game headset maker Turtle Beach (HEAR - Free Report) notched revenue growth of 107% and said that it has captured 490 basis points of market share so far this year. But investors were not convinced, and the one-time momentum darling fell about 13% in morning trading today.
Another company witnessing similar volatility is Match Group (MTCH - Free Report) . The Tinder parent company reported a comfortable earnings beat and saw its top line improve by 49% from the prior-year quarter, but soft guidance for the current quarter battered shares to the tune of an 18% early morning loss.
Luxury brand Michael Kors is also watching its stock sell off after reporting before the bell Wednesday. The company topped earnings estimates, and even though its pending of acquisition of Versace should open up key growth avenues soon, a rare revenue miss sent shares tumbling about 15% shortly after the open.
Nevertheless, things were not all bad for the trendy stocks. Cloud-based automated messing service Twilio (TWLO - Free Report) was absolutely skyrocketing in morning trading after its report, as the young firm reported better-than-expected results and guidance. Shares of the San Francisco-based company added more than 30% in morning hours.
This type of positive post-earnings momentum will hope to be matched by those reporting after the bell today, including Wynn Resorts (WYNN - Free Report) and Qualcomm (QCOM - Free Report) . Interested in hearing more about these upcoming reports, or the stocks that are moving dramatically after already reporting? Make sure to check out today’s episode of Free Lunch!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Midterms Spark Rally, But Earnings Send Trendy Stocks Whipsawing
On today’s episode of Free Lunch, Ryan McQueeney discusses the results of the midterm elections and explains why earnings results have sent several trendy stocks—including Turtle Beach, Match Group, and Twilio—flying in different directions. He also provides a brief preview of upcoming earnings from Wynn Resorts and Qualcomm.
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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.
U.S. stocks moved sharply higher in morning trading Wednesday, as Wall Street saw what it expected from the midterms and investors could collectively move past the uncertainty of the election cycle.
This broad rally did not guarantee gains for those on the earnings front, however. A number of notable companies that reported either Tuesday afternoon or Wednesday morning were plummeting in morning trading, with investors apparently only willing to reward the strongest beat-and-raise quarters.
For instance, video game headset maker Turtle Beach (HEAR - Free Report) notched revenue growth of 107% and said that it has captured 490 basis points of market share so far this year. But investors were not convinced, and the one-time momentum darling fell about 13% in morning trading today.
Another company witnessing similar volatility is Match Group (MTCH - Free Report) . The Tinder parent company reported a comfortable earnings beat and saw its top line improve by 49% from the prior-year quarter, but soft guidance for the current quarter battered shares to the tune of an 18% early morning loss.
Luxury brand Michael Kors is also watching its stock sell off after reporting before the bell Wednesday. The company topped earnings estimates, and even though its pending of acquisition of Versace should open up key growth avenues soon, a rare revenue miss sent shares tumbling about 15% shortly after the open.
Nevertheless, things were not all bad for the trendy stocks. Cloud-based automated messing service Twilio (TWLO - Free Report) was absolutely skyrocketing in morning trading after its report, as the young firm reported better-than-expected results and guidance. Shares of the San Francisco-based company added more than 30% in morning hours.
This type of positive post-earnings momentum will hope to be matched by those reporting after the bell today, including Wynn Resorts (WYNN - Free Report) and Qualcomm (QCOM - Free Report) . Interested in hearing more about these upcoming reports, or the stocks that are moving dramatically after already reporting? Make sure to check out today’s episode of Free Lunch!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>