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It’s no secret that large price swings are commonly seen in the market post-earnings or following news headlines, with market participants reacting quickly in response.
And today, we’ve seen several stocks undergo volatility in the session, including Advanced Micro Devices (AMD - Free Report) , Starbucks (SBUX - Free Report) , and Meta Platforms (META - Free Report) . AMD and SBUX shares are experiencing volatility post-earnings, whereas META shares are undergoing volatility following an FTC announcement.
Below is a chart illustrating the performance of all three year-to-date, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at why these stocks are moving in today’s session.
Meta Platforms
META shares witnessed volatility following an announcement from the Federal Trade Commission (FTC). The FTC proposed modifications to its original 2020 privacy order with the company, with the agency claiming that it’s failed to comply with the order in its entirety.
As part of these changes, Meta would no longer be allowed to monetize youth data (those under 18). Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said, “The company’s recklessness has put young users at risk, and Facebook needs to answer for its failures.”
Following the headline, META shares faced selling pressure but have since bounced from their intraday lows.
Meta Platforms’ latest quarterly print caught the attention of nearly all market participants, delivering a solid 35% EPS surprise and revealing optimistic guidance. Quarterly revenue totaled $28.6 billion, above expectations, reflecting the first Y/Y revenue increase in four quarters.
Image Source: Zacks Investment Research
Analysts have raised their earnings expectations for the technology titan over the last several months, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Advanced Micro Devices
Despite posting a double-beat, Advanced Micro Devices shares faced volatility post-earnings in yesterday’s after-hours session. Shares have faced adverse price action throughout trading so far, down roughly 8% from yesterday’s close.
AMD posted earnings of $0.60 per share, exceeding the Zacks Consensus EPS Estimate by roughly 7%. Quarterly revenue totaled $5.4 billion, modestly ahead of expectations and 9% lower than the year-ago figure of $5.9 billion.
However, a part of the quarterly release that spooked market participants was the results from AMD’s Client segment, which includes revenue from PC processors. Client segment revenue totaled $739 million, down 65% year-over-year as PC shipments have rapidly declined.
Analysts have had a bearish stance on the company’s earnings outlook as of late, with AMD’s earnings outlook shifting negatively across nearly all timeframes.
Image Source: Zacks Investment Research
Starbucks
Like AMD, Starbucks posted better-than-expected results, exceeding the Zacks Consensus EPS Estimate by more than 15%. Quarterly revenue totaled $8.7 billion, 4% above expectations and improving 14% year-over-year.
Image Source: Zacks Investment Research
There were also several notable highlights from the release, including –
North America comparable store sales increased 12% year-over-year, and China comparable store sales saw year-over-year growth of 3%, both driven by an increase in comparable transactions. Further, the company opened 464 net new stores throughout the quarter, bringing the total tally to 36,434 stores globally.
Still, despite posting overall positive results, the company didn’t lift its guidance, perhaps spooking some investors. The adverse price action could be a reflection of profit-taking, as SBUX shares were up 15% year-to-date prior to the earnings release.
Bottom Line
On any given day, we see large price swings within the market, whether that’s in response to a news headline or quarterly results.
And all three stocks above – Advanced Micro Devices (AMD - Free Report) , Starbucks (SBUX - Free Report) , and Meta Platforms (META - Free Report) – experienced volatile price action in today’s session.
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3 Stocks That Moved Wildly in Today's Session
It’s no secret that large price swings are commonly seen in the market post-earnings or following news headlines, with market participants reacting quickly in response.
And today, we’ve seen several stocks undergo volatility in the session, including Advanced Micro Devices (AMD - Free Report) , Starbucks (SBUX - Free Report) , and Meta Platforms (META - Free Report) . AMD and SBUX shares are experiencing volatility post-earnings, whereas META shares are undergoing volatility following an FTC announcement.
Below is a chart illustrating the performance of all three year-to-date, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at why these stocks are moving in today’s session.
Meta Platforms
META shares witnessed volatility following an announcement from the Federal Trade Commission (FTC). The FTC proposed modifications to its original 2020 privacy order with the company, with the agency claiming that it’s failed to comply with the order in its entirety.
As part of these changes, Meta would no longer be allowed to monetize youth data (those under 18). Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said, “The company’s recklessness has put young users at risk, and Facebook needs to answer for its failures.”
Following the headline, META shares faced selling pressure but have since bounced from their intraday lows.
Meta Platforms’ latest quarterly print caught the attention of nearly all market participants, delivering a solid 35% EPS surprise and revealing optimistic guidance. Quarterly revenue totaled $28.6 billion, above expectations, reflecting the first Y/Y revenue increase in four quarters.
Image Source: Zacks Investment Research
Analysts have raised their earnings expectations for the technology titan over the last several months, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Advanced Micro Devices
Despite posting a double-beat, Advanced Micro Devices shares faced volatility post-earnings in yesterday’s after-hours session. Shares have faced adverse price action throughout trading so far, down roughly 8% from yesterday’s close.
AMD posted earnings of $0.60 per share, exceeding the Zacks Consensus EPS Estimate by roughly 7%. Quarterly revenue totaled $5.4 billion, modestly ahead of expectations and 9% lower than the year-ago figure of $5.9 billion.
However, a part of the quarterly release that spooked market participants was the results from AMD’s Client segment, which includes revenue from PC processors. Client segment revenue totaled $739 million, down 65% year-over-year as PC shipments have rapidly declined.
Analysts have had a bearish stance on the company’s earnings outlook as of late, with AMD’s earnings outlook shifting negatively across nearly all timeframes.
Image Source: Zacks Investment Research
Starbucks
Like AMD, Starbucks posted better-than-expected results, exceeding the Zacks Consensus EPS Estimate by more than 15%. Quarterly revenue totaled $8.7 billion, 4% above expectations and improving 14% year-over-year.
Image Source: Zacks Investment Research
There were also several notable highlights from the release, including –
North America comparable store sales increased 12% year-over-year, and China comparable store sales saw year-over-year growth of 3%, both driven by an increase in comparable transactions. Further, the company opened 464 net new stores throughout the quarter, bringing the total tally to 36,434 stores globally.
Still, despite posting overall positive results, the company didn’t lift its guidance, perhaps spooking some investors. The adverse price action could be a reflection of profit-taking, as SBUX shares were up 15% year-to-date prior to the earnings release.
Bottom Line
On any given day, we see large price swings within the market, whether that’s in response to a news headline or quarterly results.
And all three stocks above – Advanced Micro Devices (AMD - Free Report) , Starbucks (SBUX - Free Report) , and Meta Platforms (META - Free Report) – experienced volatile price action in today’s session.