If you’re an avid stock market watcher, you’ve likely noticed some significant movements in share prices over the midday trading session. Several high-profile companies saw their stocks moving sharply up or down based on quarterly earnings results, analyst actions, and other news.
In this article, I will outline the biggest stock gainers and losers from midday trading on November 10th, 2023. I’ll analyze the key factors driving the price changes and provide my view on whether these moves may continue or not. By the end, you’ll have a comprehensive overview of the major movers in the market today.
Table of Contents
Groupon Sinks on Revenue Miss
Online deals marketplace Groupon (GRPN) was one of the hardest hit stocks today, plunging over 35% at one point. The steep decline came after the company reported third quarter revenue and gross billings that fell short of Wall Street expectations. Groupon brought in revenue of $155 million for Q3, down from $304 million in the year-ago period. Analysts were looking for $157 million.
Gross billings also declined 39% year-over-year to $638 million, missing the $674 million consensus. Groupon’s continued struggles show it has failed to transition its business model effectively in the post-pandemic environment. With competition fierce, I wouldn’t expect this stock to rebound significantly until they can show top-line growth again.
Wynn Resorts Drops Despite Earnings Beat
Shares of casino operator Wynn Resorts (WYNN) dropped over 7% even after reporting third quarter results that beat estimates. On the surface, this move seems strange given the company grew revenue 18% year-over-year to $1.07 billion, ahead of the $1.03 billion forecast.
However, analysts focused more on Wynn’s figures from Macau, which showed EBITDAR declining 5% during the quarter. With China’s zero-COVID policies continuing to impact travel to Macau, investors may be concerned about ongoing headwinds in that key market. Unless conditions change, I believe the stock will remain pressured.
Plug Power Plunges on Weak Guidance
Hydrogen fuel cell company Plug Power (PLUG) saw its stock price nosedive over 30% following disappointing third quarter results. The company reported a wider-than-expected loss and revenue that came in below Wall Street projections. More concerning was Plug Power’s lowered revenue guidance for the full year, citing supply chain issues.
Several analysts reacted negatively, with JPMorgan and RBC both slashing their price targets. Given Plug Power’s history of missing targets and the uncertain macro backdrop, this stock is extremely risky right now. Investors would be wise to avoid it until they can demonstrate more consistent execution.
Illumina Issues Steep Guidance Cut
In the biotech space, Illumina (ILMN) warned investors of a sharp decline, falling over 13% on news of a guidance reduction. The company, which makes genomic sequencing instruments, lowered its full year adjusted EPS forecast to a range of $0.60-0.70 compared to a prior view of $0.80. Revenue projections were also trimmed.
Illumina blamed weaker demand, especially from China. While the stock is significantly cheaper following this pullback, ongoing geopolitical tensions and a difficult funding environment leave the outlook cloudy. I’d stay on the sidelines until visibility improves.
Treace Medical Sinks After Earnings Miss
Medical device maker Treace Medical Concepts (TMCI) was among the hardest hit stocks today, plummeting over 40% at one point. The steep decline came after Treace reported third quarter results that fell short of expectations, with both earnings and revenue missing the mark.
Perhaps more concerning was the company lowering its full year revenue guidance, citing softer demand. With Treace still unprofitable and now facing a growth slowdown, investors are clearly worried about the outlook. I would avoid this stock currently given the earnings and guidance misses raise questions about execution.
The Trade Desk Drops Despite Profit Beat
Digital advertising platform The Trade Desk (TTD) dropped nearly 18% despite reporting third quarter profits that beat estimates. However, the company issued weaker-than-expected guidance, citing macro uncertainty and cautiousness among some advertiser clients. The Trade Desk expects Q4 revenue of $365-$375 million compared to the $383 million consensus.
Guidance seems to confirm worries that ad spending is slowing as the economy softens. With digital ad growth also facing “privacy sandbox” headwinds, I would be hesitant to buy into any rebounds in The Trade Desk’s stock until signs of stabilization emerge.
Freyr Battery Shares Slide on Downgrade
Norwegian battery manufacturer Freyr Battery (FREY) saw its shares fall over 18% following a downgrade by BTIG to Neutral from Buy. The price target was also lowered. While Freyr did beat Q3 earnings estimates, analysts cited concerns about execution risks as the company works to ramp up production.
Given Freyr is still years away from meaningful revenue and has a lot riding on successfully scaling operations, the stock carries significant risk. I would avoid it for the time being and wait for more clarity on their production ramp.
Some Stocks Buck the Trend on Earnings
Not all companies that reported this week saw their shares punished. A few like Synaptics (SYNA) managed to move higher following better-than-feared results. Synaptics popped over 13% after topping estimates and issuing in-line guidance.
In the healthcare space, Hologic (HOLX) gained over 5% as its profit and revenue outlook came as expected despite some weakness. These results helped reassure bulls that not all companies are facing demand declines. For stocks like Synaptics and Hologic that executed well, upside may continue if macro conditions stabilize.
FAQs:
Q1. Which stock suffered the largest single-day decline?
A: Treace Medical Concepts saw its shares plunge over 40% following earnings and guidance misses.
Q2. Why did Wynn Resorts stock fall despite beating estimates?
A: Analysts were concerned by weakness the company saw in its key Macau market, with EBITDAR declining 5% year-over-year there.
Q3. What factors caused guidance reductions from Illumina and The Trade Desk?
A: Illumina cited weaker demand, especially from China. The Trade Desk expects softer ad spending in Q4 from cautious advertisers amid macro uncertainty.
Q4. Which stocks bucked the downward trend on earnings news?
A: Synaptics and Hologic shares rose after reporting results that reassured investors, with Synaptics topping estimates and Hologic meeting expectations.
Q5. What is the main takeaway for investors from this midday’s big stock moves?
A: Companies that miss targets or issue disappointing outlooks tend to be punished severely. Only those with strong execution and visibility may hold up during periods of high market volatility.