A Slow Monday In The Markets

You didn’t drink too much this weekend and wake up in 2020 or 2021. It’s August 2022, and the classical meme stocks are still doing their thing. 🗓️

Despite lackluster (or straight-up bad) earnings reports from Bed Bath & Beyond, AMC, Carvana, and Beyond Meat, the stocks are squeezing to the upside. 📈

Below is a chart of their performance over the last ten days since their upward moves began.

While a lot of the mania we saw in past years has died down along with the overall market’s performance, there’s still plenty of craziness happening (as there always is). 🤪

How long these moves will last is anyone’s guess, but the message is clear. Anyone that thought retail trading activity and collaboration on social media and other platforms was entirely going away may have to eat their words at this point… 🤷‍♂️

Are you trading any of these stocks or avoiding the madness? Let us know. 💭

First, let’s start with Tyson Foods, which did not bring home the bacon for investors. Instead, the multinational food company reported weaker than expected earnings and revenues.

The company warned that supply constraints and reduced demand for high-priced beef would continue to pressure its earnings.

$TSN shares were down 8.40% as it joins many other companies citing a tougher macro environment and inflation as major headwinds. 🔻

Shares of popular tech stock Palantir plummeted 14.24% after reporting weaker than expected earnings but slightly beating on revenue.

The company’s CFO said that the earnings miss was primarily due to a decline in investments and marketable securities and that its commercial revenue remains strong, growing 46% YoY. 💪

Overall, investors appear focused on the company’s weak guidance, which it says is due to the “lumpiness” of government work. 

Lastly, another retail favorite, Upstart, rallied 9% ahead of its earnings before giving it all back (and more) after the report. 👎

Despite the optimism from investors throughout the day, the company missed earnings and provided Q3 guidance below consensus estimates.

The lending platform’s co-founder and CEO, Dave Girouard, was singing a familiar tune: “This quarter’s results are disappointing and reflect a difficult macroeconomic environment that led to funding constraints in our marketplace…” 

There were some positive earnings too, but these stood out to us. Check out the Stocktwits earnings calendar to keep track of them all. 🗓️

It has been a wild ride for semiconductors over the last year, but it seems the short-term tide has shifted from chip shortages to a demand slowdown. 👎

Below we’ve got a chart of the iShares Semiconductor ETF and a few of its largest components. After a massive run through the end of last year, they’ve all gone from big gains to big drawdowns. 🔻

So far this earnings season, we’ve heard mixed results from companies like Taiwan Semiconductor, Micron, Intel, and others. They’ve spoken about slowing demand in the gaming market, PC and tablet sales, and even a slowdown in mobile device sales.

And today, Nvidia added to the evidence that this slowdown is industry-wide by preannouncing its Q2 2023 earnings. The company said it expects revenue to be approximately $6.70 billion vs. its previous guidance of $8.10 billion. The driver of this miss was primarily weaker than expected gaming revenue, which came in at $2.04 billion, down 33% YoY and 44% MoM. 📉

Below is a chart from the release highlighting some key data points.

The company joins a variety of firms citing challenging macro conditions and supply chain disruptions as major issues.

$NVDA shares were down 6.30% today at the close and put pressure on its peers as investors cope with the fact that this highly-cyclical sector is likely in the midst of a broader slowdown. 😨