The stock market is trading lower midday as Wall Street reacted to disappointing reports from major tech companies.
The S&P 500 declined 1.6%, with the Nasdaq Composite dropping 2.5%. The Dow Jones Industrial Average fell 0.64%, and the Russell 2000 Index slid 0.82%.
Microsoft shares declined 5.5% after weak revenue guidance, while Meta dropped 4% due to missed user-growth expectations and higher estimated 2025 capital spending, even as it surpassed earnings estimates.
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
- Paycom Software (PAYC) +24.7%
- Entergy (ETR) +14.6%
- International Paper (IP) +13.2%
- Gen Digital GEN +9.5%
- Ametek (AME) +8.2%
The worst-performing five S&P 500 stocks with the largest midday drop are:
- Huntington Ingalls (HII) -23.2%
- Estee Lauder (EL) -20.7%
- Monolithic Power Systems (MPWR) -18.5%
- Aptiv (APTV) -17.6%
- Teleflex (TFX) -14.4%
Stocks also worth noting include:
- Nvidia (NVDA) -4.7%
- Microsoft (MSFT) -5.5%
- Meta Platforms (META) -4.5%
- Carvana (CVNA) +24.3%
- Coinbase (COIN) -10.9%
Carvana soars after earnings beat
Carvana surged 24% midday after the used-car retailer posted a Q3 earnings beat and raised its 2024 earnings forecast.
For the third quarter, Carvana reported earnings per share of 64 cents, more than double the consensus estimate of 25 cents. Revenue reached $3.65 billion, above the expected $3.45 billion.
Related: Analysts shift gears on Carvana stock price targets on growth prospects
Carvana now projects adjusted earnings before interest, taxes, depreciation and amortization will be "significantly above the high end of its previously communicated range of $1 [billion] to $1.2 billion for the full year 2024," the company said in a statement.
The company also expects higher retail vehicle sales in the fourth quarter compared with the third, during which it sold 108,651 vehicles, up 34% year-over-year.
Meta Platforms falls despite earnings beat
Meta Platforms lost 4.5% midday even as the social-media stalwart reported Q3 earnings that exceeded Wall Street expectations.
Earnings per share were $6.03, ahead of analysts' projections of $5.25, with revenue hitting $40.59 billion—a 19% year-over-year increase, surpassing forecasts of $40.29 billion.
Related: Analyst reset Meta stock price target ahead of Q3 earnings
Daily active users rose to 3.29 billion, up 5% year-over-year, though this figure came in just shy of the 3.31 billion that analysts had anticipated.
“Our AI investments continue to require serious infrastructure, and I expect to continue investing significantly there, too,” CEO Mark Zuckerberg noted during the earnings call.
For the fourth quarter, Meta projects revenue between $45 billion and $48 billion, with the midpoint landing above Wall Street’s estimate of $46.3 billion.
Coinbase trades lower after earnings miss
Coinbase lost 11% after disappointing third-quarter results. The company reported earnings per share of 28 cents, missing analysts’ expectations of 41 cents, and revenue of $1.21 billion, short of the anticipated $1.26 billion.
“We had some softer market conditions in Q3, but overall, it was a really solid quarter for Coinbase. It was our seventh consecutive quarter of positive adjusted Ebitda. It was our fourth consecutive quarter of positive net income,” Chief Executive Brian Armstrong said during the earnings call.
More Tech Stocks:
- Analysts update Meta stock price target with Q3 earnings in focus
- Analyst updates Tesla stock price target ahead of key robotaxi event
- Analysts update outlook for Nvidia's Blackwell chips amid AI boom
Retail trading revenue surged 98% year-over-year to $483.3 million, while institutional revenue almost quadrupled to $55.3 million. Transaction revenue totaled $572.5 million, a 98% increase, supported by growth in Coinbase’s core trading business.
Subscription and services revenue, driven by stablecoins, staking, and Prime trader products, rose 66% to $556.1 million.
Coinbase warned, however, of flat growth in the current quarter, citing a 10% decline in ether prices in October and other market pressures.
Related: Veteran fund manager sees world of pain coming for stocks
