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Tech stocks show mixed signals in volatile earnings week
A volatile week for US tech stocks showed mixed results as companies reported earnings. Palantir Technologies impressed with its 12th consecutive quarter of revenue beats, while Sandisk and Western Digital fell after…
The Story in Brief
A volatile week for US tech stocks showed mixed results as companies reported earnings. Palantir Technologies impressed with its 12th consecutive quarter of revenue beats, while Sandisk and Western Digital fell after offering cautious guidance despite strong sales. Advanced Micro Devices (AMD) and Datadog both saw stock declines after earnings that met but did not exceed high expectations. The S&P 500 still posted gains, lifted by Amazon's cloud-computing strength and Caterpillar's data center demand.
The broader earnings season has been robust, with 86% of S&P 500 companies beating estimates and the index on track for seven straight quarters of double-digit earnings growth, according to FactSet. However, the rally remains concentrated: Alphabet and Amazon alone account for roughly 71% of blended earnings growth since July. Excluding them, the growth rate would drop from about 50% to 32%, FactSet analyst John Butters calculated. The Dow Jones Industrial Average also rose, supported by Caterpillar and Disney earnings.
The Indian Opinion
The narrative that the AI boom is faltering is overblown. Palantir, Caterpillar, and Amazon all posted strong results tied to AI infrastructure buildout. Even stocks that dropped after earnings, like Sandisk and AppLovin, fell more from unrealistic expectations than business weakness. The real test is whether earnings growth broadens beyond AI leaders. Watch the Q3 guidance from Nvidia and Microsoft: if they continue raising forecasts, the selloff in stocks that merely missed lofty targets will look premature.
Sources (2): livemint.com, hindustantimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
