Meta Platforms (NASDAQ:META) surged on strong earnings and AI progress, while Moderna (NASDAQ:MRNA) plummeted after slashing its sales outlook and Applied Materials (NASDAQ:AMAT) saw its stock drop after being denied funding under the CHIPS Act.
Meta Platforms, Moderna, and Applied Materials are capturing investor attention with significant news and stock movements in a day of mixed fortunes for stocks.
Meta’s shares are soaring on strong earnings, while Moderna faces a steep decline following a guidance cut. Applied Materials sees its stock drop after being denied a crucial government grant. Here’s a closer look at these market movers as of 10:34 AM EDT.
Meta Platforms (META) Surges on Stellar Earnings
Meta Platforms reported a robust second quarter, with profits reaching $13.5 billion and revenue climbing 22% year-over-year to $39 billion. The tech giant’s performance exceeded market expectations, driving its stock up by 7.75% to $511.62.
CEO Mark Zuckerberg highlighted Meta’s strong AI performance, with Meta AI on track to become the most-used AI assistant worldwide by year-end. The company’s focus on AI development, including the release of an open-source AI model and traction with Ray-Ban Meta AI glasses, has bolstered investor confidence.
Meta provided an optimistic forecast, projecting third-quarter revenue between $38.5 billion and $41 billion. The company’s year-to-date return stands at an impressive 44.52%, with a one-year return of 60.56%, reflecting sustained growth across its apps and AI initiatives.
Moderna (MRNA) Plummets on Slashed Outlook
Despite beating Q2 expectations with revenue of $241 million, Moderna’s stock plunged 15.28% to $101.00 after the company significantly reduced its full-year sales guidance. The biotech firm now expects 2024 product revenue between $3 billion and $3.5 billion, down from the previous $4 billion forecast.
Moderna cited lower expected sales in Europe and a competitive U.S. respiratory vaccine market as key factors behind the guidance cut. The company also faces challenges from tight European budgets and existing contracts with other suppliers, potentially deferring international revenue into 2025.
Despite current setbacks, Moderna remains optimistic about its long-term prospects. The company has begun shipping its new RSV vaccine, mRESVIA, in the U.S. and boasts a pipeline of 45 products in development. Moderna expects to return to sales growth by 2025 and achieve profitability by 2026.
Applied Materials (AMAT) Declines on CHIPS Act Setback
Applied Materials saw its stock drop 4.44% to $202.77 following news that it was denied funding under the CHIPS Act for a $4 billion research and development center in Silicon Valley. The rejection comes as a blow to the company’s plans for expanding its U.S. operations.
The CHIPS and Science Act, signed into law in August 2022, authorized $280 billion in funding for domestic chipmaking research and development. While other chipmakers like TSMC (NYSE:TSM), Samsung Electronics, and SK Hynix have secured grants, Applied Materials faced difficulties in gaining approval for its project.
Despite the setback, Applied Materials maintains a strong market position with a market cap of $167.872 billion and a P/E ratio of 24.41. The company’s year-to-date return stands at 25.54%, with a one-year return of 34.80%, indicating resilience in the face of challenges.
The CHIPS and Science Act, signed into law in August 2022, authorized $280 billion in funding for domestic chipmaking research and development. While other chipmakers like TSMC, Samsung Electronics (KS:005930), and SK Hynix have secured grants, Applied Materials faced difficulties in gaining approval for its project.
Despite the setback, Applied Materials maintains a strong market position with a market cap of $167.872 billion and a P/E ratio of 24.41. The company’s year-to-date return stands at 25.54%, with a one-year return of 34.80%, indicating resilience in the face of challenges.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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