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Big Tech Earnings Can't Hold Back Q3 GDP: Analysts Upgrade or Downgrade Livent, Meta, Pinduoduo and Others
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Markets were somewhat mixed on Thursday, with the S&P 500 and Dow Jones industries showing gains while the tech-heavy Nasdaq lagged. The Dow and S&P 500 were up 1.5% and 0.6%, respectively while the Nasdaq was just barely negative. Though negative tech earnings contributed to the slumping Nasdaq, the rest of the markets bounded on the most recent gross domestic product (GDP) report.
One reason for the Nasdaq pushing lower was weaker-than-expected earnings from Meta, formerly known as Facebook. Big tech has seen an especially weak showing this week so far, with Microsoft and Alphabet whiffing on earnings as well. This begs the question of whether Amazon and Apple can buck the trend when they report quarterly results after the close.
The preliminary report for the third quarter showed that GDP increased at a 2.6% annualized rate, after contracting 0.6% in the second quarter. The consensus estimate for the preliminary read on Q3 was increase of 2.4%, though estimates ranged from as low as 0.8% to as high as 3.7%.
Here, 24/7 Wall St. is reviewing additional analyst calls seen on Thursday. We have included the latest call on each stock, as well as a recent trading history and the consensus targets among analysts. Note that analyst calls seen earlier in the day were on Haliburton, Mattel, Netflix, Synchrony, Visa and more.
Annaly Capital Management Inc. (NYSE: NLY): Barclays upgraded the stock to Overweight from Equal Weight and raised its $6 price target to $19. The shares traded near $18 on Thursday. The 52-week range is $15.11 to $34.96.
Ferrari N.V. (NYSE: RACE): HSBC Securities raised its Hold rating to Buy. The stock traded near $198 on Thursday, in a 52-week range of $167.45 to $278.78.
Livent Corp. (NYSE: LTHM): B. Riley Securities resumed coverage with a Neutral rating but raised the price target to $32 from $30. Shares traded near $31 on Thursday, in a 52-week range of $19.35 to $36.38.
Masco Corp. (NYSE: MAS): The Outperform rating at RBC Capital Markets fell to Sector Perform, and the analyst cut the $57 price target to $47. The stock traded near $47 on Thursday, in a 52-week range of $42.33 to $71.06.
Medpace Holdings Inc. (NASDAQ: MEDP): When UBS upgraded the shares to Neutral from Sell, it also raised the $142 price target to $238. The 52-week trading range is $126.94 to $235.72, and the share price was near $215 on Thursday.
Mercury Systems Inc. (NASDAQ: MRCY): Raymond James initiated coverage with an Outperform rating and a $55 price target. Shares have traded as high as $72.28 in the past year but were changing hands near $49 on Thursday.
Meta Platforms Inc. (NASDAQ: META): Morgan Stanley downgraded the stock to Equal Weight from Overweight and cut its $205 price target to $105. KeyBanc Capital Markets cut its Overweight rating to Sector Weight. Cowen’s downgrade to Market Perform from Outperform included a price target cut to $135 from $205. The stock was last seen trading near $102, in a 52-week range of $97.36 to $353.83.
Pinduoduo Inc. (NASDAQ: PDD): As Barclays upgraded the shares to Overweight from Equal Weight, it raised its $66 price target to $70. The stock has traded as high as $95.58 a share in the past year but was last seen near $53. That is down nearly 9% year to date.
Seagate Technology Holdings PLC (NASDAQ: STX): UBS’s downgrade was from Buy to Neutral. The stock has traded as high as $117.67 a share in the past year but was last seen trading around $54. That is down over 52% year to date.
ServiceNow Inc. (NYSE: NOW): MoffettNathanson’s upgrade was from Market Perform to Outperform with a $549 price target. The 52-week trading range is $337.00 to $707.60. Shares changed hands near $420 apiece on Thursday.
Silicon Laboratories Inc. (NASDAQ: SLAB): Needham cut its Buy rating to Hold. The shares traded near $115 on Thursday. The 52-week range is $109.44 to $211.98.
Thor Industries Inc. (NYSE: THO): Benchmark downgraded the RV maker to Hold from Buy. The 52-week trading range is $66.26 to $115.47. Shares changed hands near $80 apiece on Thursday.
Thermo Fisher Scientific Inc. (NYSE: TMO): Benchmark’s downgrade was from Buy to Hold. The stock traded near $505 on Thursday, in a 52-week range of $478.31 to $672.34.
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