Live Updates: Nasdaq Composite Rises But Oracle (ORCL) & MongoDB (MDB) Plummet

Investing

Eric Bleeker

Published: December 10, 2024 11:13 am

Last Updated: December 10, 2024 5:30 pm

Live Updates

Momentum Stocks Sink Again

4:44 pm

The Nasdaq closed down just .25% today, but there was a sea of red in certain segments of the market.

Semiconductor stocks were hammered today. NVIDIA (Nasdaq: NVDA) closed down 2.69% while Broadcom (Nasdaq: AVGO) dropped 3.98%. Overall, the iShares Semiconductor ETF dropped 2.38% on the day.
Stocks that have seen massive gains this year continue to struggle. Applovin (Nasdaq: APP) was down 6.3% today while Palantir (Nasdaq: PLTR) dropped 2.17%.

Momentum Stocks in Focus

11:08 am

Yesterday, all 26 of the Russell 1000 stocks that were up more than 100% year-to-date declined. On average, they were down more than 5%.

That list includes companies like Applovin (Nasdaq: APP), MicroStrategy (Nasdaq: MSTR), Carvana (NYSE: CVNA), and Palantir (Nasdaq: PLTR). Let’s check in on how momentum stocks are performing after yesterday’s sell-off:

Applovin: Down .81%
Microstrategy: Down 1.27%
Carvana: Down 1.10%
Palantir: Up .76%

As you can see, yesterday’s sell-off on highly appreciated stocks has moderated, but the group is still generally down today. This will continue to be an interesting storyline to watch in the weeks ahead.

As of 11:00 a.m. ET, the Nasdaq Composite is bouncing back from yesterday’s drop thanks to a major contribution from Alphabet (Nasdaq: GOOGL). However, other major indexes are slightly in the red or flat on a mixed trading day:

Dow Jones Industrial Average: Up 53.65 (+.12%)
S&P 500: Up 7.01 (+.11%)
Nasdaq: Up 43.63 (+.25%)
Russell 2000: Down .82 (-.03%)

Let’s take a look at some of the bigger storylines in the market today.

Alphabet Seeing the Strongest Magnificent 7 Gains

In 24/7 Wall St’s market update yesterday, we covered the announcement of Google’s new quantum chip, named Willow. The stock of Google-parent company Alphabet barely budged yesterday after Willow’s announcement, but is rising sharply today. Alphabet shares are up 4.80%.

Other Magnificent 7 stocks are also seeing strong returns today. Tesla (Nasdaq: TSLA) is up 4.1%, Meta Platforms (Nasdaq: META) is up 1.5%, Amazon (Nasdaq: AMZN) is up 1%, and NVIDIA (Nasdaq: NVDA) is up .8%. Most categories of technology are performing well today, but there is some weakness largely stemming from earnings releases.

Oracle and MongoDB Headline Earnings Today

The most followed earnings release last night came from Oracle (Nasdaq: ORCL). The company is up 69% year-to-date amidst optimism its competing well against the largest hyperscalers and can become a major cloud computing company. However, today the company is down nearly 8%.

The headline figure investors are zeroing in on today is Oracle’s revenue. Wall Street expected $14.12 billion in revenue, but Oracle came up short, producing just $14.06 billion. The miss was driven by lower-than-expected sales in Oracle’s cloud services and support business. Another concern for investors was that operating cash flow came in at $1.304 billion, well below expectations of $1.795 billion.

Wall Street opinions on Oracle are mixed this morning. Some banks like RBC Capital are keeping the company at sector perform with price targets below where its trading today. While others like Bernstein see today’s sell-off as a buying opportunity and emphasize Oracle’s long-term tailwinds from the growth of AI.

Another widely followed technology stock trading down today is MongoDB (Nasdaq: MDB). The company stock is off 13% after announcing earnings. MongoDB beat earnings expectations, smashed earnings, and outperformed guidance, so the strong reaction to its earnings are a bit of a surprise.

One reason for Wall Street’s reaction today is the company’s conference call went into details that much of the earnings beat was driven by upfront revenue on multi-year deals. The company may also be a victim of rising expectations in its sector after Snowflake (NYSE: SNOW) soared after releasing its recent earnings.

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