Dell and Palantir stocks surge 7% after joining the S&P 500, replacing American Airlines and Etsy in the index.
Sectors & Industries
September 9, 2024
In recent events on LevelFields, CNFR announced the appointment of a new CEO, leading to an impressive 135% gain this week. Autohome Inc. revealed a stock buyback, resulting in a 6% increase. Meanwhile, Athira Pharma reported disappointing results in its Alzheimer’s trial, causing the stock to plummet by 78%.
The performance of the S&P 500 sectors last week were mixed, with only a few sectors experiencing gains. Consumer Staples led with an increase of +0.6%, followed by Real Estate with a modest gain of +0.2%. In contrast, most other sectors saw declines. Utilities fell by -0.5%, while Financials and Telecom dropped significantly by -3.2% and -5.1%, respectively. Other notable declines included Healthcare at -2.1%, Industrials at -4.4%, Information Technology at -7.1%, and Materials at -4.8%. The Energy sector also fell sharply by -5.6%, and Consumer Discretionary was down by -2.9%, reflecting broader weakness across the majority of sectors.
Dollar Tree's stock plummeted 22%, its worst daily decline since 2001, following a disappointing second-quarter earnings report. The company's earnings per share of $0.67 fell short of expectations, and full-year profit outlook was slashed by 20%. Management attributed the poor performance to a challenging economic environment. Dollar Tree's market capitalization dropped to $13.6 billion, a stark contrast to its nearly $40 billion peak in 2022, making it one of the worst-performing stocks on the S&P 500 this year.
C3.ai stock dropped 8% following weaker-than-expected subscription revenue in its first-quarter fiscal 2025 report. Subscription revenue reached $73.5 million, falling 7% below estimates, while professional services outperformed. Despite CEO Tom Siebel highlighting 21% year-over-year growth, four firms lowered their price targets, with JPMorgan reducing theirs from $24 to $19. The market remains cautious, scrutinizing AI-related stocks amid fluctuating demand.
Casey’s General Stores exceeded earnings expectations in Q1 fiscal 2025, with $4.83 per share, beating estimates of $4.54. Revenues grew 5.9% year-over-year to $4.1 billion but missed expectations. Inside sales increased 7.6%, driven by prepared food and beverages, while the gross margin expanded to 41.7%. Despite rising operating expenses due to store expansions, EBITDA grew 9.1%. Casey’s forecasts continued growth, targeting 3-5% in same-store sales and 8% EBITDA growth for fiscal 2025.
Dell and Palantir stocks surged about 7% after being added to the S&P 500 index, replacing American Airlines and Etsy, respectively. Dell returns to the index after going private in 2013 and relisting in 2018. Palantir, public since 2020, has shown steady profit growth. Both companies’ inclusion highlights their strong market capitalization, with Palantir valued at $67 billion and Dell at $72 billion.
Roaring Kitty's return to Twitter after a two-month hiatus led to an 8.2% surge in GameStop (GME) stock, while his implied disinterest in Chewy caused a brief 3.7% drop in its stock price. His post, an edited image from Toy Story showing a toy with a dog’s face being dropped, was widely interpreted as a signal he’s moving away from Chewy. This return comes just as GameStop is set to release its earnings later this week, adding to the anticipation. Call buyers will likely be scooping up positions at Monday's open on a gamble of renewed interest.
Shares of server maker Super Micro Computer (SMCI) are now down -30%, following a short seller attack that took down many others before them. LevelFields' AI alert went out a few minutes after the scalding rebuke of SMCI's accounting practices rocked the stock. SMCI is down 68% from its all-time-high.
The Short Seller Scenario identifies these types of downside risks. On average, these reports have caused a -17% drop in the stock in the first day or two, following by a slow, painful bleed over the latter months as lawsuits and government investigations pile up. This is exactly what we're seeing with SMCI, and the downgrade is causing even more selling.
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