Technology investors were on a rollercoaster this past week. Notable names in the group saw large share price movements in the day following their earnings report. Investors digested a range of reports, from good to scary, as companies continue to progress through product cycles and deal with the macroeconomic landscape. These early reports set the stage for the busiest week!
The Good
Intel shares continued their ascent. The company’s stock price was up roughly 84% since their last earnings report and were trading roughly 2% higher as of midday Friday. This large move comes on the heels of investments from Nvidia and the Trump Administration to help the beleaguered semiconductor firm. While these cash inflows help repair a damaged balance sheet, investors received fundamentally positive news on Thursday: Intel’s core business may be inflecting higher. Revenue of $13.7 billion beat FactSet’s consensus estimate of $13.2 billion, and the company’s non-GAAP gross margin of 40.0% was the highest result in six quarters (all FactSet data). As shown below, FactSet’s consensus estimated EPS for Intel’s fiscal 2025 moved up following the report, signaling a stark change from the company’s previous string of disappointments and missteps.
The Neutral
Tesla’s earnings report largely came in line with analysts’ estimates, and shares of the company’s stock traded +2% higher the following day (after being down as much as -5% in early trading). The company’s stock price has been within a stone’s throw of all-time highs recently (closing 8% below its December 2024 peak the day before its report), and the results and commentary from this report may support the move in the stock.
Tesla reported record car deliveries in the quarter, aided by both a Model Y refresh and the end of the US federal tax incentives (which may have ‘pulled forward’ purchases aiming to capitalize on the cheaper after-tax price tag before credit expiry). Perhaps most importantly, to combat the expiry of these credits, Tesla released lower priced models of their flagship cars which may help delivery volumes in the future. Tesla CEO Elon Musk noted on the company’s earnings call “I feel confident in expanding Tesla’s production.” FactSet’s consensus expectations call for 15% delivery volume growth in 2026.
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The Spooky
Netflix investors received a spooky scare this Halloween season with shares trading lower by roughly 10% following the company’s report. The to-date leader in streaming was expected to report robust earnings growth of 26% but missed and reported $5.89 of EPS or growth of 6%. While much of this miss was due to a tax accrual on outbound payments from Brazil, it’s also worth noting that forward estimates didn’t move much higher following the report. FactSet’s consensus expectations now call for $32.31 of EPS in 2026, only slightly above the $32.28 expected before the report. Said differently, analysts’ expectations didn’t change much for Netflix following the report, but a lofty stock price after it’s run set high expectations.
This Week
These reports were just appetizers for tech investors. This week’s busy schedule includes Tuesday: Visa; Wednesday: Meta, Alphabet, Microsoft; and Thursday: Apple, Amazon.
Buckle up!
For more content by Blake Anderson, CFA®, Associate Portfolio Manager click here
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