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Big Moves Decoded: EBAY, Chipotle, and more
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Market Performance
S&P 500: 6,822.34 ⬇️ 0.99%
Nasdaq: 23,581.14 ⬇️ 1.57%
Dow Jones: 47,522.12 ⬇️ 0.23%
Apple and Amazon Flex Their Muscles
Tech giants Apple (AAPL) and Amazon (AMZN) delivered blockbuster earnings that defied the broader market's tech selloff on Thursday, showcasing resilience that could reshape investor sentiment heading into year-end.
Apple crushed expectations with $1.85 EPS versus $1.77 estimated and $102.47 billion in revenue.
More importantly, CEO Tim Cook projected revenue growth of 10-12% for fiscal Q1, positioning it as the company's best quarter ever.
The confidence stems from "off the chart" reception for iPhone 17 devices and surging store traffic worldwide.
Despite supply constraints on several iPhone models and a 4% revenue decline in Greater China, Apple's services business accelerated 15% to $24.97 billion—the company's highest-margin segment showing no signs of slowing.
Source: App Economy Insights
Amazon's results were even more spectacular, with shares jumping 13% after the company posted $1.95 EPS (versus an estimated $1.57) and $180.17 billion in revenue.
AWS revenue accelerated 20.2%, crushing the 18.1% expectation and marking growth rates not seen since 2022.
CEO Andy Jassy credited robust AI demand, noting the company added 3.8 gigawatts of capacity in the past year and opened its $11 billion Project Rainier AI data center.
Amazon has raised its 2025 capital expenditure (capex) guidance to $125 billion from $118 billion, indicating that its aggressive investment in AI infrastructure will continue into 2026.
Both companies are absorbing tariff costs rather than passing them on to consumers—Apple absorbed $1.1 billion in Q3 and expects to absorb $1.4 billion in Q4, while maintaining its pricing power.
This strategy, combined with Amazon's announcement of 14,000 corporate layoffs aimed at streamlining operations, demonstrates how tech leaders are optimizing for efficiency while investing heavily in AI dominance.
Our Takeaway
While Meta and Microsoft faced concerns about elevated spending, Apple and Amazon demonstrated that disciplined AI investment, combined with strong core businesses, earns investor confidence.
Their ability to maintain margins despite tariff headwinds while projecting accelerating growth suggests the tech rally isn't over—it's just getting more selective.
These results validate that AI infrastructure spending translates to actual revenue growth, not just promises.
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Market Overview 📈
Thursday's session highlighted a decisive rotation from megacap tech into value stocks, as investors reassessed spending outlooks following Big Tech earnings and digested developments from the Trump-Xi meeting in South Korea.
While Alphabet surged 2.5% on strong cloud and advertising results, Meta plummeted 11% after raising its capital expenditure outlook to $70-72 billion, and Microsoft fell 3% on similar spending acceleration concerns.
This created a "value day," according to Argent Capital Management's Jed Ellerbroek, with financials such as JPMorgan and Bank of America rallying, while semiconductors faced pressure from ongoing U.S.-China trade tensions.
The Trump-Xi summit delivered partial relief: fentanyl tariffs on China were reduced to 10% (reducing overall tariffs from 57% to 47%), Beijing agreed to purchase U.S. soybeans, and China delayed its rare earth export curbs by one year.
Federal Reserve Chair Jerome Powell's Wednesday comments continued to reverberate, as he suggested December rate cuts aren't "a foregone conclusion."
Wharton's Jeremy Siegel warned that this uncertainty will "slow down the bull market" in the near term, though he doesn't expect it to derail the broader uptrend.
The 30-year Treasury yield reached 5.16%—levels not seen since October 2023—adding pressure to an economy already navigating the impacts of tariffs.
With six weeks until the Fed's December meeting, investors will closely monitor consumer response to tariff-driven price increases during the holiday season.
Stock Moves Deciphered 📈
📦 C.H. Robinson Worldwide (CHRW) 📈
CHRW surged 20% after delivering a strong Q3 earnings beat and raising 2026 guidance, with multiple analyst upgrades following the report.
The logistics firm showcased impressive gains in market share, driven by its AI-powered operating model and lean cost structure.
🎬 Fox Corporation (FOX) 📈
FOX gained 8% following a robust Q1 fiscal 2026 report that beat earnings estimates, driven by record advertising revenue.
The company's streaming service, Tubi, reached profitability—a significant milestone that validates Fox's digital transformation strategy.
Additionally, management announced a new $1.5 billion share buyback program, signaling confidence in cash generation.
💉 Moderna (MRNA) 📈
MRNA stock soared 14% on speculation about potential buyout talks or significant partnership discussions with a large pharmaceutical company.
The reports overshadowed Moderna's recent financial struggles and declining revenue from its COVID-19 vaccine.
Investors seized on the possibility that a major drugmaker could value Moderna's mRNA platform technology and pipeline, particularly for cancer vaccines and other therapeutic areas.
🌯 Chipotle Mexican Grill (CMG) 📉
CMG plunged 18% after cutting same-store sales guidance for the third consecutive quarter and reporting Wednesday that traffic fell 0.8%—the third straight quarterly decline.
The burrito chain now expects fiscal 2025 same-store sales to decline by a low single-digit percentage, a dramatic reversal from its February projection of low-to-mid single-digit growth.
Headlines You Can't Miss 👀
🏦 Goldman Sachs lifted the Dow by 140 points as five old-economy stocks (Visa, Sherwin-Williams, JPMorgan, Caterpillar) drove outperformance.
🏦 J.P. Morgan unveiled a tokenized private-equity fund on the Kinexys blockchain platform for qualified investors.
🏥 Berkshire Hathaway sold $54.3 million worth of DaVita shares, reducing its stake to just below the 45% threshold per the buyback agreement.
💊 Bristol-Myers Squibb climbed 5% after Q3 beat and raised 2025 guidance to $6.40-$6.60 per share on Opdivo strength.
✈️ Boeing downgraded to hold by Deutsche Bank after $4.9B charge on 777X delays; free cash flow forecasts slashed.
⚡ Rare earth miners USA Rare Earth and MP Materials surged 4.5% and 3.3% after the Trump-Xi rare earth export delay agreement.
💊 Novo Nordisk enters $9B bidding war with Pfizer to acquire obesity drug developer Metsera; Metsera shares soared 24%.
📈 Wharton's Jeremy Siegel says Fed rate uncertainty will "slow down the bull market" but won't stop it; next six weeks critical.
🎰 MGM Resorts tumbled 6% after Q3 earnings missed, hurt by declining Las Vegas visitor traffic and weak casino revenue.
🍔 Restaurant Brands International rose 3% on an earnings beat driven by Tim Hortons and international restaurant growth, which accounted for 70% of earnings.
Trending Stocks 📊
💊 Eli Lilly (LLY) 📈
Eli Lilly rose almost 4% as it crushed third-quarter expectations and raised full-year guidance on explosive GLP-1 demand.
Zepbound sales nearly tripled year-over-year while Mounjaro doubled, with combined sales hitting nearly $25 billion year-to-date—exceeding Lilly's entire 2020 revenue.
🍿 Comcast (CMCSA) 📈
Comcast fell over 4% even as it topped Wall Street earnings and revenue estimates despite losing 104,000 domestic broadband customers—the fourth consecutive quarter of subscriber declines.
The company's total broadband base now stands at 31.4 million as it faces intense competition from 5G providers.
🛍️ eBay (EBAY) 📉
eBay shares declined 16% despite beating third-quarter earnings expectations after management issued disappointing fourth-quarter profit guidance.
The e-commerce platform cited negative impacts from the new Trump administration tariffs on import transaction volumes, suggesting international sellers and cross-border trade are feeling the squeeze.
What’s Next?
Key market and macro news 👇
🛢️ Exxon Mobil (XOM) reports Q3 earnings with an EPS estimate of $1.83 and a revenue forecast of $86.48 billion, providing critical insights into energy sector performance amid global oil demand dynamics.
⛽️ Chevron (CVX) releases quarterly results with expected EPS of $1.75 and revenue of $47.26 billion, offering key indicators of integrated oil company profitability and upstream production trends.
🏥 AbbVie (ABBV) announces earnings with an EPS forecast of $1.78 and a revenue estimate of $15.58 billion, highlighting the pharmaceutical industry's performance and the strength of its blockbuster drug portfolio.
🧴 Colgate-Palmolive (CL) reports quarterly performance with EPS estimate of $0.8903 and revenue of $5.13 billion, indicating consumer staples demand and pricing power in personal care products market.
📊 Core PCE Price Index forecast at 0.2% month-over-month represents the Federal Reserve's preferred inflation gauge, directly influencing monetary policy expectations and interest rate trajectory.
💰 Employment Cost Index expected at 0.9% measures wage inflation pressures, critical for Fed policy decisions as labor costs represent significant inflation transmission mechanism.
💸 Personal spending forecast of 0.4% growth tracks consumer expenditure trends, accounting for approximately 70% of U.S. GDP and signaling economic momentum strength.
Chart of the Day
Source: App Economy Insights
Meme of the Day
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