Wall Street was under pressure Thursday, but the damage was heavily concentrated in technology and AI-related shares.
Late Thursday morning, the Nasdaq Composite was down roughly 2.1%, while the S&P 500 had declined about 1.3%. The venerable Dow Jones Industrial Average was holding up considerably better, although by the latest CNBC reading it had slipped about 279 points, or 0.5%. [cnbc.com]
That distinction is important. Thursday wasn’t simply a broad “everything is down” session. Investors were once again questioning the amount of capital being committed to artificial intelligence and how quickly those investments can generate adequate returns. [reuters.com], [cnbc.com]
Oil added another complication. Brent crude was trading above $112 per barrel late Thursday morning as geopolitical tensions returned to investors’ attention. [cnbc.com]
Against that backdrop, an old-school defense company stood out.
💎 Diamond of the Day: Lockheed Martin (LMT)
Lockheed Martin earns Thursday’s Diamond following a third-quarter earnings report that exceeded cited analyst estimates and included increased full-year guidance.
The company reported quarterly sales of $20.71 billion, up 11.3% year over year, compared with cited analyst estimates of $20.44 billion. GAAP earnings of $7.97 per share also exceeded the cited $7.52 consensus estimate. [markets.fi…ontent.com]
Lockheed Martin also raised its full-year outlook. Bloomberg reported that the company now expects adjusted 2026 earnings of $30.35 to $30.75 per share, up from its previous range of $29.95 to $30.65. [bloomberg.com]
Why It Shined
- Q3 sales reached $20.71 billion, up 11.3% year over year and above the cited analyst estimate. [markets.fi…ontent.com]
- GAAP EPS of $7.97 exceeded the cited $7.52 consensus. [markets.fi…ontent.com]
- The company increased its full-year adjusted earnings outlook. [bloomberg.com]
- Quarter-end backlog was reported at $292 billion, up 63.1% from a year earlier. [markets.fi…ontent.com]
🐕 Dog of the Day: Meta Platforms (META)
Here’s another terrific example of one of our recurring earnings-season lessons:
Good reported numbers don’t necessarily mean a good day for the stock.
Meta Platforms shares were down approximately 6% to 7% Thursday as investors digested its latest results and spending plans. [reuters.com], [cnbc.com]
The company nevertheless reported third-quarter revenue of $64.6 billion, up 26%, compared with a cited consensus of $63.33 billion. EPS was reported at $3.83 versus a cited $3.57 estimate. [moneycheck.com]
What appeared to capture investors’ attention was the spending picture. Meta Platforms raised its annual capital-spending outlook to $135 billion to $145 billion, while continuing to invest heavily in AI. [moneycheck.com]
Why It Barked
- Meta Platforms shares were approximately 6% lower in late-morning trading. [cnbc.com]
- Revenue nevertheless exceeded the cited consensus estimate. [moneycheck.com]
- Reported EPS also exceeded the cited estimate. [moneycheck.com]
- The company increased its annual capital-spending outlook to $135 billion-$145 billion. [moneycheck.com]
- Weakness extended across several other technology and semiconductor companies Thursday. [reuters.com], [cnbc.com]
Important Disclosure
This commentary is provided solely for informational and educational purposes and should not be considered a recommendation or solicitation to buy, sell or hold any security, sector or investment strategy. The “Diamond” and “Dog” designations reflect notable market performance and/or publicly reported developments and are not intended as investment recommendations or assessments of future performance. Analyst estimates are third-party expectations and may vary by source. References to corporate spending plans, geopolitical developments, backlog and historical performance should not be interpreted as predictions of future financial or investment results. Intraday prices and market conditions may change materially before the close. Past performance does not guarantee future results. Investing involves risk, including possible loss of principal.