Shares of Applied Materials (NASDAQ: AMAT | AMAT Price Prediction) are up by 13% or by $43.56 a share.
All after the company posted solid earnings and impressed analysts with guidance.
EPS of $2.38 beat by 17 cents. Revenue of $7.01 billion, down 2.2% year over year, beat by $130 million. Moving forward, the company expects revenue to be between $7.15 billion and $8.15 billion, which is above expectations for $7.01 billion. Adjusted EPS is expected to come in between $2.44 and $2.84 per share, also well above the $2.28 anticipated.
“Wells Fargo was impressed with the company’s guidance, especially given the rising expectations from its peers. “While not providing a C2026 [wafer fab equipment estimates], AMAT expects its semi systems rev to grow >20% y/y—well ahead of prior Street est at +11% y/y,” as noted by Seeking Alpha. The firm has an overweight rating with a $435 price target.
Bank of America said it is now the “time to shine” for Applied Materials. The firm has a buy rating with a price target of $420. JPMorgan reiterated its overweight rating on AMAT, noting that AMAT’s growth potential remains strong.
Rivian Automotive
Shares of Rivian Automotive (NASDAQ: RIVN) are up 26%, or by $3.65 a share.
For one, Deutsche Bank just upgraded the stock to a buy rating with a $23 price target. The firm says RIVN is showing signs of a “de-risked” outlook thanks to volume expectations and improving vehicle costs. Plus, the firm says Rivian’s R2 launch appears to be on track for Q2.
Just yesterday, the company posted an EPS loss of 66 cents, which beat estimates by 13 cents. Revenue of $1.29 billion, down about 25% year over year, beat by $20 million.
In addition, Rivian says 2026 will be a pivotal year, with the R2 launch expected to drive vehicle delivery growth and mass market expansion. “The company delivered its first full year of positive gross profit and improved per-unit economics, while maintaining a robust liquidity position,” added Seeking Alpha.
Shares of Reddit (NYSE: RDDT) are showing big signs of life again.
After sliding from about $260 to a low of $127.70 on AI and advertising weakness concerns, oversold shares of RDDT are just starting to pivot higher again. Helping, a director just bought $7.48 million worth of RDDT stock, picking up 50,500 shares between February 10 and 11.
Earlier this month, the company posted EPS of $1.24, which beat by 31 cents. Revenue of $725.6 million, up 69.6% year over year, beat by $58.54 million. It also announced a $1 billion buyback program and said it expects revenue of between $595 million and $605 million and adjusted EBITDA in the $210 million to $220 million range. Both are ahead of estimates of $577.3 million for revenue and $203.2 million for adjusted EBITDA.
Last trading at $138.40, we’d like to see RDDT rally back to $160 initially.
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