CLOSING BELL
Google's Black Friday Chip Deals
The market rebounded a bit Tuesday, the S&P 500 sitting nearly 2% from all-time highs after fresh AI spend news from the Mag 7 sent prices rebounding.
The Dow climbed without Nvidia, the prodigal chip giant leading in the red while Meta and Google tightened competition with a chip trade deal of their own. It nearly sent Google’s shares over the $4T milestone mark.
Retail data showed half the sales growth the Street wanted to see… in September, the data finally came out after the Fed shutdown.
Airlines moved higher after the National Oceanic and Atmospheric Admin predicted a record 82M people are traveling over the river and through the woods for Thanksgiving this year.
House SpeakerJohnson said Republicans are not so sure they want to go along with Trump's two-year extension of Obamacare, and Oscar Health and other providers fell after the Admin denied even considering it post-market.
9 of 11 sectors closed green. Healthcare $XLV ( ▲ 2.26% ) lead and energy $XLE ( ▼ 0.63% ) lagged.
AFTER THE BELL
Earnings Season Still Cranking Out Post-Market Jumps
Petco Health and Wellness Company $WOOF ( ▲ 6.45% ) was climbing 9% in the post-market. The pet-loving stire eported adjusted earnings of $0.03 per share for its third fiscal quarter, compared to a 6C loss last year. The pet retailer posted revenue of $1.46 billion, which was a slight miss against the $1.47 billion forecast. The company's stock jumped post-market as it delivered on its profitability goals, expanding its gross profit margin and raising its full-year 2025 earnings outlook to a tighter $395M-$397M window.
Workday $WDAY ( ▲ 3.11% ) reported adjusted earnings of $2.32 per share for the third fiscal quarter, easily beating the consensus estimate of $2.17. Revenue for the quarter also surpassed expectations, coming in at $2.43 billion compared to the $2.41 billion consensus.
Dell Technologies $DELL ( ▼ 1.02% ) was climbing after the bell, the computer maker reported adjusted earnings of $2.59 per share for the third quarter, with revenue of $27.01 billion, missing estimates. Dell said it was going to have a big incoming 4th quarter with $9.4B in AI server sales.
HP Inc. was falling, reporting adjusted earnings of $0.93 per share for the fourth fiscal quarter, slightly beating the $0.92 consensus estimate. Revenue for the quarter came in at $14.6 billion, narrowly surpassing the $14.50 billion forecast. The consumer computer maker said AI datacenters were cranking prices on normal computer ram, to the point it will drag on yearly revenue.
It’s going to cost investors about 30C a share, Chief Enrique Lores said, and HP is cutting up to 6,000 employees to help stem costs.
INDUSTRY NEWS
META Black Friday Shopping For Google’s Discount Chips
$GOOGL ( ▲ 1.53% ) Both share classes of Alphabet were climbing Tuesday, nearly reaching the $4T market cap milestone. The Information reported last night that Meta was organizing a bulk Google-chip-buy for data centers. In classic The Information investigative source only reporting, the details were sparse, but it was enough to send names like $AMD ( ▼ 4.15% ) and $NVDA ( ▼ 2.59% ) falling.
The story goes $META ( ▲ 3.78% ) is planning to buy billions in Google AI chips for 2027 data center build-outs. The news brings competition to the trillions-strong (in imaginary future numbers) AI data center industry. Facebook is ready to spend an estimated $50B on Tensor processing unit chips with Google next year, Bloomberg estimated.
Jim Cramer, CNBC’s Mad Money magician, said in a tweet that Broadcom $AVGO ( ▲ 1.87% ) was the ultimate winner of the possible deal. Google’s TPU chips are sourced from Broadcom, Cramer said, and they would fulfill the contract.
Nvidia, not to be left out, tweeted that it was ‘delighted by’ Google’s success.
The chip giant said it was generations ahead of the industry. Unlike Nvidia’s do-everything Blackwell chips, Google’s TPU chips are made for specific tasks at Google, but CNBC reported Google lets other companies rent them through Google Cloud.
Google made waves earlier this month with the release of Gemini 3. Nvidia has been on the chopping block recently after a Michael Burry AI bear call and earnings beat, but a muted price reaction shook investor perception.
The chip giant apparently circulated a seven-page document with street analysts to refute Enron-like accounting fraud accusations.
I know what everyone is thinking: “Sounds great, but what old man profited from this?”
Warren Buffett, of $BRK.B ( ▲ 0.15% ) has pulled in a 32% gain on about $4.3B Berkshire spent on a big Google buy in Q3, according to its 13F two weeks ago. Based on a lower average price per share of $200 estimated by the wizards at Whalewisdom.com, Berkshire may be sitting on a 66% gain on its big purchase.
Buffett bought sometime in September, according to the reported share price, but it may have just recorded the quarter closing price near $243. Either way, the old man keeps winning up to the last trades before he steps down this year.
Berkshire’s beautiful Alphabet buy timing based on estimated share prices
INDUSTRY NEWS
More Earnings Reports: Great Day For Mall-Going Stock Holders
Alibaba Group $BABA ( ▼ 2.31% )
The company beat analyst expectations on both profit and revenue, with adjusted earnings of $2.95/share. The positive surprise was driven by accelerated growth in its China Commerce segment and a double-digit rise in its Cloud Intelligence Group revenue, which hit $4.34 billion.
Abercrombie & Fitch $ANF ( ▲ 37.54% )
Abercrombie crushed estimates, reporting an EPS of $2.36 on revenue of $1.3 billion, marking its 12th consecutive quarter of growth. The stock surged because the strength of its brands, particularly the Hollister brand, drove impressive sales growth and led management to raise its full-year sales outlook. It was the largest one-day gain in more than a decade.
Kohl's $KSS ( ▲ 42.53% )
Kohl's delivered a major surprise by reporting a profit of $0.10/share, easily beating the expected loss of $0.19, on revenue of $3.57 billion (which also beat expectations). The massive stock jump was fueled by significantly improved gross margins, tight inventory control, and a full-year profit forecast raise that signaled a strong holiday season ahead.
POPS & DROPS
Top Stocks News Stories
NIO stock fell 4% after its Q4 revenue guidance disappointed the market.
David Geffen could see a $200 million windfall if Warner Bros. climbs.
Chamath Palihapitiya's 2020 short case against Google and Meta failed.
Polymarket secured CFTC approval to launch fully regulated US trading.
AST SpaceMobile expanded US manufacturing,oubled its workforce.
Best Buy stock rose 5%, results showed resilient bargain-hunting shoppers.
Raymond James warned the S&P 500 could fall 8% to 10% by Feb.
WHAT’S ON DECK
Tomorrow’s Top Things
Economic data: Building Permits (8:30 AM), GDP Q3 (8:30 AM), Initial Jobless Claims (8:30 AM), PCE (10:00 AM), 7-Year Note Auction (1:00 PM), Beige Book (2:00 PM).
Pre-Market Earnings: Li Auto Inc - ADR ($LI), Deere & Co. ($DE), Gaotu Techedu Inc - ADR ($GOTU), and Lee Enterprises, Inc. ($LEE). 🛏️
After-Market Earnings: Freight Technologies Inc ($FRGT).
Previews:
Li Auto Inc $LI ( ▲ 1.1% ) : EPS estimate $0.04, revenue estimate $3.76B
Deere & Co. $DE ( ▲ 2.24% ) : EPS estimate $3.86, revenue estimate $9.81B