IBM, Tesla, Moderna and more

IBM, Tesla, Moderna: Key Stock Moves Investors Should Watch This Week

Think of the stock market like a busy airport: every day, some flights (stocks) take off, some land safely, and others hit turbulence. For investors, knowing why certain companies are gaining or losing altitude after hours can help you make smarter choices with your money.

Why After-Hours Moves Matter for Investors

Stocks can change price a lot after the regular market closes. Big moves often happen when companies share news about their earnings—how much money they made or lost. These changes can affect your portfolio, especially if you own shares in these companies or in funds that include them.

Recent Winners: Companies That Surprised to the Upside

  • Southwest Airlines: Shares rose 2% because the airline reported a surprise profit. They made 11 cents per share, while experts thought they’d lose 3 cents. More people are flying, and ticket prices are going up.
  • Las Vegas Sands: The casino and resort company’s stock jumped over 6%. They earned 78 cents per share, much higher than the 60 cents expected. Their outlook for the future is bright, too.
  • Lam Research: This company makes equipment for computer chips. Its shares went up more than 1% after reporting better-than-expected earnings and a strong forecast for the next quarter.

Recent Losers: Companies That Hit Bumps

  • Moderna: The drugmaker’s stock dropped almost 6%. A study for a new vaccine didn’t meet its main goal, though the company says it won’t hurt their 2025 plans.
  • Molina Healthcare: Shares fell a steep 17% after the company’s earnings were much lower than expected, even though they made more revenue than predicted.
  • Tesla: Shares slipped nearly 2%. While car sales were strong and revenue jumped 12% to $28.1 billion, profits were lower than expected. Investors are also watching Tesla’s new focus on robotics.
  • Knight-Swift Transportation: This freight company’s stock dipped over 2% because profits were lower than expected, even though revenue was a bit higher.
  • Alcoa: The aluminum maker’s stock dropped 1%. The company lost less money than expected, but revenue was still lower than forecasts.
  • Kinder Morgan: Shares fell almost 2%. The pipeline company earned more money because more gas moved through its system, but investors may have wanted even better results.
  • IBM: The tech giant’s stock slipped about 4%. Even though they beat overall earnings and revenue expectations, their software revenue only matched forecasts, not beat them.
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Bull Case: Why Some Investors Are Optimistic

  • Companies like Southwest Airlines and Las Vegas Sands are showing that travel and entertainment are bouncing back.
  • Lam Research’s strong results suggest that the tech sector, especially chipmaking, is still growing.
  • Even when some companies miss expectations, small beats on revenue or profit can show signs of resilience.

Bear Case: Why Some Investors Are Cautious

  • Missed profit targets at big names like Tesla and Molina Healthcare can be a warning sign that not all sectors are healthy.
  • When companies lose money or just meet low expectations (like IBM’s software division), it can mean slower growth ahead.
  • Healthcare and transportation stocks taking hits may point to challenges in those industries, such as rising costs or changing demand.

Historical Context

According to a Nasdaq study, after-hours trading makes up about 4% of total trading volume, but can lead to bigger price swings because fewer people are buying and selling. This means after-hours moves can be dramatic, but sometimes prices settle back down when the regular market opens.

Investor Takeaway

  • Don’t panic over after-hours moves—wait to see how stocks behave when the main market opens.
  • Watch earnings reports, especially for companies you own or want to buy. Surprises (good or bad) can move prices fast.
  • Diversify your portfolio. If one sector (like healthcare or airlines) has a bad day, others may do better.
  • Read beyond the headlines. Sometimes a company beats on revenue but misses on profit, or vice versa. Look for the full story.
  • Use reliable sources like Nasdaq or company earnings calls to double-check news before making big decisions.

For the full original report, see CNBC

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