Investing.com — With earnings in full swing and the US election fast approaching, there was plenty to talk about in the markets this week, with a variety of big names making key moves. Here are Investing.com’s stocks of the week:
Big Tech (Earnings): Microsoft (NASDAQ: ) Disappoints, Amazon (NASDAQ: ) Up
Microsoft reported its latest quarterly earnings on Wednesday. The tech giant posted a beat in earnings and revenue. However, the stock fell more than 6% in the next session as the company said it sees a slight slowdown in the next quarter given supply chain challenges, such as delays in third-party infrastructure for AI capabilities.
“While Azure growth in September Q was 1pt above guidance, we think investors will be modestly disappointed with the Azure December Q rev guidance, although supply/demand imbalances impact December Q more than September Q,” said analysts at – BMO Capital. “Given the low EPS estimates, mainly due to the impact of OpenAI, we are humbly lowering our target price to $495. We maintain our rating of Outstanding Performance.”
Meanwhile, Amazon shares fell 6.7% on Friday after reporting earnings and revenue beats, with improved retail sales boosting profits.
After the report, Citi analysts said they are “highly optimistic that the company can invest in growth while delivering significant growth.”
“We highlight the efficiency gains through sales that lower Amazon’s operating costs, resulting in faster delivery, increased conversion rates, and wallet-budget benefits as lower ASP/value products drive higher overall revenue,” the bank added.
Apple (NASDAQ:) reported earnings again this week, raising earnings and revenue expectations. However, its stock fell on Friday as investors were disappointed with its guidance.
SMCI
It was another bad week for SMCI, which fell more than 32% on Wednesday after Ernst & Young LLP (EY) abruptly withdrew as a registered public accounting firm.
In a filing with the US Securities and Exchange Commission (SEC), Super Micro disclosed that EY submitted its resignation on October 24.
EY concluded that it “can no longer rely on the representations of management and the Audit Committee” and expressed its desire not to be consolidated with the financial statements.
Shares of SMCI have grown more than 41% in the past week. On Friday, at the time of writing, the stock was down more than 6%.
In response to the news, Rosenblatt suspended his rating on the stock, citing financial uncertainty. “Given the uncertainty surrounding the company’s finances, we are suspending our ratings, prices, and ratings for Super Micro until we receive an outcome that would determine our recommendation,” the company said.
Estee Lauder (NYSE:)
It was also not a good week for beauty company Estee Lauder, which fell 20% on Thursday and fell 2% on Friday after the company reported a loss in revenue and withdrew its 2025 financial outlook amid ongoing China and retail challenges.
The company said it withdrew its 2025 financial outlook due to “increasing uncertainty [the] time to settle in the Mainland China market and Asian travel shops and in the context of leadership changes. ”
In addition, the company also announced a cut in its quarterly dividend, and its F2Q outlook was below expectations.
After the report, JPMorgan downgraded Estee Lauder to Neutral and lowered its price target for the stock to $74 from $113. The bank said: “We do not expect to receive any visibility for at least another three months or so.
“Due to lower-than-expected price cuts in China and Asia Travel Retail, program implementation and returns are likely to be delayed, and as such, we believe it is prudent to advise investors to wait for better signs of improvement. search.”
