NVDA - Hot Stocks: SNOW DLTR and APPS fall on earnings; CCL rises on analyst upgrade; AMD TSM gain

2023-05-25 12:24:52 ET

Major market indexes were divided during Thursday's intraday session as investors waited for indications of progress in U.S. debt ceiling discussions.

Tracking individual stocks, Snowflake ( NYSE: SNOW ), Dollar Tree ( NASDAQ: DLTR ) and Digital Turbine ( NASDAQ: APPS ) slipped on weak forecasts.

Meanwhile, semiconductor stocks Advanced Micro Devices ( NASDAQ: AMD ) and Taiwan Semiconductor ( NYSE: TSM ) rose along with Nvidia ( NVDA ) after the chip firm reported better-than-expected earnings results and solid outlook.

In other news, Carnival ( NYSE: CCL ) gained after Citi upgraded it to Buy from Neutral.

Gainers

Semiconductor stocks Advanced Micro Devices ( AMD ) +10% and Taiwan Semiconductor ( TSM ) +12% followed Nvidia ( NVDA ) higher after it reported better-than-expected Q1 earnings, and revenue guidance that was way above consensus. The company expects revenue of $11B, plus or minus 2%, vs. consensus of $7.11B.

Carnival ( CCL ) rose more than 2% after Citi upgraded the stock from Neutral to Buy, showing confidence in the cruise line's prospects for a sustainable post-COVID recovery. Analyst James Hardiman boosted his price target to $14 from $10. He stated that field research indicates strong customer interest in cruising, a "less ugly" balance sheet until 2023, and the possibility for a stock jump if sufficient success is made on deleveraging initiatives.

Decliners

Snowflake ( SNOW ) stock plunged about 17% after the company lowered its outlook for the rest of the fiscal year. The company now expects product revenue to be about $2.6B, which is below the prior view of $2.71B and consensus of $2.71B. Q2 product revenue is anticipated to fall within a range of $620M and $625M vs. consensus of $646.3M.

Digital Turbine ( APPS ) shares dipped more than 43% following lower than expected fiscal Q4 earnings results and a weak Q1 outlook. The company sees Q1 revenue between $140M and $145M and adjusted EPS between $0.11 and $0.13, which is lower than the consensus revenue of $148.53 million and adjusted EPS of $0.22.

Dollar Tree ( DLTR ) stock fell nearly 12% after falling short of EPS expectations in Q1 and lowering full-year expectations due to retail theft and macro pressures. CEO Rick Dreiling said “While we are seeing early results from our initiatives, we are not immune to the external pressures affecting all of retail, notably, the margin impact of elevated shrink and the product mix shift to consumables. While we are maintaining our full-year 2023 sales outlook, we are adjusting our EPS outlook as we expect the elevated shrink and unfavorable sales mix to persist through the balance of the year.”

To keep track of Wall Street's biggest winners and losers throughout the session, head over to Seeking Alpha's On The Move section .

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