Key Takeaways

• Canopy Growth Corporation shares dropped Friday after reporting worse-than-expected earnings.
• Revenues came in 13% lower than a year earlier and net loss widened substantially.
• Canadian adult-use cannabis sales for the company decreased, offset by an increase in medical cannabis sales

Canopy Growth Corporation (CGC) shares dropped Friday after the company’s first-quarter fiscal 2025 earnings fell significantly short of expectations.

The cannabis producer’s revenue of 66.2 million Canadian dollars ($48.2 million) came in 13% lower than a year earlier and missed analysts’ projections of C$72.1 million. Its net loss widened to C$1.60 per share from C$0.69 per share, more than double the consensus per share loss. 

Canadian adult-use cannabis sales for the company decreased 22% to C$18.9 million, mostly offset by a 20% increase in medical cannabis sales to C$18.8 million. 

Looking ahead, Canopy is setting its sights on the second half of the fiscal year. 

“The fundamentals of our business continue to strengthen, and our focus on profitable revenue generation is yielding clear results as we set the stage for growth in the second half of fiscal 2025,” said Canopy CEO David Klein. 

Shares of the Ontario-based company fell 7.95% in trading Friday, although they’re up roughly 32% year-to-date.

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Key Takeaways

• Akamai Technologies beat second-quarter profit and sales estimates on strong demand for its security and cloud computing products.
• Security revenue was up 15%, and compute revenue jumped 23%.
• The company raised its full-year adjusted EPS guidance.

Shares of Akamai Technologies (AKAM) took off Friday, a day after the tech firm reported better-than-expected second-quarter results and raised its profit guidance on higher demand for its security and cloud computing products. 

Akamai posted adjusted earnings per share (EPS) of $1.58, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $408.9 million. Revenue gained 5% year-over-year to $979.6 million. All three beat consensus estimates of analysts polled by Visible Alpha.

Security revenue rose 15% to $498.7 million, and compute revenue increased 23% to $151.5 million. However, delivery revenue fell 13% to $329.4 million.

CEO Saya Akamai ‘Had Many Significant Wins in Q2’

Chief Executive Officer (CEO) Tom Leighton explained that the company saw strong customer interest in its security solutions, and “had many significant wins in Q2.” In addition, he pointed to the success of the launch of a new cloud offering last quarter, and that “the strong early momentum we achieved in Q1 continued in Q2.”

Akamai now sees full-year adjusted EPS of between $6.34 and $6.47, up from its previous outlook of $6.20 to $6.40.

Akamai Technologies led S&P 500 gainers with shares up 10% to $100.94 as of noon ET Friday. Still, they are down about 15% so far this year.

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Key Takeaways

• SoundHound AI shares surged 21% on Thursday after the provider of voice generative AI announced that it had acquired enterprise AI software firm Amelia for $80 million. Shares then dropped 5% in extended trading after SoundHound reported its quarterly results.
• The price trades within a descending triangle, a chart pattern that signals a potential continuation of the uptrend in SoundHound shares.
• Key upside price levels to watch include $5.75, $8.60, and $15, while crucial downside areas to monitor sit at $3.50, $2.60, and $1.60.

SoundHound AI (SOUN) shares surged 21% on Thursday after the provider of voice generative artificial intelligence (AI) announced that it had acquired enterprise AI software firm Amelia for $80 million, a deal aimed at expanding its footprint in conversational AI across new verticals and brands.

However, the stock gave back 5% in extended trading after SoundHound reported its quarterly results. Although earnings and revenue both surpassed estimates, the company still posted a larger GAAP net loss in the period compared to a year earlier, possibly contributing to post-market weakness.

Below, we take a closer look at the technicals on SoundHound’s chart and point out important price levels to watch out.

Descending Triangle in Focus

Since recording their 2024 high in mid-March, SoundHound shares have oscillated within a descending triangle, a chart pattern consisting of one trendline connecting a series of lower highs and a second horizontal line connecting a series of lows. 

Although technical analysts typically consider descending triangles bearish, they can also signal the continuation of a move higher if formed following an uptrend, which is the case on the SoundHound chart. Moreover, the stock’s close Thursday above the 50-day moving average on the highest trading volume since mid-July favors an upside breakout. 

Upside Price Leves to Watch

Looking ahead, investors should monitor three key higher price levels likely to gain attention.

Firstly, it’s worth watching if the shares can break out above the descending triangle’s top trendline, which currently sits around $5.75. A volume-backed move would likely act as a catalyst for further buying and could potentially trigger a short squeeze, given that more than 26% of the stock’s float is held in short positions.

Upon a breakout, the stock could test the $8.60 level, where sellers may be happy to book profits near a horizontal line connecting the June 2022 countertrend peak with a series of prices located around this year’s high.

A more bullish move may lead to a retest of the $15 area, where the shares would likely run into overhead resistance near a range of trading levels situated in close proximity to the SoundHound’s all-time high (ATH) set in early May 2022.

Downside Price Levels to Monitor

Despite the bullish technicals on SoundHound’s chart, investors should monitor the descending triangle’s lower trendline around $3.50. A breakdown below the pattern opens the door for falls to lower crucial support levels at $2.60 and $1.60.

After the 21% jump during Thursday’s regular session, SoundHound shares fell 5% to $4.95 in after-hours trading.

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As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• Parker-Hannifin shares were among the top gainers on the S&P 500 after the electronic equipment maker reported strong quarterly results.
• Demand in aerospace services helped the company beat sales and profit estimates, despite softness in diversified industrials.
• The earnings report wrapped up Parker-Hannifin’s fiscal 2024, and the firm forecasts sustained organic sales growth in the year ahead.

Shares of electronic equipment manufacturer Parker-Hannifin (PH) soared 11% Thursday after the electronic equipment manufacturer reported strong quarterly results.

Strong demand in its aerospace services segment helped Parker-Hannifin top sales and profit estimates for its fiscal fourth quarter of 2024, despite economic headwinds facing its diversified industrial business.

For the three months ended June 30, 2024, the manufacturer of motion control technologies posted adjusted earnings per share (EPS) of $6.77 on revenue of $5.19 billion. Both figures exceeded analysts’ forecasts, which called for EPS of $6.23 and $5.08 billion in revenue, according to consensus estimates compiled by Visible Alpha.

Aerospace Services Demand Drives Sales Growth

Parker-Hannifin reports its results in two segments—aerospace services and diversified industrials— and it was the former that played a pivotal role in its upbeat quarter. The aerospace services segment posted year-over-year organic sales growth of 19.1%, topping $1.5 billion in quarterly revenue for the first time.

The company noted positive trends across commercial and defense aviation markets. It also highlighted strength in its aftermarket services, which helped the aerospace services segment achieve its best-ever adjusted operating margin.

Diversified Industrials Segment Faces Headwinds

Sales growth was harder to come by for Parker-Hannifin’s diversified industrials business. In fact, the segment saw organic sales decline from the previous year, slipping 2.8% in North America and 2.5% internationally.

Softness in European markets, as well as transportation and off-highway markets in North America, pressured diversified industrials results. However, Parker-Hannifin pointed to a record operating margin for the segment despite the slower sales.

Outlook and Stock Performance

Looking into fiscal 2025, the company expects sustained aerospace demand to drive overall organic sales growth of 2% to 5% over the full year, compared with 2.3% in fiscal 2024.

Parker-Hannifin shares rose 10.8% to $568.08, making it one of the top gainers on the S&P 500 on Thursday. The stock is now up 24% year-to-date.

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Fund Dropped Nearly 3% on Wednesday

Key Takeaways

• The iShares Semiconductor ETF dropped nearly 3% on Wednesday amid heightened volatility within the chip sector after Monday’s global stock market selloff.
• The fund has fallen below the closely watched 200-day moving average, with a brief attempt to reclaim the indicator on Wednesday failing after the price closed towards its session low.
• The SOXX ETF may encounter support at key chart levels including $195 and $179, while running into overhead resistance at $215 and $239.

The iShares Semiconductor ETF (SOXX) dropped nearly 3% on Wednesday amid heightened volatility within the chip sector after Monday’s global stock market selloff. This week’s decline coincided with a report that artificial intelligence (AI) darling Nvidia’s (NVDA) highly anticipated Blackwell chips would be delayed by at least three months.

Over the last week, the ETF has come under increasing pressure from growing concerns about the health of the U.S. economy and disappointing earnings from chip giant Intel (INTC), which commands a 2.93% weighting within the fund’s portfolio.

On Wednesday, the fund fell 2.8% to close at $199.29, its lowest level since mid-April.

Below, we take a closer look at the SOXX ETF chart, while using technical analysis to outline important support and resistance levels to watch out for.

Failed Attempt to Reclaim 200-Day Moving Average

Since topping out last month, the SOXX ETF has undergone a sharp correction of around 25% on above-average volume, indicating conviction from institutional investors behind the move.

More recently, the fund has fallen below the closely watched 200-day moving average (MA), with a brief attempt to reclaim the indicator on Wednesday failing after the price closed towards its session low.

Monitor These Important Support Areas

If the fund continues to move lower, investors should monitor two key areas where the price could attract buying interest.

The first sits around $195, just 2% below Wednesday’s close, This level on the chart could see buyers seeking entry points near a horizontal line that connects the December 2023 peak and January trough, which also closely aligns with Monday’s selloff low.

A breakdown below this level may lead to a retest of the $179 area, an area where the ETF would likely find support from the July 2023 swing high and January swing low.

Key Resistance Levels to Watch

If buyers reclaim the 200-day MA, it’s worth watching several important price levels on the chart where the fund may encounter selling pressure.

Firstly, an initial attempt at a recovery may run into resistance around $215 near a range of comparable trading levels between late February and early May that roughly align with the Aug. 2 pre-gap low.

A move above this area could see the fund climb to $239, a level where sellers may be happy to lock in profits near the March and May highs, which current sit in close proximity to the downward sloping 50-day MA.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• Consumer credit increased by $8.9 billion in June, less than economists expected.
• Credit card borrowing dropped by the most in three years as consumers reined in spending.
• Previous months’ credit levels were revised higher, offering a counterpoint to Wednesday’s data.

Consumers slowed their borrowing in June, according to data released by the Federal Reserve on Wednesday, in yet another sign of the toll elevated interest rates and economic uncertainty are taking on the engine of the U.S. economy.

Consumer credit increased by $8.9 billion in June, putting growth at an annual rate of 2.1%. Economists surveyed by the Wall Street Journal and Dow Jones Newswires had projected credit would increase by $9.7 billion.

“Consumers are feeling the pressure from elevated price levels and slowing income growth,” said Jeffrey Roach, LPL Financial chief economist. 

However, the Fed also revised its data from prior months higher. Wednesday’s report showed credit grew by $14 billion in May, nearly $3 billion more than was estimated in last month’s report.

Credit Card Spending Suggests Consumer May Be Losing Steam

While consumers continued to add credit, there were some signs the public pulled back on spending. Revolving credit, primarily made up of credit card accounts, declined by $1.7 billion in June, the biggest drop since March 2021.

“Softer demand for credit will likely impact lower-income consumers the most, but overall, the data suggest a slowdown in consumer spending for the rest of this year,” Roach said. 

Consumer spending accounts for well over half of U.S. GDP, which is why investors and economists closely watch borrowing and spending as an economic indicator. Strong consumer spending helped support growth in 2023 and, despite some weakening, has so far remained resilient in 2024. 

There were other signs this week that consumers were feeling the strain of borrowing. A New York Federal Reserve report showed more borrowers were falling behind on payments for both credit cards and auto loans.

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Key Takeaways

• Charles River Laboratories shares tumbled Wednesday after the company said it expects to post a decline in sales for the full fiscal year, instead of growth.
• Revenue for the second quarter met estimates, while profits came in slightly above estimates, but the company said demand would likely soften in the second half of the year.
• The board also approved a new $1 billion stock buyback plan.

Shares of Charles River Laboratories (CRL) tumbled over 12% in intraday trading Wednesday after the company said it expects to post a decline in sales for the full fiscal year, instead of growth.

The health care diagnostics and research company reported second-quarter revenue in line with analysts’ expectations at $1.03 billion, while profits came in just above estimates at $94.08 million. Both declined from a year ago, when the company reported revenue of $1.06 billion and net income of $97.02 million.

Expecting Softer Demand in the Second Half of 2024

CEO James Foster said that while performance in the first half of the year was roughly in line with internal projections, trends “suggest that demand will not improve during the second half of the year as we had previously anticipated, and in fact, will decline for global biopharmaceutical clients.”

The expectations of softer demand led Charles River to lower its guidance for the full fiscal year. The company said it now expects full-year revenue to fall 2.5% to 4.5%, compared to 1% to 4% growth previously. Earnings per share (EPS) projections were lowered to $5.65 to $5.95 from $7.60 to $8.10.

The company’s board also approved a new $1 billion stock buyback plan, replacing a previous $1.3 billion plan that had been axed with roughly $129 million remaining.

Charles River shares were down 12.2% to $200.98 as of 1 p.m. ET Wednesday following the news. With Wednesday’s slide, they’ve lost about 15% since the start of the year.

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Shares Fell 13% in Extended Trading Tuesday

Key Takeaways

• Super Micro Computer shares slumped 13% in extended trading on Tuesday after the server maker reported earnings that fell short of expectations, issued a light profit forecast and disclosed a surprise drop in adjusted gross margin, as the cost of transitioning to more expensive AI chips weighed on the bottom line.
• The shares broke down below a descending triangle last month, with the price closing beneath the closely watched 200-day moving average in early August.
• Super Micro Computer shares may find support at key chart levels including $496, $357, and $260.

Super Micro Computer (SMCI) shares slumped more than 13% in extended trading on Tuesday after the server company reported quarterly earnings that fell short of expectations, issued a light profit forecast and disclosed a surprise drop in adjusted gross margin, as the cost of transitioning to more expensive artificial intelligence chips weighed on the bottom line. The company also announced a 10-for-1 stock split that takes effect from Oct. 1.

Investors have bid up company’s shares in recent years, betting its servers will house Nvidia’s (NVDA) graphics processing unit’s (GPU’s), which have seen insatiable demand amid the widespread adoption of AI models and applications. However, more recently, the stock trades around 48% below its record close set in March as analysts express concerns over order uncertainty caused by the server maker’s move to Nvidia’s pricier next-generation Blackwell AI chips.

Below, we take a closer look at Super Micro’s chart, while using technical analysis to identify important price levels that investors will likely be watching following the stock’s projected earnings-driven drop.

Breakdown From Descending Triangle

Since setting a record high in early March, Super Micro shares oscillated within a descending triangle for four months before breaking down from the bearish chart pattern last month. The move lower has continued into early August, with the price falling below the closely watched 200-day moving average (MA) and forming a doji ahead of the company’s quarterly results, a candlestick pattern that conveys indecision among buyers and sellers.

Importantly, the stock on Tuesday recorded it largest day of trading volume since late June, indicating repositioning by larger market players to manage post-earnings volatility risk.

Monitor These Levels Amid Earnings-Driven Selling

Amid an expected earnings-driven fall in Super Micro shares, investors should monitor three key locations on the chart that could provide support.

The first sits $496, an area where the stock may attract buying interest around the Jan. 29 close, which would fill a gap in the early portion of the price’s impulsive move higher between late January and mid-February.

An inability to hold this level could see a decline to around $357, an area where the shares may find support near a horizontal line connecting the August 2023 and January 2024 swing highs.

Finally, a more significant correction may lead to a retest of the $260 region, currently around 58% below Tuesday’s close, where the price would likely find support from a trendline linking the June 2023 swing high with a range of comparable trading levels on the chart between August and December last year.

Super Micro stock fell 13% to $535.00 in after-hours trading Tuesday.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• Bitcoin and crypto prices fell sharply on Monday, as market turmoil triggered by concerns around the U.S. economy spread beyond stocks.
• Crypto markets may face volatility ahead continued economic uncertainties, though some analysts think that the downside for bitcoin, which gained ground Tuesday, may be limited.
• Some experts say the recent decline could be a buying opportunity, noting that the underlying value proposition of the cryptocurrency hasn’t changed.

The dramatic selloff Monday in cryptocurrencies, which fell in tandem with stocks amid concerns about a slowing U.S. economy, not only made investors nervous, but also tested the case of bitcoin as a safe-haven investment.

Here’s what experts say happened over the past few days and what lies ahead for the crypto markets as the U.S. navigates fears of economic uncertainty.

What Happened Amid The Crypto Sell-Off?

Bitcoin (BTCUSD) isn’t quite as divorced from the price swings in traditional markets as was once thought, calling into question its proposition as digital gold.

As the turmoil in stocks spread further to crypto markets, bitcoin fell more than 18% on Monday to drop below $50,000, a level not seen since February. While bitcoin recovered to around $56,000 on Tuesday, it’s still down nearly 20% since early last week.

The rest of the crypto market fared even worse on Monday, as alternative crypto assets still tend to follow bitcoin’s lead rather than move on their own accord.

However, ether’s (ETHUSD) near-26% drop to a low of $2,116 could be attributed to investors getting nervous about large movements of funds from trading firm Jump Trading to various crypto exchanges that started on July 25, according to data blockchain intelligence firm Arkham Intelligence.

Where’s Crypto Headed Next? Perhaps Towards Volatility

In the short-term there could be more volatility in store for crypto assets.

Bitwise’s Chief Investment Officer Matt Hougan suggests watching out for a few signs that could show where the crypto markets are headed—forced crypto liquidations as leveraged traders scramble amid a price drop, financial health of crypto firms and flows for crypto spot exchange-traded products.

Should there be a recession in the U.S., bitcoin will decline, though not as much as it has in the past, Grayscale’s Head of Research Zach Pandl said.

“Downside risks to token prices are lower than in the previous cycle, in our view, due to relatively low altcoin valuations, limited credit/leverage in crypto markets, and institutional demand for spot #Bitcoin and #Ethereum ETPs,” Pandl posted on X.

Analysts at Bernstein are more optimistic. “If rate cuts and monetary liquidity is the usual template response to U.S. recession fears, we expect ‘hard assets’ such as bitcoin (digital gold) to reprice up,” the analysts wrote, according to The Block.

Time to Hold?

Hougan suggests investors ignore short-term price cues and focus on the long-term fundamentals of bitcoin investing.

He compared the recent volatility in markets, both stocks and crypto, to the sharp decline seen on March 12, 2020 when the world realized COVID-19 was going to be a serious issue. After falling 37% on that day, bitcoin went on to have a tremendous bull run and saw greater than 1,000% gains over the next 12 months.

“In retrospect, March 12, 2020 wasn’t a time to panic,” wrote Hougan in a recent note. “It was the best buying opportunity for bitcoin in a decade.”

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Key Takeaways

• Alphabet said it plans to file an appeal after a judge ruled it violated antitrust laws to maintain a monopoly with Google Search.
• Google has distribution agreements with companies like Apple to make Google Search users’ default search engine.
• The appeal, if successful, could be a good sign for other big tech companies that may face similar antitrust cases.
• If the appeal fails, the U.S. government will determine how to remedy Google Search’s monopoly, which could include changing the distribution agreements.

After a federal judge ruled that Alphabet’s (GOOGL) Google broke antitrust law by holding a monopoly with Google Search, Google said it plans to appeal the decision, which could have implications for big tech antitrust cases to come.

Google responded to the ruling saying the “decision recognizes that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available.”

The judge ruled that Google’s exclusive distribution agreements are problematic.

Google has agreements with browser makers, major original equipment manufacturers (OEMs) for Android devices, and U.S. wireless carriers, paying “traffic acquisition costs (TAC)” to companies like Apple (AAPL) to make Google Search users’ default, the lawsuit outlined.

What’s Next as Google Plans Appeal

The outcome, which could set a precedent for big tech antitrust action, may not be realized for months or even years.

If successful, the appeal would allow Google to maintain its distribution agreements and could ease worries about other big tech companies that could be subject to similar antitrust cases.

If courts reject Google’s appeal, the U.S. government will determine a remedy for the company’s violation of antitrust law, which could range from fines, forcing changes to Google’s agreements, or other measures to break up the company’s monopoly over the search market.

These efforts could benefit competitors like Microsoft’s (MSFT) Bing or OpenAI’s recently announced SearchGPT, and affect companies involved in the distribution agreements like Apple.

Alphabet shares were little changed Tuesday. They’ve gained over 13% since the start of the year.

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