Midday trading saw a wide split across sectors, with streaming and memory-related names drawing buying interest while networking and some consumer brands faced sharper selling after forecasts or results missed expectations. Netflix shares rose more than 3% following a new disclosed stake, while Super Micro Computer extended its post-earnings rally after first-quarter guidance beat estimates. Cisco shares slid about 9% as its first-quarter adjusted gross margin outlook edged below consensus, overshadowing its broader fiscal-year guidance.
Key takeaways
- Netflix rose over 3% after Pershing Square disclosed a new position, reinforcing investor interest in the stock.
- Super Micro Computer added to a post-earnings surge as first-quarter guidance topped analyst expectations, supporting momentum in data center infrastructure.
- Cisco fell about 9% on a slightly weaker adjusted gross margin outlook, highlighting how investors weighed margins more heavily than longer-term revenue guidance.
- Memory exposure strengthened: the Roundhill Memory ETF (DRAM) gained about 5% and several chipmakers advanced after traders rotated toward the segment.
- Consumer discretionary faced pressure: Tapestry dropped nearly 15% on underwhelming quarterly performance, while Birkenstock jumped after results beat and guidance moved to the high end.
What drove the moves
Netflix climbed more than 3% after Bill Ackman’s Pershing Square disclosed a new stake. Pershing Square previously held a position in Netflix starting in early 2022 and sold roughly three months later, according to the market update.
Super Micro Computer continued gaining after its earnings report, adding about 6% at last check and extending a 19% rise from the prior session. The company’s first-quarter outlook came in above estimates, calling for adjusted earnings of $1.01 to $1.10 per share and revenue of $14.5 billion to $15.5 billion. Analysts surveyed by FactSet expected 72 cents per share and $11.82 billion in revenue.
Cisco Systems fell around 9% as its first-quarter adjusted gross margin forecast landed at 65% to 66%, just below the 66.1% FactSet consensus. The decline reflected investor focus on margins, even as Cisco’s fiscal-year guidance ending July 2027 remained a positive offset, according to the report. Goldman Sachs said it expected the stock to trade “mixed” as the stronger full-year guide was weighed against gross margin concerns.
Memory-related shares rallied broadly. The Roundhill Memory ETF (DRAM) rose about 5%, targeting a third straight winning day as traders bought into the group. Sandisk advanced about 16%, Western Digital gained about 8%, and Micron Technology rose more than 6%.
Market reaction across consumer and industrial names
Tapestry dropped nearly 15% following results for its fiscal fourth quarter that did not meet the bar investors set on top-line strength. The company reported earnings of $1.32 per share on revenue of $1.88 billion. While earnings beat the FactSet consensus of $1.28 per share, revenue only slightly exceeded an estimate of just over $1.87 billion. Tapestry also lifted its quarterly dividend to 46.25 cents per share from 40 cents, but the guidance and growth signal were not enough to stem the decline.
Yeti slipped about 12% after the drinkware and cooler maker reaffirmed its full-year outlook. Yeti expects revenue growth of 7% to 8% year over year, compared with a FactSet consensus of 7.6%.
Birkenstock gained roughly 14% after quarterly results beat expectations. The company also guided full-year revenue and adjusted EBITDA to land at the high end of its prior range, a move investors typically interpret as improving confidence in demand and margins.
Bullish added about 6% after its second-quarter results. Revenue came in at $92.6 million, beating the $87.4 million expected by analysts polled by FactSet. The company also raised the lower end of its full-year guidance for subscription, services and other revenue.
JD.com fell about 8% despite a beat on both the top and bottom lines. The U.S.-listed shares were pressured as revenue decreased year over year to 346.4 billion yuan, though it still topped the 342.33 billion yuan estimate. Adjusted earnings were 6.29 yuan per share versus a FactSet consensus of 5.61 yuan.
EnerSys advanced about 4% after quarterly earnings and revenue beat expectations. Adjusted earnings were $3.66 per share for its fiscal first quarter versus $2.83 per share expected. Revenue came in at $935.6 million compared with $928 million consensus, and the company’s second-quarter EPS guidance also topped estimates.
Grocery Outlet rose about 5% after earnings exceeded expectations. The grocer reported 20 cents per share for its second quarter versus 13 cents expected, with revenue of $1.19 billion versus $1.17 billion.
Jack in the Box gained about 2% after fiscal third-quarter earnings beat forecasts. The company earned 96 cents per share compared with a FactSet estimate of 88 cents per share.
Red Robin Gourmet Burgers jumped nearly 25% on second-quarter results that topped expectations. The company posted 12 cents per share excluding certain items on revenue of $277.6 million, while analysts polled by FactSet expected it to break even on revenue of $265.8 million.
Other notable earnings and guidance reactions
Coherent slid about 5% after its adjusted gross margin for the fourth quarter was roughly in line with estimates. Non-GAAP gross margin was reported at 40.2%, matching the cited consensus of 40%. Even with first-quarter earnings and revenue guidance that surpassed expectations, the shares were still sold on the gross margin profile.
Cerebras Systems dropped nearly 14%. Revenue in the second quarter was reported at $180 million, below the $194 million LSEG consensus estimate.
StubHub lost about 14% as adjusted gross margin in the second quarter came in at 82.2%, below the 84.3% StreetAccount consensus. The company also reaffirmed its full-year outlook for adjusted EBITDA.
What to watch next
Investors are likely to stay focused on margin guidance and forward demand signals, given the disparate reactions seen in networking, consumer brands, and memory-related names. The next catalysts to watch include upcoming earnings reports from large-cap peers in the same sectors, as well as major macro data and central-bank communication that could influence rate expectations and risk appetite.
