Stock moves before the opening bell were driven by a mix of earnings updates, analyst notes and sector-wide sentiment toward semiconductors. Home Depot shares rose after results outpaced expectations and the company reaffirmed its full-year outlook, while Tesla slipped on reporting about timelines for its Cybercab robotaxi. In the memory-chip complex, Micron Technology and SK Hynix fell sharply, weighing on related names.
Key takeaways
- Home Depot shares climbed 1.5% after fiscal second-quarter results beat forecasts and guidance was reaffirmed.
- Tesla shares fell 1.2% as The Information reported progress toward an August Cybercab launch.
- Memory chip stocks dropped with Micron and SK Hynix down more than 4% each, signaling pressure across the group.
- Fabrinet slid more than 9% despite revenue exceeding expectations, after weaker fourth-quarter earnings and margin concerns in upcoming guidance.
- Duolingo rose about 3% following a D.A. Davidson upgrade to buy, citing a potential turning point.
What drove the biggest stock moves
Home Depot gained after results beat expectations. The home improvement retailer posted fiscal second-quarter adjusted earnings of $4.92 per share, topping the $4.73 expected by analysts surveyed by LSEG. Revenue came in at $47.86 billion, above the $47.27 billion forecast. Beyond the beat, investors appeared to react positively to management reaffirming its full fiscal year guidance, reducing uncertainty about the demand backdrop and cost outlook.
Tesla edged lower on Cybercab reporting. Shares fell 1.2% after The Information reported that Tesla is preparing for an August launch of its Cybercab, a robotaxi designed without a steering wheel. The move suggests investors were weighing the credibility and execution timing of product milestones—often a high-sensitivity area for EV and autonomy narratives—against ongoing questions about commercialization and scaling.
Fabrinet tumbled despite better-than-expected revenue. Fabrinet shares dropped more than 9%. The optical product manufacturer reported fourth-quarter earnings that missed, even though revenue was above expectations. The company also offered guidance that included a near-term headwind: it said the usual Q1 expense seasonality is expected to create a temporary margin drag in fiscal Q1 2027, according to StreetAccount. Investors typically focus on margin visibility for contract manufacturing and components businesses, so the combination of weaker earnings and a cautioned outlook pressured the stock.
Semiconductors weighed on memory-related names
Memory stocks fell as a group in premarket trading. Data points from the pre-open showed Micron Technology and SK Hynix down by more than 4% each. Sandisk shares were also down by more than 4%. With multiple major DRAM and memory players moving together, the weakness appeared more sector-driven than company-specific. Investors will likely be looking for cues on pricing trends, supply discipline and demand signals, especially given that memory is sensitive to the pace of inventory normalization and spending by server and consumer device makers.
Analyst actions supported Duolingo
Duolingo rose after an upgrade. Duolingo shares climbed 3% following a D.A. Davidson upgrade to buy from neutral. The firm said it believes the market has historically priced in risks tied to daily active users deceleration and monetization issues, and argued that the company is nearing a turning point. For investors, upgrades like this typically matter because they can shift positioning and sentiment ahead of future engagement and revenue trends—especially when the thesis centers on whether growth re-accelerates or margins stabilize.
What to watch next
With several companies reacting to either earnings or forward guidance, investors are likely to focus on whether early-quarter signals confirm the outlook implied by management commentary. For the week ahead, market participants will likely track upcoming earnings from other large retailers and industrial technology firms, while the semiconductor complex may hinge on any additional commentary about memory pricing and demand. In the broader macro calendar, the path for interest rates remains a key input for equity multiples—so investors should watch for fresh data releases that could influence expectations for the Federal Reserve.
