Good morning. QQQs -1.6% / SPX -90bps this morning following weakness overnight in Asia. Yields down 7-9bps across the curve while Oil +2% on escalating middle east tensions.
What’s weighing on the market? Outside Iran, we got some underwhelming reactions to start Tech earnings which has Semis -4% and Internet -1%. META -3% down after being up 6% last night after some uninspiring quotes from their 14C filing keep equity raise concerns front and center while ‘27 margin concerns have buyside less confident in ‘27 upside, LRCX/NOK trading down on mixed prints, IBM -8% fading bigly, more hacking news seemingly hitting the tape every hour (cyber names +2% early), and rumored weaker Q4 Anthropic nums being thrown around on X (Q4 ARR in low 80s) before the S-1 filing comes out tomorrow or Monday weighing on semis sentiment.
Asia stocks in the red: TPX -1.14%, NKY -2.65%, Hang Seng -3.03%, HSCEI -3.2%, SHCOMP -1.48%, Shenzhen -2.93%, Taiwan TAIEX -1.8%, Korea KOSPI -3.52%. Softbank -7%. Samsung -4%. SK Hynix -4.5%
We’ll cover META, TXN, SPOT, and NOK first then onto the usual…
META -3%: Better Q3 and Q4 #s and +ve Muse commentary but 2027 spending, margins and funding weighing on stock this morning
#s better as revs beat Street by ~2% and EPS excluding the settlement beat by ~13%, while Q4 guidance slightly better than bogeys and Zuck and co talked up Muse’s commercialization. Bulls liked the two year accel in UCAN with high incrementals and Q4 implying acceleration.
However, a few things weighing on the stock: