Stock Indexes Slip With Earnings, Tesla Shareholder Vote in Focus

Here’s How Hot Quantum Stocks Have Been Lately—And What to Know About Them

9 minutes ago

Move over, AI.

Quantum computing stocks—those representing a technology that teases vast computing power—have soared in the past year, making even the artificial-intelligence rally look tame. Shares of D-Wave Quantum (QBTS) and Rigetti Computing (RGTI) have soared 2,700% and 3,100%, respectively, over that period. Quantum Computing (QUBT) is up 1,100%. IonQ (IONQ), up 250%, is the laggard of the bunch. 

Only a few of Wall Street’s favorite AI stocks have posted comparable gains in the past 12 months. Software companies Palantir (PLTR) and AppLovin (APP), lauded for their AI-driven growth, have risen roughly 300% in the past year. Nvidia (NVDA), the poster child of the AI boom, has gained about 44%.

Rallies typically slow with age, so it’s understandable that the fresher theme has more momentum behind it—particularly at a time when investors have been willing to lean into speculative concepts and companies. But compare quantum stocks over the past year and AI stocks in the year after ChatGPT was released, and quantum still dramatically outpaces AI: Nvidia shares rose 206% in the 12 months starting Nov. 30, 2022, while server maker Super Micro Computer (SMCI) soared 212%.

Read the full article here.

–Colin Laidley

Elon Musk’s Big Day is Here. Here’s What You Need to Know.

22 minutes ago

The fate of Tesla—or, at least, the answer to the question of whether its chief Elon Musk stays or walks—could rest on today’s shareholder vote.

A preliminary tally on this year’s 14 proposals, which include giving Musk greater control over Tesla (TSLA) as well as a trillion-dollar pay package, is expected after a meeting set to start at 3 p.m. central time. A final count will likely come in a few days, filed to the Securities and Exchange Commission.

Though shareholders have voted with Tesla to approve a past compensation deal for Musk on more than one occasion, the days leading up to today’s shareholder vote have been fraught with tension. The EV-company-with-robotics-and-AI-ambitions has made clear its position that it would be lost without Musk at the helm and that the incentives it recommends are necessary to retain him.

“We believe that Elon’s singular vision is vital to navigating this critical inflection point,” Robyn Denholm and Kethleen Wilson-Thompson, members of the special committee of Tesla’s board of directors wrote in a letter to shareholders.

Counterpoint Global, an investment team within Morgan Stanley Investment Management, as well as the Florida State Board and Schwab Asset Management, have said they intend to cast their votes in favor of Musk’s compensation package.

Read the full article here.

–Crystal Kim

CarMax Stock Sinks as CEO Steps Down, Soft Q3 Projections

1 hr 18 min ago

CarMax’s chief executive is out, its current-quarter projections are weak, and its stock is dropping.

The used-car giant announced before the bell that CEO Bill Nash, a company veteran of more than 30 years, is stepping down, effective Dec. 1, and would be replaced on an interim basis by board member David McCreight.

CarMax (KMX) also provided preliminary fiscal 2026 third-quarter guidance. It sees comparable store used unit sales decreasing 8% to 12% and earnings per share of $0.18 to $0.36, “including $0.09 of non-recurring expenses related primarily to the leadership change announced today and Customer Experience Center workforce reductions.” Visible Alpha consensus is calling for a 2.94% comparable store used unit sales decrease and EPS of $0.70.

The company said the outlook reflects “a decline in retail unit sales; sharp depreciation in the wholesale business; and marketing spend, as noted in the second quarter earnings call, is expected to increase materially year-over-year in the third quarter as CarMax supports its new brand positioning launch.”

CarMax shares, which entered Thursday down 50% this year, are down a further 10% in premarket trading.

Duolingo Stock Crates on Soft Outlook

1 hr 52 min ago

Duolingo (DUOL) shares lost roughly a quarter of their value in premarket trading Thursday, a day after the maker of a popular app to learn foreign languages reported weaker-than-expected current-quarter guidance.

The Pittsburgh-based company sees fourth-quarter bookings of $329.5 million to $335.5 million and adjusted EBITDA of $75.4 million to $78.8 million. Analysts surveyed by Visible Alpha had expected $343.6 million and $80.5 million, respectively.

Duolingo’s Q3 earnings of $5.95 per share and revenue that increased 41% year-over-year to $271.7 million topped estimates. It also reported more than 50 million daily active users for the first time.

Shares of Duolingo entered Thursday down about 20% this year.

Stock Futures Little Changed After Indexes Rebound From Tech Rout

2 hr 51 min ago

Futures contracts connected to the Dow Jones Industrial Average were down less than 0.1%.

S&P 500 futures were up less than 0.1%.

Nasdaq 100 futures also were less than 0.1% higher.