Stocks making the biggest moves after hours: Alphabet, Meta, Starbucks, Microsoft and more

After-hours trading saw significant stock movements following mixed corporate earnings reports. Alphabet surged nearly 5% on robust Google Cloud and YouTube advertising revenue, while ServiceNow rose 3% after lifting its full-year outlook, citing strong AI demand. Conversely, Meta dropped almost 9% despite beating top and bottom-line estimates, impacted by a significant one-time charge and increased capital expenditure expectations. Chipotle fell over 13% after cutting its same-store sales forecast for the third consecutive quarter, and Sprouts Farmers Market slid more than 20% due to missed Q3 sales and revenue, alongside disappointing Q4 guidance.

Analysis

Alphabet's shares surged nearly 5% following robust Q3 results, with adjusted EPS of $3.10 exceeding the $2.33 estimate and revenue of $102.35 billion surpassing $99.89 billion forecasts, primarily driven by strong Google Cloud and YouTube advertising revenue. ServiceNow also saw a 3% increase, lifting its full-year outlook due to strong AI demand, reporting adjusted EPS of $4.82 against a $4.27 estimate. Microsoft dipped 2% despite beating estimates with 40% Azure cloud growth, suggesting high market expectations.

Conversely, Meta dropped nearly 9% despite beating Q3 top and bottom-line estimates, impacted by a significant $16 billion one-time charge and higher 2026 capital expenditure forecasts. Chipotle's shares fell over 13% after cutting its same-store sales forecast for the third consecutive quarter, citing declining visitor numbers and projecting a low-single digit decrease for fiscal 2025. Ebay also saw a 5% drop, driven by a weaker-than-expected Q4 earnings forecast, overshadowing its Q3 beat.

MGM Resorts tumbled 6% as Q3 adjusted earnings of $0.24 per share significantly missed the $0.40 estimate, attributed to declining Las Vegas visits, despite a revenue beat. Sprouts Farmers Market experienced a sharp decline of over 20% due to missed Q3 same-store sales and revenue projections, coupled with disappointing Q4 guidance. Cleveland-Cliffs' stock fell more than 8% following an announcement to sell 75 million shares to repay debt, signaling potential dilution.

Key Decisions for Investors

• Consider increasing exposure to companies demonstrating strong cloud and AI growth, such as Alphabet and ServiceNow, given their robust performance and positive outlooks
• Re-evaluate positions in consumer-facing businesses like Chipotle, MGM, and Sprouts Farmers Market, which are showing signs of weakening demand and negative guidance
• Scrutinize forward guidance and non-recurring charges, as seen with Meta and Ebay, which can overshadow strong current quarter results and impact investor sentiment
• Monitor corporate actions like share offerings, as Cleveland-Cliffs' announcement to sell shares for debt repayment could lead to dilution and impact valuation