3 Tech Stocks Making Big Earnings Moves

Analysts are adjusting their outlooks on EA, AMD, and JNPR after earnings

Jan 31, 2018 at 10:47 AM
facebook twitter linkedin

Electronic Arts Inc. (NASDAQ:EA) is gapping higher today after the company's earnings release last night, while Advanced Micro Devices, Inc. (NASDAQ:AMD) is enjoying positive price action after earnings, as well. On the flip side, Juniper Networks, Inc. (NYSE:JNPR) is way lower following its quarterly report. We'll take a closer look at EA, AMD, and JNPR stocks below, as Wall Street reacts to the latest round of tech earnings.

Strong Sales Guidance Sends EA Stock to Record High

Shares of Electronic Arts are trading up 10.1% at $130.66, and just off a record high of $131.01, as investors cheer the video game company's better-than-expected current-quarter revenue outlook. EA stock has now added roughly 57% on a year-over-year basis and is set to snap a two-month losing streak.

This post-earnings push higher looks like good news for options traders, who were gobbling up calls before the event. A number of analysts are jumping on the bulls' train following the earnings report, too. While several brokerage firms raised their price targets on EA, Jefferies set the bar the highest, boosting its price target to $150 from $138.

AMD Stock Tests Bear-Gap Territory After Well-Received Report

AMD shares are trading 5.8% higher at $13.61, after the company exceeded top- and bottom-line estimates in the fourth quarter. The chip stock has added over 40% since bottoming at $9.71 in early December and today's gains have it testing the site of the October post-earnings bear gap where the equity fell 13.5% the day after reporting. That move may be why options traders were so bearish ahead of earnings.

So far, Credit Suisse has been the only firm to weigh in on AMD stock, lifting its price target to $13.50 from $12. "While some will argue upside from Crypto should be discounted," the covering analysts said, "we see Blockchain as more sustainable than most." As of last night's close, the majority of covering analysts rated Advanced Micro Devices a "hold" or "strong sell."

Juniper Networks Short Sale Restricted After Earnings

Network equipment stock JNPR has shed 9.7% today to trade at $25.57, earning a spot on the short-sale restricted list. The company beat on earnings and revenue for the fourth quarter, but its current-quarter sales outlook fell short of estimates. As such, Juniper Networks has given up support at the 200-day moving average, as it moves further from its 52-week high of $30.96 from May.

No fewer than four brokerage firms have reduced their price targets on the stock since yesterday's close, the lowest mark of $23 coming from Barclays. Wall Street was already skeptical of the tech stock, evidenced by 16 of the 19 brokerage firms in coverage having "hold" or "strong sell" ratings in place.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners