Key Takeaways
- Super Micro Computer (SMCI) reported fourth-quarter sales of $5.76 billion, missing analyst estimates of $5.88 billion, and provided a first-quarter net sales outlook of $6.00 billion to $7.00 billion, with fiscal 2026 sales projected at at least $33.0 billion.
- Rivian Automotive (RIVN) forecasted a wider adjusted loss for the year, citing recent changes to stringent U.S. fuel economy rules that threaten a key revenue source, including the potential loss of $325 million from regulatory credit sales.
- Advanced Micro Devices (AMD) gave a strong forecast for the current period, signaling inroads in the AI accelerator chip industry, while Nvidia (NVDA) remains dominant but faces potential challenges from new U.S. tariffs.
- MercadoLibre (MELI) investors largely overlooked a second-quarter profit miss, focusing instead on the Latin American e-commerce giant’s long-term strategy, with revenue growing over 30% year-over-year to $6.67 billion.
- Snap Inc. (SNAP) reported second-quarter sales that were shy of Wall Street’s average estimates due to a technical issue with its advertising auction that slowed revenue growth, though its Q1 2025 EPS of -$0.08 beat forecasts.
Technology and automotive sectors experienced a mixed bag of financial results and outlooks as companies navigate evolving market conditions and policy shifts. Super Micro Computer (SMCI) saw its shares fall after reporting fourth-quarter net sales of $5.76 billion, which missed the Street's consensus estimate of $5.88 billion. The company also provided a first-quarter net sales guidance of $6.00 billion to $7.00 billion, with a midpoint of $6.5 billion, slightly below estimates. Despite this, Super Micro projects full fiscal year 2026 net sales of at least $33.0 billion, exceeding previous estimates.
In the electric vehicle market, Rivian Automotive (RIVN) anticipates a larger adjusted loss for the year than previously expected. This comes as changes to U.S. fuel economy rules threaten a critical revenue stream, specifically the sale of automotive regulatory credits, which generated $325 million in 2024 for Rivian. The company's adjusted loss before interest, taxes, depreciation, and amortization is now projected to be between $2 billion and $2.25 billion.
Meanwhile, the semiconductor industry presented a nuanced picture. Advanced Micro Devices (AMD) delivered a strong forecast for the current period, indicating its growing traction in the AI accelerator chip market. This signals increasing competition for Nvidia (NVDA), which currently dominates the sector. However, Nvidia itself faces potential impacts from new U.S. tariffs on Canadian and Taiwanese imports, which could affect chip stocks broadly.
In e-commerce, MercadoLibre (MELI) demonstrated resilience as investors largely "brushed off" a second-quarter report that missed profit estimates. The focus remained on the Latin American e-commerce and fintech giant’s long-term growth strategy, with reported revenue growth exceeding 30% year-over-year, reaching $6.67 billion.
Social media platform Snap Inc. (SNAP) reported second-quarter sales below Wall Street's average estimates. The company, owner of the Snapchat photo-sharing app, attributed this to a technical issue with its advertising auction that hampered revenue growth. Despite this, Snap's Q1 2025 EPS of -$0.08 beat the -$0.13 forecast.
In broader financial markets, Cboe Global Markets (CBOE) released its July metrics, showing mixed performance with futures ADV down 33.3%, but index options ADV up 8% and multi-listed options ADV up 9.6%. Additionally, discussions around regional banks suggest a potential resurgence in merger activity, driven by Trump-era policies that may clear the way for growth within the sector.
President Trump's recent statements also touched upon key economic policy areas. He indicated that the race for a new Fed Governor has narrowed to four candidates, with a decision expected before week's end. Trump also discussed potential 100% tariffs on Russian oil, stating there was "quite a bit of that" under consideration, though the outcome remains undecided. He also reiterated a threat to withhold funds from New York.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.