The AWS outage has been resolved, and companies are operational again, much like Amazon stock, which rose 2.8% on Tuesday, underscoring the concentrated nature of the cloud infrastructure market.
- The S&P 500 showed slight movement, closing up 0.1%, but traded higher midday following positive earnings announcements.
- The Nasdaq Composite was down 0.2%, with tech giant Alphabet slipping over OpenAI’s major reveal.
- The Dow Jones Industrial Average traded 0.5% higher, recording a fresh high with consumer goods company 3M leading the charge.
- The Russell 2000 slipped 0.6%.
The AWS outage, which even impacted trading on Monday, raises questions about the increasing reliance on cloud infrastructure. It slowed websites and briefly impacted revenue. While it highlights the efficiency of cloud computing, it also reveals the vulnerability of businesses that rely heavily on a single provider.
In other news, Gold declined 5.1% today, bringing its weekly loss to 0.96%. The U.S. 10-year Treasury continues to slip, remaining below its usual 4% mark.
Oil regained some of its lost ground on Tuesday, with its stock up 0.6%.
Image source: Dipasupil/Getty Images
In a significant new challenge for Alphabet (GOOGL), OpenAI announced the launch of its new AI web browser product ChatGPT Atlas, which caused Alphabet’s stock to slip 2% intraday.
A penny stock that has been making headlines for the past week, Beyond Meat, soared 143.9% on Tuesday, marking a 354% increase over five days.
Warner Bros. Discovery is in the news again; this time over a possible sale, which led to its stock surging 11%.
The earnings season has just begun, with Tesla and AT&T, among others, releasing their earnings on October 22, and several reports are expected to follow after the market closes on Tuesday.
Here are the most active stocks today
Five S&P 500 stocks making big moves today are:
- General Motors: +14.9%
- Halliburton Co: +11.6%
- Warner Bros Discovery: +10.9%
- RTX Corp : +7.7%
- 3M Co: +7.7%
The worst-performing five S&P 500 stocks today are:
- Newmont Corp: -9%
- Albemarle Corp: -4.9%
- Vistra Corp: -3.9%
- Estee Lauder: -3.9%
- Philip Morris International: -3.8%
Stocks also worth noting include:
- Robinhood: -2.9%
- Alibaba ADR: -3.9%
- Beyond Meat: +146.3%
- Coca Cola: +4%
- Amazon.com: +2.6%
Is Google’s market share under threat?
Alphabet shares slipped on Tuesday after OpenAI announced a livestream of its new browser product.
More Tech Stocks:
- Senior analyst lifts Palantir stock price target with a catch
- Nvidia just scored a massive AI win, but CEO Huang has regrets
- Apple’s iPhone 17 story just took an unexpected turn
- Analysts revamp Salesforce stock forecast after key meeting
Its stock declined 2.4% as OpenAI unveiled ChatGPT Atlas, a new AI-powered web browser that reignited investor concerns over potential disruption to Google’s core search business.
The official statement noted that Atlas, as a “browser built with ChatGPT takes us closer to a true super-assistant that understands your world and helps you achieve your goals.”
“With Atlas, ChatGPT can come with you anywhere across the web – helping you in the window right where you are, understanding what you’re trying to do, and completing the tasks for you, all without copying and pasting or leaving the page.”
OpenAI’s ChatGPT currently boasts 800 million weekly active users; however, Google still retains a monopoly over the search engine space, with an approximate 80% market share, according to research.
However, the news briefly overshadowed analysts’ upgrades from earlier this week. Oppenheimer raised its price target on Alphabet to $300 from $270 while maintaining an Outperform rating, citing underappreciated AI monetization potential, as reported at TheFly.
Bank of America lifted its price target to $280 from $252, keeping a Buy rating, citing resilient ad spending, conservative estimates, and optimism ahead of Alphabet’s Q3 earnings report due Oct. 29.
A meme stock in the making
Beyond Meat’s shares have shown a remarkable rebound after hitting an all-time low of about $0.50 on October 16, climbing nearly 371% over the past five days.
On Tuesday, the stock of this plant-based meat company surged 146%, lifting its stock price to $3.62 and extending the rally even after the market closed.
Related: Bank of America revamps Google stock price target ahead of earnings
The update marks a rare win for the company, which has struggled with declining sales and a shrinking retail footprint. The surge followed Beyond Meat’s announcement that Walmart will expand distribution of Beyond Meat products to than 2,000 stores nationwide, including their new Beyond Burger 6-Pack, “featuring the latest Beyond Burger in a convenient value pack”.
The decline in stock came after Beyond Meat’s debt exchange, which saw nearly all holders of its 0% interest Convertible notes swap for its new 7% Convertible senior notes and shares of company stock. While this pushed the company’s debt deadline to 2030, it has also contributed to share dilution, leaving analysts cautious about whether the rebound can be sustained.
While the rally of this penny stock continues, especially after Roundhill Investments added its name to its Roundhill Memestock ETF, Beyond Meat stock remains down more than 40% year-over-year.
Warner Bros. Discovery stock rallies on possible sale
The stock of Warner Bros. Discovery (WBD) jumped sharply after the company confirmed that its board has initiated a “strategic review,” exploring a range of options, including a potential sale.
Related: Warner Bros. Discovery has more bad news for HBO Max subscribers
The stock was up 10.9% on Tuesday, recording a 52-week high. This news was followed by multiple reports suggesting that Netflix and Comcast have expressed preliminary interest in acquiring the media conglomerate.
Benchmark analyst Matthew Harrigan raised the firm’s price target to $25 from $18, maintaining a Buy rating following this news. Harrigan also suggested that a combination with Paramount Skydance “offers the best strategic value in tandem with high likelihood for regulatory approval,” given friction from the current administration, as reported by TheFly.
Warner Bros. Discovery’s stock has seen a 92% surge year-to-date, and speculations over asset sales and the possibility of a transformative merger have renewed investor interest and focus on media consolidation.
Related: Bank of America hiring data rings alarm on economy
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