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Today is Friday, May 16, 2025.

The Early Bird Index today is 80.71

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Applied Materials' Shaky Outlook

Semiconductor company Applied Materials $AMAT ( ▼ 2.11% ) declined by 5.67% in after-hours trading on Thursday after posting mixed financial earnings results.

Financials: Applied Materials reported earnings of $2.39 per share in the past quarter, which was better than expected. However, the company’s revenue of $7.1 billion was lower than expected.

Quote: “Despite the dynamic economic and trade environment, we have not seen significant changes to customer demand and are well-equipped to navigate evolving conditions with our robust global supply chain and diversified manufacturing footprint.”  - CFO Brice Hill.

Powering the Story: The company expects around $7.2 billion in revenue in the current period. This outlook didn’t instill confidence in investors concerned about the impact of tariffs.

Early Bird’s Nest Egg Gains: Applied Materials could have reassured investors about its ability to thrive under tariffs by emphasizing several strategic advantages and opportunities, rather than focusing primarily on the current demand environment and offering a tepid outlook.

• The company’s current advantages include domestic manufacturing tailwinds, a competitive advantage over foreign rivals, accelerated innovation, and financial strength.

Final Thoughts: The stock had recovered some of its earlier losses (caused by the tariff announcement) with strong gains in the past month.

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Notables

Notable Earnings Today: Flowers Foods (NYSE: FLO), RBC Bearings (NYSE: RBC), Brady (NYSE: BRC), Codere Online Luxembourg (Nasdaq: CDRO), Mastech Digital (NYSE American: MNH), Yatsen Holding (NYSE: YSG).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: AstroBrew (Honeycomb).

Notable Economic Events Today: Housing Starts (8:30 a.m. ET), Building Permits (8:30 a.m. ET), Export Price Index / Import Price Index (8:30 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).

Take-Two’s Grand Theft Optimism

Investors were less-than-impressed with the financial results from Take-Two Interactive Software $TTWO ( ▼ 4.52% ) on Thursday, sending the stock down 2.92% in after-hours trading.

Financials: Take-Two reported a loss of $21.08 per share in the quarter (thanks to a $3.55 billion impairment charge), which was lower than expected. The revenue in the quarter was $1.58 billion, which was better than expected.

Powering the Story: The video game company said it expects to achieve record levels of net bookings when Grand Theft Auto VI comes out in May 2026 (which was delayed). Until then, the company’s outlook for the next 12 months was lower than expected.

Final Thoughts: Despite the delays to Grand Theft Auto VI, Take-Two’s stock is up 26% this year.

Virgin Galactic’s 2026 Flight Goal

Virgin Galactic $SPCE ( ▼ 7.69% ) soared 14.63% in after-hours trading on Thursday after posting better-than-expected financial results.

Financials: Virgin Galactic reported a loss of $2.38 per share and revenue of $500,000 in the past quarter. Both were better than expected.

Final Thoughts: The company also reaffirmed its plans to begin commercial spaceflights in 2026, which pleased investors.

Trends to Watch

Still Growing: Cava revenue beats estimates as Mediterranean chain reports double-digit same-store sales growth (CNBC)

Tariff Pain: Walmart, Mattel and other retailers to boost prices as trade war hits shoppers (Los Angeles Times)

Summer Prep: Bitcoin Holds Above $100K, Altcoins Slide as Analyst Sees Crypto Rally Into Summer (CoinDesk)

Building: BlackRock’s sBUIDL launches 'first direct DeFi protocol integration' with Euler on Avalanche (The Block)

Ouch: Coinbase warns of up to $400 million hit from cyberattack (Reuters)

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_{The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.}