Nike Shares Drop 10% Despite Beating Earnings Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2026
0mins
Should l Buy LRCX?
Source: CNBC
- Nike's Revenue Decline: Nike's North American revenue of $5.03 billion fell short of the $5.04 billion expected by analysts, leading to a 10% drop in stock price; however, the company reported fiscal third-quarter earnings of 35 cents per share and $11.28 billion in revenue, exceeding expectations of 28 cents and $11.24 billion, showcasing resilience amid challenges.
- Dave & Buster's Positive Outlook: Dave & Buster's shares rose 7% as management anticipates increases in same-store sales, revenue, and adjusted EBITDA in 2026, despite posting a fourth-quarter adjusted loss of 35 cents per share and revenue of $529.6 million, below the expected profit of 39 cents and revenue of $555.9 million, indicating future growth potential.
- PVH Strong Performance: PVH's stock increased by 1% after reporting fourth-quarter adjusted earnings of $3.82 per share and revenue of $2.51 billion, both surpassing analyst expectations of $3.31 per share and $2.43 billion, reflecting successful brand management.
- NCino Stock Surge: NCino shares surged 22% after providing first-quarter revenue guidance of $154.5 million to $156.4 million, exceeding the $152.7 million consensus, with fourth-quarter revenue also surpassing expectations at $149.7 million, indicating strong performance in the cloud software market.
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Analyst Views on LRCX
Wall Street analysts forecast LRCX stock price to fall
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 294.050
Low
142.00
Averages
192.50
High
265.00
Current: 294.050
Low
142.00
Averages
192.50
High
265.00
About LRCX
Lam Research Corporation is a global supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Its products and services are designed to help its customers build devices that are used in a variety of electronic products, including mobile phones, personal computers, cloud and enterprise servers, wearables, automotive vehicles and data storage devices. Its product families include ALTUS, SABRE, SPEED, Striker, VECTOR, Flex, Vantex, Kiyo, Versys Metal, Syndion, Coronus, and DV-Prime, Da Vinci, EOS, and SP Series. Its customer base includes semiconductor memory, foundries, and integrated device manufacturers that make products such as non-volatile memory, dynamic random-access memory, and logic devices. It offers services in areas like nanoscale manufacturing enablement, chemistry, plasma and fluidics, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US Stocks Rise Slightly, Nasdaq Hits All-Time High
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- Chinese Trade Data: China's April exports rose 14.1% year-on-year and imports increased by 25.3%, both exceeding market expectations, providing a positive signal for global economic growth and potentially boosting international investment sentiment.
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- Support from Employment Data: U.S. nonfarm payrolls for April increased by 115,000, surpassing expectations of 65,000, with March figures revised up to 185,000, indicating resilience in the labor market and further boosting stock prices.
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- Strong Employment Data: US nonfarm payrolls rose by 115,000 in April, exceeding expectations of 65,000, while March figures were revised up to 185,000, indicating labor market resilience that supports stock market gains.
- Declining Consumer Confidence: Despite rising stock prices, the University of Michigan's May consumer sentiment index fell by 1.6 to a record low of 48.2, reflecting consumer concerns about the economic outlook, which could negatively impact future spending.
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See More
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- Market Performance: The S&P 500 Index rose by 0.25% and the Nasdaq 100 Index increased by 0.17%, reaching all-time highs, reflecting strong corporate earnings and optimism around artificial intelligence, although rising oil prices and bond yields limited gains.
- Middle East Impact: The failure of the US and Iran to reach a peace agreement has led to rising global bond yields, with the 10-year T-note yield increasing by 3 basis points to 4.39%, raising concerns that elevated energy prices could force central banks to tighten monetary policy.
- Chinese Trade Data: China's April exports rose by 14.1% year-on-year and imports increased by 25.3%, both exceeding market expectations, indicating positive signals for global economic recovery that could benefit global markets.
- Earnings Reports: So far, 83% of the 446 S&P 500 companies that reported earnings have beaten estimates, with Q1 earnings projected to climb by 12% year-on-year, although excluding the technology sector, the growth is only 3%, marking the weakest performance in two years.
See More
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- Market Performance: The S&P 500 rose by 0.17% and the Nasdaq 100 reached an all-time high, reflecting strong corporate earnings and optimism around AI, although rising oil prices and bond yields limited gains.
- Middle East Impact: The failure of the U.S. and Iran to reach a peace agreement has led to rising global bond yields, with the 10-year Treasury yield increasing to 4.39%, potentially forcing central banks to tighten monetary policy, which could affect market liquidity.
- Chinese Trade Data: China's April exports rose 14.1% year-on-year and imports increased by 25.3%, both exceeding market expectations, providing a positive signal for global economic growth and potentially boosting international investment sentiment.
- Corporate Earnings Situation: So far, 83% of the 446 S&P 500 companies have exceeded earnings expectations, with Q1 earnings projected to grow by 12% year-on-year, demonstrating corporate resilience in the economic recovery, although growth in the tech sector has slowed to 3%.
See More
Caution Advised for Tech ETF Investments
- Missing AI Ecosystem Players: Amazon, Alphabet, and Meta play crucial roles in the AI ecosystem, yet their absence from the top holdings of the Vanguard Information Technology ETF due to revenue classification may lead investors to overlook significant opportunities.
- Market Share Insight: With Amazon and Alphabet's cloud platforms collectively holding a 42% market share, their exclusion would leave the AI ecosystem lacking critical infrastructure, potentially stunting industry growth.
- Capital Expenditure Expectations: These three companies are projected to spend between $500 billion and $530 billion in capital expenditures in 2023, with a significant portion allocated to AI initiatives, underscoring their pivotal role in advancing AI technology.
- Investment Strategy Shift: Rather than investing in the Vanguard Information Technology ETF, opting for a Nasdaq-100 ETF like the Invesco QQQ Trust ETF would provide better exposure to the AI sector, as it includes these key players along with other tech giants.
See More
Risks and Opportunities in Tech ETF Investments
- Tech ETF Overview: The Vanguard Information Technology ETF (VGT) shows a +2.69% change with a current price of $112.44 and a trading volume of 3.9 million shares, indicating sustained investor interest in tech stocks, yet it lacks key AI players in its top holdings.
- Holdings Structure Analysis: Over 44% of VGT's top holdings are concentrated in Nvidia, Apple, and Microsoft, while missing Amazon, Alphabet, and Meta, which play crucial roles in the AI ecosystem, highlighting potential missed investment opportunities.
- Missing AI Infrastructure: Amazon and Alphabet together hold a 42% market share in global cloud platforms, and their absence would deprive the AI ecosystem of critical infrastructure, impacting the potential for future AI development.
- Better Investment Options: Given VGT's limitations, investors should consider the Invesco QQQ Trust ETF, which includes Nvidia, Microsoft, and other heavyweight companies in the AI sector, providing a more comprehensive exposure to AI investments.
See More
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- Strong Market Performance: The S&P 500 rose by 0.84% and the Nasdaq 100 increased by 2.35%, reaching record highs, reflecting market optimism driven by robust corporate earnings despite concerns over the Iran conflict.
- Support from Employment Data: U.S. nonfarm payrolls for April increased by 115,000, surpassing expectations of 65,000, with March figures revised up to 185,000, indicating resilience in the labor market and further boosting stock prices.
- Decline in Consumer Confidence: The University of Michigan's May consumer sentiment index fell to a record low of 48.2, below the expected 49.5, highlighting economic uncertainty that could impact future consumer spending.
- Oil Market Volatility: Iran's seizure of an oil tanker in the Strait of Hormuz led to a rise in WTI crude prices, with expectations that this incident will affect global oil supply, potentially causing further price fluctuations.
See More
US Stocks Rise, Nasdaq Hits Record High
- Strong Employment Data: US nonfarm payrolls rose by 115,000 in April, exceeding expectations of 65,000, while March figures were revised up to 185,000, indicating labor market resilience that supports stock market gains.
- Declining Consumer Confidence: Despite rising stock prices, the University of Michigan's May consumer sentiment index fell by 1.6 to a record low of 48.2, reflecting consumer concerns about the economic outlook, which could negatively impact future spending.
- Chip Stocks Lead Gains: Chipmakers like Micron and Qualcomm saw stock prices rise over 8%, driving the overall market higher, demonstrating the strong performance of tech stocks in the current market environment, although weakness in software stocks limited gains in the Dow.
- Oil Price Volatility Impact: WTI crude prices edged up slightly due to Iran seizing an oil tanker in the Strait of Hormuz, complicating market expectations for future oil prices, which may influence investment decisions in related sectors.
See More
