Stocks Lower at Midday as Oil Prices Hit New Highs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy META?
Stocks are lower at midday as traders keep an eye on rising oil prices. U.S. crude oil prices rose to their highest level since last June after Iran said it hit an oil tanker with a missile, with West Texas Intermediate crude futures trading above $77 per barrel during the session.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Broadcomrallied after the company said it expects artificial intelligence chip sales toin 2027OpenAI toppedas of end of last month, The Information reportsKrogerreported better-than-expected Q4 adjusted EPS, but gave arange that missed consensus at the midpointAmerican Eagle (AEO) reported what Telsey Advisory said wereStubHubreported Q4 GMS and revenue about 7% below consensus estimates, while the FY26 outlook for GMS and EBITDA came in2. WALL STREET CALLS:Meta Platformsto Neutral from Buy at AreteScotiabankMongoDBto Outperform following its post-earnings selloffPenn Entertainmentto Buy at BenchmarkBernsteinCoreWeaveat Underperform on hyperscaler competition riskJPMorgan and WedbushStubHubto Neutral after its earnings miss and guidance reset3. AROUND THE WEB:UniQure'sgene therapy for Huntington's disease has shown promising early results, but the FDA is requiring a new trial with a sham-surgery placebo group to prove its effectiveness, Bloomberg saysAlibabasaid it would set up a new task force to accelerate foundation model development, following the resignation of its Qwen AI division head Lin Junyang, Reuters reportsTencent'sSupercell is cooperating with a U.S. government security probe investigating its parent company's data practices, Bloomberg saysNvidiahas stopped production of its second-most advanced artificial intelligence chips, known as H200 chips, intended for the Chinese market, FT reportsSonyno longer plans to release its big single-player PlayStation 5 games on PC, a major strategy shift that sees it returning to console exclusivity, Bloomberg says4. MOVERS:Tango Therapeuticsgains after reportingand entering a clinical collaboration agreement with ErascaPalladyne AIincreases afterits guidance for FY26Alto Ingredientsand Ampriushigher afterquarterly resultsGrocery Outletfalls afterquarterly results and providing an update on its restructuring planPepGenlower afterquarterly results and announcing the FDA placed a partial clinical hold on Phase 2 trial of PGN-EDODM15. EARNINGS/GUIDANCE:BJ's WholesaleQ4 results, with EPS and revenue beating consensusJD.comQ4 results, with CEO Sandy Xu commenting, "We were pleased to close out 2026 with fourth quarter results in line with expectations"TeadsQ4 results and provided guidance for Q1 and FY26Victoria's SecretQ4 results, with CEO Hillary Super commenting, "We delivered an exceptional fourth quarter and a standout year"CienaQ4 results and provided guidance for Q2INDEXES:Near midday, the Dow was down 1.58%, or 768.33, to 47,971.08, the Nasdaq was down 0.39%, or 85.62, to 22,718.75, and the S&P 500 was down 0.71%, or 49.08, to 6,820.42.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 667.730
Low
655.15
Averages
824.71
High
1117
Current: 667.730
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
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.
Corning Shares Drop Following Broadcom CEO's Comments
- Overreaction in Market: Corning's shares plummeted on Thursday, primarily due to Broadcom CEO Hock Tan's comments regarding copper usage during the earnings call, despite Corning's unchanged industry outlook and guidance, indicating market sensitivity to short-term news.
- Fiber Optics Outlook: While Tan mentioned that customers might continue using direct-attached copper until 2028, Corning CEO Wendell Weeks emphasized the growing application of fiber optics in data centers during the January earnings call, particularly following the $6 billion agreement with Meta, showcasing the company's strong potential in the fiber market.
- Strategic Alignment: Both Weeks and CFO Edward Schlesinger indicated that the use of optics in scale-out is inevitable, although the timeline for scale-up remains uncertain; Corning's Springboard initiative does not rely on short-term optical revenue, instead providing a conservative outlook for future growth.
- Investor Sentiment Fluctuation: Despite the negative market reaction to Tan's comments, analysts believe this does not reflect Corning's long-term growth potential, highlighting how investors tend to overreact to any potential negative news following significant stock price increases, reminding investors to remain rational in volatile markets.
See More
Cathie Wood's Disruptive Investment Strategy
- Innovative Investment Philosophy: Cathie Wood's Ark Invest focuses on disruptive and innovative companies, emphasizing that innovation should displace industry incumbents, enhance efficiencies, and capture market share, thereby driving long-term growth.
- Nvidia's Strong Performance: Nvidia reported a 73% year-over-year revenue increase in Q4 FY2026, reaching a new high; despite market concerns over its valuation, the strong demand for AI keeps its stock attractive.
- BYD's Market Advantage: As China's largest EV manufacturer, BYD became the top global shipper of battery-electric vehicles in 2025, surpassing Tesla for the first time, with nearly 8% growth in new energy vehicle sales, reflecting robust market demand and government support.
- Meta Platforms' Growth Potential: Meta's revenue surged 22% in 2022, exceeding $200 billion, and despite a slight 3% decline in net income, its over 30% net margin and ongoing advertising revenue growth indicate resilience in its business model.
See More
BYD Leads EV Market While Nvidia Faces High Expectations
- EV Market Leader: BYD surpassed Tesla in 2025 to become the world's largest shipper of battery-electric vehicles (BEVs), achieving over 4.6 million units sold, which underscores its strong growth potential in the global EV market, particularly with the Chinese government's push for greener alternatives.
- Profitability and Dividends: BYD's latest quarterly dividend stands at $0.20 per share, yielding 4.8% annually, showcasing its robust financial health and commitment to shareholder returns, which further enhances investor confidence in the company.
- Nvidia's Market Performance: Despite Nvidia reporting a 73% year-over-year revenue increase to a record high in Q4 FY2026, its stock price fell due to investor concerns over high valuations, reflecting a cautious sentiment regarding the future growth potential of the AI sector.
- Meta's New Dividend Policy: Meta declared its first dividend in 2024, distributing $0.53 per share quarterly with a yield of 0.3%, which, although modest, indicates the company's focus on shareholder returns while maintaining its leadership position in the social media market with consistent growth.
See More
AI Spending War Enters New Phase with Power Focus
- CapEx Growth Expectations: Gene Munster of Deepwater Asset Management forecasts that next year's capital expenditures for major tech firms will significantly exceed market expectations, projecting a 65% increase, which will elevate overall industry investment levels.
- Impact of White House Agreement: The Trump administration announced a voluntary agreement with major tech companies aimed at preventing AI data centers from raising electricity costs for U.S. consumers, mandating firms to build or buy their own power, thereby increasing the demand for power infrastructure investment.
- Structural Shift in Industry: Munster highlighted that tech companies are willing to pay for power, marking a structural shift in the AI arms race from silicon to power, which will lead to prolonged higher capital expenditures.
- Rising Power Demand: The U.S. added a record 10 gigawatts of new data center capacity in 2025, with electricity demand rising 2.8% year-over-year, the fastest growth rate in nearly 20 years, providing strong support for future capital expenditures.
See More
WhatsApp to Allow Rival AI Chatbots in Europe Amid Regulatory Scrutiny
- Regulatory Response: WhatsApp's decision to allow rival AI chatbots in Europe, charging between €0.0490 and €0.1323 per non-template message, aims to address EU regulators' concerns about its market position and avoid further intervention.
- Policy Change Context: This shift follows a broader investigation by the EU into Meta, initiated in December last year due to its October policy restricting external AI chatbots, highlighting regulators' focus on market competition.
- Impact on Service Providers: Lengthy chatbot conversations could lead to substantial costs for service providers, potentially affecting their business models and profitability in a highly competitive market landscape.
- International Expansion Plans: Meta's policy changes will also apply in Brazil, indicating the company's global adjustment to AI chatbot policies in response to regulatory demands across different countries.
See More
China Abandons 5% GDP Growth Target
- China's Economic Target Shift: China has set its 2026 GDP growth target at 4.5%-5%, marking the lowest target since 1991, which reflects the reality of slowing economic growth and may lead to decreased investor confidence in the Chinese market.
- Historical Context Analysis: Historically, China's economy grew as high as 12%, but as economic cycles change, market optimism about China has waned, indicating that the country's supercycle is over, prompting investors to reassess risks.
- Market Money Flows: Currently, portfolios are heavily concentrated in the 'Magnificent Seven' stocks, with early trading showing neutral money flows in Apple and Google, indicating a cautious market sentiment towards these tech stocks.
- Cryptocurrency Legislation Hurdles: Bitcoin staged a significant rally on hopes of favorable legislation, but faces roadblocks as banks refuse to back a White House proposal, necessitating cautious responses from investors to market volatility.
See More
Corning Shares Drop Following Broadcom CEO's Comments
- Overreaction in Market: Corning's shares plummeted on Thursday, primarily due to Broadcom CEO Hock Tan's comments regarding copper usage during the earnings call, despite Corning's unchanged industry outlook and guidance, indicating market sensitivity to short-term news.
- Fiber Optics Outlook: While Tan mentioned that customers might continue using direct-attached copper until 2028, Corning CEO Wendell Weeks emphasized the growing application of fiber optics in data centers during the January earnings call, particularly following the $6 billion agreement with Meta, showcasing the company's strong potential in the fiber market.
- Strategic Alignment: Both Weeks and CFO Edward Schlesinger indicated that the use of optics in scale-out is inevitable, although the timeline for scale-up remains uncertain; Corning's Springboard initiative does not rely on short-term optical revenue, instead providing a conservative outlook for future growth.
- Investor Sentiment Fluctuation: Despite the negative market reaction to Tan's comments, analysts believe this does not reflect Corning's long-term growth potential, highlighting how investors tend to overreact to any potential negative news following significant stock price increases, reminding investors to remain rational in volatile markets.
See More
Cathie Wood's Disruptive Investment Strategy
- Innovative Investment Philosophy: Cathie Wood's Ark Invest focuses on disruptive and innovative companies, emphasizing that innovation should displace industry incumbents, enhance efficiencies, and capture market share, thereby driving long-term growth.
- Nvidia's Strong Performance: Nvidia reported a 73% year-over-year revenue increase in Q4 FY2026, reaching a new high; despite market concerns over its valuation, the strong demand for AI keeps its stock attractive.
- BYD's Market Advantage: As China's largest EV manufacturer, BYD became the top global shipper of battery-electric vehicles in 2025, surpassing Tesla for the first time, with nearly 8% growth in new energy vehicle sales, reflecting robust market demand and government support.
- Meta Platforms' Growth Potential: Meta's revenue surged 22% in 2022, exceeding $200 billion, and despite a slight 3% decline in net income, its over 30% net margin and ongoing advertising revenue growth indicate resilience in its business model.
See More
BYD Leads EV Market While Nvidia Faces High Expectations
- EV Market Leader: BYD surpassed Tesla in 2025 to become the world's largest shipper of battery-electric vehicles (BEVs), achieving over 4.6 million units sold, which underscores its strong growth potential in the global EV market, particularly with the Chinese government's push for greener alternatives.
- Profitability and Dividends: BYD's latest quarterly dividend stands at $0.20 per share, yielding 4.8% annually, showcasing its robust financial health and commitment to shareholder returns, which further enhances investor confidence in the company.
- Nvidia's Market Performance: Despite Nvidia reporting a 73% year-over-year revenue increase to a record high in Q4 FY2026, its stock price fell due to investor concerns over high valuations, reflecting a cautious sentiment regarding the future growth potential of the AI sector.
- Meta's New Dividend Policy: Meta declared its first dividend in 2024, distributing $0.53 per share quarterly with a yield of 0.3%, which, although modest, indicates the company's focus on shareholder returns while maintaining its leadership position in the social media market with consistent growth.
See More
AI Spending War Enters New Phase with Power Focus
- CapEx Growth Expectations: Gene Munster of Deepwater Asset Management forecasts that next year's capital expenditures for major tech firms will significantly exceed market expectations, projecting a 65% increase, which will elevate overall industry investment levels.
- Impact of White House Agreement: The Trump administration announced a voluntary agreement with major tech companies aimed at preventing AI data centers from raising electricity costs for U.S. consumers, mandating firms to build or buy their own power, thereby increasing the demand for power infrastructure investment.
- Structural Shift in Industry: Munster highlighted that tech companies are willing to pay for power, marking a structural shift in the AI arms race from silicon to power, which will lead to prolonged higher capital expenditures.
- Rising Power Demand: The U.S. added a record 10 gigawatts of new data center capacity in 2025, with electricity demand rising 2.8% year-over-year, the fastest growth rate in nearly 20 years, providing strong support for future capital expenditures.
See More
WhatsApp to Allow Rival AI Chatbots in Europe Amid Regulatory Scrutiny
- Regulatory Response: WhatsApp's decision to allow rival AI chatbots in Europe, charging between €0.0490 and €0.1323 per non-template message, aims to address EU regulators' concerns about its market position and avoid further intervention.
- Policy Change Context: This shift follows a broader investigation by the EU into Meta, initiated in December last year due to its October policy restricting external AI chatbots, highlighting regulators' focus on market competition.
- Impact on Service Providers: Lengthy chatbot conversations could lead to substantial costs for service providers, potentially affecting their business models and profitability in a highly competitive market landscape.
- International Expansion Plans: Meta's policy changes will also apply in Brazil, indicating the company's global adjustment to AI chatbot policies in response to regulatory demands across different countries.
See More
China Abandons 5% GDP Growth Target
- China's Economic Target Shift: China has set its 2026 GDP growth target at 4.5%-5%, marking the lowest target since 1991, which reflects the reality of slowing economic growth and may lead to decreased investor confidence in the Chinese market.
- Historical Context Analysis: Historically, China's economy grew as high as 12%, but as economic cycles change, market optimism about China has waned, indicating that the country's supercycle is over, prompting investors to reassess risks.
- Market Money Flows: Currently, portfolios are heavily concentrated in the 'Magnificent Seven' stocks, with early trading showing neutral money flows in Apple and Google, indicating a cautious market sentiment towards these tech stocks.
- Cryptocurrency Legislation Hurdles: Bitcoin staged a significant rally on hopes of favorable legislation, but faces roadblocks as banks refuse to back a White House proposal, necessitating cautious responses from investors to market volatility.
See More
