Investing.com — Profit-taking in AI names, a decline in IBM, and a disappointing Netflix outlook have helped push markets lower this week, while rising oil prices offered one of the few pockets of strength.
Here are Investing.com’s stocks of the week:
IBM
IBM was a significant loser this week, plunging 28% after the company issued a preliminary second-quarter revenue figure of $17.2 billion, well short of the $17.86 billion analyst consensus.
The shortfall was driven by a reprioritization of enterprise IT budgets toward hardware infrastructure, which cannibalized spending on IBM’s higher-margin software business.
BofA Securities analyst Wamsi Mohan cut his price target on IBM to $280 from $330 following the news, maintaining a Buy rating.
“We are surprised by the magnitude of the topline miss given consulting was relatively in-line, but both Software and Infrastructure missed estimates significantly,” Mohan said.
Memory stocks
Memory names came under broad pressure this week as profit-taking hit AI-linked stocks and the recent U.S. listing of SK Hynix weighed on sentiment across the sector.
Micron fell 7.8%, SK Hynix’s ADRs declined 4.6%, Western Digital dropped 13.4%, Seagate shed 7.2%, and SanDisk fell over 18% during the period.
Semiconductors and equipment
The sell-off extended across the wider semiconductor space on fears of an AI spending slowdown.
Arm Holdings was the hardest hit, falling 16%, while Intel dropped 11.5%, Qualcomm lost 9.3%, Lam Research declined 7.9%, and Applied Materials slid 6.4%.
The moves reflected broader investor anxiety about the durability of AI capital expenditure growth.
Netflix
Netflix has dropped around 9.2% this week, including a 7.9% decline on Friday, after the streaming giant issued third-quarter guidance that missed Wall Street expectations.
Netflix also said it would reduce the frequency of its viewing-hours disclosures as it pursues new avenues of growth.
Goldman Sachs analyst Eric Sheridan lowered his price target on Netflix to $94 from $110 following the report, maintaining a Buy rating on the stock, citing long-term confidence in member growth, pricing power, and a rising advertising revenue stream.
Oil stocks
Energy was a strong sector this week, with U.S. and Iranian strikes driving oil prices higher and lifting major names across the board.
Marathon Petroleum led the group with a gain of 8.7% in the last week, followed by ExxonMobil at 7.4%, Phillips 66 at 7.1%, and Chevron at 6.8%. ConocoPhillips and Occidental Petroleum added 4.8% and 4.2%, respectively, while EOG Resources also rose 4.2%.
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