Stocks declined on Friday, with the Nasdaq falling sharply following a new S&P 500 record in the previous session. There were various data points and stock-specific news releases to assess.
Of course, Nvidia’s earnings release was a key talking point. However, outside of that, there were some other interesting moves. Here are Investing.com’s stocks of the week.
Keurig Dr Pepper
KDP shares plunged, down more than 17% in the last week (as of 13:21 ET on Friday).
The decline followed news that the company will acquire JDE Peet’s for €15.7 billion ($17.2 billion) in an all-cash transaction, followed by a planned separation into two independent publicly traded companies.
After completing the acquisition, KDP plans to separate via a tax-free spin-off into two entities: "Beverage Co." focused on North American refreshment beverages with more than $11 billion in annual net sales, and "Global Coffee Co." with approximately $16 billion in combined annual net sales serving over 100 countries.
HSBC downgraded Keurig Dr Pepper to Hold from Buy after the announcement. “This deal looks too expensive,” HSBC wrote.
The bank stated that the decision to separate the businesses “comes at a high acquisition cost” and will result in leverage of approximately six times net debt to EBITDA. “We don’t think KDP needed to lever itself up to 6-8x net debt/reported EBITDA to exit the Keurig coffee business,” analysts wrote.
Marvell
Marvell Technology posted its latest quarterly earnings after the close on Thursday, with profit and revenue in line with analyst expectations.
However, the stock plunged more than 17% on Friday.
Benchmark analyst Cody Acree reiterated a Buy rating and $95.00 price target on Marvell, but noted that investors are grappling with “the second consecutive quarter of disappointing results and guidance, as the company is seeing near-term inventory digestion at what we expect is its lead custom-silicon hyperscale customer, Amazon.”
MongoDB
In contrast, MongoDB shares surged after its earnings release after the close on Tuesday. The stock has rallied more than 47% in the last week, trading at its highest level since December 2024.
The firm topped consensus expectations, while also providing strong Q3 and full-year guidance, impressing investors.
“The company delivered 24% growth and beat consensus by ~7%, and Atlas growth accelerated to 29%. They also delivered the strongest net new adds in 6 years,” Bernstein analysts said following the release. “Given the strength in the business metrics and the conservative guide, the setup continues to look favorable for the company.”
Snowflake
Snowflake was another name that surged following a positive earnings release. The shares rallied over 20% on Thursday after the company topped Q2 expectations.
“SNOW posted an impressive 2Q beat and raise,” said Macquarie analysts in a note.
However, the firm kept a Neutral rating on the stock, stating: “While SNOW’s product strategy for applying AI to front-end analytics and back-end processing/ retrieval looks promising, our read is that current monetization of AI-related usage is fairly minimal."
Source :
https://www.investing.com/news/stock-market-news/investingcoms-stocks-of-the-week-4217056
