Hot or Not: Stock Market Edition [11/21/2024]

One of yesterday's biggest losers was Target (TGT), following lackluster earnings. Likewise, doubts about the future drove Qualcomm (QCOM) stock downward. But there were a few big winners like Chegg (CHGG) and Williams-Sonoma (WSM) — keep reading to find out more.

🔥 HOT: Shares of online learning company Chegg (NYSE: CHGG) had a rare positive day, gaining 3.0% on the barest optimism that it may have one last trick up its sleeve. Chegg is one of the early victims of generative AI tools like ChatGPT, which all but renders Chegg’s homework help model obsolete. CHGG is down 84.6% so far this year and has lost 98% since ChatGPT burst on the scene in late 2022. Some investors see Chegg’s low valuation as a buying opportunity, hoping that the company will be able to right the ship and reinvent itself as a tool for institutions rather than students. The stock’s recent performance doesn’t offer a lot of hope, but one thing is certain: CHGG is cheap right now.

🥶 NOT: Qualcomm (NASDAQ: QCOM) dropped by 3.9% on Wednesday as the market continues to hem and haw over the company’s future in light of Apple moving its chip business in-house. QCOM has performed okay this year, gaining 8.5% since January, and has a solid lineup of future orders even without Apple’s business. The big question mark is the company’s ability to diversify going forward to avoid having its fate tied so tightly to one client.

🔥 HOT: Shares of Williams-Sonoma (NYSE: WSM) gained 27.5% on Wednesday, reaching a new all-time high closing price of $175.04. The big gain was fueled by the company’s earnings report for the third quarter. Some of the biggest news to come out of the report is that the company is gaining market share. The report also showed better-than-expected profits during economic conditions that are not usually favorable for luxury brands. WSM is now up 74.2% YTD.

🥶 NOT: Target’s (NYSE: TGT) slid by 22.0% on Wednesday following its disappointing third-quarter earnings call. The company missed its targets for both EPS and revenue and cut its full-year guidance from $8.90 to $8.30 earnings per share. This startling news comes hot on the tail of the company raising its full-year guidance in August, which lowers investor confidence even further. Wednesday’s plunge leaves TGT down 14.4% on the year.

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