Meta Advances on Potential 2026 Cost Cuts
Meta Platforms gained 4% midday after Bloomberg reported that CEO Mark Zuckerberg’s leadership team is considering deep restructuring — potentially cutting up to 30% of the metaverse division in 2026.
The move signals Meta’s continued shift toward near-term profitability and efficiency as spending priorities rotate toward AI infrastructure and advertising technologies.
Kroger Trades Lower After Soft Revenue
Kroger shares slid 6.5% after missing third-quarter revenue estimates.
Comparable sales ex-fuel rose 2.6%, slightly below the 2.9% expected, while gross margins tightened to 22.8% vs. 23.0% forecast.
Investors reacted to the weaker consumer read-through and margin pressures heading into year-end.
SAIC Soars on Strong Federal Pipeline
Science Applications International Corp. jumped 17% after posting a Q3 earnings beat and raising fiscal 2026 and 2027 guidance.
Management cited rising book-to-bill trends, pointing to durable federal demand for systems engineering, cloud modernization, and mission-critical tech services.
Retail Names Diverge: PVH Falls, Dollar General Rallies
- PVH Corp. (Tommy Hilfiger & Calvin Klein) dropped 10% after issuing weaker-than-expected Q4 guidance. EPS is now projected at $3.20–$3.35, below the Street’s $3.64.
- Dollar General rallied 11%, raising full-year EPS guidance to $5.60–$5.80, beating prior estimates and topping expectations.
Software Reactions Split: Salesforce, UiPath Up; Snowflake Down
- Salesforce rose 2.5% after lifting full-year revenue guidance to $41.45B–$41.55B, though Q3 results were mixed.
- UiPath surged 20% on a strong Q3 beat (EPS $0.16 vs. $0.15 expected) and revenue of $411M, well above forecasts.
- Snowflake sank 11%, despite beating Q3 results, as its January-quarter product revenue guidance disappointed growth-focused investors.
Consumer Staples: Hormel Edges Higher
Hormel gained 2% despite soft revenue, after indicating FY earnings could reach $1.51/share, ahead of the $1.45 consensus.
Management signaled that a business turnaround is underway heading into 2026.
WSA Take
Today’s tape reflects a broader shift toward profitability clarity and forward guidance as markets look beyond the Fed’s December decision.
Enterprise tech remains bifurcated — companies tied to automation and AI adoption (UiPath, SAIC) continue to outperform, while cloud data names face pressure on growth expectations.
Read our recent coverage on Google Deepens AI Push With New Replit Partnership.
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