Tech Stocks See Volatility as Earnings Reports Drive Market Moves

U.S. technology stocks saw notable volatility on Thursday as several major companies reported quarterly earnings, prompting sharp movements in share prices and market capitalization.

Align Technology shares dropped 36% to their lowest level in over eight years after the company missed earnings and revenue expectations and announced a restructuring plan that includes layoffs and one-time charges of up to $170 million. CFO John Morici said the company is evaluating "difficult but, we believe, necessary actions to position us for sustainable, long-term success and improved profitability."

Carvana shares surged 17% to an all-time high after the used car retailer reported record quarterly revenue and earnings, with vehicle sales rising 41% year-over-year. CEO Ernie Garcia attributed the performance to Carvana's business model and said the company remains the "fastest growing and most profitable automotive retailer, both by significant margins." Carvana expects further growth in retail units sold and raised its full-year EBITDA guidance.

Meta Platforms' stock jumped 12% to a record high after second-quarter results exceeded analyst expectations. Revenue grew 22% to $47.52 billion, and net income rose to $18.34 billion. CEO Mark Zuckerberg told investors that AI improvements are driving advertising efficiency and that developing superintelligence is now "in sight."

Microsoft briefly joined Nvidia as the only companies to reach a $4 trillion market value, following strong quarterly results driven by growth in cloud computing and AI services. CEO Satya Nadella said, "Cloud and AI is the driving force of business transformation across every industry and sector." The company reported 18% year-over-year revenue growth, with its Intelligent Cloud segment up 26%. CFO Amy Hood noted that Microsoft expects double-digit revenue growth in fiscal 2026 but will remain "capacity constrained" as it expands AI infrastructure.

Qualcomm shares fell 6% after the chipmaker's revenue narrowly missed analyst expectations, despite a 10% year-over-year increase. The company is seeking to diversify revenue sources as it anticipates losing Apple as a customer in coming years. JPMorgan analysts forecast limited overall revenue growth for Qualcomm in fiscal 2026 and 2027.

Investors are also closely watching Apple and Amazon ahead of their earnings reports. Analysts remain largely positive on both companies, with consensus price targets above current trading levels. Apple is expected to report higher sales and profits, though concerns persist over potential tariffs and delays in AI features. Amazon is projected to post a 10% revenue increase, with analysts highlighting strong consumer demand and growth in cloud services.

Overall, the latest round of earnings has highlighted both the opportunities and challenges facing major technology firms as they navigate shifting market conditions, regulatory uncertainties, and rapid advances in artificial intelligence.