The stock market, buoyed by higher-than-expected third-quarter U.S. GDP growth, ended broadly higher on Thursday as Wall Street quickly forgot any fears that may have surfaced yesterday as a result of the Federal Reserve’s decision to end quantitative easing.
Unfortunately, shares of Intel Corporation (INTC), National Oilwell Varco (NOV), and Facebook (FB) did not rise with the tide, and each ended as one of today’s worst performing stocks.
Intel Corporation (INTC)
INTC stock fell steeply today, losing 4%, as investors worried about the softness of the PC market and Intel’s positioning in the technology landscape of tomorrow. Integrated circuit-manufacturer Intersil (ISIL) reported weak third-quarter earnings and revenue, and its comments about high inventory levels and stagnant demand for PCs didn’t help the case for INTC stock.
Intel shares took a similar dive on Oct. 10 when fellow semiconductor company Microchip Technology (MCHP) warned of dark days ahead for the semiconductor industry, so investors should be reminded to consider Intel on its own merits and not the woes of its competitors.
National Oilwell Varco (NOV)
Shares of drilling equipment-maker National Oilwell Varco also fell Thursday, shedding 2.7% on the heels of its third-quarter earnings report. On the basis of the mainstream financial numbers alone, you’d expect NOV stock to be surging higher rather than losing ground: NOV handily beat both consensus earnings and revenue estimates.
Earnings per share came in at $1.76 against expectations for $1.53, while revenue of $5.58 billion exceeded Wall Street’s call for $5.48 billion. The price of oil, however, fell again today. Sitting around $81 a barrel, prices are more than 20% lower than their 52-week highs roughly four months ago.
Expect NOV stock to continue struggling if crude oil prices continue slipping.
Facebook (FB)
Finally, shares of social networking giant Facebook fell again on Thursday, slumping for a second straight day on the heels of FB’s third-quarter earnings report. While both revenue and earnings topped expectations — they rose 59% and 90%, respectively — the Menlo Park company projected far higher costs next year than investors were hoping for.
FB stock could also face headwinds from its $22 billion acquisition of the messaging service WhatsApp earlier this year, especially considering WhatsApp only generated $15 million in sales through the first half of 2014.
As of this writing John Divine held no positions in any of the stocks mentioned. You can follow him on Twitter at @divinebizkid.
